Usefulness of micro-business models in developing countries

Abstract

The richest and the poorest regions of the world are far apart on a number of key indicators: e.g., life expectancy, gender equity, education levels, economic and political stability, access to markets, health, and general quality of life. Many of these gaps between rich and poor countries are chronic and have been attributed to a lack of access to resources, which in turn causes low levels of individual "capabilities" (Sen, 1999). In recent years, greater attention has been given to differences in access to and use of information technology. This "digital divide" appears to be growing, particularly among the underrepresented (U.N.D.P., 2000). Many solutions and programs have been proposed to address these problems, but a current trend among agencies such as the United Nations (U.N.) and Non-Governmental Organizations (N.G.O.s) is to emphasize approaches that activate, educate, and empower the individuals living in poverty in ways that allow them to change their own circumstances. For example, a recent United Nations report on urban slums in developing nations states that the most effective programs are those that address the livelihoods of slumdwellers and get the slumdwellers actively involved in identifying their problems and implementing solutions (U.N.-Habitat, 2003). As a result, many programs attempt to develop and stimulate economic and market activity. © 2005 Springer Science + Business Media, Inc.