This book explores issues related to poverty in South Asia in a two-pronged manner—by focusing on injustice created and perpetuated by the unjust nature of a social order as its source and by providing concrete suggestions about how policymakers may move to challenge these injustices.
Drawing on research inputs from studies across various South Asian countries, the book redefines poverty as a process which excludes certain segments of the society from equitable participation in development opportunities as well as decision-making. It further identifies a variety of operational ideas which can be used by policymakers, political activists, and civil society advocacy groups committed to build a more just, inclusive and poverty free society in South Asia.
Chapter 4: Enhancing the Market Power of the Excluded: Sharing in Value Addition
Enhancing the Market Power of the Excluded: Sharing in Value Addition
The Political Economy of Value Addition
In all of South Asia, and indeed in most developing countries, markets impact adversely on the opportunities for the poor whether they are small farmers, landless labourers, micro-entrepreneurs or wage workers in garment factories. The market is not some abstraction working neutrally between all competitors, rich and poor. Markets in any country work according to the prevailing institutional arrangements which include asymmetrical access to information, resources and interface with the political economy governing the country.
The poor interface with the market economy largely as producers and service providers at the lower end of the production and market chains where they ...