Many still remember Bosnia and Herzegovina as the site of violent conflict during the Yugoslav wars of the 1990s. Today, however, the country ranks as an upper-middle-income economy and continues to slowly make its way towards European integration. Despite this progress, Bosnia and Herzegovina still faces significant structural economic challenges. Around 16.9% of the population lives below the poverty line, and foreign direct investment (FDI) has declined since 2023. The economy still relies heavily on traditional sectors such as manufacturing, as well as remittances from its large diaspora. At the same time, the country is developing several emerging sectors. Since 2022, EU-backed programs have supported tourism, entrepreneurship and job creation to move toward poverty eradication in Bosnia and Herzegovina. In the age of artificial intelligence and digital innovation, these sectors offer new opportunities for economic growth and diversification.
Who Does Poverty Most Affect?
The Borgen Project spoke with Amina Hadžić, Youth Advisor to the EU Delegation in Bosnia and Herzegovina. She explains that “unemployed individuals, particularly young people entering the labor market for the first time, as well as pensioners who often survive on very low monthly incomes” face the highest risk of poverty. She also highlights that “rural populations are highly exposed to economic hardship due to limited employment opportunities and weaker infrastructure compared to urban area.” Other vulnerable groups include single-parent households, people with disabilities and Roma populations.
These inequalities reflect strong rural – urban disparities. Around 19% of people living in rural areas experience poverty, compared to just 9% in urban areas. Children in rural regions also face higher levels of deprivation, particularly in access to early childhood education, internet and basic sanitation.
Weak infrastructure drives a lot of this inequality. In many rural areas, communities lack reliable access to essential services; some households still transport water using tractors or horse carts because they cannot access stable water supply and sanitation systems. These conditions directly impact quality of life and restrict economic opportunities.
At the same time, structural challenges in the labor market worsen poverty. While the overall unemployment rate in Bosnia and Herzegovina stands at around 12.6%, youth unemployment exceeds 28% in 2025. Informal employment accounts for more than 23% of total employment, leaving many workers without stable income or social protection.
Systemic issues, such as Bosnia and Herzegovina’s fragmented governance structure and unequal access to social services, reinforce these challenges and prevent many people from accessing economic opportunities and public services.
With nearly half of the country’s population living in rural areas, these conditions clearly show that the government must advance innovations in poverty eradication in Bosnia and Herzegovina. This means expanding infrastructure, especially water, sanitation, education, transport and digital connectivity, to reduce poverty and drive long-term development.
Infrastructure as a Foundation for Development
International organizations and local authorities have started to address infrastructure gaps between rural and urban communities. In rural areas, limited access to water remains a major issue. Projects financed through the Western Balkans Investment Framework and the European Investment Bank now expand water and sanitation systems. For instance, a €2.1 million grant supports the construction of wastewater and water systems, bringing reliable services to 93,000 people.
These investments already deliver results. In the village of Gajevi near Šamac, workers built an 18-kilometer water network that now provides 146 households with stable access to drinking water for the first time. Residents no longer struggle with chronic shortages and unsafe conditions.
Transport infrastructure also plays a key role in reducing regional isolation. The World Bank supported the construction of the 36-kilometer Neum – Stolac road, which opened in 2022. The new route reduced travel time from 90 minutes to just 25. Improved connectivity between the country’s only coastal municipality and inland town now supports tourism in Neum and creates new opportunities for businesses and agriculture in Stolac. As one local hotel owner noted, the road “opens up a million possibilities.”
These projects show how infrastructure investment can improve daily life while unlocking economic potential.
Digital Innovation and Civic Participation
Beyond physical infrastructure, the digital and IT sector is emerging as one of the key innovations in poverty eradication in Bosnia and Herzegovina. As Amina Hadžić emphasizes, “digital innovation and the development of the IT sector represent one of the most promising opportunities for economic growth and youth employment in Bosnia and Herzegovina.”
International partnerships have accelerated this transformation. In 2024, Bosnia and Herzegovina joined the Digital Europe Programme, which allows the country to participate in EU-wide projects focused on artificial intelligence and advanced digital skills. The programme also supports the creation of Digital Innovation Hubs, which help businesses, especially small and medium-sized enterprises, strengthen their digital capacities and integrate into the European digital economy.
Bosnia and Herzegovina’s efforts have improved digital skills, raising the share of individuals with above-basic digital skills by 6.8% .
More broadly, these initiatives expand access to entrepreneurship and innovation, particularly for young people. Training programs in coding, digital marketing and software development create new employment opportunities that do not depend on local labor market constraints.
Digital tools also improve access to public services and civic participation. The UNDP has supported platforms such as eCitizen, which allows residents to communicate directly with local authorities and access services more efficiently. Similarly, the eNewborn (ePorodilja) system simplifies access to social benefits for new parents, while Digital Pulse helps small businesses evaluate and improve their digital readiness. These tools increase transparency, strengthen public services, and encourage citizen engagement. Platforms such as YourCO2 (TvojCO2.ba) also promote climate action by connecting individual behavior to environmental impact.
Towards Inclusive Growth
Bosnia and Herzegovina still faces deep structural challenges, but recent developments show how infrastructure investment and digital innovation can reduce poverty. New water systems, roads, and public services improve living conditions and reduce regional inequalities, especially in rural areas. At the same time, digital tools expand access to employment, education and civic participation.
However, digital innovation alone cannot solve these challenges. Without reliable infrastructure, education and inclusive policies, many people will remain excluded from these opportunities. Bosnia must therefore invest in both physical and digital systems to ensure that development reaches all communities.
As the country continues its path toward European integration, it must combine infrastructure development with digital transformation. Together, these approaches can drive innovations in poverty eradication in Bosnia and Herzegovina, promote inclusive growth and build a more resilient and equitable future.
– Inès Maudire
Inès is based in Paris, France and focuses on Technology and Solutions for The Borgen Project.
Photo: Flickr
Migration to Puerto Rico
In recent years, migration to Puerto Rico has begun to shift, although outmigration still exceeds inflows. In 2024, about 25,000 people moved to Puerto Rico from the mainland United States, while approximately 38,000 residents left, showing a continued but narrowing population loss. Return migration has increased as Puerto Ricans relocate from states such as Florida and New York, while migrants from across Latin America and the Caribbean also arrive seeking economic stability. These changing migration patterns now play a growing role in shaping labor markets, housing demand and public services.
Who Is Migrating to Puerto Rico?
Many groups contribute to migration to Puerto Rico, each with distinct economic impacts. Puerto Ricans returning from the mainland often bring savings, remote income or professional experience. Migrants from the Dominican Republic and Venezuela frequently seek employment in construction, tourism and domestic labor, where wages tend to be lower and job security limited. According to the Migration Policy Institute, these sectors rely heavily on migrant labor to meet workforce demand, particularly during post-disaster reconstruction and tourism expansion.
Mainland U.S. investors and remote workers have also increased migration to Puerto Rico under Act 60. These individuals often relocate to high-demand areas, contributing to rising property values and increased housing demand. While this investment supports economic growth, it can also increase housing costs for local residents, particularly in coastal and urban regions.
Migration to Puerto Rico and Poverty
Migration to Puerto Rico has helped address labor shortages, but poverty remains widespread. According to the World Bank, Puerto Rico’s income inequality remains high, with a Gini index above 0.54, one of the highest among U.S. jurisdictions. Many workers in tourism, construction and service industries earn wages that do not keep pace with the cost of living, increasing financial vulnerability even among employed individuals.
Housing demand has increased alongside migration, placing pressure on affordability. Research from Harvard DRCLAS identifies rising property values and short-term rental growth as key drivers of displacement in communities such as San Juan. Reports from Foundation for Puerto Rico also show that tourism development has increased demand for housing, particularly in coastal areas, making it more difficult for low-income residents to secure stable housing.
Language barriers, limited documentation and restricted access to services further affect migrants. These challenges limit access to health care, education and stable employment, increasing the likelihood of long-term economic hardship.
Economic Growth, Tourism and Inequality
Puerto Rico’s economy has expanded over time, but growth remains uneven. According to the World Bank, GDP growth data shows consistent long-term expansion in economic output, measured in constant 2015 U.S. dollars. Migration supports industries such as construction, tourism and services, which contribute to job creation and economic activity. However, GDP growth does not account for income distribution or cost-of-living differences.
Tourism plays a major role in employment. In 2024, visitors spent approximately $7.1 billion in Puerto Rico, supporting more than 115,000 jobs in hotels, restaurants and leisure services. Economic forecasts from the Puerto Rico Oversight Board indicate that while tourism remains strong, overall economic growth has slowed, with projections showing flat or modest growth in the near term. The labor market remains stable, but part-time employment has increased and younger workers face higher unemployment rates.
Despite this activity, inequality persists. Inflation in essential goods continues to outpace wage growth, and federal disaster recovery funding—while significant—has faced delays in distribution. These conditions limit the extent to which economic growth improves living standards for low-income households.
Organizations Supporting Migrants and Low-Income Families
The Hispanic Federation has operated in Puerto Rico since 2017, investing more than $54 million in recovery and resiliency efforts. The organization has supported more than 250 solar energy installations across schools and community centers and provided disaster assistance following multiple hurricanes. Its programs focus on housing, energy access and community development, directly benefiting migrants and low-income families.
The Community Foundation of Puerto Rico supports economic development through grants, small business funding and workforce programs. The foundation invests in community-based initiatives that help residents—including migrants—access employment, develop businesses and improve long-term financial stability.
Catholic Extension leads a large-scale rebuilding effort that includes restoring more than 600 churches, schools and community facilities across Puerto Rico. These projects create jobs, strengthen infrastructure and support long-term community recovery in areas experiencing natural disasters.
Following Hurricane Fiona, the FEMA provided approximately $574 million in assistance to more than 712,000 households. Disaster recovery centers and outreach programs helped residents access housing support, legal aid and rebuilding resources.
Caritas Puerto Rico serves approximately 75,000 people annually across 60 municipalities, providing food distribution, disaster relief, counseling and community support services. Its programs support migrants and vulnerable populations by addressing both immediate needs and long-term development.
Conclusion
Migration to Puerto Rico continues to reshape the island’s economic and social landscape. Migration supports labor markets and economic activity, particularly in tourism, construction and service industries. However, rising housing costs, persistent income inequality and limited access to services continue to affect both migrants and long-term residents.
Targeted policies that expand affordable housing, improve workforce development and strengthen social services can help ensure that migration to Puerto Rico supports economic stability rather than deepening inequality.
– Kianna Hines
Photo: Flickr
Strengthening Legal Framework Against Forced Marriages in Italy
With violence against women still a central issue, the Istanbul Convention aims to strengthen the legal framework against all forms of gender-based violence, including forced marriage.
The Istanbul Convention: Article 37
The Council of Europe Convention, under Article 37 of the Istanbul Convention, defines a forced marriage as:
Forced Marriages in Italy
Women and girls across Italy have experienced and continue to experience forced marriage, often imposed by parents, relatives and even religious leaders. These marriages may be enforced through coercion, including threats and violence.
The legal marriage age in Italy is 18. However, according to Juma Map Services for Refugees, a juvenile court may authorize exceptions, allowing minors of at least 16 years to marry legally.
Italy, in line with the Sustainable Development Goals, is committed to eliminating child, early and forced marriage by 2030, according to Girls Not Brides. The country signed the Istanbul Convention on September 27, 2012 and it entered into force on August 1, 2014.
The Istanbul Convention: Ongoing Targets
The convention aims to prevent violence against women, protect victims and those at risk and prosecute perpetrators. Key protection and prosecution measures outlined by the European Commission include:
A Successful Prevention Method in Italy
In 2014–2015, the Italian government launched an initiative to educate the public on violence against women, with a particular focus on engaging men and encouraging behavioral change. The program was later introduced in schools, where it helped educate young students on preventing gender-based violence.
Looking Ahead
Forced marriages have prompted stronger legal responses to violence against women across Italy. The Istanbul Convention, adopted by multiple countries, has contributed to efforts aimed at reducing the vulnerability of women and girls to violence. Education initiatives, such as those described above, remain key to ensuring awareness continues to spread among younger generations.
– Zara Ashraf
Photo: Unsplash
Fighting Black Carbon Pollution in Nepal
This pollutant is produced through the incomplete combustion of fuels such as wood, coal and other forms of biomass. In many rural communities in Nepal, burning biomass remains essential for both daily cooking and the country’s brick manufacturing industry. However, these traditional methods release significant amounts of black carbon into the air. Black carbon contributes to climate change and poses serious risks to human health. Exposure has been linked to respiratory and cardiovascular diseases, and the pollutant is responsible for $8.1 trillion in annual health costs globally.
The government of Nepal (GoN), alongside other organizations, is working to reduce black carbon pollution in Nepal. Through initiatives promoting cleaner cooking technologies and improved brick kiln designs, these efforts aim to improve the health of the population.
Household Cooking and the Health Risks of Black Carbon
Globally, around 2.3 billion people still lack access to clean cooking fuels. In Nepal, nearly 70% of families burn wood and cow dung in open fires or biomass stoves for daily cooking, a practice that remains common for its cultural significance and affordability.
The black carbon emitted from such cooking methods has harmful effects on human health. When inhaled, it can damage the lungs and cause a range of conditions, including cardiovascular disease and blood pressure complications.
These health impacts are most prevalent among women and children, who are more likely to spend extended periods near cooking areas due to domestic responsibilities. Studies suggest that inhaling black carbon during pregnancy may contribute to the development of cardiovascular conditions in the fetus, leading to intergenerational health risks.
Cleaner Cooking Solutions
Governments and international organizations are increasingly working together to reduce black carbon pollution in Nepal by improving household cooking. The GoN is encouraging households to adopt cleaner cooking methods by 2030 as part of its environmental and public health strategy. The government aims for 25% of households across Nepal to adopt electric cooking methods by 2030.
To support this transition, the GoN has provided financial incentives to make clean cooking technologies more affordable. The government has also launched awareness campaigns to promote the benefits of clean energy and the health risks associated with traditional biomass cooking. These campaigns particularly target rural communities where biomass stove use remains most common.
International organizations have also played a key role in supporting Nepal’s transition to cleaner cooking. The Clean Cooking Alliance (CCA), founded in 2010, has partnered with the GoN to expand access to cleaner cooking solutions. Since its establishment, the CCA has supplied more than 400 million households with access to cleaner cooking techniques such as improved biomass cookstoves and electric cooking technologies. As a result, more than 4.6 million people have been spared the harmful health effects associated with black carbon exposure.
UNICEF implemented the Eco-Zone project in Nepal from 2021 to 2024, which focused on providing eco-cookstoves to 11,000 households in the provinces of Karnali and Sudurpaschim. The project also generated awareness about clean cooking techniques by distributing 23,000 flyers to households about black carbon pollution in Nepal and its health effects.
Zigzag Kiln Technology
Brick kilns are another major source of black carbon pollution in Nepal. Much of the country’s brick production still relies on traditional technologies that are often inefficient and produce large amounts of harmful pollutants.
To address this, cleaner technologies are increasingly being introduced within Nepal’s brick manufacturing sector. One of the most promising innovations is the zigzag brick kiln. This technology involves stacking bricks in a zigzag pattern, which redirects airflow inside the kiln. By improving air circulation, the design enables more complete fuel combustion, increasing energy efficiency while significantly reducing pollution. The design does not require a change in fuel source but rather improves the efficiency of existing methods already used in Nepal’s brick kiln industry.
Organizations such as the International Centre for Integrated Mountain Development (ICIMOD) and the Federation of Nepal Brick Industries (FNBI) have led the transition to zigzag brick kiln technology across Nepal, Bangladesh and India. The adoption of zigzag kilns has produced measurable benefits, including a 20% reduction in coal consumption and improved brick quality.
Cleaner Air and Healthier Communities
Although black carbon pollution in Nepal remains a serious environmental and public health challenge, the country’s growing commitment to cleaner technologies is producing results. Efforts to promote electric and eco-friendly cooking solutions are helping households reduce harmful indoor air pollution, while innovations such as zigzag brick kilns are transforming industrial practices. Together, these initiatives demonstrate how practical and accessible technological changes can reduce black carbon pollution in Nepal.
– Lucy Kerr
Photo: Flickr
The Book Helping End Water Poverty in Sierra Leone
Water poverty in Sierra Leone is a massive problem for the country. However, Ngadi Smart, the author of the 2023 book “Wata Na Life,” has created a way to simultaneously educate the public about this issue and make progress toward its resolution. The book is a photography collection consisting of collage and prose exploring the intimate lives of those living in water poverty.
Smart traveled to Freetown, got to know the people and took photos of them within their environments. The finished book has captured the attention of readers all across the globe and raised money for WaterAid, the charity backing the book.
Poverty in Sierra Leone
Sierra Leone faces a staggering poverty rate, with 56.8% of the population living at or below the poverty line. Millions contend with strained infrastructure, the legacy of civil conflict, displacement and one of the world’s worst water shortages. For many in poverty, the nearest water sources are small, contaminated ponds and wells, often miles away. These conditions have driven life expectancy down to just 62 years as of 2023.
Freetown, Sierra Leone’s largest city, is home to more than a million people competing for limited water sources. Children and adults often wake as early as 1 a.m. to collect water for the day, enduring long and difficult journeys.
Women making these trips face heightened risks, including sexual violence. Politicians even use water as a campaign strategy, promising better access to clean water in attempts to gain votes.
How “Wata Na Life” Came To Be
The book’s title comes from a phrase Smart heard repeatedly during her travels and conversations with residents. She began work on the project in 2021 after WaterAid commissioned her to travel across Sierra Leone and document her journey. The project was one of three joint commissions by WaterAid and the British Journal of Photography, aimed at amplifying new voices and perspectives on climate instability.
During her travels, she witnessed the brutal truths of day-to-day life without consistent access to clean water. She realized that water is more than a bare necessity; it’s a cultural zeitgeist. People’s lives revolve around obtaining enough water to live. She claimed that water is also a form of currency in the culture. These brutal truths went on to inspire the photographs and biographies seen in the book.
The book’s contents consist of highly stylized collages that combine images of the people she spoke to and their living spaces. These collages aim to capture the reality of life without consistent access to clean water and, more importantly, the resilience of those living in these conditions.
WaterAid and Hope for a Better Future
The creation of “Wata Na Life” not only brought the reality of water poverty in Sierra Leone to the public’s attention but also raised funds and rallied support for WaterAid’s efforts to eradicate water poverty.
WaterAid is a U.K.-based nonprofit organization that operates internationally. Its work focuses on supporting those affected by water poverty through both on-the-ground efforts and political advocacy. It partners with communities in 22 countries, including Bangladesh, Cambodia, India, Pakistan and Nepal, to build facilities such as toilets and showers in underserved regions.
The publication of “Wata Na Life” has brought increased attention and funding to WaterAid’s cause through publicity and donations. The book’s print sales are also donated to Mopada, Sierra Leone, helping reach the communities depicted in its pages. Additionally, the book received the 2023 Publishing Ecology Award for its outstanding visuals and purpose.
– Lucas Cain
Photo: Flickr
Innovations in Poverty Eradication in Bosnia and Herzegovina
Who Does Poverty Most Affect?
The Borgen Project spoke with Amina Hadžić, Youth Advisor to the EU Delegation in Bosnia and Herzegovina. She explains that “unemployed individuals, particularly young people entering the labor market for the first time, as well as pensioners who often survive on very low monthly incomes” face the highest risk of poverty. She also highlights that “rural populations are highly exposed to economic hardship due to limited employment opportunities and weaker infrastructure compared to urban area.” Other vulnerable groups include single-parent households, people with disabilities and Roma populations.
These inequalities reflect strong rural – urban disparities. Around 19% of people living in rural areas experience poverty, compared to just 9% in urban areas. Children in rural regions also face higher levels of deprivation, particularly in access to early childhood education, internet and basic sanitation.
Weak infrastructure drives a lot of this inequality. In many rural areas, communities lack reliable access to essential services; some households still transport water using tractors or horse carts because they cannot access stable water supply and sanitation systems. These conditions directly impact quality of life and restrict economic opportunities.
At the same time, structural challenges in the labor market worsen poverty. While the overall unemployment rate in Bosnia and Herzegovina stands at around 12.6%, youth unemployment exceeds 28% in 2025. Informal employment accounts for more than 23% of total employment, leaving many workers without stable income or social protection.
Systemic issues, such as Bosnia and Herzegovina’s fragmented governance structure and unequal access to social services, reinforce these challenges and prevent many people from accessing economic opportunities and public services.
With nearly half of the country’s population living in rural areas, these conditions clearly show that the government must advance innovations in poverty eradication in Bosnia and Herzegovina. This means expanding infrastructure, especially water, sanitation, education, transport and digital connectivity, to reduce poverty and drive long-term development.
Infrastructure as a Foundation for Development
International organizations and local authorities have started to address infrastructure gaps between rural and urban communities. In rural areas, limited access to water remains a major issue. Projects financed through the Western Balkans Investment Framework and the European Investment Bank now expand water and sanitation systems. For instance, a €2.1 million grant supports the construction of wastewater and water systems, bringing reliable services to 93,000 people.
These investments already deliver results. In the village of Gajevi near Šamac, workers built an 18-kilometer water network that now provides 146 households with stable access to drinking water for the first time. Residents no longer struggle with chronic shortages and unsafe conditions.
Transport infrastructure also plays a key role in reducing regional isolation. The World Bank supported the construction of the 36-kilometer Neum – Stolac road, which opened in 2022. The new route reduced travel time from 90 minutes to just 25. Improved connectivity between the country’s only coastal municipality and inland town now supports tourism in Neum and creates new opportunities for businesses and agriculture in Stolac. As one local hotel owner noted, the road “opens up a million possibilities.”
These projects show how infrastructure investment can improve daily life while unlocking economic potential.
Digital Innovation and Civic Participation
Beyond physical infrastructure, the digital and IT sector is emerging as one of the key innovations in poverty eradication in Bosnia and Herzegovina. As Amina Hadžić emphasizes, “digital innovation and the development of the IT sector represent one of the most promising opportunities for economic growth and youth employment in Bosnia and Herzegovina.”
International partnerships have accelerated this transformation. In 2024, Bosnia and Herzegovina joined the Digital Europe Programme, which allows the country to participate in EU-wide projects focused on artificial intelligence and advanced digital skills. The programme also supports the creation of Digital Innovation Hubs, which help businesses, especially small and medium-sized enterprises, strengthen their digital capacities and integrate into the European digital economy.
Bosnia and Herzegovina’s efforts have improved digital skills, raising the share of individuals with above-basic digital skills by 6.8% .
More broadly, these initiatives expand access to entrepreneurship and innovation, particularly for young people. Training programs in coding, digital marketing and software development create new employment opportunities that do not depend on local labor market constraints.
Digital tools also improve access to public services and civic participation. The UNDP has supported platforms such as eCitizen, which allows residents to communicate directly with local authorities and access services more efficiently. Similarly, the eNewborn (ePorodilja) system simplifies access to social benefits for new parents, while Digital Pulse helps small businesses evaluate and improve their digital readiness. These tools increase transparency, strengthen public services, and encourage citizen engagement. Platforms such as YourCO2 (TvojCO2.ba) also promote climate action by connecting individual behavior to environmental impact.
Towards Inclusive Growth
Bosnia and Herzegovina still faces deep structural challenges, but recent developments show how infrastructure investment and digital innovation can reduce poverty. New water systems, roads, and public services improve living conditions and reduce regional inequalities, especially in rural areas. At the same time, digital tools expand access to employment, education and civic participation.
However, digital innovation alone cannot solve these challenges. Without reliable infrastructure, education and inclusive policies, many people will remain excluded from these opportunities. Bosnia must therefore invest in both physical and digital systems to ensure that development reaches all communities.
As the country continues its path toward European integration, it must combine infrastructure development with digital transformation. Together, these approaches can drive innovations in poverty eradication in Bosnia and Herzegovina, promote inclusive growth and build a more resilient and equitable future.
– Inès Maudire
Photo: Flickr
Poverty in Micronesia: Infrastructure Gaps and Inequity
Infrastructure Gaps and Poverty in Micronesia
The Federated States of Micronesia (FSM) faces significant challenges that contribute to poverty and economic inequality across its island communities. This isolated country consists of more than 600 islands, many of which are remote and difficult to connect to through transportation and communication systems. Geographic isolation and underdeveloped infrastructure are considered major barriers to long-term economic growth and private sector development in Micronesia.
These limitations also increase the cost of transporting goods between islands, raising living costs for residents and slowing economic development, which further contributes to poverty in Micronesia. As a result, improving infrastructure has become a key strategy for reducing poverty and strengthening economic opportunities in the country.
Transportation and Connectivity Challenges
Micronesia also faces significant transportation and connectivity challenges due to its geography as a nation of widely dispersed islands across the Pacific Ocean. Limited shipping routes, small ports and infrequent air services make it difficult to move goods and people efficiently between islands. These transportation barriers increase the cost of importing food, fuel and other essential goods, contributing to higher living costs for many residents.
In addition, limited telecommunications and internet infrastructure restrict access to education, business opportunities and digital services, particularly in remote outer islands. Geographic isolation also contributes to economic disparities between the FSM and other Pacific island economies and high transportation costs further reinforce poverty in Micronesia by increasing the price of essential goods.
According to the Asian Development Bank, economic growth in Micronesia is projected to remain relatively low at around 1.1% in 2026. This is significantly lower than tourism-driven economies like the Cook Islands and Palau, which are expected to grow by 2.5% and 3.9% in 2026, respectively. These differences highlight the economic challenges faced by geographically isolated island states with limited infrastructure and smaller private sectors.
National and International Initiatives
The government of the FSM has implemented several national initiatives aimed at improving infrastructure and reducing economic inequality between islands. The Infrastructure Development Plan (IDP) is designed to guide investments in sectors such as electricity, water systems, roads, maritime transport, air transportation and telecommunications to support national development. The plan prioritizes projects that strengthen connectivity, improve public services and support economic growth across the country’s four states.
In addition, the Micronesia National Energy Policy provides a strategic framework for expanding reliable and affordable energy access, while promoting renewable energy development and improved energy infrastructure. This policy helps to expand electricity access and modernize energy systems, making it a key step in improving living standards and economic opportunities for communities across Micronesia.
Beyond national efforts, development organizations such as the Asian Development Bank and the World Bank fund projects aimed at improving transportation networks, water and sanitation systems and energy infrastructure across the FSM. These initiatives support infrastructure expansion and improved connectivity between islands, helping strengthen economic opportunities and access to essential services. In addition, the U.S. provides significant financial assistance through the Compact of Free Association, first established in 1986 and renewed in 2024 for another 20 years.
The updated agreements provide approximately $3.3 billion in economic assistance to the FSM through 2043, supporting public services, infrastructure development and economic stability across the country.
Final Thoughts
Reducing poverty in Micronesia requires addressing the infrastructure and connectivity challenges that isolate many island communities. Strengthening transportation, energy systems and digital access can help expand economic opportunities and improve access to essential services. Continued collaboration between the Micronesian government and international partners such as the Asian Development Bank, the World Bank and the U.S. will be essential to supporting long-term development and reducing inequality across the country.
– Yuhan Rong
Photo: Flickr
DRC Cobalt Reform and Community Justice
The DRC is rich in natural resources, supplying more than 70% of the world’s cobalt, which is classified as a “critical mineral” by the United States, the European Union (EU) and other governments. Yet 74% of Congolese citizens live in poverty. Around 150,000 artisanal miners work in hazardous conditions, with cooperatives, often controlled by politicians, taking up to half of their earnings.
Additionally, an estimated 40,000 children work in these mines. Communities living above cobalt reserves remain among the world’s most energy-poor, highlighting the urgent need for cobalt reform in the DRC. With fair revenue sharing, stronger environmental protections and targeted funding, the global clean energy transition can be built on more just foundations.
A Nation Rich in Resources, Poor in Opportunity
Cobalt is a critical material for lithium-ion batteries, aerospace alloys and renewable energy systems. It plays a central role in the electric vehicle (EV) revolution and defense applications, making it one of the most strategically important minerals today. The DRC dominates global supply, holding about 60% of known reserves and producing 271,300 tonnes in 2024.
However, artisanal and small-scale mining accounts for 15–30% of the country’s cobalt output, often involving hazardous conditions, child labor and environmental harm. Cobalt reform in the DRC is vital to protect Congolese lives. Companies such as Ford and Tesla are using blockchain technology to trace cobalt through supply chains.
However, only 20% of industrial mines in the DRC currently meet international labor standards. Artificial intelligence (AI) and automation are also being deployed to improve mine safety and efficiency. In recycling, companies such as Redwood Materials have developed methods to recover up to 95% of cobalt from used EV batteries. Additionally, the EU now mandates a 70% cobalt recovery rate by 2030.
Human Cost of the Cobalt Supply Chain
A report from the University of Nottingham’s Rights Lab, published in August 2025, exposes the scale of forced labor and exploitation in the DRC’s cobalt mining sector. The research surveyed 1,431 artisanal miners across two provinces: 36.8% were in forced labor, 9.2% in child labor and 6.5% in debt bondage. Additionally, 87.8% entered mining because they had no other means of survival and 70% said they would quit if they could.
Average daily earnings were just $3.28, with women earning significantly less ($1.84) than men ($3.52). None had written work agreements and no trade unions existed for them to join. The report notes that, despite these conditions, tech and EV companies continue to market their DRC cobalt supply chains as fully audited and human-rights compliant.
The report’s key recommendation is an independent due diligence initiative led by Congolese academics, civil society and mining communities to properly hold the industry to account.
Breaking the Cycle: New Paths Forward in the DRC Cobalt Reform
In the DRC’s second-largest city, Lubumbashi, young people like Patricia Kayombo are breaking free from the cycle of dangerous artisanal cobalt mining. Kayombo, an apprentice mechanic, used to live in a household where everyone worked the mines, suffering from dust-related health problems, with no other option. Now, Kayombo is training to become an auto mechanic and “dreams of furthering her skills and one day becoming a trainer to teach other girls.”
The African Development Bank’s PABEA-COBALT project ($82 million) is driving this change, with two main goals: returning children to school and retraining young miners and their parents in agribusiness and vocational trades. The program has returned more than 13,500 children to school, retrained 8,200 young workers and helped more than 10,500 parents start new livelihoods in agriculture. With investment and viable alternatives, Congolese youth can find dignity and opportunity far from the mine pits.
From Raw Ore to Economic Sovereignty
The DRC lifted its seven-month export ban, in place since February 2025 and replaced it with a quota system starting on October 16, 2025. The quotas cap exports at roughly 96,600 tons for 2026 and 2027. This is well below the approximately 204,000 tons mined in 2024 and will be adjusted quarterly based on market conditions.
The original ban was introduced to address a global supply glut that had been pushing cobalt prices down since 2022. The DRC aims to process more cobalt domestically rather than export it as raw ore and is actively partnering with both Western and Chinese investors. These moves reflect the DRC’s attempt to convert its vast mineral wealth into greater economic leverage amid intensifying geopolitical competition over critical minerals.
With greater economic sovereignty, the DRC may finally be seen as a respected partner, which, in turn, could save the lives currently at risk in the country.
Final Remarks
The DRC remains at the intersection of geopolitical ambition and human suffering. Its cobalt is integral to the clean energy transition, yet the communities extracting it remain among the world’s most impoverished. The tools for cobalt reform in the DRC exist: fairer contracts, domestic processing, independent oversight and investment in alternatives. But they require Western and Chinese partners to treat the DRC as a sovereign stakeholder rather than merely a supplier.
– Anisa Begum
Photo: Flickr
Helping Coffee Farmers Out of Poverty in Peru
Poverty in Peru increased after the COVID-19 pandemic, following several years of decline. Providing farmers in rural communities with fair wages and proper tools helps them escape poverty. Here are three companies helping Peruvian coffee farmers break the cycle of poverty:
Café Femenino
Café Femenino is a coffee brand founded in 2004 by Isabel Uriarte and her husband, Victor Rojas. It began with more than 450 female farmers in northern Peru who sought to gain the same benefits men received from the coffee industry. Uriarte launched the initiative by traveling to impoverished villages to speak with women about their rights.
Uriarte hosted workshops and attendance steadily grew as more women joined. Some meetings also included men to help break down barriers surrounding traditional gender roles in these communities. Following these early workshops and conversations with impoverished women, Uriarte formally established Café Femenino.
Café Femenino requires participating farms to grant women farmers legal rights to farmland, leadership positions, financial and business decision-making power and direct payment for their coffee. Through these efforts, more coffee farms have been transferred to women, helping lift them out of poverty and strengthening their communities.
As a result, roads have been built, women have created more sanitary homes and families have gained better access to food. The company is helping reduce poverty in Peru, particularly in rural communities, by providing greater job security. Café Femenino now operates in several countries, including Colombia, Bolivia and Rwanda, fostering economic empowerment for women farmers.
Cedros Café
Cedros Café is a coffee cooperative founded in 2013 that supports small-scale farmers in the Cajamarca region of Peru. Poverty rates in this region remain high because many farmers do not receive adequate payment for their crops. Cedros Café pays its farmers about 30% more than the average market price for coffee.
The cooperative also provides farmers with training in business management, financial literacy and other professional skills. Because many of its farmers are women, Cedros Café equips them with additional skills to diversify their income. The cooperative also helps farmers obtain Fair Trade certification, which recognizes producers who follow sustainable practices and ensure fair treatment of workers. Today, Cedros Café works with 328 small farmers, helping reduce poverty in Peru.
Café Compadre
Café Compadre began when two of its founders created a solar-powered coffee roaster to help remote farmers roast their own beans, which sell for higher prices in the market. The founders soon realized that the roaster alone would not be enough to stabilize coffee farmers’ livelihoods. Because many of these farmers were located in remote areas of Peru, they lacked access to Lima’s coffee consumers.
In response, the founders established the Café Compadre coffee brand in 2014. The company now works with small, local coffee farmers to ensure they receive fair compensation for their work. Café Compadre pays farmers more than 30% above the market price for coffee.
The company focuses on sustainable farming practices that also protect the environment. Purchasing coffee from Café Compadre supports farmers, promotes environmental sustainability and provides the high-quality coffee consumers seek. These principles form the company’s three core pillars.
Conclusion
These three coffee companies are working to support impoverished coffee farmers in rural communities across Peru. By providing innovative tools, training and prices up to 30% higher than the market average, they are helping farmers build more stable livelihoods.
– Kaitlyn Crane
Photo: Flickr
The Durban Promise for African Health Sovereignty
The Need for African Health Sovereignty
Africa currently imports about 70% of its medicines, 90% of its medical devices, and 99% of its vaccines. This drives up costs and limits medical treatment accessibility for many Africans. Adding more urgency to the situation, global health funding in Africa has declined 70% since 2021. Significant cuts to the USAID and reduced contributions from European donors seemed to make universal health care coverage (UHC) for Africa even less attainable.
However, African leaders anticipated the reductions and were actively seeking alternative sources of health care subsidies. As a result, China pledged $50 billion to support Africa’s health care program, funding that has accelerated the building of hospitals and clinics. Indeed, with significant financing, the Durban Promise is on the way to becoming a reality, bringing universal health care coverage within reach.
The Road to UHC
African governments have been working towards universal health care coverage for more than 20 years, but have faced significant obstacles. The Abuja Declaration of 2021 asserted that 15% of African national budgets should be allocated for health care, though many African countries still spend less than half that amount in the medical arena.
In 2023, African leaders signed The Lusaka Agenda, compelling governments to meet Abuja obligations and to implement actions that would lower the cost of medicine. However, this agenda was not fully successful due to challenges with domestic financing. With minimal results from these initial affirmations, in October 2025, African governments signed The Durban Promise, a roadmap for African health sovereignty and security that suggests an innovative medical financing structure to move Africa’s health care goals forward.
The 2025 G20 Summit
The annual G20 summit, which the African Union joined in 2023, brings together developed and emerging economies to address urgent global issues. The 2025 summit, held in Johannesburg, South Africa, marked the first time the assembly met on African terrain. The agenda from the South Africa’s President Cyril Ramaphosa discussed the challenges of developing nations, which include the pressing issue of health insecurity. Ramaphosa’s compelling arguments led to increased funding from the World Health Organization and a Global Health Security Pact for equitable vaccines and sharing of data during global health emergencies. The pact further addresses African health security and the goals of the Durban Promise.
The Presidential Declaration
At the 39th African Union Summit in Addis Ababa, Ethiopia, in February 2026, countries made the commitment of the Durban Promise, according to AfricaCDC. The Presidential Declaration on Advancing Local Manufacturing of Health Products in Africa was issued with the objective that the African continent will produce 60% of medical products internally by 2040. The declaration includes two key strategies led by the African Center for Disease Control (CDC) focusing on securing the goal of health autonomy: The Platform for Harmonized African Health Products Manufacturing (PHAHM) and The African Pooled Procurement Mechanism (APPM).
By creating a single health product market, the PHAHM will help align regulatory and manufacturing policies across the African Union. The APPM could enable African countries to leverage their joint bargaining power to make the market more predictable and desirable for suppliers, leading to supply security. Together, these approaches can help African health care to thrive.
Outlook for African Medical Sovereignty
There is much to do in order to achieve the goal of producing 60% of medical products on the African continent in less than 15 years. As daunting a task as it may be, with a thoughtful, well-executed plan and targeted efforts, the result can be a robust health program that will contribute to regional income and poverty reduction as articulated in The Durban Promise.
– Debbie Barto
Photo: Flickr
Graduation Programs in Developing Countries
For this reason, foreign aid in the form of transfers of cash or goods, while extremely useful in combating global poverty, might not always provide a comprehensive enough approach to ensure that as many people as possible are reached with long-term sustainability in mind.
Graduation Programs as a Solution
A solution exists in the form of graduation programs, defined by the Abdul Latif Jameel Poverty Action Lab (J-PAL) as programs that provide people living in extreme poverty not just cash assistance, but also business assets and vocational training so that they may have the chance to build financial independence and break existing cycles of poverty.
Graduation programs, according to J-PAL, were first pioneered by a nongovernmental organization (NGO) named BRAC in 2002. They are reported to yield positive societal outcomes after one to two years of funding and have been implemented in at least 20 countries.
How the Approach Works
As previously mentioned, the approach starts with providing business assets, such as livestock and supplies for trade, followed by skills training to manage those assets and consumption support. J-PAL states that consumption support consists of regular cash or food assistance for several months to one year.
These programs also provide recipients with access to savings accounts and health support in the form of health education, health care access and life skills training. To ensure participant success, frequent home visits are conducted by staff members to provide accountability and needed coaching.
The name “graduation program” is derived from the idea of “graduating” from dependence on foreign assistance within one to two years and transitioning toward financial self-reliance.
Evidence and Measured Returns
J-PAL shares empirical data showing that long-term returns generated by the graduation program approach can outweigh short-term costs. Studies measuring outcomes 18 months to three years after graduation indicate that beneficiaries saw income growth ranging from 7% to 65%, while consumption increased between 11% and 30%.
Additionally, Innovations for Poverty Action (IPA) reported results from a 2015 study consisting of randomized evaluations in six countries where graduation programs were implemented. The evaluations followed 21,000 people across Ethiopia, Ghana, Honduras, India, Pakistan and Peru over three years:
Looking Ahead
In summation, data collected in countries where graduation programs in developing countries have been utilized demonstrate positive effects in providing more sustainable pathways to financial independence for households living in extreme poverty. The reported returns on investment also present a financial case for continued funding of graduation programs in developing countries within broader global poverty reduction efforts.
– Luca Hanlon
Photo: Flickr