Editor’s Note: This brief is part of the 2013 Brookings Blum Roundtable Policy Briefs, which details the role of the private sector in the post-2015 development agenda. Read the full policy brief here.
Market-based solutions have the potential to provide
goods, services and jobs for the poor at scale.
Success in microcredit and many exciting new ventures
have led to an explosive growth in expectations,
but the data on the ground are less rosy. Few models
are reaching scale. The reason is that these solutions
are tackling some of the world toughest problems in
difficult environments, and hence they both require
innovative solutions and must address ecosystem
barriers. Addressing these twin challenges requires
significant resources, time and persistence. There are
also high chances of failure, and even with success,
returns may be moderate. However, given the upside
in terms of social impact at scale, it is important to
support such solutions, and philanthropies and aid
donors have a vital role to play.