The Benefit of Clout: How Connections Shape Prosperity

Abstract

weavers of Jaipur rugs are working diligently at looms set up outside their homes. Many of these homes are referred to by the names of the female artisans, even in areas where patriarchy and tradition run deep. Lively debates about designs and color choices take place among the artisans. Rajo Devi, who was trained in rug weaving, commented while on a visit to the Jaipur Rugs headquarters: “If we do good quality work, we can evolve from a mere laborer to a responsible artisan...Buyer needs are simple: he wants good quality, timely delivery, and good designs, and I am ready to give him that!” Nurturing connections between creators and customers is an important yet often overlooked aspect of addressing the persistent global problems of poverty and inequality. Efforts made by government, business, and philanthropy to address these issues often focus on gaps in skills or on increasing income through jobs programs. Most innovation occurs on the product and service side as a way to promote consumption, such as creating access to cell phones, microfinance, and other consumer products. Today, cell phones are in the hands of rich and poor alike, a global payment infrastructure is firmly in place, and access to consumer goods has improved significantly. However, inequality persists and is increasing in many parts of the world. The ongoing emphasis on fostering entrepreneurship is in part an acknowledgment of the limits of top-down approaches. As Peter Drucker once prophetically observed, “We are moving toward a society of THE BENEFIT OF CLOUT: HOW CONNECTIONS SHAPE PROSPERITY