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Aid, Development, Global Poverty

Nepal’s Poverty Reduction Through Local Solutions

Nepal's poverty reductionNepal, a landlocked Himalayan nation, has made significant strides in poverty reduction over recent decades; however, significant challenges persist, particularly in rural and underdeveloped regions. According to the Fourth Nepal Living Standards Survey (NLSS) 2022–23, the national poverty rate stands at 20.27%. Rural areas are disproportionately affected, with a poverty rate of 24.66%, compared to 18.34% in urban regions. Contributing factors include limited access to essential services such as education, health care and clean drinking water. Youth unemployment remains a pressing issue, with more than 19% of young people unemployed, a figure significantly higher than the national average. This has led to increased migration, both internally to urban centers and externally abroad, as youths seek better employment opportunities.

Government Initiatives

The Nepalese government has implemented several programs aimed at poverty alleviation. The 15th Periodic Plan (2019–2024), developed by the National Planning Commission, focuses on achieving sustainable development goals and transitioning Nepal to a middle-income country. Key objectives include economic diversification, infrastructure development and social inclusion. Another significant initiative is the Prime Minister Employment Program (PMEP), which seeks to provide short-term employment opportunities to unemployed individuals, particularly in rural areas. The program aims to enhance skills and increase income levels among marginalized populations.

International Aid and Partnerships

International organizations have played a crucial role in supporting Nepal’s poverty reduction efforts. USAID has been instrumental in sectors such as education, agriculture and health through financial aid. However, recent budget cuts have led to the suspension of several projects, raising concerns about the continuity of essential services.

The World Bank’s Rural Access Improvement and Decentralization Project has improved rural infrastructure, facilitating better access to markets and services. Similarly, the United Nations Development Programme (UNDP) has supported climate resilience and local governance initiatives, including the implementation of Local Adaptation Plans of Action (LAPAs) that empower communities to address climate change impacts.

Community-Based Efforts

Grassroots organizations have been vital in addressing poverty at the local level. READ Nepal, part of the READ Global network, organizes Community Library and Resource Centers that offer educational resources, vocational training and women’s empowerment programs. These centers have reached millions in rural communities, fostering literacy and economic development while reducing income inequality. The Federation of Community Forestry Users, Nepal (FECOFUN) empowers local communities to manage forest resources sustainably. By providing employment opportunities and generating income from selling forest products, FECOFUN promotes environmental stewardship and economic development.

The Role of Remittances

Remittances from Nepalese working abroad account for a significant portion of the country’s GDP. In 2023, remittances totaled more than $11 billion, accounting for more than 25% of the GDP. These funds have been instrumental in reducing poverty, improving household incomes and contributing to economic stability.

Moving Forward

Nepal’s comprehensive approach to poverty reduction—combining government policies, international aid and community initiatives—demonstrates the effectiveness of collaborative efforts in addressing economic challenges. Continued support and investment in these areas are essential for sustaining progress and achieving long-term development goals.

– Giovanni Garcia

Giovanni is based in Long Beach, CA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

May 12, 2025
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Global Health, Global Poverty

Grassroots Health Initiatives Transforming Communities

Grassroots Health InitiativesSub-Saharan Africa is home to more than a billion people across countries with diverse cultures and economies. Yet across rural communities, a shared reality persists: poverty and limited health care access. Geographic isolation, underfunded health systems and economic hardship often make even basic care inaccessible, and the consequences are fatal. Under-5 child mortality in this region is 68 per 1,000 live births, while 70% of the global maternal deaths occur there. However, there are several grassroots health initiatives in place that aim to improve overall health care in these communities.

Background

Despite commitments like the 2001 Abuja Declaration, most countries in sub-Saharan Africa have not met health funding goals, hence, health systems remain vulnerable, dependent on fluctuating foreign aid. Consequently, even basic services involve out-of-pocket costs that deter those in poverty from accessing essential care.

Most rural areas lack nearby clinics and existing facilities often suffer from shortages in medicine, equipment and staff. As a result, many turn to traditional healers or informal providers. Chronic poverty, gender inequality and food insecurity further restrict access, especially for women who may lack the autonomy or resources to seek care.

Yet amid these challenges, hope is emerging from within. Across Ethiopia, Malawi and Nigeria, women and mothers are leading the charge through grassroots health initiatives ― bridging the gap between poverty and care by bringing services closer to those who need them most. Here are some grassroots health initiatives transforming rural sub-Saharan communities impacted by poverty and poor healthcare access:

Ethiopia’s Health Extension Program

Despite its low-income status, Ethiopia has made notable progress in rural health care through its Health Extension Program (HEP), launched in 2003. The program provides universal access to basic health services. It operates through local health posts staffed by trained Health Extension Workers (HEWs), many of whom are women from the communities they serve. HEWs identify pregnant women, provide antenatal care and refer them to formal health systems if complications arise.

More than 30,000 women received training and are now reaching more than 12 million households with health education, vaccination campaigns and family planning services. These, among other efforts contributed to Ethiopia meeting the under-5 mortality reduction target (MDG4) four years early in 2012, with major improvements in child and maternal health outcomes — including a reduction in infant mortality to only 68 per 1,000 live births.

Meseret’s Story: From Mother to Health Hero

Meseret, from rural Meki, grew up drinking polluted water from the nearby Lake Ziay. A visit from a community health worker introduced her village to water purification, inspiring her to train as a health worker. Today, she works with PSI’s Smart Start program, educating young couples on contraception and financial planning, empowering them to make informed decisions. Meseret’s efforts have contributed towards the 75,000 adolescent girls reached by Smart Start, more than 35,000 of which now use modern contraceptives  — proof of the life-changing impact grassroots health workers can have on underserved communities.

The MaiMwana Project

In rural Malawi, where 73.9% of the population lives on less than $1.25 per day and maternal, neonatal and infant mortality rates are especially high, women-led initiatives like the MaiMwana project and Secret Mothers have become crucial.

Running from 2005 to 2010, the MaiMwana Project mobilized women in Mchinji District to identify health problems, create solutions, and implement interventions like home vegetable gardens and bicycle ambulances. Inspired by similar projects in Asia and South America, it formed 207 groups across 310 villages, involving more than 12,000 attendees, the majority of whom were women. The project contributed towards a 22% reduction in neonatal mortality, highlighting the life-saving potential of women-led, community-rooted health work

Secret Mothers

In Chiyang’anira Village, Chikwawa District, another grassroots solution has emerged: a group of women known as the Secret Mothers, or “Amayi Achinsinsi.” Previously, many pregnant women in the region avoided antenatal appointments due to the expensive 200 km journey to the nearest hospital, but Secret Mothers have improved this situation, supporting them by encouraging antenatal visits and modelling safe health practices. Since its inception in 2012, more than 100 women have joined, including 50-year-old mother Stella Sabstone, a founding member. Thanks to their efforts, eight in 10 expectant mothers now receive appropriate care. By building trust within familiar networks, Secret Mothers are transforming maternal health outcomes in the geographically isolated and economically disadvantaged community.

Grassroots Health Governance in Nigeria

In Nigeria’s Kaduna State, Ward Development Committees (WDCs) have emerged as a powerful community response to maternal health issues. Sparked by a maternal death in Yakasai village, the initiative, developed in collaboration with the Population and Reproductive Health Initiative, engages local leaders, health workers, and community representatives to improve health service delivery and accountability. WDCs promote health education, monitor local facilities and lead programs like the community Maternal and Perinatal Death Surveillance and Response (cMPDSR). These efforts have radically increased facility-based births and antenatal care use.

They also address cultural norms that hinder care. In some areas, WDCs have created policies encouraging the presence of male partners at antenatal visits, a critical shift in communities where health decisions are often male-dominated. While funding and sustainability challenges remain (such as the need for ongoing training), WDCs are helping to build a more responsive, locally-rooted health system to benefit the rural poor.

Grassroots Health Initiatives: Lasting Transformation

What unites these grassroots health initiatives ― from Ethiopia’s HEWs to Malawi’s women’s groups and Nigeria’s Ward Committees ― is their focus on empowering those most affected by poverty. By leveraging local knowledge, building trust, and expanding access, these programs are breaking barriers to health care in some of the world’s most underserved areas.

Women and mothers in particular are leading this transformation. Their leadership is not only radically improving health outcomes but also strengthening community resilience. These locally driven efforts demonstrate that scalable, cost-effective health solutions can emerge from within even the most resource-constrained settings, offering valuable lessons for broader poverty reduction strategies.

– Holly McArthur

Holly is based in Somerset, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

May 12, 2025
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Global Poverty, Nonprofit Organizations and NGOs

Generational Poverty in Hong Kong

Generational Poverty in Hong KongHong Kong, a territory of more than 7.4 million people spread across 263 islands, is facing a growing poverty crisis. Data from the Census and Statistics Department reveals that the number of poor households increased by 22.7% in 2024. Although the government lifted pandemic restrictions in 2022, Hong Kong’s economic performance continues to weaken. The monthly income threshold for a four-person household living below the poverty line is approximately HK$20,800 (roughly $2,680). Rent accounts for about 70% of the median household income. Since 2019, housing costs have increased by an average of 3.3% per year and one in every five Hong Kongers is living below the poverty line.

Elderly Workers and Public Housing

Those aged 65 and above are more likely to experience poverty than any other age group. Rapid shifts in market demand and the rise of new technologies have phased out many blue-collar jobs that older workers once held. Some unemployed residents report struggling to afford even public transportation to reach the few jobs they have left. While public housing offers some relief, rent still consumes up to 20% of residents’ monthly income, leaving many unable to afford shelter and proper nutrition. A government response could help alleviate these conditions. However, according to some observers, due to Hong Kong’s alignment with the Communist Party’s United Front policies, anti-poverty efforts remain underprioritized, while the wealth gap continues to widen.

Poverty’s Impact on Children

Poverty disproportionately affects Hong Kongers aged 65 and above, but the territory’s widening wealth gap is placing more children at risk. According to the 2023 Census and Statistics Department data, 222,600 children under age 18 live below the poverty line. Most of these children come from households with four or more members.

Many low-income children cannot participate in school activities due to financial constraints. A sixteen-year-old student, Bianca Zhang Bao-zhi, said she could not afford to join a school sports team due to the HK$2,000-per-term fee. She expressed frustration at the lack of government subsidies, especially since the programs are tied to educational institutions.

Many low-income families feel that the government should be doing more to address poverty among children. The Children’s Rights Association rated the Hong Kong government zero in 2023 for failing to create effective policies that improve conditions for children living below the poverty line.

Strive and Rise Programme, one of the government’s main poverty initiatives for youth, offers mentorship to students from low-income areas. However, the program has had limited impact. Of the 80 children enrolled, only one in four had met with a mentor assigned to them. Local organizations suggest the program is unlikely to produce long-term change.

Save the Children’s Role in Hong Kong

Save the Children is an international organization operating in more than 120 countries with a mission to inspire breakthroughs in the way the world treats children and to achieve immediate and lasting change in their lives.

In Hong Kong, the organization has expanded its work significantly in recent years. Specifically for 2025 to 2027, Save the Children aims to prioritize protection against conflict, climate-related risks and child poverty. Its programs in the region aim to support mental health, education and well-being. Initiatives like Play to Thrive, Heart and Mind and Introducing Social and Emotional Learning to School are active in local schools on Wan Chai Island. These programs serve children from underprivileged communities through structured learning and emotional support activities.

Save the Children is privately funded and often viewed as one of the few large-scale actors working to alleviate poverty in Hong Kong without direct government support.

Firsthand Reflections on Child Advocacy Work

A former volunteer, who asked to remain anonymous, spoke with The Borgen Project and shared insight about their experience: “Save the Children initiatives can differ from nation to nation based on need or focus. All Save the Children programs are known for their humanitarian work. However, Hong Kong is deeply involved in child welfare through education and advocacy initiatives.”

Reflecting on their experience in Hong Kong, the source added, “I worked on the early stages of what is now called the ‘Every Last Child’ initiative. The program worked in advocating for the rights of children within marginalized groups. We often visited schools and orphanages in low-income areas on Wan Chai Island, where Save the Children’s headquarters is located. The activities we did provided educational tools and emotional support for the personal experiences the children were going through.”

The volunteer emphasized the impact of its work, “Do it! The organization has more than 120 offices worldwide, not just in Hong Kong. It is some of the most rewarding work one can do and it will follow you into any career path chosen.”

Looking Ahead

As housing prices continue to rise and the cost of living outpaces wages, poverty remains a persistent issue in Hong Kong. While older generations face increased isolation and job displacement, children in low-income households lack equal access to opportunity. Organizations like Save the Children continue to support vulnerable populations through grassroots programs and school-based initiatives. With sustained attention to education, mental health and youth development, there is hope that current child-focused interventions may contribute to reversing intergenerational poverty in the years to come.

– Mackenzie Inman

Mackenzie is based in Washington D.C., USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

May 11, 2025
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Global Poverty, Government, Women and Female Empowerment

Government Takes Strides to Alleviate Period Poverty in Ghana

Government Takes Strides to Alleviate Period Poverty in Ghana The government of Ghana allocated GH₵292.4 million in its 2025 financial budget to provide free sanitary pads for girls in primary and secondary schools, marking a significant effort to address long-standing period poverty in the country. Plan International Ghana commended the initiative as a major investment in girls’ health, education and dignity.

Government Response to Menstrual Health

The Free Sanitary Pad Initiative (FSPI), announced by President John Dramani Mahama on April 24, seeks to combat period poverty—a chronic lack of access to menstrual products that disproportionately affects girls in rural areas. The Ghana Education Service estimates that up to 2 million girls will benefit from the program across public basic and secondary schools.

Limited access to menstrual products often leads girls to miss school during their periods. This absenteeism results in disrupted education and contributes to cycles of poverty. In more severe cases, girls are forced to use unsafe alternatives like newspapers, rags or leaves, which can lead to health complications and heighten their vulnerability to abuse. FSPI represents a significant policy move to reduce these risks. By providing menstrual products for free, the initiative aims to keep girls in school, improve academic outcomes and reduce gender-based barriers to education.

Breaking Stigma Through Education

FSPI also addresses material needs and seeks to reduce the stigma surrounding menstruation in Ghana. Misconceptions and social taboos around menstruation remain common, limiting open discussion and fostering discrimination against menstruating girls and women. These attitudes not only affect emotional well-being but also contribute to social exclusion. The government’s approach includes educational programming and public messaging to normalize conversations about menstrual health. Indeed, Ghana’s Minister of Gender, Children and Social Protection, Dr. Agnes Naa Momo Lartey, described the initiative as an educational and developmental investment, not just a health intervention.

Plan International’s Role in Advocacy

The implementation of FSPI follows years of advocacy by organizations like Plan International Ghana, which urged the government in March 2024 to invest in menstrual health programs. The organization has distributed sanitary pads to more than 150,000 girls. Additionally, they have run nationwide campaigns to reduce stigma and increase awareness around menstrual hygiene.

Plan International Ghana has also promoted engagement with boys and men to support gender-inclusive conversations. Its programs have effectively reduced school absenteeism and promoted menstrual health education, especially in underserved communities. Applauding the FSPI, Constant Tchona, country director of Plan International Ghana, said the policy would address a key driver of inequality and help girls focus on education and reach their full potential.

Looking Ahead

While challenges remain, the Free Sanitary Pad Initiative marks a critical and historic step in the efforts to tackle period poverty in Ghana. Through this investment, the government is helping to ensure that menstruation no longer hinders girls’ access to education or exposes them to unnecessary risk. As implementation continues, sustained support and accountability could be essential in transforming policy into lasting change.

– Erin Hellhake

Erin is based in Old Bridge, NJ, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

May 11, 2025
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Aid, Global Poverty

6 Organizations Helping Refugees from Venezuela in Colombia

venezuela refugees Over the years, Venezuela has been struggling with an unstable economy and poverty across a vast number of its population. In fact, according to the Human Rights Watch (HRW), less than 8.8 million people out of the total population of nearly 29 million are not suffering from multidimensional poverty. That is only about 30% of the entire country’s population. This leads many Venezuelans to leave their country in search of better opportunities that are not present in their country. Most of these people often flee to other Latin American countries, with the most popular place being Colombia, with almost 3 million refugees from Venezuela as of 2023.

However, despite moving to Colombia, they still need support to help them above the poverty line. Fortunately, numerous organizations are assisting the Venezuelans in Colombia to overcome this crisis. Here are a few of them and what they do:

International Rescue Committee

Founded in 1933 by Albert Einstein to help Germans flee the Nazi regime, the International Rescue Committee (IRC) is a humanitarian non-governmental organization that support refugees from and residing all over the world. Later on, it expanded to the rest of Europe and in modern times, it assists refugees from all over the world, including the refugees from Venezuela in Colombia. Its main work in Colombia includes providing access to health care to the Venezuelans and ensuring the safety of their minors. The number of people it helped as of 2020 is 87,000.

HIAS

Originally established in 1903 as the Hebrew Immigrant Aid Society, HIAS is another organization that focuses on global refugee aid. According to its website, HIAS has helped more than 150,000 refugees from Venezuela in their Colombia branch, mainly with economic inclusion programs and giving the refugees legal support for living in the new country.

ZOA International

ZOA International is a non-governmental organization that focuses on improving the living standards of impoverished people in multiple countries, including Colombia. While it does not specifically focus on refugees, the organization has the refugees from Venezuela as a major demographic that it supports in its efforts to help the Colombians in need, as many of them are in the country’s slums.

Its main method of support in the country focuses on providing food, water and implementing hygiene improvements to the people they help. For refugees specifically, it also gives emergency aid to provide them with better access to food and water.

Mercy Corps

Mercy Corps is a non-governmental organization that provides humanitarian aid to countries that are facing some form of insecurity, including economic instability. In Colombia, it helps the country’s most impoverished, including the refugees from Venezuela. In Colombia, its main work for the refugees from Venezuela are mainly emergency support such as money reserves, medical aid and providing internet in their shelters.

Project Hope

Project Hope is an organization that focuses on providing health relief to countries in need. Originally founded in 1958, it has provided health services all over the world by working with other organizations and often help to introduce systemic changes to the country’s health system.

In Colombia, the organization gives to the refugees from Venezuela by helping to train doctors, giving the refugees access to maternal health services and providing them with better access to essential items like pharmaceuticals or other medical supplies.

Education Cannot Wait

Founded in 2016, Education Cannot Wait is an organization working with the United Nations that focuses on giving refugee children better education opportunities, often leading to them breaking the poverty cycles in their families. Its main work in Colombia includes giving the children of the refugees from Venezuela safer environments, especially for female students. According to its website, the organization has helped more than 130,000 children in Colombia.

These are only a few of the organizations that are helping these refugees survive and overcome poverty in their new home of Colombia. While it is unclear if and when the economic crisis in Venezuela will end, the efforts of organizations like these and the people who support them can significantly help fight poverty for the refugees from Venezuela.

– Jose Gabriel Lopez

Jose is based in the United Kingdom and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

May 11, 2025
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Global Poverty

How China and Australia are Shaping Poverty Reduction in Nauru

Poverty Reduction in NauruNauru is one of the most aid-dependent nations. It continually struggles with access to health care, education, basic necessities and resources, leading to an endless cycle of poverty and limited employment opportunities. To combat these challenges, the country receives aid from other countries, which makes up about 14% of its national income. Australia is Nauru’s primary aid partner, supplying 66% of the island’s development assistance.

However, in January 2024, Nauru severed its diplomatic ties with Taiwan, allowing China to seize more opportunities to support Nauru’s development. China’s expanded presence in Nauru has added complexity to regional geopolitics. However, despite possible tensions between Australia and China, this engagement has the potential to bring about meaningful change in Nauru.

Poverty in Nauru

Nauru has the worst human development indicators and the shortest life expectancy in the Pacific, with an average life expectancy at birth of 62 years. Furthermore, the under-5 mortality rate as of 2022 was 26.5 deaths per 1,000 births. The island also has the highest rate of food poverty in the region, and around one in four people lives below the poverty line. Nauru imports most of its food, as strip mining destroyed 80% of the island’s interior. These issues have drawn international attention, prompting varied responses from Nauru’s partners. Australia and China have taken very different approaches to poverty reduction in Nauru.

Australia’s Poverty Alleviation Strategy

Australia’s comprehensive development program to Nauru focuses on health, education, economic governance and natural disaster relief. Australia plans to allocate $50 million over the next decade toward the Raña Tsimorum (“Look After your Life”) Program, which will strengthen the health care system in Nauru by increasing efficiency and quality of services outlined in the National Health Strategy. Australia will contribute funding toward the training of healthcare professionals and the improvement of health infrastructure.

Likewise, Australia enacted the Nauruan Education Program. The initiative encourages school enrollment and attendance while supporting systems within Nauru’s Department of Education and Training.

Nauru’s economic development is covered by a $60 million program focused on financial management and economic diversification. Indeed, by promoting long-term budgetary self-reliance, contributing to the Intergenerational Trust Fund, Australia is helping Nauru build greater economic resilience in the face of future uncertainty.

China’s Role in Poverty Reduction in Nauru

China’s approach to poverty reduction in Nauru is based on China’s Global Development Initiative, which builds on the 2030 Agenda for Sustainable Development. The Global Development Initiative prioritizes poverty alleviation, food security, industrialization, development financing, the digital economy, connectivity and green development. China’s primary focus in Nauru is on large-scale infrastructure projects, consistent with its broader development approach seen in other countries where China has a presence.

In 2019, China Harbor Engineering Company began constructing a new port in Nauru’s largest harbor. This project expanded Nauru’s access to international markets and created job opportunities for locals to learn new skills, which enabled them to earn higher wages than in other local jobs.

China has also prioritized improvements in the energy sector. This has been achieved by constructing a new solar power plant, a battery energy storage system and an 11 kilovolt substation. More recently, China facilitated the transfer of ownership of a container vessel, which will enable the transport of goods from Australia directly to Nauru. Additionally, the ship will lower the cost of imported goods and reduce wait times, making life easier and more affordable for Nauruans.

China also sent medical experts to perform cataract surgeries in Nauru as part of its Brightness Action program, which seeks to deliver eye surgeries and surgical equipment to developing nations. Beyond deploying experts to meet local needs in Nauru, China offers Nauruan students the opportunity to study in China and receive various types of job training.

Poverty Reduction in Nauru

Australia and China both play a crucial role in poverty reduction in Nauru, despite taking different approaches. Australia’s focus on sustainable development, through health, education and economic initiatives, aims to create long-term resilience. Meanwhile, China’s large-scale infrastructure projects and targeted aid offer immediate improvements and opportunities. Together, Australia and China have a unique chance to meaningfully reduce poverty in Nauru by collaborating and aligning their development efforts with the island’s priorities and needs.

– Haley Parilla

Haley is based in Cape Coral, FL, USA and focuses on Business and Politics for The Borgen Project.

Photo: Wikimedia Commons

May 11, 2025
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Education, Global Poverty

Initiatives to Improve Education in Brazil

brazil educationBrazil is the largest country in South America, with a population of around 211 million people. In 2022, 50.7% of the population completed high school, approximately 2.19 times more than in 2000. There have been many successful initiatives to improve the access and quality of education in Brazil, some of which this article explores further, such as Indique and the Salvador Assessment Program (PROSA), monitoring systems in Salvador, Brazil.

Indique, PROSA and Chegando Junto

Indique is a tool that allows parents, carers and other members of the Salvador community to voice their feedback and opinions about students’ education. This allows educators to see what initiatives are having a positive impact and what they could do to support students further.

Since 2022, Brazil has implemented PROSA in every primary school grade in Salvador. This test allows educators to see the extent of the majority of students’ knowledge and so helps indicate what areas are effectively being improved and what areas require more practice. It also tests the efficacy of government education programs. Due to the high number of students who take the exam, results are more generalisable and representative of students.

This initiative groups students who are two or more years behind their grade in terms of educational achievement together, according to the World Bank. This allows them to learn in an environment alongside learners who have a similar level of understanding, therefore allowing the teacher to focus more on helping them catch up. It also makes the learning environment more comfortable and less daunting for learners.

Technology

The Lemann Foundation has employed the help of technology to aid students in their learning. It supported the education ministry’s Programa Educação Conectada, a scheme that provided 6 million students with strong and secure internet connections. This would be vital as internet connections will allow pupils to complete homework, assignments and revision as well as access extra learning resources that can strengthen and deepen their understanding.

The Lemann Foundation has contributed to the provision of such resources by partnering with the Khan Academy to give approximately 600,000 students access to courses on maths, history, science and more, every month, helping improve education in Brazil. This allows students to go beyond the material they are learning at school, as well as enhancing their knowledge of the content in the curriculum.

Bolsa Familia and the Favela Foundation

This program creates incentives for families to send their children to school, providing approximately $35 to families living in poverty. It helps families send their children to school, and for health checkups, something that poverty prevents many children from accessing. It has benefited 50 million people in Brazil and is very beneficial for families living in poverty. The program has also inspired many other countries to develop their version of this, including countries like Indonesia, Mexico and South Africa.

The Favela Foundation funds educational and sports projects for children. For example, it has worked with the Alfazendo Ecorede organization to provide teacher training in the City of God favela in Rio de Janeiro. This training ensures that teachers know how to successfully support and teach students in favelas.

The Future

These programs and numerous others have grown and helped millions of people and inspired other countries. Statistics show that such initiatives are making a significant impact—the number of Brazilian graduates has tripled from 2000 to 2022. Hopefully, in the future, education in Brazil will continue to improve and prosper.

– Maryam Abdalla

Maryam is based in the UK and focuses on Good News, and Politics for The Borgen Project.

Photo: Flickr

May 11, 2025
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Development, Entrepreneurship and Business, Global Poverty

Unicorns and Startups: Declining Poverty in India

Declining Poverty in IndiaOver the last 15 years, India’s economy has grown significantly. Once viewed as a developing country that shipped its skilled labor and talent abroad, India increasingly retains young entrepreneurs within its borders. Due to this emerging sense of entrepreneurial activity, India now has the third-largest tech ecosystem in the world, behind only China and the U.S..

According to the most recent estimates from the World Bank, 12.92% of India’s citizens lived in extreme poverty (under $2.15 a day) in 2021. That number jumps to about 44% when poverty is defined as living on less than $3.15 per day. Yet at the same time, India’s startup ecosystem has skyrocketed, led by its “Unicorn” companies. A Unicorn company is a startup with a total valuation of more than $1 billion. India now has more than 100 Unicorn companies across the tech sector, ranging from EV startups to online financial services.

A Rising Tide

The startup ecosystem has undoubtedly created many positive benefits for Indian society. For instance, the emerging companies create new job opportunities for Indian citizens with varied skills and backgrounds. Estimates show that job growth in India will continue its upward momentum and expand at a rate of 9% in 2025. As new startups continue to pop up, new employees will be necessary to fill various roles. Increasing employment is a direct way to create new economic opportunities and stable environments for Indian citizens, as research suggests that job growth helps to reduce poverty.

The logic here is that a rise in the general wealth of the state could benefit all its citizens. Besides directly creating jobs, India’s rising wealth also means that funds could go into philanthropic opportunities. Public affairs expert Nicole Manetti notes the charitable impact of the Azim Premji Foundation. Once the chairman of the Indian tech startup Wipro, Premji now uses the money he made as a business leader to invest in educating India’s poor. Premji’s case demonstrates that the increased levels of wealth in India’s top classes can still benefit its poorest citizens.

Moreover, the new businesses increasingly create job and leadership opportunities for women in India, helping to close the gender gap in business. Female entrepreneurial activity is almost equal to that of males, at a rate of .73 to 1. While a clear funding gap for women-led businesses still exists, the gender divide has been closed in other ways. Thanks to government initiatives centered around the drive toward entrepreneurship, males and females in India now own bank accounts at equal rates.

Companies That Care

Leaving aside the net benefits generated by the new tech ecosystem as a whole, individual businesses alone can create products and systems that benefit India’s poor. For example, Indian fintech startup Refyne is helping India’s poorest citizens avoid the crippling debt cycle and predatory lending practices that often prevent poverty-stricken individuals from climbing the socioeconomic ladder. Refyne offers a cheaper line of credit than its competitors to workers living paycheck to paycheck. By giving workers a money advance they have already earned, the company provides a safer lending alternative to those struggling to make ends meet.

Karya, a startup that collects large-scale data to feed AI machines, is another business working to alleviate poverty in India. Karya pays competitive wages to its part-time workers, who help train the AI systems in their native dialects. Because AI is largely trained on widely spoken languages like English, there is a need for data on smaller, regional dialects.

Karya works with organizations to find people most in need of work, and gives its employees ownership of the data that they create. However, generating economic activity among poverty-stricken citizens is not Karya’s only benefit to Indian society. The hope is that the language data collected from workers in remote regions will make AI more accessible to those same workers, making it easier for those who speak rare dialects to get health and financial advice.

Do Unicorns Help the Poor?

For all the good these tech startups create, some question whether the businesses effectively alleviate poverty in India. Researcher John Hoffmire points to India’s high poverty rates and large wealth gap as evidence of an unequal distribution of the tech boom’s benefits. He highlights the problem of informal workers whose “low wages and minimal protections” result in “an unbalanced labor market.” Adding to this inequality and imbalance is the fact that a large portion of India’s population is still at risk of poverty, especially when using the $3.15 benchmark.

However, using the Gini Index, it is clear that India’s inequality has declined in recent years, moving from 35.9 in 2017 to 32.8 in 2021. This can be compared to the global average Gini Coefficient of 38.2.

Moreover, Bhalla and Bhasin note that India has nearly eliminated poverty below the severe $1.9 line. This leads them to suggest that India should set new standards for measuring poverty within its borders. This trend follows the other poverty-reducing improvements, such as decreased inequality and increased job growth, discussed in this article.

The Future of Poverty Rates in India

While it is not certain that declining poverty and inequality in India can be directly tied to its startup boom, it is clear that many of India’s new businesses are creating positive social and economic change. From increased job growth to a greater level of female entrepreneurship to projects specifically focusing on helping India’s poor, much of the tech ecosystem activity focuses on eliminating poverty in India. Although India’s continuously decreasing poverty rates may be due to a confluence of factors, the country continues to trend in the right direction. Led by its ambitious new startups in the tech sector, India’s economy continues to grow as its citizens move to a more sustainable economic outlook.

– Charles Citron

Charles is based in Boston, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

May 10, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Naida Jahic https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Naida Jahic2025-05-10 07:30:292025-05-09 13:06:14Unicorns and Startups: Declining Poverty in India
Electricity and Power, Global Poverty

Solomon Islands Renewable Energy Loan

Solomon Islands Renewable Energy LoanThe Solomon Islands, a Pacific nation made up of volcanic islands and atolls, faces ongoing development challenges. Once a British protectorate, it gained independence in 1978 and joined the Commonwealth as a parliamentary democracy. In 2000, a coup destabilized the country’s economy and the effects are still visible at the moment, particularly in the underdeveloped infrastructure and a high poverty rate.

The Solomon Islands’ Financial Situation

The Solomon Islands have a population of about 800,000 people, spread across 90 islands that span more than 600,000 square miles of ocean. About 75% of the population lives in rural areas, making it expensive and logistically difficult to deliver public services and infrastructure beyond the capital, Honiara. This limited infrastructure contributes to one of the highest electricity costs in the world. Power is unreliable and the country depends heavily on imported fuel, further inflating energy prices. These ongoing challenges have deterred local and foreign investment, limiting economic growth.

The labor market reflects this structural weakness. Only 10% of the workforce is employed in industry, while a significant majority works in agriculture. Most of this agricultural output is noncommercial and geared toward food security and subsistence livelihoods in rural communities. Although the official unemployment rate is low at 1.6%, underemployment and informal labor remain high due to the limited availability of formal job opportunities. These factors contribute to the Solomon Islands’ relatively high poverty rate of 25.1%.

The Saudi Fund for Development

Established in 1974, the Saudi Fund for Development (SFD) supports low- and middle-income countries through infrastructure and sustainable development loans. The SFD has financed more than 800 development projects in more than 100 countries and contributed $21 billion in global aid as of 2025. Its areas of support include clean energy, health, education and poverty reduction.

Solomon Islands Renewable Energy Loan

In 2025, the SFD signed a $10 million renewable energy loan agreement with the Solomon Islands, represented by Minister of Finance and Treasury Manasseh Sogavare and SFD CEO Sultan Al-Marshad. The initiative aims to build solar power plants and battery storage facilities capable of delivering 35.5 megawatts of clean energy. The project seeks to reduce the country’s dependence on imported fuel, expand rural energy access and stabilize electricity supply. These improvements are expected to lower costs, encourage local business activity and enhance digital access across islands. According to the World Bank, greater energy reliability may help attract investment and support long-term development in small island states.

Development Outcomes and Long-Term Goals

Reliable access to electricity could help stimulate economic growth, create jobs and strengthen local industries. In rural communities where employment is often limited to agriculture, expanded energy access may enable economic diversification and greater participation in the digital economy. According to the International Renewable Energy Agency, the Solomon Islands aims to achieve 100% electricity access and net-zero carbon emissions by 2050. The Saudi-backed renewable energy initiative supports these national goals by reducing costs, improving service reliability and promoting climate resilience.

Moving Forward

The Solomon Islands’ clean energy efforts highlight how strategic development financing can accelerate infrastructure growth and reduce poverty in island nations. With renewable energy technology becoming more affordable, similar projects in other low-income countries may unlock new opportunities for sustainable development.

– Amelia Dutch Player

Amelia is based in Savannah, GA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

May 10, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Precious Sheidu https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Precious Sheidu2025-05-10 07:30:112025-05-09 13:16:34Solomon Islands Renewable Energy Loan
Global Poverty, Politics, Poverty

Fragility and the Rule of Law in Venezuela

The Rule of Law in VenezuelaAt the heart of the crisis in Venezuela lies a deeper catastrophe: the collapse of the rule of law. Once a country of relative prosperity, Venezuela is now a fragile state where institutions no longer serve citizens, particularly people experiencing poverty. In 2024, Venezuela’s gross domestic product (GDP) per capita was $4,000, one of the lowest in Latin America.

The country also experienced one of the world’s highest inflation rates, rising consumer prices significantly. The consequences are not confined to its borders. From mass migration to regional instability, Venezuela’s collapse is a global poverty issue that cannot be ignored.

A Broken Justice System

Venezuela currently ranks last in the World Justice Project’s Rule of Law Index. According to the index, courts are politicized, the judiciary lacks independence and fundamental rights are routinely violated. Dissent is punished with arbitrary detention and torture and legal protections for the vulnerable have all but disappeared.

For those already living in poverty, this legal collapse is devastating. Without functioning institutions, workers can be exploited without recourse, communities lack public services and corruption goes unchecked. When the rule of law fails, poverty becomes entrenched.

A Regime That Fuels Poverty

The regime of President Nicolás Maduro has overseen the dismantling of democratic institutions and the collapse of the economy. Transparency International consistently ranks Venezuela among the most corrupt nations globally. Public resources are diverted to elites while health care, education and infrastructure are neglected.

Inflation reached 400% in 2023 and more than 80% of Venezuelans now live below the poverty line, according to the World Bank. The most impoverished households struggle to obtain food, medicine and clean water. This crisis is not just economic; it is political. The government’s refusal to allow reform or accountability sustains the systems that keep people poor. Aid efforts are often obstructed and humanitarian organizations face restrictions on their work.

The fallout from Venezuela’s collapse has sparked the second-largest migration crisis in the world after Syria. As of 2024, more than 7.7 million Venezuelans have left the country for safety and opportunity. Many have settled in neighboring countries like Colombia, Ecuador and Peru, where strained public systems struggle to accommodate them. This mass migration creates new poverty challenges in host communities, from overburdened schools to job market competition.

Migrants face their own vulnerabilities: exploitation, xenophobia and legal uncertainty. The crisis extends beyond borders, affecting the whole region and highlighting how fragile governance contributes to global poverty. Venezuela’s case reveals a broader truth: poverty thrives where the rule of law fails. Without functioning legal systems, enforcing labor rights, distributing aid effectively or combating corruption is impossible.

Final Remarks

Despite the repression, civil society organizations inside and outside Venezuela continue to document abuses, offer legal aid and support democratic movements. International watchdogs like Human Rights Watch and Amnesty International advocate for accountability. At the same time, diaspora-led groups aid migrants and lobby for policy change. These efforts are limited but vital. They keep the possibility of reform alive and help protect the rights of the most vulnerable.

– Charlie Baker

Charlie is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

May 10, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-05-10 03:00:432025-06-09 01:18:25Fragility and the Rule of Law in Venezuela
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