Download the Full Ebook and Access More Features - ebooknice.

com

(Ebook) Success in the Bottom of the Pyramid

Market in Africa: The Case of Multinational
Pharmaceutical Companies by Philipp von Carlowitz
ISBN 9783030590673, 9783030590680, 3030590674,
3030590682
https://ebooknice.com/product/success-in-the-bottom-of-the-
pyramid-market-in-africa-the-case-of-multinational-
pharmaceutical-companies-22497196

OR CLICK HERE

DOWLOAD EBOOK

Download more ebook instantly today at https://ebooknice.com

 Instant digital products (PDF, ePub, MOBI) ready for you
Download now and discover formats that fit your needs...

Start reading on any device today!

(Ebook) Biota Grow 2C gather 2C cook by Loucas, Jason; Viles, James ISBN
9781459699816, 9781743365571, 9781925268492, 1459699815, 1743365578, 1925268497

https://ebooknice.com/product/biota-grow-2c-gather-2c-cook-6661374

ebooknice.com

(Ebook) SAT II Success MATH 1C and 2C 2002 (Peterson's SAT II Success) by Peterson's
ISBN 9780768906677, 0768906679

https://ebooknice.com/product/sat-ii-success-math-1c-and-2c-2002-peterson-s-sat-
ii-success-1722018

ebooknice.com

(Ebook) Matematik 5000+ Kurs 2c Lärobok by Lena Alfredsson, Hans Heikne, Sanna
Bodemyr ISBN 9789127456600, 9127456609

https://ebooknice.com/product/matematik-5000-kurs-2c-larobok-23848312

ebooknice.com

(Ebook) Master SAT II Math 1c and 2c 4th ed (Arco Master the SAT Subject Test: Math
Levels 1 & 2) by Arco ISBN 9780768923049, 0768923042

https://ebooknice.com/product/master-sat-ii-math-1c-and-2c-4th-ed-arco-master-
the-sat-subject-test-math-levels-1-2-2326094

ebooknice.com
(Ebook) Cambridge IGCSE and O Level History Workbook 2C - Depth Study: the United
States, 1919-41 2nd Edition by Benjamin Harrison ISBN 9781398375147, 9781398375048,
1398375144, 1398375047

https://ebooknice.com/product/cambridge-igcse-and-o-level-history-
workbook-2c-depth-study-the-united-states-1919-41-2nd-edition-53538044

ebooknice.com

(Ebook) The fortune at the bottom of the pyramid by Prahalad, C. K ISBN

9780131467507, 9780137009275, 0131467506, 0137009275

https://ebooknice.com/product/the-fortune-at-the-bottom-of-the-pyramid-11935556

ebooknice.com

(Ebook) The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through
Profits by C.K. Prahalad ISBN 9780131877290, 0131877291

https://ebooknice.com/product/the-fortune-at-the-bottom-of-the-pyramid-
eradicating-poverty-through-profits-1767700

ebooknice.com

(Ebook) Global Business in Local Culture: The Impact of Embedded Multinational

Enterprises by Philipp Aerni ISBN 9783030037970, 9783030037987, 3030037975,
3030037983

https://ebooknice.com/product/global-business-in-local-culture-the-impact-of-
embedded-multinational-enterprises-7321386

ebooknice.com

(Ebook) Degraded Work : The Struggle at the Bottom of the Labor Market by Marc
Doussard ISBN 9780816685639, 0816685630

https://ebooknice.com/product/degraded-work-the-struggle-at-the-bottom-of-the-
labor-market-51274990

ebooknice.com
SPRINGER BRIEFS IN BUSINESS

Philipp von Carlowitz

Success in the Bottom

of the Pyramid
Market in Africa
The Case
of Multinational
Pharmaceutical
Companies

123
SpringerBriefs in Business
SpringerBriefs present concise summaries of cutting-edge research and practical
applications across a wide spectrum of fields. Featuring compact volumes of 50 to
125 pages, the series covers a range of content from professional to academic.
Typical topics might include:
• A timely report of state-of-the art analytical techniques
• A bridge between new research results, as published in journal articles, and a
contextual literature review
• A snapshot of a hot or emerging topic
• An in-depth case study or clinical example
• A presentation of core concepts that students must understand in order to make
independent contributions
SpringerBriefs in Business showcase emerging theory, empirical research, and
practical application in management, finance, entrepreneurship, marketing, opera-
tions research, and related fields, from a global author community.
Briefs are characterized by fast, global electronic dissemination, standard pub-
lishing contracts, standardized manuscript preparation and formatting guidelines,
and expedited production schedules.

More information about this series at http://www.springer.com/series/8860

Philipp von Carlowitz

Success in the Bottom

of the Pyramid Market
in Africa
The Case of Multinational Pharmaceutical
Companies
Philipp von Carlowitz
ESB Business School
Reutlingen University
Reutlingen, Germany

ISSN 2191-5482 ISSN 2191-5490 (electronic)

SpringerBriefs in Business
ISBN 978-3-030-59067-3 ISBN 978-3-030-59068-0 (eBook)
https://doi.org/10.1007/978-3-030-59068-0

© The Author(s) 2020

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the
material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,
broadcasting, reproduction on microfilms or in any other physical way, and transmission or information
storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this
book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.

This Springer imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Preface

Thinking about Africa the perspective is often that of poverty. At the same time, an
increasing interest in collaboration between development cooperation agencies and
private companies to strengthen the business activities on the African continent can
be observed. In this context, the question that constantly arises is how to directly
combine business activities with poverty alleviation. The belief that a lasting con-
tribution of private business to reducing poverty and raising living standards is only
possible with a profitable setup led to the question as to how business can create a
profitable business model with the poorer population segments, the bottom of the
pyramid (BoP). In order to make it relevant for business, the idea of an applied
research publication arose: Based on literature findings, practical success factors are
derived and a framework is developed that can be a guidance for companies
interested in addressing the bottom of the pyramid in Africa.
After some initial research, it became apparent that a for-profit logic in the context
of the bottom of the pyramid is not a very dominant perspective in research. Rather,
the focus lies on social and inclusive business models where profitability is of
secondary importance. Also, little focus was given to BoP business models in
Sub-Saharan Africa, as most literature and case studies focus on the South Asian
region. These two findings led to the idea for this book. The decision to choose the
pharmaceutical industry was a result of the relevance of health in the Sustainability
Development Goals and its high relevance for living standards of the poor popula-
tion. Also, some multinational pharmaceutical companies are already attempting to
address the bottom of the pyramid in Sub-Saharan Africa, which made it feasible to
add an empirical part to the analysis via expert interviews, thus enhancing the
practical approach of this book.
I want to thank Hannah Zedler, who conducted the interviews. Thanks also go to
the experts from the multinational pharmaceutical companies that made time for the
expert interviews, adding practical insights to the analysis. Further thanks go to the
team at Springer Publishers, namely Rocio Torregrosa and Daniel Jagadisan. For his
excellent proofreading I am grateful to Mike Seymour. Lastly I would like to thank
my family, who supported me during my work on this book.

v
Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 The Bottom of the Pyramid Concept . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 The Bottom of the Pyramid as a Population Segment . . . . . . . . . . 5
2.2 Characterizing the Bottom of the Pyramid Market
and Consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.3 Bottom of the Pyramid: Conceptual Developments . . . . . . . . . . . . 9
2.3.1 Bottom of the Pyramid Version 1.0 . . . . . . . . . . . . . . . . . . 9
2.3.2 Bottom of the Pyramid Version 2.0 . . . . . . . . . . . . . . . . . . 11
2.3.3 Bottom of the Pyramid Version 3.0 . . . . . . . . . . . . . . . . . . 13
2.3.4 Emerging Research Streams and Focus Topics . . . . . . . . . . 13
2.4 Criticism of the Bottom of the Pyramid Concept . . . . . . . . . . . . . . 15
2.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3 Business Models in the Bottom of the Pyramid Context . . . . . . . . . . 21
3.1 The Business Model Concept in Literature . . . . . . . . . . . . . . . . . . 21
3.2 Developing Business Models at the Bottom of the Pyramid . . . . . . 26
3.2.1 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
3.2.2 Value Generation: Creation and Delivery . . . . . . . . . . . . . 29
3.2.3 Value Capture and Revenue Model . . . . . . . . . . . . . . . . . . 31
3.2.4 Business Model Innovation and Adaptation for BoP
Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.3 Success Factors of Business Models in the Bottom
of the Pyramid Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.4 Challenges Addressing Bottom of the Pyramid Markets . . . . . . . . 39
3.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

vii
viii Contents

4 Political and Macroeconomic Situation in Sub-Saharan Africa . . . . . 49

4.1 Political and Social Overview and Outlook for Sub-Saharan
Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
4.2 Economic Situation and Outlook for Sub-Saharan Africa . . . . . . . . 54
4.3 Business Environment Conditions in Sub-Saharan Africa . . . . . . . 61
4.3.1 Distribution and Logistics . . . . . . . . . . . . . . . . . . . . . . . . 62
4.3.2 Access to Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4.3.3 Conditions Relevant When Localizing Business . . . . . . . . . 66
4.3.4 Conclusion on Doing Business Conditions . . . . . . . . . . . . 67
4.4 Bottom of the Pyramid in Sub-Saharan Africa . . . . . . . . . . . . . . . 68
4.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5 Healthcare System and Pharmaceutical Market in Sub-Saharan
Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.1 Healthcare System and Structure . . . . . . . . . . . . . . . . . . . . . . . . . 74
5.1.1 Healthcare Systems and Their Relevance . . . . . . . . . . . . . . 74
5.1.2 Healthcare Service System Availability and Readiness . . . . 75
5.1.3 Healthcare System Funding . . . . . . . . . . . . . . . . . . . . . . . 79
5.2 Pharmaceutical Market in Sub-Saharan Africa . . . . . . . . . . . . . . . 83
5.2.1 Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
5.2.2 Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
5.2.3 Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
5.2.4 Pharmaceutical Spending in the BoP . . . . . . . . . . . . . . . . . 87
5.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
6 Pharmaceutical MNCs Addressing the BoP Market: Empirical
Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
6.1 Methodology of Empirical Analysis . . . . . . . . . . . . . . . . . . . . . . . 96
6.2 Addressing the Bottom of the Pyramid: Business Model
and Success Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
6.2.1 Business in the BoP Market . . . . . . . . . . . . . . . . . . . . . . . 99
6.2.2 Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
6.2.3 Value Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
6.2.4 Value Capture and Revenue Model . . . . . . . . . . . . . . . . . . 102
6.2.5 Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
6.2.6 Inclusiveness and Localization . . . . . . . . . . . . . . . . . . . . . 106
6.3 Discussion, Recommendations, and Limitations of Empirical
Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
7 Conclusion, Conceptual Framework, and Future Research . . . . . . . . 113
7.1 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
7.2 Conceptual Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
7.3 Contribution and Future Research . . . . . . . . . . . . . . . . . . . . . . . . 118
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
About the Author

Philipp von Carlowitz teaches and researches at the ESB Business School of
Reutlingen University. Previously, he worked in various strategy functions at
BASF SE and Siemens AG. His research in strategic and international management
is applied, seeking theoretically and conceptually based practical insights that can
help companies and institutions to be successful. His main field of research is
business in Sub-Saharan Africa. He has published in this field on topics such as
distribution challenges in Africa, entrepreneurship in Africa, and doing business in
Africa. He has conducted studies on business in Africa that were published for
various government institutions such as the German Federal Ministry for Economic
Cooperation and Development, Austrian Federal Minister for Digital and Economic
Affairs, Austrian Development Agency, and the Austrian Economic Chambers
(WKO). He is also an advisor on Africa and general strategic management topics
to private companies, for example, Siemens AG, BASF SE, and B. Braun
Melsungen AG. He is a member of the scientific advisory board of the German-
African Business Association (Afrika-Verein der deutschen Wirtschaft) and the
International Trade Committee of the Chamber of Commerce Reutlingen.

ix
List of Abbreviations

AfDB African Development Bank

AHS African Health Strategy
bn billion
BoP Bottom of the pyramid
CAGR Compound annual growth rate
e.g. exempli gratia (‘for example’)
et al. et alia (‘and others’)
FDI Foreign direct investment
fob free on board
GDP Gross domestic product
giz Gesellschaft für international Zusammenarbeit
i.e. id est (‘that is to say’)
ICT Information and communication technology
IMF International Monetary Fund
IFPMA International Federation of Pharmaceutical Manufacturers &
Associations
KPI Key performance indicator
m million
MNC Multinational corporation
n.d. no date
p.a. per annum
PMPA Pharmaceutical Manufacturing Plan for Africa
PPP Purchasing power parity
SSA Sub-Saharan Africa
UN United Nations
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programme
UNECA United Nations Economic Commission for Africa
UNESCO United Nations Educational, Scientific and Cultural Organization
USD United States Dollar
VA Value-Added
xi
xii List of Abbreviations

WEF World Economic Forum

WHO World Health Organization
WTO World Trade Organization
List of Figures

Fig. 2.1 World income pyramid and characteristics of the BoP

population. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Fig. 2.2 BoP 1.0 versus BoP 2.0: From selling to the poor to business
co-venturing . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Fig. 3.1 Effects of institutional challenges along the value chain. . . . . . . . . . . . . . 30
Fig. 4.1 Regional split of GDP growth 2017–2021 (excl. Covid-19 effects).
(The forecasts are the pre-Covid-19 pandemic values provided by
the African Development Bank.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Fig. 4.2 Growth drivers of GDP by component 2000–2017 (CAGR). . . . . . . 56
Fig. 4.3 Economic structure by SSA region 2017 (share of sector value
added in GDP in %, constant USD basis). . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Fig. 4.4 Structural economic transformation by SSA regions 2000–2017
(percentage points difference in shares of sector value added in
GDP between 2000 and 2017, constant USD). . . . . . . . . . . . . . . . . . . . . . . 59
Fig. 4.5 BoP segments by population and income in SSA 2015
(USD, 2011 PPP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Fig. 5.1 Sources of healthcare funding as % of total health expenditure
2017. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 80
Fig. 5.2 Standard distribution model of the pharmaceutical industry in
Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Fig. 7.1 BoP business model prototype based on empirical analysis. . . . . . . . 116
Fig. 7.2 Literature and empirical results: mechanics of a BoP business
model. .. . .. . .. .. . .. . .. .. . .. . .. .. . .. . .. .. . .. . .. .. . .. . .. .. . .. . .. .. . .. . .. .. . . 116

xiii
List of Tables

Table 2.1 Misconceptions and the real nature of the BoP market . . . . . . . . . . . . . 10
Table 2.2 Overview of main research streams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 3.1 Selected business model definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 3.2 Constraints at the bottom of the pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Table 3.3 Business model innovation activities to address the BoP
market . .. . . . .. . . . .. . . .. . . . .. . . . .. . . . .. . . .. . . . .. . . . .. . . . .. . . .. . . . .. . . . .. . . 33
Table 3.4 Success factors for business in the BoP market in literature . . . . . . . 34
Table 4.1 Upcoming presidential elections in important SSA countries . . . . . . 51
Table 4.2 Operational doing business indicators in selected SSA
countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Table 4.3 Doing business indicators for localization in selected SSA
countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Table 5.1 General healthcare service readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Table 5.2 Healthcare services availability by type . . .. . . . . . .. . . . . . . .. . . . . . . .. . . . 78
Table 5.3 Pharmaceutical industry KPIs in selected SSA countries 2014 . . . . 84
Table 5.4 Household spending on healthcare and drugs: BoP versus middle
income 2010a . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . . . 89
Table 5.5 National versus urban household spending on drugs by BoP
segment 2010a . .. . . .. . . .. . . .. . . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . 90
Table 6.1 Development of the interview guideline and link to theory . . . . . . . . 97
Table 6.2 Coding system of the qualitative content analysis . . . . . . . . . . . . . . . . . . 98

xv
Chapter 1
Introduction

Sub-Saharan Africa (SSA) is one of the most dynamic regions in the world. This is
why companies worldwide have increasingly stepped up their activities on the
continent. At the same time, however, Africa is the continent with the highest
share of poor people worldwide. Global poverty remains a major issue with 10%
of the world’s population living on less than USD1.90 (PPP) and 26% living on less
than USD3.20 (PPP) per day in 2015. In Sub-Saharan Africa, the shares are even
higher, with 41% (421 m people) and 67% (678 m people), respectively, in 2017
(World Bank n.d.). This poverty situation has two effects: First, the world commu-
nity has agreed on the so-called Sustainability Development Goals (SDGs) 2030
which aim to alleviate poverty and improve the lives of the poor (UN 2015). Goal
3 of the SDGs (ensure healthy lives and promote well-being for all at all ages)
focuses on healthcare as a key component of a better life. This of course includes the
availability of medicines for the poor. Second, the high absolute poverty numbers
lead to a rising interest in the market segment of the poor population, the so-called
Bottom of the Pyramid (BoP) (defined in Sect. 2.1). Multinational companies in
particular see it as a new and untapped market (Hammond and Kramer 2007).
Addressing the Bottom of the Pyramid market is relevant to both the population
and companies: The BoP population obtains access to products that are otherwise not
accessible, helping them to improve their living conditions. For companies, the BoP
segment is a large market in terms of people that is widely untapped due to the
obstacles associated with the difficult business conditions. Various authors agree
that, in order to profitably tap the Bottom of the Pyramid market, a new and specific
business model is required, since the business environment and the customer profile
is too different compared to the Top of the Pyramid market segment (see London
2008; London and Hart 2004; Pitta et al. 2008; Prahalad and Hammond 2004; Seelos
and Mair 2007; Subrahmanyan and Gomez-Arias 2008). This is why Hart (2017),
despite the interest and attractiveness by population size, argues:

© The Author(s) 2020 1

P. von Carlowitz, Success in the Bottom of the Pyramid Market in Africa,
SpringerBriefs in Business, https://doi.org/10.1007/978-3-030-59068-0_1
2 1 Introduction

. . .most BoP ventures and corporate initiatives over the past decade have either failed
outright or achieved only moderate success at great cost. (Hart 2017)

Simanis and Duke (2014) agree with this assessment:

During the past decade, many multinationals have come up short trying to make a profit by
solving the pressing needs of low-income communities.

They, however, continue to state:

Profitably selling to the Bottom of the Pyramid is difficult, but can be done. (Simanis and
Duke 2014).

It is only in more recent literature, starting with Prahalad and Hart (1999) and
Prahalad and Hart (2002), that the concept of the Bottom of the Pyramid was
introduced. Kolk et al. (2014) note that many cases and examples used originate
from India and other emerging economies. A recent literature review by Dembek
et al. (2019) reveals the still-nascent state of research on the Bottom of the Pyramid,
especially with respect to Sub-Saharan Africa. Only a total of 279 peer-reviewed
papers (between 2002 and 2016) focused on the BoP, of which only 49 papers (18%
of total papers reviewed) dealt with the question of how multinational companies
(MNCs) can be successful in the BoP. Only 22 papers are empirical studies and
29 publications focus exclusively on Africa. Hence, in order to broaden the empirical
base, further research on the Bottom of the Pyramid in Africa is necessary.
This book will contribute to a number of gaps in the literature: It focuses on
MNCs, it deals with Africa, and it includes an empirical section. The book’s research
question is:
How can multinational pharmaceutical companies set up a profit generating business model
when addressing the BoP in Sub-Saharan Africa?

The investigation focuses on the case of multinational pharmaceutical companies

for three reasons: (1) Healthcare provision is one of the SDGs and thus of political
relevance; (2) some multinational pharmaceutical companies are already engaging in
activities to address the BoP market segment in Sub-Saharan Africa; and (3) phar-
maceuticals are products that allow for a variety of distribution approaches.
The challenge when writing about the Bottom of the Pyramid is the mix of
business issues on the one hand, and social impact and poverty alleviation on the
other. Usually, terms that come to mind when discussing the BoP are social
responsibility, aid, and inclusive business models. The focus is always on the
social/poverty side. However, Sinkovics et al. (2014) found that there does not
need to be an explicit “social” motive in a business venture targeting the BoP in
order to generate social impact: Addressing the BoP with a profit motive usually
results in some positive social effect. Thus, company profit and social benefit for the
BoP population are not contradictory. This book focuses on the pure business side,
trying to understand how a company can make a sustainable profit when addressing
the BoP.
The structure of this book is as follows: The first two chapters explain the concept
of the Bottom of the Pyramid concept in literature. Then the concept is combined
References 3

with the theoretical approach of business models. The question of business model
development in the BoP context is extensively discussed. Chapters 4 and 5 then set
the stage for the analysis of the pharmaceutical companies’ approach in Sub-Saharan
Africa: First, the overall situation and especially operational business conditions are
discussed. Second, the healthcare system and the pharmaceutical market conditions
are investigated. In Chap. 6, the results of all previous chapters are empirically
investigated and analyzed. The final chapter develops a conceptual framework as a
result of the literature analysis and the empirical study results. It provides some
recommendations to companies planning to engage at the Bottom of the Pyramid in
Sub-Saharan Africa.

References

Dembek K, Sivasubramaniam N, Chmielewski DA (2019) A systematic review of the bottom/base

of the pyramid literature: cumulative evidence and future directions. J Bus Ethics 1:1–18
Hammond AL, Kramer W (2007) The next 4 Billion: market size and business strategy at the base
of the pyramid. World Resources Institute, Washington, DC
Hart SL (2017) BoP 2.0: The next generation of strategy for the base of the pyramid. Corp
Stewardship:190–204
Kolk A, Rivera-Santos M, Rufín C (2014) Reviewing a decade of research on the “base/bottom of
the pyramid” (BOP) concept. Bus Soc 53:338–377
London T (2008) The base of the pyramid perspective: a new approach to poverty alleviation. Acad
Manag Proc 1:1–6
London T, Hart SL (2004) Reinventing strategies for emerging markets: beyond the transnational
model. J Int Bus Stud 35:350–370
Pitta DA, Guesalaga R, Marshall P (2008) The quest for the fortune at the bottom of the pyramid:
potential and challenges. J Consum Mark 25:393–401
Prahalad CK, Hammond AL (2004) Selling to the poor. Foreign Policy 142:30–37
Prahalad CK, Hart SL (1999) Strategies for the bottom of the pyramid: creating sustainable
development. Ann Arbor. https://www.researchgate.net/profile/Stuart_Hart4/publication/
268425222_Strategies_for_the_Bottom_of_the_Pyramid_Creating_Sustainable_Development/
links/555b2b3508aeaaff3bfc0f66/Strategies-for-the-Bottom-of-the-Pyramid-Creating-Sustain
able-Development.pdf. Accessed 18 Aug 2019
Prahalad CK, Hart SL (2002) The fortune at the bottom of the pyramid. Strat Bus 26:2–14
Seelos C, Mair J (2007) Profitable business models and market creation in the context of deep
poverty: a strategic view. Acad Manag Perspect 21:49–63
Simanis E, Duke D (2014) Profits at the bottom of the pyramid. Harv Bus Rev 92:86–93
Sinkovics N, Sinkovics RR, Yamin M (2014) The role of social value creation in business model
formulation at the bottom of the pyramid – implications for MNEs? Int Bus Rev 23:692–707
Subrahmanyan S, Gomez-Arias T (2008) Integrated approach to understanding consumer behavior
at bottom of pyramid. J Consum Mark 25:402–412
UN (2015) Transforming our world: the 2030 agenda for sustainable development. United Nations,
New York
World Bank (n.d.) World Development Indicator Database. https://data.worldbank.org/products/
wdi. Accessed 4 Aug 2018
Chapter 2
The Bottom of the Pyramid Concept

The Bottom of the Pyramid concept is not that old but has undergone some
significant discussion and change in perspective over the past 15 years since
Prahalad and Hart (1999, 2002) first introduced the concept. During that time the
understanding of what constitutes the BoP and how companies and scholars perceive
it has changed from a pure market/customer perspective to a partnering perspective
and has eventually gone beyond pure business topics. This chapter will first define
the Bottom of the Pyramid segment before discussing the development of the BoP
concept in literature and providing a critical assessment of the state of the BoP
discussion.

2.1 The Bottom of the Pyramid as a Population Segment

The Bottom of the Pyramid is a socioeconomic concept that constitutes the largest
but poorest population segment in the world. It forms the symbolic “base” of the
income pyramid that is below the emerging middle class and the wealthy class (see
Fig. 2.1).
London and Hart (2010) define BoP as the “low-income socio-economic segment
that is not well-integrated into the formal economy.” If the BoP is defined along
income lines the question as to the meaning of “low-income” arises. There is still no
consensus about the proper way to define the BoP (Dolfsma et al. 2009). According
to the World Bank, the BoP technically comprises individuals with an annual income
below USD2000 (in PPP). However, leading articles in academic and practitioner
discussion use a per capita income at below USD1500 or 2000 per annum (Agnihotri
2012; Collier 2007) or even less than USD2 per day (in 1993 PPP) as a definition
(Banerjee and Duflo 2007). Later, the authors started to segment the BoP sector into
different income levels (low income, subsistence, extreme poverty) (Rangan et al.
2011). For the purpose of this book, extreme poverty is excluded and the focus lies
on the upper two BoP segments (see Fig. 2.1).

© The Author(s) 2020 5

P. von Carlowitz, Success in the Bottom of the Pyramid Market in Africa,
SpringerBriefs in Business, https://doi.org/10.1007/978-3-030-59068-0_2
6 2 The Bottom of the Pyramid Concept

Fig. 2.1 World income pyramid and characteristics of the BoP population. Source: Own illustra-
tion, based on Banerjee and Duflo (2007) and Rangan et al. (2011)

The BoP is not to be confused with related terms such as “developing countries.”
Unlike the classification of states according to different criteria of economic and
social development, the BoP is characterized as a cross-national segment of the
population (Hahn 2009). Hence, people in industrialized countries can live in
poverty and also belong to the BoP. What is known about the BoP is usually a
composition of generalized statements. A common misconception is that the poor
are a homogeneous group that will buy anything as long as it is cheap and available.
In fact, characteristics vary enormously within and among countries and communi-
ties (Ahmed 2013). Besides the financial vulnerability, the Human Development
Report, published by the United Nations Development Program (UNDP 2005),
includes another three quantitative indices for a standard picture of “the poor”:
poor health status, gender inequity, and a high level of illiteracy. Narayan et al.
(2000) add “marginalization” as a characteristic of “the poor” as a result of their
qualitative field study. As Ahmed (2013) puts it:
The culture of poverty is the culture of marginalization. The golden rule, silence, means
survival. [. . .] They are reluctant to voice anger and disappointment to someone of a higher
class. Poor customers also react differently to where and how a product is sold.

The BoP population is located in urban and rural areas. The urban poor popula-
tion mostly lives in densely populated slum areas (Johnson 2007). In general, it has a
higher per-capita income than the rural BoP population. Their purchasing power,
however, is not necessarily higher, owing to above average living costs (Ireland
2008). The majority of people at the BoP live in scattered informal settlements in
rural areas and are usually excluded from modern global societies (Prahalad and
2.2 Characterizing the Bottom of the Pyramid Market and Consumers 7

Hammond 2002). The urban BoP is considered to be a more accessible market for
companies as it is less dispersed than the rural BoP. The differentiation between rural
versus urban BoP population is characterized by a greater distance to economic
centers, wider dispersion, higher poverty levels, more widespread illiteracy, and
even greater heterogeneity (Ireland 2008).
Management literature saw little potential for business engagement with the poor
for a long time due to this challenging environment and the limited economic
resources of the poor (Kolk et al. 2014). However, initial estimates of the size of
this population segment put it at 4–5 billion people, that is nearly two-thirds of the
world’s population, spending an estimated USD5 trillion per annum (Mohr et al.
2012; Prahalad 2005). These figures make the BoP as a group an interesting target
customer segment. However, for companies, it is difficult to address the BoP due to
its fragmentation, low per capita purchasing power, and challenging logistical
access. Prahalad and co-authors like Hart and Hammond attracted considerable
attention when they claimed that there was a profit to be made in BoP markets
despite difficult business conditions. In their articles, the authors propose possible
courses of action for companies to succeed in these underserved markets while
simultaneously helping to alleviate poverty (Hahn 2009).

2.2 Characterizing the Bottom of the Pyramid Market

and Consumers

Researchers agree that the BoP market exhibits entirely different characteristics to
high-income markets (Galariotis et al. 2011; Gold et al. 2013; Hart and Christensen
2002). Tarafdar et al. (2011) emphasize the significant limitation of consumption and
choice of goods because of the dependence on informal markets, which usually have
lower quality and higher prices, as the major problems for the poor. Also, the effort
they must make in order to obtain goods and services in comparison to higher
income groups is greater (Hammond and Kramer 2007). Consumers at the BoP are
uniquely dependent on local distributors or other intermediaries who are likely to
exploit them by controlling prices (Klein 2008; Sachs et al. 2004; Whitehead et al.
2001). Thus, various obstacles impede the efforts of the people at the BoP to improve
their standard of living (Banerjee and Duflo 2007). In literature, authors refer to this
as the “poverty trap” (Karnani 2005; Prahalad 2005).
In their book, Prahalad and Hammond (2002) describe the consequences of the
poverty trap as being significant unmet needs of the poor. They have no means to
meet basic needs, no access to modern financial services, and no access to formal
competitive markets (Prahalad 2005; Prahalad and Hammond 2002; Schuster and
Holtbrügge 2012). Contrary to popular opinion, the lack of essential goods such as
food and clean water is no reason for multinational corporations to avoid the BoP
market. Instead, Prahalad (2005) describes the unmet needs of the people at the BoP
as an attractive business opportunity because of the size of this population segment
8 2 The Bottom of the Pyramid Concept

(see Sect. 2.1). Although individuals own few economic resources each, it adds up to
a USD5 trillion global consumer market that has remained more or less untapped so
far (Hammond and Kramer 2007; Kuttalam 2012; Soto 2000). As others have
pointed out, the BoP potentials discussed might be lower for most goods and
services as poor consumers spend up to 80% of their income on necessities, leaving
little disposable income for other offerings (Karnani 2007b). The result of all this is a
“BoP dilemma” for managers: The total BoP market is of significant size but is
spread across a large number of people and a fragmented population with low
individual purchasing power. Hence, it is hard to address this market.
In the early literature, the perception was that there was one type of BoP
consumer defined by a low income. Studies have recently challenged this perception.
Authors have empirically argued that, while affordability is a defining variable for
BoP consumers, additional variables such as the level of education, number of
children, and age help to segment the BoP consumers further (Janda et al. 2018).
In their study on South Africa’s BoP Lappeman et al. (2019) find that a significant
number of variables characterizing BoP consumers is country-specific in addition to
the generic characteristics of BoP buyers. The general criteria for BoP consumers
which they extract from literature are low income, vulnerability, high level of
illiteracy, strong sense of community and partnership, (mobile) connectivity, con-
cern about dignity and self-esteem, significant brand consciousness, and low trust in
large (multinational) companies. Other authors add that BoP consumers do not
usually have a constant and predictable revenue stream, live in relative isolation
that creates (sub-)cultures different from other consumer segments, and exhibit
strong social bonds (Chikweche and Fletcher 2012; Kuo et al. 2016). These differ-
entiated views on BoP consumers are supported by an early study by Subrahmanyan
and Gomez-Arias (2008). They investigated BoP consumer behavior in the context
of Maslow’s pyramid of needs. The results showed that consumers in the BoP
market purchase products beyond “survival and physiological needs” and are willing
to pay relatively higher prices for some goods that increase their social standing (e.g.,
education) or that are higher quality products (“luxury”). In the latter case, they are
willing to purchase smaller volumes, in smaller packaging, in order to have access to
these products. Another study showed that the role of brands in buying decisions
might not be very different between BoP consumers and customers from higher
income segments (Nagy et al. 2019). The highest spending increase in BoP con-
sumption was on information and communication technology, which is a “higher
order need.” Much BoP consumption is social capital based, meaning it relates to
social standing and maintaining social ties. Using the 4-P framework that is well
known in marketing the authors find that successfully sold products are adapted by
simplifying usage and packaging size. The pricing can be higher than expected,
especially for products beyond the survival level. The willingness to pay for
premium quality and products or services with high social capital exists at the
BoP. Affordability, however, remains an issue. In terms of sales outlets, BoP
consumers buy from local markets or neighborhood stores that mostly have an
informal character. Promotion channels are billboards and word-of-mouth since
the usual channels, like TV, are not feasible due to their lack of availability
2.3 Bottom of the Pyramid: Conceptual Developments 9

(Chikweche and Fletcher 2012; Subrahmanyan and Gomez-Arias 2008). The

authors conclude that localization is helpful when addressing the BoP:
[. . .]building bonds with community and higher order needs such as self-esteem and self-
fulfillment lead to greater productivity and profit opportunities. (Subrahmanyan and Gomez-
Arias 2008)

These different characteristics of BoP consumers as opposed to higher income

consumers have an impact on the requirements for a strong value proposition in BoP
markets (see Sect. 3.1). Addressing the BoP market is thus more complex than
merely dealing with customers’ low purchasing power. A significant amount of
(local) knowledge and understanding is required to set up a successful business. This
realization is reflected in the shift of perception on BoP in the academic discourse.
Management literature refers to the different views as the “BoP concept” (Kolk et al.
2014).

2.3 Bottom of the Pyramid: Conceptual Developments

Since its initial articulation (Prahalad and Hammond 2002) interest in gaining new
insights about business at the BoP has continued to grow. An increasing number of
authors have contributed to the understanding of the BoP concept. After nearly two
decades of research, authors make a distinction between the “BoP Version 1.0” and
“BoP Version 2.0” which were more recently supplemented by a “BoP 3.0” to
structure existing literature (Caneque and Hart 2015). This chapter describes the
evolution of the understanding of the Bottom of the Pyramid concept and how it has
changed over time.

2.3.1 Bottom of the Pyramid Version 1.0

Initially BoP researchers proposed the idea that the entire private sector, but multi-
national corporations (MNCs) in particular, can further multiply their profits by
tapping into the underserved BoP markets (Olsen and Boxenbaum 2009). Enter-
prises can capture attractive business opportunities at the BoP in a way that, at the
same, time helps to alleviate poverty. Prahalad (2006) underpins this declaration by
refuting and correcting widely accepted assumptions about the poor. A low income
does not eliminate market processes. Even poor households use money or labor to
meet basic needs and collectively they may offer a profitable scale of market-serving
opportunities (Gupta and Khilji 2013). Three common misconceptions about the
BoP are shown in Table 2.1.
In contrast to these misconceptions, the nature of the BoP market segment is that
it is open for new technologies, that consumption rates are high (little saving), that
consumers value quality while, at the same time, remaining price-sensitive due to
10 2 The Bottom of the Pyramid Concept

Table 2.1 Misconceptions and the real nature of the BoP market
Misconception about the BoP Nature of the BoP market Author
People at the BoP are neither People at the BoP accept Prahalad (2006)
interested nor can afford latest advanced technology rapidly.
technologies/products/services This is evidenced by the fast
spread of wireless devices
People at the BoP use their People at the BoP are more Prahalad and Hammond
savings to meet basic needs concerned about their current (2002)
consumption rather than savings
for their future. They tend to
indulge in buying products from
their disposable income
People at the BoP are not People at the BoP are brand- and Nagy et al. (2019),
brand-conscious value-conscious by necessity. Prahalad (2006), and
They expect good quality at an Subrahmanyan and
affordable price Gomez-Arias (2008)
Source: Own illustration

their low-income levels. Thus, the authors conclude that the BoP offers business
opportunities for private companies despite the individual low level of income.
The BoP population is active in informal systems. Therefore, before businesses
can address BoP markets they need to create a (formal) market at the BoP
and develop commercial infrastructure and institutions (Prahalad 2005; Prahalad
and Hammond 2004; Prahalad and Hart 2002). From the perspective of Prahalad and
Hart (2002), four strategic elements are relevant: (1) Create buying power, (2) shape
aspirations, (3) improve access, and (4) local solutions are necessary. The elements
are required to develop the BoP market by nurturing local markets and cultures,
leverage local solutions, and generate wealth at the BoP (Prahalad and Hart 2002).
These elements mutually influence each other. As Dolan and Roll put it:
[. . .] business constitutes and develops the BoP, making the unknown frontier of ‘unusable’
Africa into a viable market for global capital. (Dolan and Roll 2013)

They draw up four steps to achieve this market development: (1) Identifying
problems faced by the BoP population, (2) creating legitimacy, e.g., by partnering
with an NGO, (3) describing proposed beneficiaries in the BoP segment, that is
creating a customer profile and focusing on the need/benefit to be created, and
(4) developing the market, creating consumers out of people, which implies creating
customer aspirations and desires. This is fully in line with the arguments of Calton
et al. (2013) who—as proponents of BoP 2.0—see this as only being achievable in a
networked approach that integrates the BoP (see below).
The core of BoP version 1.0 is that this population segment is a large customer
base that allows for high volumes, low prices, but low business margins. The
by-product is a contribution to reducing poverty levels. From a business perspective,
this implies adjusting the business approach in order to better address this customer
segment in a profitable manner. Authors have expanded this purely sales/market
perspective to a more cooperative approach.
2.3 Bottom of the Pyramid: Conceptual Developments 11

2.3.2 Bottom of the Pyramid Version 2.0

A fast evolution of the BoP concept from the original emphasis on doing business
with the poor to a broader, more strategic, framework can be noticed (Collier 2007;
Kolk et al. 2014). More and more authors questioned key assumptions of the BoP
concept 1.0 and raised justified concerns about the viability of MNCs taking a lead
role in poverty alleviation (Agnihotri 2012; Bendell and Kearins 2005; Jenkins
2005; Karnani 2005; London and Hart 2004; Rollert 2011). Above all, Karnani
(2005) is regarded as the main critic of Prahalad’s work, calling the BoP concept “at
best a harmless illusion and potentially a dangerous illusion [. . .].” In his analysis, he
refutes the assumptions in BoP version 1.0 where the population is only seen as
customers. He instead proposes viewing the poor as producers and emphasizes
buying from them rather than selling to them. Other scholars also demanded a
revised and more thorough examination of “the idea that MNC might simultaneously
drive profit and mitigate poverty” (Simanis 2013) since this has not become a reality
in his point of view.
This criticism led to the development of the BoP concept that requires an
embedded process of co-creation (Simanis et al. 2008). As it was put:
[. . .] we must caution that creating a fortune with rather than at the base of the pyramid
requires more than merely changing a turn of phrase. (Calton et al. 2013)

The BoP community is thus regarded as an equal business partner who can be
involved in value generation along the entire value chain, either as producer,
distributor, or service provider, that opens up new possibilities to redesign value
generation (see Sect. 3.1) (London and Hart 2011). New innovative approaches on
how to address the BoP markets can be found by engaging in deep dialog with the
poor (Simanis et al. 2008). This may help to ensure a business model that is
culturally appropriate and sustainable. Further, there is a call to collaborate not
only with the local people but also with NGOs and organizations on site with
experience in BoP markets (Prahalad 2012). All this broadens the range of roles
that the BoP population can play for business while raising the number of stake-
holders, adding to the complexity. In literature, this new, inclusive approach is
referred to as BoP 2.0 (Byerlee et al. 2007; Gold et al. 2013; Simanis et al. 2008;
Tata et al. 2013). Figure 2.2 compares the perspective shift from BoP 1.0 to 2.0.
Reviewing the work of BoP 2.0 scholars, three strategic elements are described
that facilitate successful business in BoP markets. These are:
1. Integrating BoP customers and local entrepreneurs to co-create products or
services: This is based on the commonly accepted assumption that companies
are likely to lack resources, knowledge, and expertise in the BoP environment.
Cultural factors, in particular, are easily overlooked without local expertise
during the development process. It is necessary to involve the local community
in order to enable the business model development of suitable solutions for those
markets (Schuster and Holtbrügge 2014).
12 2 The Bottom of the Pyramid Concept

Fig. 2.2 BoP 1.0 versus BoP 2.0: From selling to the poor to business co-venturing. Source: Own
illustration, based on Simanis et al. (2008)

2. Cooperating with non-traditional stakeholders such as NGOs: Partner with stake-

holders that have expertise in overcoming obstacles in the BoP context such as
the lack of adequate infrastructure or the high rate of corruption (London and Hart
2004). Without cooperation, companies are not able to create suitable products
while minimizing costs and risks (Schuster and Holtbrügge 2012).
3. Building local capacity by improving the market conditions of low-income
markets: Invest in the external business environment, which includes educating
the local population, building local infrastructure, and creating employment
(London and Hart 2004).
However, the assumption that, for instance, SMEs at the BoP are suitable partners
to cooperate with international companies has been contested (Kowalkowski et al.
2013). It was stated that BoP entrepreneurs and individuals focus on survival and not
on business growth as such (Ausrød et al. 2017). Calton et al. (2013) point out that a
deep understanding of the BoP market and a multi-faceted stakeholder network is
key to dealing with these challenges and to building a successful business at the BoP.
They strongly argue for an integrated and cooperative business model. Bendul et al.
(2017) find that integrating BoP stakeholders in the distribution activities of the BoP
market is the most promising field for inclusiveness.
To sum up, BoP 2.0 is more concerned with cooperation between business and
the BoP population going beyond the pure customer perspective of BoP 1.0. It is
about creating a market—from generating the product or service all the way to
selling it—as opposed to just “exploiting” it. A focus lies on stronger embeddedness
in the BoP in order to understand and co-create suitable approaches: BoP as a
2.3 Bottom of the Pyramid: Conceptual Developments 13

partner, not just as a customer. This is in line with the idea of “inclusive” business
models (see for instance UNDP 2013).

2.3.3 Bottom of the Pyramid Version 3.0

More recently another shift in the thinking about BoP markets has occurred, which
some authors call BoP 3.0. It adds the component of sustainability and shifts the
focus more on the topic of (social and environmental) value creation and ethical
behavior toward the poor (Dembek et al. 2019). It has also been dubbed the “Sharing
Fortune with BoP” idea (Borchardt et al. 2019). This is a shift away from a pure
business focus. The idea of inclusiveness is pushed further by emphasizing the
capacity for innovation and entrepreneurship and the sharing of knowledge across
all stakeholders. By adding goals such as sustainability and ethics, the number of
stakeholders increases, leading to even more complex and sophisticated cross-sector
partnership structures between businesses, governments, NGOs, and civil society in
general (van der Merwe et al. 2017). This stream of research is very recent and shifts
the focus of analysis to a multidimensional definition of poverty and how companies
addressing the BoP can contribute to alleviating it (Dembek et al. 2019).
Very recently a new version 4.0 has been proposed. It focuses on multinational
companies. The acknowledgment of multinational companies having modern,
ample, and significant resources leads to the idea that these should be deployed to
tap into the BoP. It is meant to enable BoP firms to contribute to the MNC’s BoP
business by being viable partners, providing their local skills and knowledge
(Borchardt et al. 2019). It remains to be seen whether it will become a new stream
of thinking on the BoP.

2.3.4 Emerging Research Streams and Focus Topics

Apart from the pivotal work (Hart 2007; Prahalad and Hammond 2004; Simanis
et al. 2008) that has shaped the term BoP and influenced the development of the
general idea, many different subtopics have emerged. Many researchers have
worked independently in niche areas. Besides the conceptual work, three further
interrelated domains broadly shape today’s academic discussion about business at
the BoP. They are: Business as a means to achieve (international) economic devel-
opment, a focus on specific individual business activities, and data-based analysis of
the BoP as a market. These domains supplement the conceptual literature on the BoP
(see Table 2.2).
One area that has been developed further, mainly by London (2007a, b), inves-
tigates the BoP as a tool for economic development primarily to support poverty
alleviation. Like many other sociologists and organizational theorists in this field, the
14 2 The Bottom of the Pyramid Concept

Table 2.2 Overview of main research streams

Main research streams Leading publications
Conceptual work Strategies for the Bottom of the Pyramid: Creating Sustainable
Development. (Prahalad and Hart 1999)
Serving the World’s Poor, Profitably. (Prahalad and Al Hammond
2002)
Fortune at the Bottom of the Pyramid. (Prahalad 2005)
Capitalism at the Crossroads. (Hart 2007)
Misfortune at the Bottom of the Pyramid. (Karnani 2005)
The Great Leap: Driving Innovation from the BoP. (Hart and
Christensen 2002)
The Base of the Pyramid Protocol: Beyond “Basic Needs” Busi-
ness Strategies. (Simanis et al. 2008)
BoP as means for economic Reinventing Strategies for Emerging Markets. (London and Hart
development 2004)
Base-of-the-pyramid Perspective on Poverty Alleviation. (London
2007a)
The role of social value creation in business model formulation at
the bottom of the pyramid—Implications for MNEs? (Sinkovics
et al. 2014)
Redefining Corporate Social Responsibility. (Porter et al. 2007)
BoP business activities in Meeting Urgent Needs with Patient Capital. (Novogratz 2007)
practice Connecting the Rural Poor to the World: Grameen’s Village
Phone in Bangladesh. (London 2007a, b)
Doing Well By Doing Good: “Fair & Lovely” Whitening Cream.
(Karnani 2007a)
Unilever in India—Rural Marketing Initiatives. (Nagarajan 2006)
Business Basics at the Base of the Pyramid. (Akula 2008)
Is the bottom of the pyramid really for you. (Karamchandani et al.
2011)
Socially responsible distribution: Distribution strategies for
reaching the bottom of the pyramid. (Vachani and Smith 2008)
BoP market research and The Next 4 Billion: Market Size and Business Strategy at the Base
data of the Pyramid. (Hammond et al. 2007)
Africa: A continent of opportunity for pharma and patients. (Holt
et al. 2015)
Source: Own illustration

author calls for more accountability and more market-based approaches to develop-
ment (London et al. 2010; London and Hart 2004).
Another strand of BoP research has turned to practical business topics. Investi-
gations on the adaptation of the BoP approach with regard to specific operational
issues such as adequate financing (Novogratz 2007), new distribution models
(Vachani and Smith 2008), or design of BoP initiatives (Karamchandani et al.
2011) have become increasingly popular. A noteworthy trend that is being captured
here is social capital investment opportunities such as microfinancing. Other papers
address the push for innovative products that meet the needs of those living at the
BoP (Karamchandani et al. 2011).
2.4 Criticism of the Bottom of the Pyramid Concept 15

Far fewer publications are dedicated to market research and quantification of the
market(s). The most remarkable work that estimates the size and composition of
various BoP markets is the previously quoted “The next 4 Billion” (Hammond and
Kramer 2007).

2.4 Criticism of the Bottom of the Pyramid Concept

The size of the BoP market was initially estimated to be 4 billion people and up to
USD5 trillion (in PPP the value is estimated to be USD13 trillion) (Prahalad 2006).
This has been assessed to be an overestimation since the household consumption
figures of USD2 per day were said to be too high. The market size drops to USD1.2
trillion with a BoP population of 2.7 billion when assuming USD1.25 consumption
spending (Karnani 2005). Using World Bank data, it was shown that the initial
4 billion population estimate for the BoP that could profitably be addressed is too
high since it includes people living on less than USD1 per day (extreme poverty).
Ignoring these very poor—which is in line with the approach of this book (see Sect.
2.1)—the number of addressable BoP population is nearly halved (Jaiswal 2008).
This discussion shows the problems still surrounding the concept of the BoP itself:
The divergence of definitions appearing in the literature results in confusion about
what the BoP actually is. Consequently, studies are focusing on very different target
populations and settings. Kolk et al. (2014) emphasize that authors need to be clear
regarding their definition since blurred usage is likely to result in generalizations that
make results questionable. The lack of accuracy has, in turn, fueled criticism of BoP
research, especially by Karnani (2007a), who claims that most BoP initiatives
discussed do not target the BoP but rather the emerging middle class in developing
countries.
Others (Bonsu and Polsa 2011; Simanis 2011) agree with Karnani’s (2005)
criticism of business models operating at the BoP as theoretically and conceptually
ambiguous. Simanis (2013) argues that the BoP is not yet a functioning market.
There is no real marketplace for most products launched at the BoP, and companies
fail to create the market which requires different strategies than common go-to-
market approaches. This can be interpreted as a criticism of the one-sided focus of
BoP 1.0 approaches. Others (Kolk et al. 2014) call for a realistic impact assessment
to answer whether private organizations can alleviate poverty by doing business or
whether it is even possible to gain a profit. Some researchers are skeptical and rather
see MNCs’ business operations to be just a new way of exploitation that does little to
eradicate poverty but potentially hurts small businesses (Landrum 2007; Rashid and
Rahman 2009; Warnholz 2007). Research still has to provide evidence-based
answers.
The initial authors saw the possibility of creating a profitable business model for
the BoP while reducing poverty (Prahalad 2006). Later this was questioned based on
higher costs to serve the poor, specific BoP consumption behavior, and difficult
access. It was also pointed out that there is a lack of empirical evidence to prove the
16 2 The Bottom of the Pyramid Concept

point of profitable business (Agnihotri 2012; Jaiswal 2008; Karnani 2005). There is
ample room to investigate, in detail and empirically, the actual potential to generate a
profit when doing business with the BoP. To this end, more case studies on BoP
business models are called for in research. Tashman and Marano (2010) emphasize
that authors should begin to empirically analyze beneficial strategies that can be
obtained from case studies. On this matter, Landrum (2007) disapproves of the fact
that studies tend to ignore business failures. He highlights the obligation to study real
failures in order to investigate the shortcoming of approaches. Simanis (2013) points
out that researchers get too caught up with stunning theories and theoretical concepts
without considering the pressure on managers to meet (global) sales targets.
Ramachandran et al. (2012) and Nakata (2012) add that only a few scholars have
investigated organizational structures, functional routines, and management prac-
tices that enable companies to establish business activities in BoP markets.
Many questions remain unanswered despite the growing academic interest in BoP
markets. After almost two decades of research, the literature is only just beginning to
understand the trade-offs that may exist between profitability, social impact, and the
impact on the environment (Kolk et al. 2014). A better understanding of these
interactions seems to be a crucial task for future research. Along this line, Schuster
and Holtbrügge (2014) draw attention to the lack of empirical studies that apply
sound theoretical frameworks. This is a regularly identified and major research gap.
Existing BoP literature predominantly consists of conceptual observation-based
research, whereas only a few publications are based on large-sample data. Findings
are often derived from a few case studies that cannot be applied universally (Kolk
et al. 2014). By analyzing successful case studies, scholars focused on finding
solutions related to buying (Omar et al. 2011), distributing (Vachani and Smith
2008), and marketing (Sheth 2011; van der Klein et al. 2012) at the BoP. There is a
shortage of systematic and comprehensive studies of what a business model should
look like as opposed to individual business activities.

2.5 Conclusion

Academic discussions with regard to BoP are ongoing and roughly 20 years old. The
circumstances in which BoP customers live are very different to those of the
conventional customer groups typically targeted by multinational companies. Also,
the question as to whether the BoP population segment is already a market, or first
needs to be developed, is under discussion. Consensus exists that the headcount
potential and the total value of this market is large, albeit dispersed and difficult to
address for companies.
The literature is still fragmented and lacks coherent and comprehensive concepts
for a profitable business. The discussion on BoP evolved from seeing the segment
purely as consumers to cooperation with the BoP, and finally to the need to include
ethics and sustainability into the business approach. Still, much of the literature sees
the “doing business at the BoP” as just a means to the end of poverty alleviation
References 17

(inclusive business model, social business models). In this book the perspective is
more straightforward: It investigates how multinational companies can actually
create a profitable business model when addressing the BoP markets in SSA.
Based on the findings of this chapter, the book will contribute to the academic and
practical discussion around BoP in two ways:
1. It will focus on “how” to reach the BoP customer segment, which is the question
about a working business model. The BoP conceptual logic will combine ele-
ments of BoP 1.0 and BoP 2.0 literature.
2. The analysis will broaden the empirical basis in BoP literature, which is still
lacking, by conducting a qualitative empirical study with the aim to understand
how multinational pharmaceutical companies manage to reach the BoP in
Sub-Saharan Africa.
The following chapter will introduce the business model concept with a clear
focus on the BoP context.

References

Agnihotri A (2012) Revisiting the debate over the bottom of the pyramid market. J Macromark
32:417–423
Ahmed FE (2013) The market at the bottom of the pyramid: understanding the culture of poverty.
Perspect Glob Dev Technol 12:489–513
Akula V (2008) Business basics at the base of the pyramid. Harv Bus Rev 86:53–57
Ausrød VL, Sinha V, Widding Ø (2017) Business model design at the base of the pyramid. J Clean
Prod 162:982–996
Banerjee A, Duflo E (2007) The economic lives of the poor. J Econ Perspect 21:141–167
Bendell J, Kearins K (2005) The political bottom line: the emerging dimension to corporate
responsibility for sustainable development. Bus Strateg Environ 14:372–383
Bendul JC, Rosca E, Pivovarova D (2017) Sustainable supply chain models for base of the pyramid.
J Clean Prod 162:107–120
Bonsu SK, Polsa P (2011) Governmentality at the base-of-the-pyramid. J Macromark 31:236–244
Borchardt M, Ndubisi NO, Jabbour CJC, Grebinevych O, Pereira GM (2019) The evolution of base
of the pyramid approaches and the role of multinational and domestic business ventures: value-
commitment and profit-making perspectives. Indus Market Manag. https://www.sciencedirect.
com/science/article/abs/pii/S0019850119300574. Accessed 9 July 2020
Byerlee D, Janvry AD, Sadoulet E, Townsend R, Klytchnikova I (2007) World Development
Report 2008. Agriculture for development. World Bank, Washington, DC
Calton JM, Werhane PH, Hartman LP, Bevan D (2013) Building partnerships to create social and
economic value at the base of the global development pyramid. J Bus Ethics 117:721–733
Caneque FC, Hart SL (eds) (2015) Base of the Pyramid 3.0: Sustainable development through
innovation and entrepreneurship. Routledge, Oxon
Chikweche T, Fletcher R (2012) Revisiting the marketing mix at the bottom of pyramid (BOP):
from theoretical considerations to practical realities. J Consum Mark 29:507–520
Collier P (2007) The bottom billion: why the poorest countries are failing and what can be done
about it. Oxford University Press, Oxford
de Soto H (2000) The mystery of capital: why capitalism triumphs in the west and fails everywhere
else. Bantam Press, Berkshire
Discovering Diverse Content Through
Random Scribd Documents
fourth only of these to be females and as fruitful as their mother,
they will give birth to 40,000 caterpillars for the second generation;
and for the third, supposing all things equal, four millions of
caterpillars. It is not surprizing, therefore, that they are found so
numerous in years that are favourable to their propagation. But the
Creator of all things has for our sakes limited this abundant
multiplication, and wisely ordained, that those species which are the
most numerous shall have the greatest number of enemies, who,
though constantly employed on the destruction of individuals, are
unable to effect that of the species; by which means an equilibrium
is preserved, and no one species preponderates. Few insects live
long after their last transformation, but their species are continued
by their amazing fecundity; their growth is completed, and their
parts hardened sooner than those of larger animals, and the
duration of their existence is proportionably limited. There are,
however some species of flies which lie in a torpid state during the
winter, and revive with the returning warmth of spring.

OF THE FOOD OF INSECTS.

There are few, if any, productions either of the animal or

vegetable kingdoms, which do not supply some kind of insect with
food. They may, therefore, be considered under two heads, those
which live on vegetables, and those which are supported by animal
food; each insect knows that which is proper to sustain its life,
where to seek it, and how to procure it. I have already observed,
that several insects, when arrived at a state of perfection, feed after
their transformation upon food totally different from that which
nourished them in their larva state.
Among those which feed on vegetables, some sink themselves in
the earth, and by destroying the roots of the plants, do considerable
injuries to our gardens. The food of others is dry and hard; they
pierce the wood, reduce it to powder, and then feed on it; some, as
the cossus, attack and destroy the trees, while the food of others
more delicate is the leaves. The leaf is eaten in a different manner
by different insects; some eat the whole substance, while others
feed only on the parenchymous parts, which are contained between
its superficial membranes, forming withinside the leaf paths and
galleries. These insects are not always content with the leaf, but
attack the flower also: even this food is too gross for many; the bee,
the butterfly, the moth, as well as several species of flies, feed only
on the honey, or finer juices, which they collect from flowers. We are
continually finding the larva of some insect in pears, plumbs,
peaches, and other fruit; these unwelcome intruders on the produce
of human industry divide fruits, grain, and corn with us, often
depriving us of large quantities. There is, indeed, no part of a plant
which does not serve as food to different insects; some have one
kind of plant marked out for them to inhabit and feed on, others
have another assigned to them, on which, and no other, they will
feed; each has its appropriate food, and though the parent animal
eats not at all, or lives upon food entirely different, yet she is
guided, as has before been observed, to deposit her eggs on that
peculiar shrub or plant that will be food for her young; while some,
more voracious than the rest, feed upon all with equal avidity; but in
countries less cultivated than our own, their annoyance and
devastations are terrible. The gryllus migratorius, a few years since,
poured out of Tartary in such quantities, as to lay waste a great part
of Europe, producing almost unequalled calamities, swarming in
such multitudes as to cloud the air and cover the ground, mocking
human power and craft; wherever they settled, all verdure
disappeared, and the summer fruitfulness was turned into winter
desolation; in Sweden the cattle perished with hunger, and the men
were forced to abandon their country, and fly to the neighbouring
regions.[87] The far greater part feed only, however, on one species
of plant, or at most on those which are similar to it, and the same
species may always be found on the same plant. Reaumur says, that
the caterpillar which infests and feeds upon the cabbage, destroys in
twenty-four hours more than twice its weight. If larger animals
required a proportionable quantity, the earth would not afford
sufficient nourishment for its inhabitants.
 [87] Select Dissertations from the Amœnitates Academicæ, vol. I, p. 398.
A great number of insects reject vegetable, and live on animal
food; some seeking that which is beginning to putrefy, while others
delight in food entirely putrid; others again are nourished by the
most filthy puddles, and disgusting excrements; some attack and
feed on man himself, while others are nourished by his provision, his
cloaths, his furniture: some prey upon insects of another species;
others, again, attack their own, and harrass each other with
perpetual carnage. Reaumur informs us, that those insects which
feed upon dead carcases never attack living animals; the flesh-fly
deposits her eggs in the bodies of dead animals, where her progeny
receive that nourishment best adapted for them; but this fly never
attempts to lay her eggs in the flesh of sound and living animals.
Every animal has its appropriate lice, which feed on and infest it.
M. Rhedi has given an accurate account of a great number of these
little noxious creatures accompanied with figures; but, as if it were
not sufficient that these creatures should dwell and live on the
external part of the body, and suck the blood of the animal that they
infest, we find another species of insects seeking their food in the
more vital parts, and feeding on the flesh of the animal, while full of
life and health. Reaumur has given an history of a fly, oestrus bovis,
the larva of which lives upon the backs, and feeds on the flesh of
young oxen and cows, where it produces a kind of tumor. The fly
lodges its eggs in the flesh, by making a number of little wounds, in
each of which it deposits eggs, so that every wound becomes a nest,
the eggs of which are hatched by the heat of the animal. Here the
larvæ find abundant food, at the same time that they are protected
from the changes of the weather; and here they stay till they are fit
for transformation. The parts they inhabit are often easy to be
discovered by a kind of lump or tumor, which they form by their
ravages; this tumor suppurates, and is filled with matter; on this
disgusting substance the larvæ feed, and their heads are always
found plunged in it.[88]
[88] The obscure and singular habitations of the British oestri are the stomach
and intestines of the horse, the frontal and maxillary sinuses of sheep,
 and beneath the skin of the backs of horned cattle. In other parts of the
world they inhabit various other animals.
The larva of the oestrus bovis lives beneath the skin of horned cattle,
between it and the cellular membrane, in a proper sack or abcess,
which is rather larger than the insect, and by narrowing upwards opens
externally to the air by a small aperture. When arrived at its full growth,
it effects its escape from the abcess by pressing against the external
opening; when the opening has thus obtained the size of a small pea,
the larva writhes itself through, and falls from the back of the animal to
the ground; and, seeking a convenient retreat, becomes a chrysalis, in
which state it continues from about the latter end of June to about the
middle of August; the perfect insect, on leaving the chrysalis, forces
open a very remarkable marginated triangular lid or operculum. The
oestrus in its perfect or fly state is the largest of the European species
of this genus, and is very beautiful. Although its effects on the cattle
have been so often remarked, yet the fly itself is rarely seen or taken,
as the attempt would be attended with considerable danger. The pain it
inflicts in depositing its egg is much more severe than in any of the
other species: when one of the cattle is attacked by this fly, it is easily
known by the extreme terror and agitation of the whole herd; the
unfortunate object of the attack runs bellowing from among them to
some distant part of the heath, or the nearest water, while the tail, from
the severity of the pain, is held with a tremulous motion straight from
the body, in the direction of the spine, and the head and neck are also
stretched out to the utmost. The rest, from fear, generally follow to the
water, and disperse to different parts of the field. The larvæ of this
insect are mostly known among the country people by the name of
wornuls, wormuls, or warbles, or more properly bots.
The larva of the oestrus equi is very commonly found in the stomach of
horses. These larvæ attach themselves to every part of the stomach,
but are generally most numerous about the pylorus; and are sometimes
found in the intestines. They hang most commonly in clusters, being
fixed by the small end to the inner membrane of the stomach, to which
they adhere by two small hooks or tentacula. The larvæ having attained
their full growth in about a month, on dropping to the ground find some
convenient retreat, change to the chrysalis, and in about six or seven
weeks the fly appears.
The larva of the oestrus hæmorrhoidalis resembles in almost every
respect that of the oestrus equi, and occupies the same situation in the
stomach of the horse. When it is ripe, and has passed through the
intestines and the sphincter ani it assumes the chrysalis state in about
two days, and in about two months the fly appears.
 The generally received opinion has been that the female fly enters the
anus of the horse to deposit its eggs, and Reaumur relates this
circumstance on the authority of Dr. Gaspari; from the account of its
getting beneath the tail, it is probable that the fly he saw was the
hippobosca equina, which frequently does this: its getting within the
rectum appears to have been additional. That a fly might deposit its
eggs on the verge of the anus is not impossible, but we know no
instance of it: the fact is, that the part chosen by the oestrus
hæmorrhoidalis for this purpose is the lips of the horse, which is very
distressing to the animal from the excessive titillation it occasions; for
he immediately after rubs his mouth against the ground, his fore legs,
or sometimes against a tree, or if two are standing together, they often
rub themselves against each other. At the sight of this fly, the horse
appears much agitated, and moves its head backward and forward in
the air to baulk its touch, and prevent its darting on the lips; but the fly,
watching for a favourable opportunity, continues to repeat the
operation; till at length, the enraged animal endeavours to avoid it by
galloping away to a distant part of the field. If still pursued, its last
resource is in the water, where the oestrus is never observed to follow
him.
The oestrus veterinus is by Linnæus called nasalis, from an idea of its
entering the nostrils of the horse to deposit its eggs, which it could not
well do without destroying its wings, and is therefore probably as much
a fable as the “mire per anum intrans” of the oestrus hæmorrhoidalis.
The oestrus ovis is mostly found in the horns and frontal sinuses of the
sheep, though it has been remarked that the membranes lining these
cavities were hardly at all inflamed, while those of the maxillary sinuses
were highly so; from which it is suspected that they inhabit the
maxillary sinuses, and crawl, on the death of the animal, into these
situations in the horns and frontal sinuses. When the larvæ are full-
grown they fall through the nostrils, and change to the pupa state, lying
on the earth, or adhering by the side to a blade of grass. The fly bursts
the shell of the pupa in about two months.
The above concise account of the different oestri is extracted from the
excellent paper on the subject by Mr. B. Clark, F. L. S. For his more
ample description, accompanied with coloured figures of the several
British species, see Transactions of the Linnean Society, vol. iii. page
283-329, just published. Edit.
Neither the larva, pupa, or even the egg-state of some insects are
exempt from the attacks of others, who deposit their eggs in them;
these, after having passed through the usual transformations,
become what is termed the ichneumon fly. The following are the
curious observations of an ingenious naturalist on this fly. “As I was
observing,” says he, “one day some caterpillars which were feeding
voluptuously on a cabbage leaf, my attention was attracted to part of
the plant, about which a little fly was buzzing on its wing, as if
deliberating where to settle: I was surprized to see the herd of
caterpillars, creatures of twenty times its size, endeavouring in an
uncouth manner, by various contortions of the body to get out of its
way, and more so whenever the fly poised on the wing as if going to
drop; at length the creature made its choice, and seated itself on the
back of one of the largest and fairest of the cluster; it was in vain
the unhappy reptile endeavoured to dislodge the enemy. If the
caterpillar had shewn terror on the approach of the fly, its anguish at
intervals now seemed intolerable, and I soon found that it was in
consequence of the strokes or wounds given by the fly. At every
wound the poor caterpillar wreathed and twisted its whole frame,
endeavouring to disengage itself, by shaking off the enemy,
sometimes aiming its mouth towards the place; but it was all in vain;
its little, but cruel tormentor kept its place. When it had inflicted
thirty or forty of these wounds, it took its flight with a visible
triumph; in each of these wounds the little fly had deposited an egg.
I took the caterpillar home with me, to observe the progress of the
eggs which were thus placed in its body, taking care to give it a
fresh supply of leaves from time to time; it recovered to all
appearance in a few hours from the wounds it had received, and
from that time, for the space of four or five days, seemed to feed
with its usual avidity. The eggs were all hatched into small oblong
voracious worms, which fed from the moment of their appearance
on the flesh of the caterpillar, in whose body they were inclosed, and
seemingly without wounding the organs of respiration or digestion;
and when they had arrived at their full growth, they eat their way
out of the sides of the animal, at the same time destroying it. The
caterpillar thus attacked by the larva of the ichneumon never
escapes, its destruction is infallible; but then its life is not taken
away at once; the larva, while it is feeding thereon, knows how to
spare the parts which are essential to its life, because its own is at
that time tied up in that of the caterpillar. No butterfly is produced
from it; the worms that feed on the wretched creature, are no
sooner out of its body, than every one spins its own web, and under
this they pass the state of rest necessary to introduce them to their
winged form.”[89] To treat of each species of the ichneumon would
alone fill a volume; Linnæus enumerates no less than seventy-seven
of them.[90]
[89] Inspector, No. 64.
[90] “The genus of insects called ichneumon derive their support and
nourishment from other insects, some depositing their eggs in the larva,
others again in the pupa, and some even in the ovum or egg itself, the
contents of which, minute as they are, are sufficient to support the
young larvæ until their change into their pupa state. Some deposit only
one egg in a place, as the ichneumon ovulorum, and others again a
great number, as ichneumon puparum, &c. but whether the egg be
placed in the pupa, larva, or ovum, the destruction of the foster parent
is inevitable. The larvæ of large moths or butterflies that have been
wounded by an ichneumon, live and feed, though with evident marks of
disease, until those parasites are full fed, and able to change into their
second or pupa state.” See Observations on the Œconomy of the
Ichneumon Manifestator, in the Transactions of the Linnean Society, vol.
3, p. 23 & seq. by T. Marsham, Esq. Sec. L. S. Edit.
Of this strange scene it is difficult for us to form a proper
judgment; we are unacquainted with the organs of the caterpillar,
ignorant of the nature of its sensations, and therefore we cannot be
assured what may be the effects of that which we see it suffer. “It is
wisdom to suppose we are ignorant, while we know the Creator
cannot be cruel.” From revelation we learn, that man is the mean
through which life is conveyed to the creatures of this lower world;
that by sinking into error, and fostering evil, he perverts his own life,
and corrupts all that which proceeds from him: so that the effects
are the same on the orders beneath him, as would arise to the world
if a continual cloud was placed between us and the sun, depriving us
at once of the salutary effects of its invigorating heat and cheering
light. Hence there is in this degraded world an obscure and
melancholy shade cast over all the beauties of creation.
 Lastly, the number of insects which feed upon others, nay, some
even upon their own species, is very great: it is among these that
we find the traces of the greatest art and cunning, as well in attack
as defence; some indeed use main force alone. Most persons are
acquainted with the dexterous arts of the spider, the curious
construction of the web he spins, and the central position he takes,
in order to watch more effectually the least motion that may be
communicated to its tender net. Those who wish to pursue this
subject further, will find ample satisfaction by consulting the works
of Reaumur and De Geer.

OF THE HABITATION OF INSECTS.

Insects may be divided, with respect to their habitations, into two

classes, aquatic and terrestrial.
Stagnant waters are generally filled with insects, who live therein
in different manners. These are, 1. Aquatic insects which remain
always on the superficies of the water, or which at least plunge
themselves therein but rarely. 2. Others that live only in the water,
and cannot subsist out of it. 3. Many, after having lived in the water
while in the larva and pupa state, quit it afterwards with wings, and
become entirely terrestrial. 4. Some undergo all their
transformations in the water, and then become amphibious. 5.
Others again are born and grow in the water, but undergo their pupa
state on dry land, and after they are arrived at their perfect state,
live equally in air and water; and 6. There are some who live at the
same time part in the water and part on land, but after their
transformation cease to be aquatic.
Among the insects which remain on the superficies of the water,
are some spiders, which run with great address and agility, without
moistening their feet or their body; when they repose themselves,
they extend their feet as much as possible. There are also aquatic
bugs, which swim, or rather run on the water with great velocity,
and by troops; another bug walks very slowly on the water; the
gyrinus moves very swiftly, and in circles. There is a species of
podura[91] which live in society, and are often accumulated together
in little black lumps. Those insects which always live in the water are
generally born with the figure which they retain during their whole
lives, as the monoculi, crabs, several kinds of water mites, &c.
[91] De Geer Discours sur les Insectes, tom. 2, p. 103.
Those insects which, after having lived in the water, leave it when
in a winged state, are very numerous: among these we may reckon
the libellula, the ephemera, the phryganea, culices, tipulæ, and
some species of muscæ. All these, when in the larva and pupa state,
live in the water; but when they have assumed their perfect form,
are entirely terrestrial, and would perish in their former element.
The notonecta, the nepa or aquatic scorpion, &c. never quit the
water till they have passed through all their transformations, when
they become amphibious, generally quitting it in the evening.
The water-beetles, of which there are many species, remain in the
water all day, but toward evening come upon the ground and fly
about, then plunge themselves again in the water at the approach of
the rising sun. The larvæ of these insects are entirely aquatic, but
when the time of their pupa state arrives, they take to the earth,
where they make a spherical case; so that these insects are aquatic
in the larva, terrestrial in the pupa, and amphibious in the imago
state.
We find an instance of an insect that lives at the same time in the
water and the air, in the singular larva described by Reaumur,
Memoires de l’Acad. in 1714, p. 203. It has the head and tail in the
water, while the rest of the body is continually kept above the
surface. In order to support itself in this singular position, it bends
the body, bringing the head near the tail, raising the rest above the
water, and supporting itself against some fixed object, as a plant, or
against the borders of the pond; or, if it be placed in a glass vessel,
against the sides of the vessel; and if the glass be inclined gently, so
that the water may nearly cover the larva, it immediately changes its
position, in order that part of the body may be kept dry.
At the baths of Abano, a small town in the Venetian state, there is
a multitude of springs, strongly impregnated with sulphur, and of a
boiling heat. In the midst of these boiling springs, within three feet
of four or five of them, there is a tepid one about blood-warm. In
this water, not only the common potamogetons and confervas, or
pond-weeds and water-mosses are found growing in an healthy
state, but numbers of small black water beetles are seen swimming
about, which die on being taken out and plunged suddenly into cold
water.[92]
[92] Jones’s Physiological Disquisitions, p. 171.
Many insects that live under the surface of the earth crawl out on
certain occasions, as the julus, scolopendra, and the oniscus; they
are often also to be found under stones, or pieces of rotten wood.
Some insects remain under ground part of their life, but quit that
situation after their change; as do some caterpillars, many of the
coleoptera class, &c. There are some species of spiders, which form
habitations in sand; one of which makes a hole in the sand, lining it
with a kind of silk, to prevent its crumbling away; this spider
generally keeps on the watch near the mouth of the hole, and, if a
fly approach, runs at it with such velocity, as seldom to fail in its
attempt of seizing the little animal, which is immediately conveyed to
the den of the spider. The formica-leo, or ant-lion, also inhabits
sand.[93]
[93] The art and dexterity with which the formica-leo entraps ants, as well as
other insects, merits notice; he makes a pit in fine dry sand, shaped like
a funnel or an inverted cone, at the point or reverted apex of which he
takes his station, concealing every part of his body except the tips of his
two horns; these are expanded to the two sides of the pit. When an
insect treads on the edge of this precipice, it perhaps slides into it; if
not, its steps remove a little of the sand, which of course descends
down the sides, and gives the enemy notice of his prey. He then throws
up the sand with which his head is covered, to involve the insect, and
bring it to the bottom with the returning force of the sand: this, by
repeated efforts he is sure to effect, as all the attempts of the
unfortunate victim to escape, when once within the verge of the pit, are
in vain. One species of the formica-leo forms no pit to entrap its prey,
but seizes it by main force. Edit.
Another spider, discovered by M. l’Abbe Sauvage,[94] burrows in
the earth like a rabbit, making a hole one or two feet deep, of a
regular diameter, and sufficiently large to move itself with ease. It
lines the whole of it, either to keep the ground from tumbling in, or
in order to perceive more regularly at the bottom what happens at
the mouth, at which it forms a kind of door, made of different layers
of earth, connected together by threads and covered with a strong
web of a close texture; the threads are prolonged on one side, and
fixed to the ground, so as to form a strong joint; the door is hung in
such a manner, as always to fall by its own gravity. One of these
cases or nests is in her Majesty’s cabinet at Kew.
[94] Histoire de l’Acad. 1758, p. 26.
The several parts of trees and plants afford a variety of habitations
for insects, where they find an abundance of food. They dwell, l. in
the roots; 2. in the wood; 3. in the leaves, and in the galls which
grow upon them and the branches; 4. in the flowers; 5. in the fruits
and grains. To enumerate the various species of these inhabitants
would be endless; many particulars have been already noticed; it
has also appeared that some inhabit the most fœtid substances they
can find, while others dwell with and live on the larger animals; so
that it only remains just to mention some of those in whom industry
and art is more strongly marked to our eyes than in others.
Among the solitary bees there are so many curious circumstances
to be described, that a single volume would not suffice to contain
the particulars; we shall here only relate such as concern their
habitations. One of these forms its nest under ground, which is
composed of several cells artfully let into each other, but not covered
with a common inclosure; each cell consists of two or three
membranes, inexpressibly fine, and placed over each other. The
cavity, in which the nest is placed, is smeared over with a layer of
matter, like that of which the cells are formed, and apparently similar
to the viscous humour which snails spread in their passage from one
place to another, and it is probable that they are formed of the same
materials; this substance, though of so delicate a nature, gives them
such a degree of consistency, that they may be handled without
altering their form. An egg is deposited at the bottom of each cell,
where, after it is hatched, the worm finds itself in the midst of a
plentiful stock of provision; for in each cell there is placed a quantity
of paste, or a kind of wax, which is to serve as food for the worm,
and support the wall of the cell. The worm is also instructed so to
conduct itself, and eat this food, as to leave sufficient props for
supporting the walls of its apartment. Many species of these bees
content themselves with penetrating into the earth, scooping out
hollow cavities therein, polishing the walls, then depositing an egg
and a sufficient quantity of provisions.
There is another species, that forms its nest under ground with
remarkable industry; this bee generally makes a perpendicular hole
in the earth about three inches deep, and cylindrical, till within about
three-fourths of an inch of the bottom, when it begins to enlarge; as
soon as the bee has given it the suitable proportions, it proceeds to
line not only the whole inside of its dwelling, but round the entrance;
the substance with which it is lined is of a crimson colour, and looks
like satin. From this circumstance Reaumur[95] terms it the tapestry
bee. This tapestry or lining is formed of fragments of the flowers of
the wild poppy, which she cuts out curiously, and then seizing them
with her legs, conveys them to her nest. If the pieces are wrinkled,
she first straightens and then affixes them to her walls with
wonderous art; she generally applies two layers of these fragments
one over the other. If the piece she has cut and transported be too
large for the place she intends it for, she clips off the superfluous
parts and conveys the shreds out of the apartment. After the bee
has lined her cell, she fills it nearly half an inch deep with a paste
proper to nourish the larva when hatched from the egg; when the
bee has amassed a sufficient quantity of paste, she then takes her
tapestry, and folds it over the paste and egg, which are by these
means inclosed as it were in a bag of paste; this done, she fills up
with earth the empty space that is above the bag. There is another
bee which does the same with rose-leaves, and in the substance of a
thick post. A friend of mine had a piece of wood cut from a strong
post that supported the roof of a cart-house, full of these cells or
round holes, three-eighths of an inch in diameter, and about three-
fourths deep, each of which was filled with these rose-leaf cases
finely covered in at top and bottom.
 [95] Reaumur Memoires pour l’Histoire des Insectes, edit. 8vo. tom. 6, partie
1, p. 170.
The mason bee is so called by Reaumur from the manner of its
building its nest. These bees collect with their jaws small parcels of
earth and sand, which they glue together with a strong cement
furnished from the proboscis; and of this they form a simple but
commodious habitation, which is generally placed along walls that
are exposed to the south. Each nest resembles a lump of rude earth,
of about six or seven inches diameter, thrown against the wall; the
labour of constructing so large an edifice must be very great, as the
bee can only carry a few grains at a time. The exterior form is rude
and irregular, but the construction and art exhibited in the interior
parts make up for this seeming defect; it is generally divided into
twelve or fifteen cells, separated from each other by a thick wall; in
each of these an egg is deposited by the parent bee. The cells are
not constructed all at once, for when one is finished, she places an
egg therein, with a sufficient quantity of honey to nourish the larva;
she then builds another. When the insect is arrived at a proper state,
it penetrates through its inclosures by means of its strong jaws.
When all the bees have quitted the nest, there are as many holes on
the surface thereof as there are cells within. We find no neutral bees
among this species, or at least we do not know of any being yet
discovered.
Another species of the solitary bee (apis centuncularis, Linn.)
constructs her nest in pieces of rotten wood, and has therefore been
called the carpenter bee.[96] She divides it into stages, disposing
them sometimes in three rows, with partitions curiously left between
each; in these she deposits her eggs, with the food necessary for
the young ones when hatched. They separate the wood in a very
expeditious manner, by dividing its ligneous fibres or threads, till
they have made a proper sized hole.
[96] Geoffroy Hist. abregee des Insectes, tom. 2, p. 401.
The art and sagacity displayed by another bee,[97] whose nest is
constructed of single pieces of leaves, is truly wonderful. The nest
itself is cylindrical, formed of several cells, placed one within the
other, as thimbles are in a hard-ware shop. The cells consist of
several pieces cut from one leaf, of forms and proportions proper to
coincide with the place each is intended to occupy. The outer case or
cover is formed with equal care and exactness. In a word, says
Bonnet, there is so much exactness, symmetry, uniformity, and skill,
in this little master-piece, that we should not believe it to be the
work of a fly, if we did not know at what school she learnt the art of
constructing it. In each cell the mother deposits an almost liquid
substance, and yet so nicely are the cells formed, as not to suffer
any of this substance to be lost. But for a minute account of the
works of this bee, and the curious mechanism of its cells, we must
refer the reader to Reaumur’s admirable history of insects.
[97] Reaumur Memoires pour l’Histoire des Insectes, tom. 6, par. 1, p. 122.
The proceedings of the mason ichneumon wasp,[98] sphex, Linn.
are totally different from those of the common wasp, though equally
curious. It generally begins its work in May, and continues it for the
greatest part of June. The true object of her labour seems to be the
digging of a hole a few inches deep in the ground; yet in the
constructing of this, she forms a hollow tube above ground, the base
of which is the aperture of the hole, and which is raised as high
above ground as the hole is deep below; it is formed with a great
deal of care, resembling a gross kind of fillagree work, consisting of
the sand drawn from the hole. The sand out of which she excavates
her cell, is nearly as hard as a common stone; this it readily softens
with a penetrating liquor with which she is well provided; a drop or
two of it is imbibed immediately by the sand on which it falls, which
is instantly rendered so soft, that she can separate and knead it with
her teeth and fore feet, forming it into a small ball, which she places
on the edge of the hole as the foundation stone of the pillar she is
going to erect; the whole of it is formed of such balls, ranged
circularly, and then placed one above the other. She leaves her work
at intervals, probably in order to renew her stock of that liquor which
is so necessary for her operations. These intervals are of short
duration; she soon returns, and labours with so much activity and
ardour, that in a few hours she will dig a hole two or three inches
deep, and raise a hollow pillar two inches high. After the column has
been raised a certain height perpendicular from the ground, it begins
to curve a little, which curvature increases till it is finished, though
the cylindrical form is maintained: she constructs several of these
holes all of the same form, and for the same purpose. It is easy to
see why the hole was dug in the ground; that it was destined to
receive an egg; but it is not so easy to perceive why the tube of
sand was formed. By attending to the labours of the wasp, one end,
however, may be discovered; it will be found to serve the purpose of
a scaffold, and that the balls are as useful to the wasp, as materials,
&c. to the mason; and are therefore placed as much within her
reach as possible. She uses them to stop and fill up the hole after
she has deposited an egg therein, so that the pillar is then
destroyed, and not the least remains left in the nest. The parent
wasp generally leaves ten or twelve worms as provision necessary
and proper for the growth of the young larva: no purveyor could
take better precautions than our wasp, for she has received her
instructions from HIM who provides for the necessities of all his
creatures. In selecting the worms, she chooses those of a proper
size, that they may be sufficient in quantity, and of an age that will
not be in danger of perishing with hunger, in which case they would
have been corrupted; she therefore selects them when they have
their full growth. It is also observed, that if she choose a larger sort,
she gives a less number of them, and so reciprocally.
[98] Reaumur Mem. pour l’Histoire des Insectes, tom. xi. par. 2, p. 9.
From a retrospect view of this chapter, we may observe a striking
difference between man and the lower orders of animal creation.
Man is born totally ignorant; so much so, that he has no knowledge
even of the mother’s breast, till he has been brought acquainted
with it by repeated trials; he has no innate ideas, is unable to choose
what is proper for his food; he cannot form his voice to any
articulate pronunciation, or to express the affections of love;
whereas the quadruped, the bird, and the insect, are born to all that
knowledge which is necessary for the gratification of those desires or
that love which forms their life; and, consequently, in the knowledge
of every thing relating to their well-being, their food, their
habitations, the commerce of the sexes, their provision for their
young, &c. from the impulse of the pleasure arising from these
innate desires and affections, the larva is also prompted to seek and
aspire after a change of its earthly state. If it were not foreign to the
subject in hand, it might be easy to shew, by a variety of reasons,
that this imperfection of man at his nativity constitutes his real
perfection, and places him infinitely, if I may so speak, above the
brute creation; for man is not created relatively perfect, but formed
a recipient of all perfection.

OF THE TERMITES, GENERALLY CALLED WHITE ANTS.

As no insects exceed the termites in their wonderful œconomy,

wise contrivances, and stupendous buildings, it will be proper to give
the reader some account of them; which I am enabled to do from
the excellent paper written by the late Mr. Smeathman, and
published in the Philosophical Transactions for the year 1781, part 1.
The termites are represented by Linnæus as the greatest plagues
of both Indies, and are indeed justly deemed so every where
between the tropics, on account of the vast damages sustained
through them in consequence of their eating and perforating
wooden buildings, utensils, furniture, &c. which are totally destroyed
by them if not timely prevented; for no substance less hard than
metal or stone can escape their most destructive jaws.
These insects have been noticed by various travellers in different
parts of the torrid zone; where numerous, as is the case with all
equinoctial continents, and islands not fully cultivated, many persons
have been excited by curiosity to observe them; and, indeed, those
devoid of that disposition must have been very fortunate, if, after a
short residence, they were not compelled to pay them attention for
the preservation of their property. They make their approaches
chiefly under ground, descending below the foundations of houses
and stores, at several feet from the surface, and rising again either
in the floors, or entering at the bottoms of the posts of which the
sides of the buildings are composed, boring quite through them,
following the course of the fibres to the top, or making lateral
perforations and cavities here and there as they proceed.
While some are employed in gutting the posts, others ascend from
them, entering a rafter, or some other part of the roof. If they once
find the thatch, which seems to be a favourite food, they soon bring
up wet clay, and build their pipes or galleries through the roof in
various directions, as long as it will support them; sometimes eating
the palm-tree leaves and branches of which it is composed, and
perhaps, for variety seems very pleasing to them, the rattan, or
other running plant, which is used as a cord to tie the various parts
of the roof together, and that to the posts which support it. Thus,
with the assistance of the rats, who during the rainy season are apt
to shelter themselves there, and to burrow through it, they very
soon ruin the house, by weakening the fastenings, and exposing it to
the wet. In the mean time the posts will be perforated in every
direction as full of holes as that timber in the bottoms of ships,
which has been bored by the worms; the fibrous and knotty parts,
which are the hardest, being left to the last.
These insects are not less expeditious in destroying the shelves,
wainscotting, and other fixtures of an house, than the house itself.
They are continually piercing and boring in all directions, and
sometimes go out of the broadside of one post into that of another
adjoining to it; but they prefer and always destroy the softer
substances the first, and are particularly fond of pine and fir boards,
which they excavate and carry away with wonderful dispatch and
astonishing cunning; for, except a shelf has something standing
upon it, as a book, or any thing else which may tempt them, they
will not perforate the surface, but artfully preserve it quite whole,
and eat away all the inside, except a few fibres which barely keep
the two sides connected together; so that a piece of an inch-board,
which appears solid to the eye, will not weigh much more than two
sheets of pasteboard of equal dimensions, after these animals have
been a little while in possession of it. In short, the termites are so
insidious in their attacks, that we cannot be too much upon our
guard against them: they will sometimes begin and raise their
works, especially in new houses, through the floor. If you destroy
the work so begun, and make a fire upon the spot, the next night
they will attempt to rise through another part; and if they happen to
emerge under a chest or trunk, early in the night will pierce the
bottom, and destroy or spoil every thing in it before the morning. On
these accounts the inhabitants set all their chests or boxes upon
stones or bricks, so as to leave the bottoms of such furniture some
inches above the ground, which not only prevents these insects
finding them out so readily, but preserves the bottoms from a
corrosive damp, which would strike from the earth through, and rot
every thing therein: a vast deal of vermin also would harbour under,
such as cockroaches, centipedes, millepedes, scorpions, ants, and
various other noisome insects.
It may be presumed that they have obtained the name of ants
from the similarity in their manner of living with those insects, which
is in large communities, that erect very extraordinary nests, for the
most part on the surface of the ground; from whence their
excursions are made through subterraneous passages or covered
galleries, which they build whenever necessity obliges, or plunder
induces them to march above ground, and at a great distance from
their habitations, carry on a business of depredation and destruction
scarce credible but to those who have seen it; but, notwithstanding
they live in communities, and are, like the ants, omnivorous; though,
like them, at a certain period they are furnished with four wings, and
emigrate or colonize at the same season, they are by no means the
same kind of insects, nor does their form correspond with that of
ants in any one state of their existence.
The termites resemble the ants, indeed, in their provident and
diligent labour, but surpass them, as well as the bees, wasps,
beavers, and all other animals, in the art of building, as much as
Europeans excel the most uncultivated savages. They shew more
substantial instances of ingenuity and industry than any other
animals; and do, in fact, lay up vast magazines of provisions and
other stores; a degree of prudence which has of late years been
denied, perhaps without reason, to the ants.
 The communities consist of one male and one female, which are
generally the common parents of the whole or greater part of the
rest, and of three orders of insects, apparently very different
species, but really the same, which together compose great
commonwealths or rather monarchies.
The great Linnæus having seen or heard of but two of these
orders, has classed the genus erroneously, for he has placed it
among the aptera, or insects without wings; whereas the insect in its
perfect state, having four wings without any sting, belongs to the
neuroptera; in which class it will constitute a new genus of many
species.
The different species of this genus resemble each other in form, in
their manner of living, and in their good and bad qualities, but differ
as much as birds in the manner of building their habitations or nests,
and in the choice of the materials of which they compose them.
There are some species which build upon the surface of the
ground, or part above and part beneath; and one or two species,
perhaps more, that build on the stem or branches of trees.
There are of every species of termites three orders: 1. The
working insects, which for brevity we shall call labourers. 2. The
fighters or soldiers, which do not labour; and 3. The winged or
perfect insects, which are male and female, and capable of
propagation. From these the kings and queens are chosen, and
nature has so ordered it, that they emigrate within a few weeks after
their elevation to this state, and either establish new kingdoms, or
perish within a day or two. Of these, the working insects or
labourers are always the most numerous; among that species
emphatically called termes bellicosus, which is the largest, there
seem to be at the least one-hundred labourers to one of the fighting
insects or soldiers. They are in this state about one-fourth of an inch
long, and twenty-five of them weigh about a grain, so that they are
not so large as some of our ants; from their external habits and
fondness for wood, they have been very expressively called wood-
lice by some people, and the whole genus has been known by that
name, particularly among the French. They resemble them, it is true,
very much at a distance; they run as fast or faster than any other
insect of their size, and are incessantly in a bustle.
The second order, or soldiers, have a very different appearance
from the labourers, and have been by some authors supposed to be
the males, and the former neuters; but they are, in fact, the same
insects as the foregoing, only they have undergone a change of
form, and approached one degree nearer to the perfect state. They
are much larger, being half an inch long, and equal in size to fifteen
of the labourers. There is now, likewise, a most remarkable
circumstance in the form of the head and mouth; for in the former
state the mouth is evidently calculated for gnawing and holding
bodies; but in this state, the jaws being shaped like two very sharp
awls a little jagged, they are incapable of any thing but piercing or
wounding, for which purposes they are well calculated, being as
hard as a crab’s claw and placed in a strong horny head larger than
all the rest of the body together.
The insect in its perfect state is varied still more in its form; the
head, thorax, and abdomen, differ almost entirely from the same
parts in the labourers and soldiers; and, besides this, the animal is
now furnished with four fine large brownish transparent wings, with
which it is, at the time of emigration, to wing its way in search of a
new settlement; in short, it differs so much from its form and
appearance in the two other states, that it has never been supposed
to be the same animal, but by those who have seen it in the same
nest; and some of these have distrusted the evidence of their
senses. It was so long before Mr. Smeathman met with them in the
nests, that he doubted the information which was given him by the
natives, that they belonged to the same family: indeed, twenty nests
may be opened without finding one winged one; for those are to be
found only just before the commencement of the rainy season, when
they undergo the last change, which is preparative to their
colonization. Add to this, they sometimes abandon an outward part
of their building, the community being diminished by some accident
that is unknown; sometimes different species of the real ant,
formica, possess themselves by force of a lodgment, and so are
frequently dislodged from the same nest, and taken for the same
kind of insects. This is often the case with the nests of the smaller
species, which are frequently totally abandoned by the termites, and
completely inhabited by different species of ants, cockroaches,
scolopendræ, scorpions, and other vermin fond of obscure retreats,
that occupy different parts of their roomy buildings.
In the winged state, their size as well as form is altered. Their
bodies in this state measure between six and seven-tenths of an
inch in length, their wings above two inches and an half from tip to
tip, and they are equal in bulk to about thirty labourers, or two
soldiers. They are furnished with two large eyes placed on each side
of the head; if they had any before, they are not easily to be
distinguished. In this form the animal comes abroad during or soon
after the first tornado, which at the latter end of the dry season
proclaims the approach of the ensuing rains, and seldom waits for a
second or third shower; if the first, as is generally the case, happen
in the night, and bring much wet after it, the quantities that are to
be found the next morning all over the surface of the earth, but
particularly on the waters, is astonishing; for their wings are only
calculated to carry them a few hours; and after the rising of the sun,
not one in a thousand is to be found with four wings, unless the
morning continues rainy, when here and there a solitary being is
seen winging its way from one place to another, as if solicitous to
avoid its numerous enemies, particularly various species of ants,
which are hunting on every spray, on every leaf, and in every
possible place for this unhappy race, of which probably not one pair
in many millions are preserved to fulfil the first law of nature, and
lay the foundation of a new community. Not only all kinds of ants,
and other insects, but birds, and carnivorous reptiles, are upon the
hunt for them, and the inhabitants of many countries eat them.
From one of the most active, industrious, and rapacious; from one
of the most fierce and implacable little animals in the world, they are
in this state changed into an innocent helpless insect, incapable of
making the least resistance to the smallest ant. The ants are to be
seen on every side in infinite numbers, of various species and sizes,
dragging these annual victims to their different nests. Some are
however so fortunate as to escape, and be discovered by the
labouring insects that are continually running about the surface of
the ground under their covered galleries, the little industrious
creatures immediately inclose them in a small chamber of clay,
suitable to their size, into which at first they leave but one small
entrance, only large enough for themselves and the soldiers to go in
and out, but necessity obliges them to make more entrances. The
voluntary subjects charge themselves with the task of providing for
the offspring of their sovereigns, as well as to work and to fight for
them, until they shall have raised a progeny capable at least of
dividing the task with them.
The business of propagation soon commences; and the labourers
having constructed a small wooden nursery, hereafter to be
described, carry the eggs and lodge them there as fast as they can
obtain them from the queen.
About this time a most extraordinary change begins to take place
in the queen, to which we know nothing similar, except in the pulex
penetrans of Linnæus, the jigger of the West-Indies, and in the
different species of coccus cochineal. The abdomen of this female
begins gradually to extend and enlarge to such an enormous size,
that an old queen will have it increased so as to be fifteen hundred
or two thousand times the bulk of the rest of her body, and twenty
or thirty thousand times the bulk of a labourer; the skin between the
segments of the abdomen extends in every direction, and at last the
segments are removed to half an inch distance from each other,
though at first the length of the whole abdomen was not above half
an inch. They preserve their dark-brown colour, and the upper part
of the abdomen is marked with a regular series of brown bars, from
the thorax to the posterior part of the abdomen, while the intervals
between them are covered with a thin, delicate, transparent skin,
and appear of a fine cream colour, a little shaded by the dark colour
of the intestines and watery fluid seen here and there beneath. It is
supposed that the animal is upwards of two years old when the
abdomen is increased to three inches in length: they have
sometimes been found of near twice that size. The abdomen is then
of an irregular oblong shape, being contracted by the muscles of
every segment, and is become one vast matrix full of eggs, which
make long circumvolutions through an innumerable quantity of very
minute vessels, that circulate round the inside in a serpentine
manner, which would exercise the ingenuity of a skilful anatomist to
dissect and develope. This singular matrix is not more remarkable
for its amazing extension and size, than for its peristaltic motion,
which resembles the undulation of waves, and continues incessantly
without any apparent effort of the animal; so that one part or other
is alternately rising and sinking in perpetual succession. The matrix
seems never at rest, but to be always protruding eggs to the
amount, in old queens, of sixty in a minute, or eighty thousand and
upwards in one day of twenty-four hours.
These eggs are instantly taken from her body by her attendants,
and carried to the nurseries, which in a great nest may some of
them be four or five feet distant in a straight line, and consequently
much farther by their winding galleries. Here the young, when they
are hatched, are attended and provided with every thing necessary,
until they are able to shift for themselves, and take their share of
the labours of the community.
The termes bellicosus being the largest species, is most
remarkable, and best known on the coast of Africa. It erects
immense buildings of well-tempered clay or earth, which are
contrived and finished with such art and ingenuity, that we are at a
loss to say whether they are most to be admired on that account, or
for their enormous magnitude and solidity. The reason that the
larger termites have been most remarked is obvious; they not only
build larger and more curious nests, but are also more numerous
and do infinitely more mischief to mankind.[99]
[99] It may appear surprizing, that a Being perfectly good should have created
animals which seem to serve no other end but to spread destruction
and desolation wherever they go. But let us be cautious in suspecting
any imperfection in the Father of the universe: what, on a superficial
view may seem only productive of mischief, will upon mature
deliberation be found worthy of that wisdom which pervades every part
of the creation. Many poisons prove valuable medicines; storms are
beneficial; and diseases often preserve life, and are conducive to its
future enjoyments. The termites, it must be allowed, are frequently
pernicious to mankind, but they are also very useful, and even
 necessary; one valuable purpose which they serve, is, to destroy
decayed trees and other substances, which, if left on the surface of the
ground in hot climates, would in a short time pollute the air. In this
respect, they resemble very much the common flies, which are
regarded by the generality of mankind as noxious, and at best, as
useless beings in the creation; but this is certainly for want of due
consideration. There are not probably in all nature animals of more
importance; and it would not be difficult to prove, that we should feel
the want of one or two species of large quadrupeds much less than of
one or two species of these despicable looking insects. Nothing is more
disagreeable or more pestiferous than putrid substances; and it is
apparent to all who have made the observation, that these little insects
contribute more to the quick dissolution and dispersion of putrescent
matter than any other. They are so necessary in all hot climates, that
even in the open fields a dead animal or small putrid substance cannot
be laid on the ground two minutes, before it will be covered with flies
and their maggots, which instantly entering, quickly devour one part,
and, perforating the rest in various directions, expose the whole to be
much sooner dissipated by the elements. Thus it is with the termites;
the rapid vegetation in hot climates, of which no idea can be formed by
any thing to be seen in this, is equalled by as great a degree of
destruction from natural as well as accidental causes. When trees and
even woods are in part destroyed by tornados or fire, it is wonderful to
observe how many agents are employed in hastening the total
dissolution of the rest; in this business none are so expert or so
expeditious and effectual as the termites, who in a few weeks destroy
and carry away the bodies of large trees without leaving a particle
behind; thus clearing the place for other vegetables, which soon fill up
every vacancy. See Encycl. Brit. art. Termes. Edit.
The nests of this species are so numerous all over the island of
Bananas, and the adjacent continent of Africa, that it is scarcely
possible to stand upon any open place, such as a rice plantation, or
other clear spot, where one of these buildings is not to be seen
almost close to each other. In some parts near Senegal, as
mentioned by M. Adanson, their number, magnitude, and closeness
of situation, make them appear like the villages of the natives. These
buildings are usually termed hills, by the inhabitants as well as
strangers, from their outward appearance, which is that of little hills
more or less conical, generally very much in the form of sugar-
loaves, and about ten or twelve feet in perpendicular height above
the common surface of the ground.
These hills continue quite bare until they are six or eight feet high;
but, in time, the dead barren clay of which they are composed
becomes fertilized by the genial power of the elements in these
prolific climates, and the addition of vegetable salts and other
matters brought by the wind; and in the second or third year the
hillock, if not overshaded by trees, becomes like the rest of the
earth, almost covered with grass and other plants; and in the dry
season, when the herbage is burnt up by the rays of the sun, it is
not much unlike a very large hay-cock.
Every one of these buildings consists of two distinct parts, the
exterior and interior. The exterior cover is one large clay shell, in the
form of a dome, capacious and strong enough to inclose and shelter
the interior building from the vicissitudes of the weather, and the
inhabitants from the attacks of natural or accidental enemies. The
external cover is always, therefore, much stronger than the interior
building, which is the habitable part, divided with wonderful
regularity and contrivance into an amazing number of apartments for
the residence of the king and queen, for the nursing of their
numerous progeny, and for magazines, which are always found well
filled with stores and provisions.
These hills make their first appearance above ground by a little
turret or two in the shape of sugar-loaves, which are run a foot high
or more; soon after, at some little distance, while the former are
increasing in height and size, they rise others, and so go on
increasing the number, and widening them at the base, till their
works below are covered with these turrets, which the insects
always raise highest and largest towards the middle of the hill, and
by filling up the intervals between each turret, collect them as it
were into one dome. They are not very curious or exact about these
turrets, except in making them very solid and strong; and when, by
the junction of them, the dome is completed, for which purpose the
turrets serve as scaffolds, they take away the middle ones entirely,
except the tops, which joined together make the crown of the
cupola, and apply the clay to the building of the works within, or to
erecting fresh turrets for the purpose of raising the hillock still
higher; so that no doubt some part of the clay is used several times,
like the boards and posts of a mason’s scaffold.
The royal chamber, which, on account of its being adapted for, and
occupied by the king and queen, appears to be in the opinion of this
little people, of the most consequence, is always situated as near the
center of the interior building as possible, and generally about the
height of the common surface of the ground, at a pace or two from
the hillock; it is always nearly in the shape of half an egg or an
obtuse oval within, and may be supposed to represent a long oven.
In the infant state of the colony, it is not above an inch, or
thereabouts, in length; but in time will be increased to six or eight
inches or more in the clear, being always in proportion to the size of
the queen, who, increasing in bulk as in age, at length requires a
chamber of such dimensions. The floor is horizontal, sometimes an
inch thick and upward of solid clay; the roof also, which is one solid
and well-turned oval arch, is generally of about the same solidity, but
in some places it is not a quarter of an inch thick; this is on the sides
where it joins the floor, and where the doors or entrances are made.
These entrances will not admit any animal larger than the soldiers or
labourers; so that the king, and the queen, who is when full grown a
thousand times the weight of a king, can never possibly go out. The
royal chamber, if in a large hillock, is surrounded by an innumerable
quantity of others, of different sizes, shapes, and dimensions; but all
of them arched, sometimes of a circular, sometimes of an elliptical
form. These chambers either open into each other, or have
communicating passages, and being always empty, are evidently
made for the soldiers and attendants; of whom, it will soon appear,
great numbers are necessary, and of course always in waiting.
These apartments are joined by the magazines and nurseries; the
former are chambers of clay, and are always well filled with
provisions, which to the naked eye seem to consist of the raspings of
wood and plants, which the termites destroy, but are found by the
microscope to be chiefly composed of the gums or inspissated juices
of plants, thrown together in little masses, some of which are finer
than others, and resemble the sugar about preserved fruits; others
are like drops of gum. The magazines are intermixed with the
nurseries, buildings totally different from the rest of the apartments,
being composed entirely of wooden materials, seemingly joined
together with gums. They are called nurseries because they are
invariably occupied by the eggs and young ones, which appear at
first in the shape of labourers, but as white as snow. These buildings
are exceedingly compact, and divided into many very small irregular-
shaped chambers, placed all round the royal apartments, and as
near as possible to them.
When the nest is in the infant state, the nurseries are close to the
royal chamber; but as in process of time the queen increases in size,
it is necessary to enlarge the chamber for her accommodation; and
as she then lays a greater number of eggs, and requires a more
numerous train of attendants, so it is necessary to enlarge and
increase the number of the adjacent apartments; for which purpose,
the small nurseries which are first built, are taken to pieces, rebuilt a
little further off, a size larger, and the number of them increased at
the same time. Thus they continually enlarge their apartments, pull
down, repair, or rebuild, according to their wants, with a degree of
sagacity, regularity, and foresight, not even imitated by any other
kind of animals or insects. The nurseries are inclosed in chambers of
clay, like those which contain the provisions, but much more
extensive. In the early state of the nest they are not larger than an
hazel nut, but in great hills are often as large as a child’s head of a
year old.
The royal chamber is situated nearly on a level with the surface of
the ground, at an equal distance from all the sides of the building,
and directly under the apex of the hill. It is, on all sides, both above
and below, surrounded by what may be called the royal apartments,
which have only labourers and soldiers in them, and can be intended
for no other purpose than for these to wait in, either to guard or
serve their common father and mother, on whose safety depends the
happiness, and, according to the account of the negroes, even the
existence of the whole community.
These apartments form an intricate labyrinth, which extends a foot
or more in diameter from the royal chamber on every side. Here the
nurseries and magazines of provisions begin, and being separated by
small empty chambers and galleries, which go round them, or
communicate from one to the other, are continued on all sides to the
outward shell, and reach up within it two-thirds or three-fourths of
its height, having an open area in the middle under the dome,
resembling the nave of an old cathedral. This area is surrounded by
large gothic arches, which are sometimes two or three feet high next
the front of the area, but diminish very rapidly as they recede from
thence, like the arches of aisles in perspective, and are soon lost
among the innumerable chambers and nurseries behind them. All
these chambers, and the passages leading to and from them, being
arched, contribute to support one another; and while the interior
large arches prevent their falling into the center, and keep the area
open, the exterior building supports them on the outside.
The interior building, or assemblage of nurseries, chambers, &c.
has a flattish top or roof without any perforation; by this
contrivance, if any water should penetrate the external dome, the
apartments below are preserved from injury. It is never exactly flat
and uniform, because they are always adding to it by building more
chambers and nurseries: so that the divisions or columns between
the future arched apartments resemble the pinnacles upon the
fronts of some old buildings, and demand particular notice, as
affording one proof that for the most part the insects project their
arches, and do not make them by excavation. The area is likewise
water-proof, and contrived so as to let the water off, if it should get
in and run over, by some short way, into the subterraneous
passages, which run under the lowest apartments in the hill in
various directions, and are of an astonishing size, being wider than
the bore of a great cannon. There is an account of one that was
measured, which was perfectly cylindrical, and thirteen inches in
diameter.
These subterraneous passages or galleries are lined very thick
with the same kind of clay of which the hill is composed, and ascend
the inside of the outward shell in a spiral manner; winding round the
whole building up to the top, they intersect each other at different
heights, opening either immediately into the dome in various places,
and into the interior building, the new turrets, &c. or communicating
thereto by other galleries of different bores or diameters, either
circular or oval.
From every part of these large galleries are various small pipes or
galleries, leading to different parts of the building; under ground
there are a great many which lead downward, by sloping descents
three and four feet perpendicular among the gravel, from whence
the labouring termites cull the finer parts, which being worked up in
their mouths to the consistence of mortar, becomes that solid clay or
stone, of which their hills and all their buildings, except the
nurseries, are composed. Other galleries again ascend and lead out
horizontally on every side, and are carried under ground near to the
surface, a vast distance.
There is a kind of necessity for the galleries under the hills being
thus large, as they are the great thoroughfares for all the labourers
and soldiers going forth or returning upon any business whatever,
whether fetching clay, wood, water, or provisions; and they are
certainly well calculated for the purposes to which they are applied,
by the spiral slope which is given them.
Those species which build either the roofed turrets, or the nests in
the trees, seem in most instances to have a strong resemblance to
the preceding, both in their form and œconomy, going through the
same changes from the egg to the winged state. The queens also
increase to a great size when compared with the labourers, but very
short of those queens before described. The largest are from about
an inch to an inch and an half long, and not much thicker than a
common quill. There is the same kind of peristaltic motion in the
abdomen, but in a much smaller degree; and as the animal is
incapable of moving from her place, the eggs, no doubt are carried
to the different cells by the labourers, and reared with a care similar
to that which is practised in the larger nests.
It is remarkable of all these different species, that the working and
the fighting insects never expose themselves to the open air, but
either travel under ground, or within such trees and substances as
they destroy; except, indeed, when they cannot proceed by their
latent passages, and find it convenient or necessary to search for
plunder above ground: in that case they make pipes of that material
with which they build their nests. The larger sort use the red clay;
the turret builders use the black clay; and those which build in the
trees employ the same ligneous substance of which their nests are
composed.
The termites, except their heads, are exceedingly soft, and
covered with a very thin and delicate skin; being blind, they are no
match on open ground for the ants, who can see, and are all of
them covered with a strong horny shell not easily pierced, and are of
dispositions bold, active, and rapacious.
Whenever the termites are dislodged from their covered ways, the
various species of formicæ or ants, who probably are as numerous
above ground, as the latter are in their subterraneous passages,
instantly seize and drag them away to their nests, to feed the young
brood. The termites are, therefore, exceedingly solicitous about the
preserving their covered ways in good repair; and if you demolish
one of them for a few inches in length, it is wonderful how soon they
re-build it. At first in their hurry they get into the open part an inch
or two, but stop so suddenly, that it is very apparent they are
surprized; for, though some run straight on, and get under the arch
as speedily as possible in the further part, most of them run as fast
back, and very few will venture through that part of the track which
is left uncovered. In a few minutes you will perceive them re-
building the arch, and by the next morning they will have restored
their gallery for three or four yards in length, if so much has been
ruined; and upon opening it again, will be found as numerous as
ever under it, passing both ways. If you continue to destroy it
several times, they will at length seem to give up the point, and
build another in a different direction; but, if the old one should lead
to some favourite plunder, in a few days will re-build it again, and,
unless you destroy their nest, never totally abandon their, gallery.
Welcome to our website – the ideal destination for book lovers and
knowledge seekers. With a mission to inspire endlessly, we offer a
vast collection of books, ranging from classic literary works to
specialized publications, self-development books, and children's
literature. Each book is a new journey of discovery, expanding
knowledge and enriching the soul of the reade

Our website is not just a platform for buying books, but a bridge
connecting readers to the timeless values of culture and wisdom. With
an elegant, user-friendly interface and an intelligent search system,
we are committed to providing a quick and convenient shopping
experience. Additionally, our special promotions and home delivery
services ensure that you save time and fully enjoy the joy of reading.

Let us accompany you on the journey of exploring knowledge and

personal growth!

ebooknice.com