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Aid, Development, Global Poverty

Empowering Change: The Impact of USAID in Kazakhstan

USAID in KazakhstanKazakhstan, a nation rich in natural resources and cultural diversity, has undergone significant transformations since gaining independence from the Soviet Union in 1991. Then, USAID began its partnership with the Government of Kazakhstan. Through various programs and initiatives, USAID has empowered changes across multiple sectors, fostering sustainable development and enhancing the quality of life for many Kazakhs. Today, Kazakhstan is an upper middle-income country that has emerged as a regional leader in Central Asia. This article is going to discuss four main factors about the impact of USAID in Kazakhstan.

Democracy and Governance

Kazakhstan possesses relatively strong state institutions; however, insufficient transparency and accountability undermine its attempts to promote good governance.  Also, another significant barrier to effective governance is the perceived lack of judicial independence, which affects the country’s ability to attract foreign investment and maintain the rule of law.

USAID in Kazakhstan supports the creation of a “civil society, access to information, strengthening citizen initiative groups and promoting human rights.” The agency also facilitates partnerships between civil society organizations and the Government of Kazakhstan to implement reforms that drive meaningful change in creating a better living environment. For example, the USAID is assisting the Ministry of Information and Social Development in “developing transparent and fair procedures for awarding and monitoring grants to local non-governmental organisations.”

USAID is working with the International Organization for Migration (IOM) on the adoption of an agreement between Kazakhstan and Uzbekistan on the protection of rights of the migrant

Economic Growth and Trade

Since gaining independence in 1991, the economy of Kazakhstan has experienced significant growth, mainly due to the utilization of its vast oil and gas reserves. Thanks to robust economic growth, the national poverty rate plummeted from nearly 50% at the start of the century to just 2.7% in 2015. To combat inequality, Kazakhstan is committed to boosting the income share of the bottom 40% of its population from 22.8% to 27% of total income by 2025.

Nonetheless, the country faces various economic challenges stemming from its Soviet past, such as “weak trade links with other Central Asian nations and a cumbersome regulatory framework” that hampers business development. Also, there are notable inequalities between urban and rural areas, as well as among different regions.

The work of USAID in Kazakhstan aims to diversify its economy beyond the oil and gas sector, focusing on areas like transportation and logistics, horticulture, information technology, and tourism. Additionally, USAID works to identify and eliminate barriers to trade with Kazakhstan’s Central Asian neighbors, helping the country unlock its potential as a regional trade and investment hub.

Energy and Environment

USAID has been instrumental in helping Kazakhstan modernize its energy sector while prioritizing environmental protection. This includes enhancing energy efficiency, promoting renewable energy, and attracting private investment.

Kazakhstan, a significant energy player, is transitioning to clean energy technologies. Despite its reliance on coal, which generates more than 80% of its electricity and accounts for 82% of its greenhouse gas emissions, the government recognizes the need for reform. Kazakhstan aims to reduce greenhouse gas emissions by 15% from 1990 levels by 2030, and at least 50% by 2050

USAID focuses on helping Kazakhstan and Central Asia diversify their energy sources with wind, solar, and hydropower. With USAID assistance, the Government of Kazakhstan added more than 1 Gigawatt of renewable energy projects through competitive auctions. The auctions made it possible to create competitive conditions, attract international investors, and significantly reduce renewable energy prices. This allows citizens to enjoy using clean energy with a lower cost.

Health Care

USAID programs in Kazakhstan aim to enhance access to essential services to prevent and control infectious diseases like HIV/AIDS and COVID-19. Kazakhstan faces a significant challenge with drug-resistant tuberculosis, while HIV/AIDS continues to impact vulnerable groups, especially those who inject drugs. However, the corporation between USAID and the Kazakhstan government to test and adopt client-centred HIV strategies such as HIV self-testing and adopt policies to support people living with HIV such as multi-month dispensation of antiretroviral therapy.

Besides, the USAID participated in supporting Kazakhstan in combating the COVID-19 pandemic through the provision of training, technical assistance to medical providers and the promotion of hygienic practices for the prevention of COVID-19 transmission.

The impact of USAID in Kazakhstan is profound and multifaceted. Through its commitment to empowering change, the agency has contributed to economic growth, improved education and health outcomes, promoted environmental sustainability, and strengthened democratic governance. As Kazakhstan continues to evolve on the global stage, the partnership with USAID remains a beacon of hope and progress, underscoring the importance of international collaboration in achieving sustainable development goals. The journey ahead may be challenging, but with continued support and empowerment, Kazakhstan is poised to build a brighter future for all its citizens.

– Hoi Ieng Chao

Hoi is based in Macau and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

January 13, 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 Jahic2025-01-13 01:30:072025-01-10 05:54:58Empowering Change: The Impact of USAID in Kazakhstan
Global Poverty, Health

How Nonprofits Are Helping Deliver Medical Supplies to Kiribati

Medical Supplies to Kiribati Kiribati is a stretch of 33 islands within the Pacific Ocean, 21 of those being populated. The country is unique in that these islands are spread apart— across 3.5 million square kilometers, to be exact. This presents a unique challenge amidst denizens of the atolls and transportation of medical supplies in Kiribati.

Background

While it is true that Kiribati has struggled to transport medical supplies to all of its atolls and islands, the health issues of the country go far deeper than a lack of supplies. Droughts and flooding have left the region struggling to maintain access to clean water, which in turn creates the perfect conditions for diseases like tuberculosis to flourish. Poor nutrition and poverty further exacerbate these health issues. Due to this, more than 25% of adults older than 24 in Kiribati have Type 2 Diabetes.

With the dire health conditions in Kiribati, the lack of medical supplies in Kiribati remains an important topic within the government. The sheer remoteness of the islands is the first issue. Getting ships to and from the islands is a challenge all by itself, as Kiribati is one of the most dispersed countries in the world, according to the Médecins Sans Frontières (MSF) South Asia.

Medical supplies in Kiribati arrive by boat or plane and often arrive too late and too infrequently for those who need them. At times, the supplies have taken so long to arrive that the valuable medicine inside the shipments expires long before they can make their way to Kiribati’s shores, MSF reports. When the supplies arrive, they are often expensive due to difficulties in sourcing them.

A Silver Lining

While sourcing medical supplies in Kiribati has proven itself to be a consistent challenge for the country, many organizations have recently taken up the initiative to help Kiribati source medical supplies for its people. Specifically, The World Bank is helping improve supply chains so that the more remote islands of Kiribati can keep their clinics stocked with the important medicines locals need to stay healthy.

Prevention is also one of the key factors in the plan to tackle the issues with medical supplies in Kiribati. COVID-19, while difficult to navigate in the region, ended up proving to be a learning opportunity on how to navigate widespread disease. Closing ports early on allowed Kiribati to get a head start on combating the disease, which inspired officials to use that same caution moving forward. With help from UNICEF and the India-UNDP fund Kiribati was able to create the Risk Communication and Community Engagement Committee in early 2021. This committee focuses on catching diseases that could become larger threats early on to avoid communities being taken by surprise. This committee has been instrumental in the continued fight against COVID-19 and other major diseases since then.

Thanks to the India-UNDP fund, Kiribati was able to secure funding for the purchase and transport of medical supplies in Kiribati for the committee. The collaboration helped establish 34 health centers across the country, each with the goal of community outreach by making home visits and leading dialogues about disease prevention. In the end, these facilities have been extremely important in the prevention of diseases and promotion of health amongst Kiribati’s more remote populations.

Moving Forward

While the lack of medical supplies in Kiribati continues to be an uphill battle, support from outside organizations like UNICEF and The World Bank has eased the burden of this struggle. While there is still plenty of work necessary from both officials and community leaders to make sure that the population has access to medical supplies, Kiribati is on the path to success.

– Mackenzie Scott

Mackenzie is based in Indianapolis, IN, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

January 12, 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 Jahic2025-01-12 07:30:122025-01-10 05:49:37How Nonprofits Are Helping Deliver Medical Supplies to Kiribati
Africa, elderly poverty, Global Poverty

Aging in Need: The Struggles of Elderly Poverty in Liberia

elderly poverty in liberiaLiberia is a country on the west coast of Africa with a population of around 5.5 million and ranks as “the ninth poorest country in Africa and the world.” Still recovering from years of civil conflict and the Ebola crisis over the past decade, Liberia has achieved significant development progress, focusing on reducing poverty and enhancing basic service delivery for its population, while successfully transitioning between democratically elected governments This essay will discuss the state of the elderly poverty in Liberia, the work that the government has been doing to address this growing crisis.

Elderly Poverty in Liberia

The elderly living in poverty in Liberia face significant challenges, as it lacks a “universal statutory social security system for its older population.”  The highest level of poverty is among individuals aged 60, with more than 60% living in absolute poverty, 48% facing food poverty and 22.2% in extreme poverty.

As most elderly citizens have not participated in the formal labor market, they are not eligible for pension schemes that could provide income security. At present, the only available option is a contributory national pension scheme. Unlike high-income countries that provide comprehensive pension systems, few African nations including Liberia, offer similar protections.

For those who do have pensions, coverage remains inadequate, lacking the support systems for surviving spouses and children that are typical in wealthier nations. According to the International Monetary Fund (IMF) study, there is only a small fraction—approximately 300,000 people—qualifying for the national pension scheme.

NASSCORP

The Liberian government operates the National Social Security and Welfare Corporation (NASSCORP), a statutory public trust established in 1975. NASSCORP administers the country’s social insurance program, providing benefits for individuals who contributed premium fees while employed. The program addresses “income loss due to injury, invalidity, old age, or the death of a breadwinner.”

Despite this framework, Liberia faces significant unemployment challenges, with many citizens unable to secure formal-sector jobs and, consequently, not contributing to NASSCORP. As they age, a majority rely on family support rather than a pension. NASSCORP aims to pay a monthly pension equal to at least 25% of a retiree’s average monthly earnings, funded by contributions from employers (3%) and employees (4.75%)—a total of 7.75% of monthly wages. To qualify for this pension, individuals must be at least 60 years old and have made contributions for a minimum of 100 months, with additional contributions increasing the pension.

However, many eligible citizens struggle to prove their entitlement due to the loss of records during 15 years of civil war, and a significant number lack any history of formal employment, particularly in rural areas. Consequently, elderly individuals often depend on family care, which is more sustainable in rural communities than in urban areas, where higher living costs and weaker traditional bonds complicate support systems.

PAPD

The Pro-Poor Agenda for Prosperity and Development (PAPD) 2018-2023 aims to address elderly poverty as part of Liberia’s broader national development strategy, according to the IMF report. This agenda builds on previous strategies and lessons learned from past poverty reduction efforts and focuses on enhancing the welfare of vulnerable populations, including the elderly poverty,

The four major pillars of the PAPD are:

  • “Power to the people:” Empowering citizens, including the elderly, with necessary skills and tools for better life control.
  • “The economy and jobs:” Fostering private sector-led growth and job creation, with an emphasis on economic inclusion,
  • “Sustaining the peace:” Promoting social cohesion to support sustainable development
  • “Governance and transparency:” Strengthening state capabilities for inclusive governance.

As for the way forward on empowerment, stakeholders consistently cited access to good quality education and health as the top priorities for the PAPD. Demand for more and better health and education facilities and, for good quality instruction, was high. Water and sanitation facilities were also high in demand. Moreover, special programs targeting youth, empowerment of women and people with disability and support for the elderly were high on the order of priorities, the IMF reports.

Conclusion

Liberia’s elderly population faces a significant crisis of poverty. The absence of a universal pension system, coupled with high unemployment rates and the historical impact of civil conflict, has left many older citizens without the means to support themselves. While the National Social Security and Welfare Corporation (NASSCORP) offers some relief through a contributory pension scheme, its coverage is limited and many eligible individuals struggle to access these benefits due to lost documentation and a lack of formal employment history.

– Hoi Ieng Chao

Hoi is based in Macau and focuses on Politics for The Borgen Project.

Photo: Flickr

January 12, 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 Jahic2025-01-12 01:30:562025-01-10 05:44:40Aging in Need: The Struggles of Elderly Poverty in Liberia
Global Poverty, Women's Empowerment

Poverty in Saudi Arabia

Poverty in Saudi Arabia Between 2010 and 2021, the poverty rate in Saudi Arabia decreased from 18.2% to 13.6%, lifting 483,000 Saudis out of poverty. However, significant challenges remain, including systemic unemployment and a lack of affordable housing. With a nominal GDP of $1.07 trillion, the country boasts the largest economy in the Middle East. Despite this economic strength, the kingdom also has the highest poverty rate among Gulf states, with one in seven Saudi nationals living in poverty.

Poverty Hidden from View

Saudi Arabia does not officially disclose statistics on poverty or define a poverty threshold. The kingdom portrays itself as a highly developed and civilized nation, with gleaming cities like Riyadh and luxury resorts along the Red Sea, boosting its tourism industry. Yet, poor neighborhoods and slums exist, though their locations often make them invisible to visitors. Urban layouts deliberately segregate lower-class neighborhoods from highways and central city areas, pushing low-income citizens to society’s fringes. Until 2002, Saudi officials denied the existence of poverty altogether and state-run media ignored the issue until Crown Prince Abdullah bin Abdulaziz visited a Riyadh slum, bringing the problem to light.

Vision 2030

Saudi Arabia derives most of its wealth from the oil sector. Vision 2030 is a plan to reduce the country’s reliance on oil by diversifying industries, expanding the private sector and scaling down the public sector. A cornerstone of this initiative is the partial privatization of Aramco, the state-owned oil giant. However, the plan also includes privatizing public services, such as hospitals and schools. A significant challenge for Saudi citizens under Vision 2030 is the proposed reduction in state employment.

Currently, two-thirds of Saudis work in government jobs, but the plan aims to lower this to 20% of the population. Welfare spending, which includes free education and health care, has also seen cuts. The government funds much of its welfare spending through Zakat, an Islamic principle requiring individuals to donate 2.5% of their wealth to charity. The government collects and distributes these funds. Under Vision 2030, the government is reducing subsidies for essential services like fuel, electricity and water. These cuts disproportionately affect poorer citizens, creating further challenges for those already struggling financially.

Women and Migrant Workers: The Most Vulnerable

Under Islamic law, men are traditionally responsible for financially supporting women and children. As a result, women without a husband or living male relative often face significant socio-economic challenges. Female-headed households represent a large proportion of the poorest families in Saudi Arabia. Although women are permitted to work independently, many employers require written consent from a male guardian, limiting women’s participation in the labor force. This guardianship system creates barriers to employment, increasing women’s vulnerability to poverty and rising living costs. Migrant workers, particularly women, are among the most vulnerable groups in Saudi society. They often endure low wages, financial hardships and exploitative practices such as wage withholding and the confiscation of passports, exacerbating their economic challenges.

Progress and Solutions

According to the United Nations (U.N.), poverty in Saudi Arabia has become less of a taboo topic since the crown prince visited a Riyadh slum in 2002. Following this pivotal moment, the country implemented the National Poverty Reduction Strategy in 2005 and the Supplementary Support Programme in 2006, both aimed at assisting those in need. Policy reforms remain essential to effectively combat poverty. Key strategies include promoting a fair tax system, enhancing the efficiency of social protection transfer programs and revising land distribution and public procurement policies. Additionally, prioritizing investments in skill development for citizens is critical. These measures can help expand access to socioeconomic opportunities, fostering greater inclusion and reducing poverty across the nation.

Looking Ahead

Efforts to tackle poverty in Saudi Arabia are advancing, however, systemic challenges such as unemployment, limited affordable housing and economic disparities persist. Targeted reforms, including improved social protection systems and investments in education and skill development, remain critical to achieving greater socioeconomic inclusion. As the kingdom moves forward with Vision 2030, balancing economic diversification with equitable welfare measures could be essential to reducing poverty further.

– Salome von Stolzmann

Salome is based in London, UK and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

January 11, 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 Sheidu2025-01-11 07:30:342025-01-10 02:23:24Poverty in Saudi Arabia
Global Poverty, Homelessness

Addressing Homelessness in Trinidad and Tobago  

Homelessness in Trinidad and Tobago
The Republic of Trinidad and Tobago, an island country of the southeastern West Indies and the southernmost island in the Caribbean, houses a population of roughly 1.39 million people. Amongst this number, 20% are classified to be below the poverty line, with more than one-seventh of the population living in 313 informal settlements or slums. With median house prices currently standing at around $192,000 USD according to the Inter-American Development Bank, and average monthly incomes being approximately $1,600, the lack of affordable homes, coupled with extensive waiting lists for subsidized housing, means that low income earners are prevented from homeownership altogether. As a consequence, homelessness is a common issue many face, with at least 676 socially displaced across the country according to Donna Cox, Minister of Social Development and Family Services. 


This article will delve into the structural issues behind homelessness in Trinidad and Tobago, before moving onto the steps governments have taken to address, reduce and ultimately combat it moving forward. 

Barriers to Tackling Homelessness in Trinidad and Tobago

While Trinidad and Tobago recognizes the concept of homelessness, there does not seem to be a legal definition of it, nor a fixed criteria in law set out to determine eligibility for programs and services. Formally referred to as “street dwellers” in reference to “persons found sleeping or preparing to sleep on the sidewalk and pavements of streets or on the ground of open plots of land adjoining a street,” homeless individuals are seemingly regarded as public nuisances, often being criminalized rather than offered relief and rehabilitation. 

This was seen in action when C Melville of Trinidad and Tobago Newsday observed a teenager living in a bus shed within the Tacarigua area in June 2024. Upon calling the Ministry of Social Development for aid, she was unable to reach anybody, only coming to an automated response. No one provided an immediate solution to get the individual off the street, with suggestions that police should deal with the matter instead. 

With the varying physical and mental health disorders that come both as a cause and result of homelessness, many urge for a more multidisciplinary approach that addresses the complexities of the socially displaced, ensuring that sufficient support is provided. This goes beyond basic material relief such as providing new clothes and meals for the homeless. Rather, there is encouragement to provide health check-ups and counseling alongside more basic efforts to better social well-being and ensure a more well rounded rehabilitation so that individuals can be reintegrated into society again. 

Steps Moving Forward

According to the Socially Displaced Persons Act 2000, government services did not have the legislative power to remove individuals off the street, yet Parliament is now working on laws that will grant ministries and the police the legal backing to involuntarily remove the socially displaced. Currently, the approach towards dealing with the homeless in Trinidad and Tobago remains inhumane, with people simply reporting cases to police, and so it is common for individuals that are offered help to prefer to stay on the streets. 

This proposed legislation, alongside other plans for state of the art facilities that will provide accommodation for street dwellers while they undergo individualized rehabilitation, is set to more directly address the social issue at hand. With Trinidad and Tobago Police Service (TTPS) Advisor Terrance Dick claiming that “we tried to remove people already and the court said we were going about it the wrong way,” these steps forward will deal with homelessness more intentionally. 

There are greater efforts that are working towards addressing homelessness as well, with more organizations emerging to aid community development and expand local operations for affordable housing. For instance, nonprofits like Habitat for Humanity provide services from home construction to financial assistance, having served 355 families with direct housing solutions so far, and more than 1,800 people with credit management and construction training. The organization also focuses on providing education for high risk communities so that they are equipped with the skills needed for a sustainable future, ensuring wider community development. 

Looking Ahead

Homelessness is becoming an increasing concern for the country due to the state’s affordable housing deficit and its low median incomes, yet governments are working towards offering the displaced more targeted solutions such as self assessments and bespoke rehabilitation which will aid in their reintegration to society. Looking ahead, Trinidad and Tobago’s government must continue to tackle the homelessness crisis with a more comprehensive, structured and humane approach that will carefully address the complexities and nuances of the socially displaced. Greater collaboration is also hoped to be seen between the state and public and private organizations to drive bigger impact and changes. 

– Sophie Young

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

Photo: Flickr

January 11, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2025-01-11 01:30:192025-01-10 02:18:25Addressing Homelessness in Trinidad and Tobago  
Global Poverty, Tourism

Ecotourism for Reducing Poverty in Indigenous Communities

Ecotourism for Reducing Poverty in Indigenous CommunitiesEcotourism refers to responsible travel to natural areas that conserves the environment and improves the welfare of the local people. Conservationists describe ecotourism as a potentially positive way to use markets as direct economic incentives to protect biodiversity and landscapes and reduce poverty in Indigenous communities, offering opportunities to alleviate poverty. Ecotourism markets can act as catalysts of change with opportunities for stable employment, cultural preservation, infrastructure development and environmental sustainability. Poorly managed markets often lead to social conflict, cultural disintegration, loss of identity and resource overexploitation. Despite these ongoing challenges, ecotourism provides a sustainable path to improving livelihoods and reducing poverty in Indigenous communities when implemented responsibly.

Cambodia’s Banteay Chhmar

The Banteay Chhmar temple in northwest Cambodia is an iconic cultural and historical site that endured years of neglect, looting and insufficient conservation funding. Khiri Travel, a sustainable travel company, partnered with the local community in 2007 to develop a community-based tourism project that aimed to generate income for local villagers and conservation while providing authentic experiences for visitors. Central to the project is the involvement of local villagers and the improvement of community infrastructure, including clean water access and waste management systems. Since its launch, the project has generated more than $100,000 in revenue per year and created employment opportunities for more than 100 villagers. The project has won several awards for its innovative and sustainable approach, serving as a model for similar initiatives in Cambodia and beyond.

The Maasai Community in Kenya

In Kenya, the Maasai community has embraced ecotourism as a means to reduce poverty while preserving their unique cultural identity and the natural environment. Through initiatives like the Mara Conservancies, local Maasai landowners partner with tourism operators to create community conservancies, with agreements that ensure a portion of tourism revenue is directed toward local development projects, including schools, health care facilities and water systems. Ecotourism projects in the Maasai community have provided numerous employment opportunities for community members, introduced programs to preserve traditional Maasai practices and incentivized sustainable land management. By empowering the local community, fostering cultural preservation and promoting sustainable practices, ecotourism offers a pathway for the Maasai community to thrive economically while safeguarding their heritage and ecosystems.

The Potato Park in Peru

In the Andes of Peru, the Potato Park is a pioneering example of ecotourism that is driven by indigenous knowledge and biodiversity conservation. Local Quechua communities manage the park and dedicate it to preserving the hundreds of native potato varieties that define the region’s agricultural heritage. Revenue from ecotourism has improved local livelihoods, reduced poverty in Quechua communities and strengthened cultural identity and food sovereignty. The Potato Park serves as a global model for integrating ecotourism, conservation and sustainable development, inspiring similar projects by showing how traditional knowledge drives conservation and development. The park’s successes underscore its role as a transformative tool for poverty reduction and environmental stewardship. 

Balancing Opportunities and Challenges

While ecotourism has emerged as a transformative tool for reducing poverty in Indigenous communities, there are also potential challenges. There is a risk of cultural commodification, where the need to cater to tourists may pressure communities to alter or commercialize cultural traditions. In addition, relying on tourism revenue makes communities vulnerable to external shocks, such as economic downturns or global crises like the COVID-19 pandemic.

Despite this, there have been numerous successful examples of ecotourism projects. These cases demonstrate how ecotourism, when implemented responsibly, can potentially provide a sustainable means of poverty alleviation. To maximize the benefits of ecotourism, initiatives could prioritize community involvement, transparent governance and adaptive strategies that ensure resilience against external shocks. By empowering local communities, fostering cultural preservation and promoting environmental stewardship, ecotourism initiatives offer a pathway to reducing poverty in indigenous communities while safeguarding their heritage for future generations.

– Isobel Hurst

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

Photo: Flickr

January 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 Sheidu2025-01-10 07:30:482025-01-09 03:17:01Ecotourism for Reducing Poverty in Indigenous Communities
Business, Financial Instruments, Global Poverty

How Savings Groups in Uganda Drive Poverty Reduction

How Savings Groups in Uganda Drive Poverty ReductionAbout 37% of adults in Uganda are members of savings groups, making the country a leader in financial inclusion across Africa. These groups, which pool resources and provide loans to members, have gained popularity globally, with many adopting digital tools to enhance security and efficiency. Savings groups are particularly vital in impoverished and rural areas, offering financial services where banks and other institutions are inaccessible or nonexistent. With more than 1.4 billion people worldwide lacking access to formal financial systems, these groups offer a lifeline for promoting financial inclusion and reducing poverty. In Uganda, the community-driven model has become a powerful tool for building resilience and strengthening communities in the fight against poverty.

Types of Savings Groups

There are three main types of savings groups and their use depends on factors such as living standards, the amount of money involved and the participation agreement among members.

  1. Rotating Savings and Credit Associations (ROSCAs). It operates on a simple principle that every member contributes a fixed amount of money, usually agreed upon before formal meetings. Once all members have contributed, the pooled funds are handed out to one person on a rotational basis. In contrast,
  2. Accumulated Savings and Credit Associations (ASCAs). ASCAs, in contrast, do not distribute funds routinely. Instead, the collected money grows over time and members can request loans as needed.
  3. Village Savings and Loan Association (VSLA). The most common type of savings group in Uganda is the Village Savings and Loan Association (VSLA), according to a survey by Financial Inclusion Insights (FII) conducted across 12 countries, including Kenya, Uganda and Nigeria. Like ASCAs, VSLAs allow members to borrow from a shared pool of funds. However, VSLAs differ by equally distributing any interest earned on loans among group members. In Uganda, 11% of individuals involved in savings groups belong to VSLAs. Additionally, 4.7% of those using VSLAs or ASCAs are more likely to live in rural communities than in urban areas, highlighting the significance of these groups in supporting rural financial inclusion.

Driving Financial Inclusion

Promoting financial education globally is essential in the fight against poverty. Savings groups offer individuals opportunities to learn about key financial concepts such as saving, interest rates and loans. These groups also bridge the gap for those without access to traditional financial institutions, providing a pathway to greater financial inclusion and stability.

The World Bank reports that about 50% of Uganda’s population has access to financial institutions. However, 37% of adults in Uganda are involved in savings groups, highlighting their importance in advancing financial inclusion and reducing poverty. Beyond financial education, saving groups empower individuals to understand various social and economic issues. They build partnerships within communities, raise awareness on critical social topics and even contribute to community building and infrastructure development. 

Empowering Women Through Savings Groups

Women face disproportionate impacts from poverty globally. At least one in 10 women live in poverty and women are seven times more likely than men to experience extreme poverty. In Uganda, savings groups play a vital role in empowering women by offering safe spaces to save money and access loans. These loans help women start businesses, provide for their families and meet personal needs, fostering financial independence and stability.

According to a survey conducted by the Fin Mark Trust across 30 countries, including Kenya, Uganda and Nigeria, Uganda has the highest proportion of women engaged in savings groups, with 39% of women participating. Gender inequality remains one of the leading causes of poverty and addressing wage gaps and promoting social benefits for women is critical in reducing poverty among women. Uganda’s savings groups act as a powerful tool in fighting against poverty among women, breaking down barriers they face in corporate, social and family life and building economic empowerment.

Challenges Facing Savings Groups

Despite their benefits, savings groups face several obstacles:

  • Resource Limitations: Many groups in rural areas lack infrastructure and secure storage systems, exposing funds to risks such as theft or mismanagement.
  • Reliance on Physical Meetings: Regular in-person meetings, while essential, can pose logistical challenges compared to the convenience offered by formal financial institutions.
  • Digital Divide: Urban savings groups increasingly use mobile money and digital tools, but rural groups lack access to digital infrastructure, hindering modernization and long-term sustainability.

A more pressing challenge for savings groups is the need to adopt digitized systems. While urban savings groups have started using mobile money and other digital tools, rural communities often lack the necessary digital infrastructure. This gap highlights a growing divide and raises concerns about the long-term sustainability of savings groups in an increasingly digital world. Tackling this issue will require innovation within savings groups and proactive government initiatives to expand digital infrastructure in Uganda’s rural areas.

Sustainability Through Innovation

Organizations like Plan International play a pivotal role in strengthening savings groups. By introducing mobile money and secure savings solutions, it addresses critical challenges and improves efficiency. Plan International, for instance, has supported 1.5 million individuals across 76,000 savings groups in 28 countries, demonstrating the potential for scalable solutions.

Moving Forward

Savings groups in Uganda are transforming lives by providing financial inclusion, empowering women and fostering community resilience. These groups offer a lifeline for individuals lacking access to formal financial systems, enabling them to save, borrow and invest in their futures. While challenges such as resource limitations and the digital divide remain, ongoing innovation and support from organizations and governments can strengthen the sustainability of these groups. Uganda’s savings groups serve as a global model for tackling poverty through grassroots financial solutions, demonstrating the power of community-driven change.

– Zacc Katusiime

Zacc is based in Kampala, Uganda and focuses on Business and Good News, Politics for The Borgen Project.

Photo: Flickr

January 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 Sheidu2025-01-10 01:30:162025-01-09 03:10:47How Savings Groups in Uganda Drive Poverty Reduction
Child Poverty, Global Poverty, Nonprofit Organizations and NGOs

TOMS: Advancing Efforts in Improving Lives

TOMSTOMS is a social enterprise founded in 2006 by Blake Mycoskie. Mycoskie took a sabbatical to Argentina, where he witnessed children struggling without shoes: inadequate safety and education barriers. The company sells a wide range of products, from shoes, eyewear, apparel and handbags and its recent venture, coffee, in 2014. In 2019, Mycoskie switched to TOMS’ renowned approach, the One-for-One Model, where every pair of shoes purchased would mean giving a shoe to someone in need. TOMS evolved from this strategy to reach a diverse range of issues.

The company’s current operational model offers a third of its net profits through strategic partnerships with nonprofit organizations. These organizations are aimed at mental health, eradicating gun violence and opening doors to opportunities. Indeed, TOMS has consistently strived to ensure that making a positive social impact is as significant as producing high-quality products. With meaningful and sustainable partnerships, it has impacted more than 100 million people.

ChildFund

In 2012, TOMS partnered with ChildFund to give new shoes to needy children in Liberia. In Liberia, children are required to wear black shoes to school; however, numerous families cannot afford them. Thus, families with siblings share a pair of school shoes, each wearing a slipper on one foot and a school shoe on the other.

A “ChildFund study in 2010 estimated that 15% of school-aged children in developing countries have hookworm or another parasitic disease due to bare feet.” This partnership improves the children’s learning experience. It supports long-term access to education and health for these children, offering a step out of poverty. Thanks to TOMS and ChildFund, hundreds of Liberian schoolchildren now have school shoes.

Save the Children

With the One-for-One model, TOMS gave more than a million pairs of shoes and winter boots to children in various countries: Lithuania, El Salvador, Tajikistan and more. The distribution of shoes was part of a broader, holistic approach to improving children’s well-being through Save the Children’s wellness, dietary and educational services.

TOMS employees participated in events and trips to witness the behind-the-scenes of what it is like to give the TOMS shoes to the children. Save the Children leaders often speak at TOMS’s office events, cultivating the shared collaborative spirit. Employee engagement with TOMS and Save the Children was beneficial. It inspires employees to strive for the best quality products for the children.

Save the Children’s brand awareness widened when TOMS frequently displayed the brand to new crowds and trendsetters. Through digital advertising, TOMS would focus on spreading awareness about children in poverty in their flagship stores and partner with Save the Children to market its campaigns. During Hurricane Harvey, TOMS urged customers to advocate for Save the Children’s emergency fundraising efforts.

One Day Without Shoes Campaign

On 10 April 2010, TOMS “One Day Without Shoes (ODWS),” an idea developed in 2008 by students in Pepperdine University’s Surf Club, was commemorated to create awareness about the impact of not having shoes for underprivileged children worldwide. TOMS ensured that a pair of shoes would be donated to a child in need for every interesting photograph posted. By posting a photo of bare feet and using hashtag #withoutshoes, TOMS was able to garner a broad community to get involved and inspired.

A new pair of TOMS Giving Shoes was received by 296,243 children in need. This was achieved through the involvement of people in more than 30 countries. During the campaign, the community of 300,000 barefoot photos was eager to tag #withoutshoes to publicize the campaign.

World Mental Health Day, 2023

TOMS gives a third of its profits through cash grants to nonprofit organizations. On 10 October 2023, TOMS gave 10 “mental health-focused nonprofit organizations” worldwide $10,000 cash grants each. Wall of Sharing, Fundación Origen, International Medical Corps—Ukraine and Mentally Aware Nigeria Initiative—Nigeria are such organizations.

TOMS’ Commitment to Positive Change

TOMS has evolved from its original “One-for-One” model to a broader approach, focusing on sustainable change. Ensuring immediate needs and long-term improvements, the company has positioned itself as a leader in corporate responsibility. Indeed, the company has created a meaningful impact on communities internationally. Furthermore, strategic partnerships with ChildFund and Save the Children, cash grants to International Medical Corps—Ukraine and more have been instrumental to global communities by providing shoes to children in need or supporting mental health initiatives.

– Nalini Vj

Nalini is based in Perth, WA, Australia and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

January 9, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2025-01-09 07:30:142025-01-08 08:32:01TOMS: Advancing Efforts in Improving Lives
Conflict, Global Poverty, Politics

Fragility and Rule of Law in Syria

Fragility and Rule of Law in SyriaFor more than 54 years, the Assad regime ruled Syria with tight control, shaping its political and social landscape. With its recent downfall, rebel forces have filled the power vacuum, facing the immense challenge of rebuilding the country after decades of authoritarian rule and conflict.

Fall of the Regime

The fall of the Assad regime marked a pivotal moment in Syria’s history. Intense military operations, spearheaded by the leading rebel force, the Hayat Tahrir al-Sham, increased their influence on growing unrest and dissatisfaction with the regime. These efforts culminated in a series of strategic offensives, ultimately resulting in the takeover of Damascus in early December, 2024.

This victory was celebrated all over Syria but also exposed the fragility and rule of law. The collapse left a significant power vacuum, with various factions vying for control and struggling to establish governance in a deeply divided society.

Stabilization and Rule of Law

The integration of rebel forces into a unified defense ministry is a critical step toward addressing the fragility and rule of law in Syria. Rebel groups, including Hayat Tahrir al-Sham, the Syrian National Army backed by Türkiye and others, allied to create a cohesive defense ministry.

This move indicates a commitment to stability and governance, reducing internal conflicts among factions. While this unity signals progress, the country still faces challenges in establishing a robust framework for governance and the enforcement of laws, particularly in areas previously dominated by Assad loyalists.

Signs of Progress and Ongoing Challenges

Despite the ongoing fragility, there are glimpses of progress in Syria. For the first time after the fall of the Assad regime, Syria’s Christian community celebrated Christmas, symbolizing a shift toward religious freedom and tolerance. This moment marked a hopeful milestone for communities long suppressed under the regime’s rule.

Additionally, efforts to include women in governance are gaining momentum. Aisha al-Dibs, the newly appointed head of the Women’s Affairs Office, has emphasized the critical role of women from all provinces and ethnicities in rebuilding Syria. These developments demonstrate potential advancements in addressing the fragility and rule of law in Syria.

Toward Stability and Governance

The fragility and rule of law in Syria remain at the forefront of the country’s transition from decades of Assad rule. While the fall of the regime indicated the formation of a unified defense ministry marked significant milestones, Syria’s path to stability is fraught with challenges. Promising signs, however, include progress in fostering religious tolerance, increasing the inclusion of women in governance and unifying rebel factions.

Yet, much work remains to be done to establish a cohesive and inclusive government. As Syria rebuilds, addressing the fragility and ensuring the rule of law will be essential for achieving long-term peace and stability.

– Mmanoko Faith Molobetsi

Mmanoko is based in Pretoria, South Africa and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

January 9, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2025-01-09 01:30:152025-01-08 08:14:43Fragility and Rule of Law in Syria
Disability, Economy, Global Poverty

The Intersection of Disability and Poverty in Portugal

Disability and Poverty in PortugalIn Portugal, the intersection of disability and poverty is a pressing issue. Despite progress in disability rights and social support, many individuals with disabilities continue to face economic hardships. This challenge is not only about physical impairments but also the systemic barriers that contribute to persistent poverty.

The Reality of Disability in Portugal

Portugal has implemented laws like the “Basic Law on the Rights of Persons with Disabilities” (Law 38/2004). This legislation underscores the country’s commitment to protecting the rights of individuals with disabilities and fostering their active participation in society.However, the reality for many individuals with disabilities remains one of exclusion, especially in rural areas where services and infrastructure are limited.

Challenges are exacerbated by geographical isolation and a lack of targeted support, leaving many unable to benefit from these legal advancements fully. According to a report, more than 10% of Portugal’s population lives with a disability. Yet, many still struggle to access education, employment and health care. This persistent inaccessibility not only hinders personal development but also perpetuates a cycle of economic disadvantage, marginalization and social exclusion.

Disability and Economic Struggles

A key factor in the poverty faced by persons with disabilities is the lack of accessible employment opportunities. According to data from EU-SILC, the employment rate for people with disabilities in Portugal is about 58.4% compared to 77.4% for people without disabilities. Discrimination and inadequate workplace accommodations often hinder job prospects. Furthermore, the lack of accessible transport and facilities adds to the difficulty. Moreover, public services, including health care and transportation, can be inaccessible in many parts of the country.

Portugal lacks a national personal assistance scheme, leaving many individuals with disabilities reliant on family members or institutional care. This makes many of them report difficulty in accessing public transportation, especially in rural and less-developed regions. This lack of access further isolates individuals living with disabilities from society, making it even harder to engage in education, employment or social life.

Moving Toward Inclusion

Breaking the cycle of disability and poverty in Portugal requires a comprehensive approach that includes greater investment in inclusive education, better access to public spaces and increased employment opportunities for people with disabilities. The Convention on the Rights of Persons with Disabilities (CRPD) emphasizes that people with disabilities should have the right to choose where and with whom they live, free from mandatory institutionalization.

Integrating individuals with disabilities into the workforce holds immense potential for economic growth. This is a benefit acknowledged by the Portuguese government as part of its commitment to inclusivity under the 2030 Agenda for Sustainable Development. The success of these top-down-oriented strategies is crucial, not only for Portugal but for Europe as a whole, in addressing and reducing poverty effectively via political and administrative change.

– Lambros Andrikopoulos

Lambros is based in Birmingham, UK and focuses on Global Health for The Borgen Project.

Photo: Pexels

January 8, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2025-01-08 07:30:212025-01-07 07:56:08The Intersection of Disability and Poverty in Portugal
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