All people deserve respect as consumers

Every person in the world should have access to the benefits of a global economy, something 80 percent of the earth's population does not enjoy, said the opening lecturer for the 19th annual Rev. Dr. Martin Luther King, Jr. Symposium.

While the 20th century was about political freedom, the 21st century will be about economic freedom Business School professor C.K. Prahalad said during the opening lecture of the 19th annual MLK Symposium.

C.K. Prahalad, the Paul and Ruth McCracken Distinguished University Professor at the Stephen M. Ross School of Business, said all people should be considered consumers and producers, regardless of their economic or social status.

"Every person should be treated as a consumer, be able to afford world-class products and services and have the ability shape their own experiences," Prahalad said during his Jan. 9 talk, Democratizing Commerce in the 21st Century: The Challenge for the 21st Century. "Consumers always get respect."

Prahalad said helping the planet's poorest citizens become consumers and producers fits with King's work to help the less fortunate.

"The Reverend King was a visionary and a thinker, but people often forget about his second goal," he said of the civil rights activist. "In his final years, he was actively focused on poverty."

Prahalad said while the 20th century was about political freedom, the 21st century will be about economic freedom. The challenge, he said, will be to convert 5 billion people who are not part of the market economy into consumers and producers.

"Change is required to see the poor not as a problem but as an opportunity," he said.

The building blocks already are in place, he said. The challenges are three-fold: creating the capacity for people to consume, including easy payments, access to credit, lower costs and direct distribution; creating the capacity for people to produce; and creating value in products and services.

Prahalad cited an example of how farmers in India used the Internet to access the Chicago Board of Trade (CBOT) Web site. Most of India's soybeans are exported, and the prices are driven by the CBOT. Many of the farmers made decisions on when to sell their crops based on CBOT statistics, he noted, because they had access.

Multinational corporations can be involved in making the transition happen, as well, he said. "Doing good and doing well are compatible goals," he said of companies that can help others in need while still pursuing their financial goals. "Equity and development also are compatible."

Making the transition will have four requirements: scale of operations, innovative high-tech solutions, new price-performance levels and sustainable development.

"We also need imagination, passion, courage, humanity, humility, intellect and luck," Prahalad said before showing a final slide featuring a group of poor children. "I ask, 'Do these children deserve our attention?'"

The University's celebration of King's life and mission continues throughout January. A list of more than 75 MLK-related events can be found at: www.mlksymposium.umich.edu.