When people discuss global poverty reduction, they often focus on large economies like China or India. However, several smaller nations have achieved remarkable progress through targeted social programs, strong public investment and people-centered development strategies. These examples show how small countries reducing poverty can create meaningful change despite limited resources.
Many of these nations prioritize health care, education, environmental sustainability and social protection. Their success demonstrates that governments do not need massive populations or global economic dominance to improve quality of life and reduce poverty.
Costa Rica: Prioritizing People Over Military Spending
Costa Rica stands out as one of the strongest examples of a small country reducing poverty through long-term social investment. In 1948, Costa Rica abolished its military and redirected funding toward education, health care and public welfare.
This decision helped create one of the most stable social systems in Latin America. According to the World Bank, Costa Rica built a health care system that covers nearly the entire population while also maintaining high literacy and life expectancy rates.
Costa Rica also invested heavily in rural electrification, clean water access and environmental protection. The country now generates most of its electricity from renewable energy sources, which supports sustainable economic growth.
These policies reduced poverty while improving public health and economic opportunity. Costa Rica proves that governments can strengthen human development when they prioritize social investment over military expansion.
Uruguay: Building Strong Social Protection Systems
Another example of a small country reducing poverty is Uruguay. Although Uruguay has a relatively small population, it developed one of the strongest welfare systems in Latin America. The government expanded pensions, unemployment support and health care coverage while increasing access to education. Uruguay also implemented labor protections that strengthened wages and worker rights.
According to the Center for Economic and Policy Research, Uruguay consistently ranks among the countries with the lowest poverty and inequality levels in the region.
Uruguay’s economic strategy also focused on inclusion. Rather than concentrating growth among elites, policymakers expanded benefits to lower-income households and rural communities. This approach increased economic stability and reduced vulnerability during financial downturns.
The country demonstrates how democratic institutions and social spending can help small nations achieve lasting poverty reduction.
Bhutan: Progress Beyond Economic Growth
Bhutan offers a unique insight into how small countries reduce poverty as it measures national success differently from most countries. Instead of focusing only on Gross Domestic Product (GDP), Bhutan promotes the concept of Gross National Happiness (GNH). This concept emphasizes sustainable development, cultural preservation, environmental conservation and good governance. While Bhutan still faces economic challenges, the country has significantly reduced poverty over the last two decades.
According to the World Bank, Bhutan reduced poverty from 23.2% in 2007 to 8.2% in 2017 through investments in infrastructure, agriculture and social services.
Bhutan expanded road networks, improved rural health care access and increased school enrollment across remote communities. Hydropower exports also generated revenue that supported public programs.
This country’s development model shows that economic progress does not need to come at the expense of environmental sustainability or social well-being.
Mauritius: Diversifying Economy
Mauritius transformed itself from a low-income agricultural economy into an upper-middle-income country through diversification and investment in human capital. During the ’60s, many predicted economic difficulties because Mauritius relied heavily on sugar exports. However, the government expanded into tourism, manufacturing and financial services while investing in education and infrastructure.
The World Bank credits Mauritius with maintaining strong growth and reducing poverty through inclusive economic reform.
Mauritius also developed trade partnerships and encouraged foreign investment, which created jobs and increased income opportunities. Free education and health care strengthened social mobility and supported long-term development.
The country’s success demonstrates how smaller economies can adapt and compete globally through strategic planning and inclusive growth, moving itself away from the effects of poverty.
Important Lessons from Small Nations
The successes of these countries reveal several patterns behind small countries reducing poverty: Governments invested in health care and education. Leaders prioritized long-term human development. Social protection systems supported vulnerable populations. Economic growth reached rural and low-income communities. Policymakers emphasized sustainability and inclusion.
These nations also adapted policies to fit local conditions rather than copying outside models without modification. These examples are important to highlight because they demonstrate that poverty reduction remains available with the right policies and political commitment.
Global poverty still affects hundreds of millions of people, but the achievements of these smaller nations provide hope and practical guidance for others to follow. As governments continue to work toward the U.N.’s Sustainable Development Goals (SDGs), these examples of small countries reducing poverty remind the world that size does not determine impact. Strong social policies, inclusive economic growth and investment in people can help nations build a more equitable future.
– Leah Denning
Leah is based in Bristol, UK and focuses on Good News and Politics for The Borgen Project.
Photo: Flickr
Higher Education for Refugees: A Scholarship for Women
A Narrow Door to University
The barriers to higher education for refugees stack quickly: prohibitive tuition, legal restrictions, language obstacles and the simple cost of survival taking priority over study. Women face an additional layer. For every 10 refugee boys enrolled in secondary school, only seven girls are enrolled, which narrows the pool that can reach university at all.
The result is a sharp loss of potential. Refugee girls who leave school early are more likely to marry young, less able to support themselves and their families and less able to take part in rebuilding their communities. Higher education offers a route in the other direction, toward employment, self-reliance and leadership, but only for those who can reach it.
The Scholarship Built for Refugees
The Albert Einstein German Academic Refugee Initiative, known by its German acronym DAFI (Deutsche Akademische Flüchtlingsinitiative Albert Einstein), exists to widen access to higher education for refugees. Funded primarily by the German government and administered by the United Nations High Commissioner for Refugees (UNHCR) since 1992, it provides full university scholarships to refugees in their countries of asylum, covering not only tuition and fees but also books, transport, accommodation and health care. Since its founding, the program has supported more than 27,200 refugee students across 59 host countries.
DAFI does more than pay fees. Scholars receive academic tutoring, language support, mentoring and networking, and many graduates return to guide the next cohort. In Burundi, for example, former scholars run the DAFI Women Power Club, a mentoring initiative led by refugee women determined to help younger women into higher education. Grace, a public health graduate from the Democratic Republic of Congo (DRC) who served as president of the club, frames the mission plainly: “We still have to fight the idea that an educated woman will not make a good wife. But we keep moving forward and mentoring younger refugee girls and women who come after us so that they can become leaders and have some impact in this world.” That model of women lifting women is now central to the program’s approach.
A Record Year for Women
The focus on women is producing measurable results. In 2024, women made up 45% of all DAFI scholars, the highest share in the program’s history, up from 42% the year before, and 60% of newly awarded scholarships went to women, a sharp rise from 40% the previous year. The gains came from targeted outreach in places with the widest gender gaps. In Ethiopia, female enrollment rose by 14%, with women making up more than 75% of new scholars, supported by tutoring, outreach and financial aid for girls still in secondary school.
Kenya shows both the need and the model at work. The country hosts more than 774,000 refugees and asylum seekers, with the camps at Kakuma and Dadaab home to tens of thousands of school-aged children. There, the DAFI program is run on UNHCR’s behalf by Windle International Kenya, which prioritizes girls and women in its scholarship awards to address the gender gap directly. Yet the access gap remains stark. Across refugee settings, fewer than one in 10 eligible young people reaches higher education at all, and in camps like Kakuma and Dadaab the share has long been smaller still.
Progress Against a Funding Headwind
DAFI is the largest and longest-running source of higher education for refugees. That reach now faces a serious threat. In 2024, the number of DAFI scholars fell to 7,890, down from a record 9,312 in 2023, the first decline since the COVID-19 pandemic, driven by shrinking global humanitarian funding. Demand has not fallen with it. In 2024, around 5,000 applicants competed for just 879 new scholarships, meaning fewer than one in five was accepted.
New efforts are trying to hold the line. In 2025, USA for UNHCR launched the Building Better Futures campaign, which aims to raise $15 million by 2028 to fund 1,000 scholarships for refugee women and had already secured $3.1 million in lead gifts.
Keeping the Door Open
DAFI alone cannot close the refugee education gap, and the funding pressures are real. Even so, refugee enrollment in higher education has climbed from 1% in 2019 to 9% in 2025, and DAFI remains one of the few avenues through which a refugee woman can earn a degree at all. When a young woman in a camp like Kakuma reaches a university lecture hall, the effect reaches further than her own life, into her family and the community she will one day help rebuild. Sustained investment is what will keep it open for the next young woman in line.
– Amna Al Harrazi
Photo: Pexels
Free Maternal And Newborn Care in Mali
The Weight of Poverty on Motherhood
Mali ranks among the world’s poorest nations. According to World Bank data, 43.3% of Mali’s population lived below the national poverty line in 2024, while the United Nations Development Programme’s 2024 Multidimensional Poverty Index estimates that 68.3% of Malians face deprivations across health, education and living standards simultaneously.
For pregnant women in Mali, poverty is not just an inconvenience but life-threatening. Mali’s maternal mortality ratio stands as high as 562 deaths per 100,000 live births, and more than 80% of those deaths are preventable. Research shows that educated women have significantly higher odds of attending antenatal care, delivering in a health facility and continuing with postnatal care. The majority of health care financing in Mali relies on out-of-pocket payments, making user fees a major barrier for vulnerable populations, especially pregnant women.
The consequences fall hardest on rural communities where conflict in Mali’s central and northern regions further limits access to care and where women face the longest distances to health facilities.
A New Model for Financing Care
In August 2025, Mali’s Ministry of Health, through its Health System Strengthening Unit (UMRSS), and Muso, a global health nonprofit founded in 2005, signed a Memorandum of Understanding formalizing Muso’s role as the independent verification agent for a new Direct Health Facility Financing (DHFF) program, supported by the Global Fund.
The program, launched in December 2025, covers 53 community health centers, 37 in the Kayes region and 16 in Bamako. Under the DHFF model, pregnant women up to 42 days postpartum and newborns from birth to 28 days receive care entirely free of charge. Health facilities receive performance-based funding directly, linking payments to verified results rather than patient fees. This approach strengthens accountability, removes financial barriers and expands equitable access to essential maternal and newborn services.
Muso’s Role: Verification With Accountability
Muso’s role as the independent verification agent is central to the program’s integrity. The organization confirms performance indicators, calculates subsidies for each health center, ensures targeted patients receive free care, follows up on corrective actions and submits comprehensive verification reports to UMRSS.
Founded in 2005, Muso has partnered with the Malian government since 2008, designing, testing and scaling strategies to remove barriers to early care. Muso currently reaches more than 330,000 patients in Mali through its Proactive Care, in which Community Health Workers (CHWs) actively search for patients door-to-door, provide care at home and evacuate the sickest patients to government health centers, all at no out-of-pocket cost.
Research has documented that communities in Mali previously recorded some of the world’s highest child mortality rates. However, with Muso’s Proactive Care, communities achieved and sustained the lowest child mortality rates in sub-Saharan Africa. It currently supports the Malian and Ivorian governments’ national efforts to connect their 45 million citizens with rapid, evidence-based health care.
Impact of Free Maternal Care in Mali
The impact of eliminating fees has been immediate. Since the rollout of free care in December 2025, prenatal consultations have increased sharply across the 53 covered health centers. This is a direct reflection of what happens when cost ceases to be an obstacle. Women who previously could not afford to seek care now arrive at health facilities. Some come with family support for the first time. Others no longer face the permission barriers that poverty and cost once created.
Mothers and newborns now feel more protected, and the data is beginning to reflect that shift.
Globally, nearly 800 women died every day in 2020, about one every two minutes, and the world is not on track to meet the Sustainable Development Goal of reducing the global maternal mortality ratio to fewer than 70 deaths per 100,000 live births by 2030. Sub-Saharan Africa accounts for 69% of global maternal deaths, with pregnancy-related causes remaining the leading cause of death among African women aged 15 to 29.
Mali’s DHFF program represents a direct response to that crisis by recognizing that poverty must not determine whether a mother survives childbirth. By channeling funds directly to facilities, tying payments to independently verified results and eliminating fees at the point of care, the program is building a model that could scale across Mali and beyond. For the mothers and newborns of the Kayes region and Bamako, it is already making a difference.
– Joy Kohol
Photo: Pexels
Poverty and Higher Education in Madagascar
Higher Education and Poverty Reduction
Higher education can prepare students for skilled and better-paid work. Universities and technical colleges train teachers, doctors, engineers, researchers and business professionals. These workers can earn more stable incomes and provide financial support to their families. By earning regular wages, graduates may be better able to pay for food, housing, health care and their children’s education, reducing the risk that poverty continues from one generation to the next. Their skills can also benefit the wider community.
Agricultural specialists can help farmers improve production and respond to climate change, which can increase food security and raise rural incomes. Health workers can improve people’s ability to remain healthy and work, reducing the financial pressure caused by illness.
Engineers and technology specialists can improve infrastructure, water systems and local services, making communities more productive and resilient. Teachers can strengthen the education system for future generations, helping more children gain the skills needed to escape poverty.
Graduates may also establish businesses and create jobs for other people, increasing local incomes and economic activity. However, university courses should meet the needs of employers and local communities. Practical programs in areas such as agriculture, health, tourism, manufacturing and technology could prepare students for available work. Internships and apprenticeships could also help graduates move from education into employment.
For many children, the barriers to university begin in primary school. Madagascar’s learning poverty rate is estimated at 94%. Most children cannot read and understand a simple text by age 10. Without basic reading, writing and mathematics skills, children are more likely to repeat grades or leave school.
Dropout is another serious problem. UNESCO has reported that children entering primary school have only a 33% chance of reaching its final grade. As a result, many students leave education before they can enter secondary school.
Poverty makes continuing education especially difficult. Families may need to pay for uniforms, materials, meals and transport, even when tuition is free. Private education is even less accessible due to the additional fees. Rural students may also live far from the nearest secondary school.
Some children leave school to work. International Labour Organization (ILO) data show that 29.8% of children ages 5 to 17 were involved in economic activity in 2018. Many work in agriculture, fishing, domestic service or other informal jobs. Although their earnings may help their families in the short term, work can limit the time and energy available for education. Leaving school without qualifications can then keep young people in insecure and poorly paid employment.
Helping Students Reach Higher Education
Financial assistance is one way to break this cycle. Scholarships, free materials, school meals and transport support can reduce the costs faced by poor families. Cash transfers may also reduce the pressure for children to work. The United Nations Children’s Fund (UNICEF) Madagascar’s Let Us Learn program provides a successful example. The initiative supports vulnerable students as they move from primary to secondary school, a stage when many children are at risk of dropping out. It operates as a cash-transfer supplement for families with children ages 11 to 18, helping them cover school-related costs and reducing the need for children to work.
The support is linked to continued school enrollment, so families receive financial help while children remain in education. In some cases, the money is paid regularly, such as every two months, and families can use it for expenses like school supplies, transport, food or other household needs that affect a child’s ability to stay in school. Its cash-transfer program increased overall enrollment by 7% among children ages 11 to 14. Among girls in this age group, enrollment rose by 13%.
Creating a Path Out of Poverty
Higher education alone cannot end poverty in Madagascar. Financial aid at university level is important, but it comes too late for many students. Children often need support from their first years of primary school.
Programs such as Let Us Learn show that targeted help can keep vulnerable students in school. However, long-term progress will require investment in early education as well as scholarships and university places. Expanding higher education in Madagascar begins with ensuring that children receive a strong education from their earliest school years. By improving basic learning and supporting students throughout their education, Madagascar can give more young people a real chance to reach university, gain secure employment and help reduce poverty in their communities. Helping citizens access higher education is also an investment in Madagascar’s long-term effort to reduce poverty.
– Nina Novillo Astrada
Photo: Flickr
Thailand’s Zero Dropout Initiative Tackling Poverty
Northern Regions
In the northern regions, including Chiang Mai, Chiang Rai, Mae Hong Son, Tak and Kanchanaburi, 169,047 children are not enrolled in the education system, with the majority of dropouts occurring at the primary level. This number makes up 16.5% of the nationwide school dropout rate, according to the Equitable Education Fund. Poverty and limited access to school continue to act as barriers, along with limited funding and a shortage of teaching staff. Many northern provinces are also among those with the highest poverty rates. In 2024, the National Economic and Social Development Council (NESDC) identified 10 provinces with the highest poverty rates, including Mae Hong Son at 25.69%, Chiang Rai at 13.69% and Tak at 13.37%.
Regions Surrounding Bangkok
In the regions surrounding Bangkok, children who are not in the education system are between the ages of 3 and 5. One reason for this is inadequate access to early childhood education. There are only 292 early childhood development centers in Bangkok and surrounding provinces, which is not enough to accommodate the high population density. An estimated 245,045 children are out of the education system, making up 23.9% of the nationwide school dropout rate, according to the Equitable Education Fund.
Impact of Education
Education continues to be an important factor in approaching social equality. Earnings increase by at least 10% when an individual finishes secondary school, reports UNICEF. Inequality continues to be overlooked, especially regarding past education reforms. Schools in rural regions continue to receive inadequate funding, while schools in more affluent areas receive resources to upgrade their spaces. The traditional education system has also failed to prepare children for the fast-changing economy. Many children leave school and are not given the opportunity to break the poverty cycle.
Zero Dropout Initiative
To address this issue, Thailand’s Zero Dropout Initiative was introduced in 2024 with the goal to “leave no child behind in the education system.” The initiative employs a multidimensional approach to ensure children stay in school and have a better chance at a successful academic journey.
The initiative introduced a concept called One School, Three Models, which offers an alternative to the traditional classroom model and provides a more flexible mode of education. Under this model, learning can take the form of a traditional formal education, a nonformal education or it can take place informally. In collaboration with other nongovernmental organizations (NGOs), the Zero Dropout Initiative helps children by:
This flexible education model is designed to allow students to see the relevance and value of education within their unique life circumstances by considering the child’s interests and aspirations as well as their socioeconomic and geographical circumstances.
The centralized database introduced has proven helpful in tracking progress and ensuring no one falls behind. Local teams rely on this database to track and find children who have been excluded as well as those at risk of dropping out. The initiative was implemented two years ago, and since then, 20% to 30% of children who had left school have returned to education, according to the Bangkok Post.
Looking Ahead
By recognizing each child’s potential and focusing on improving the system to allow every child to shine, Thailand’s Zero Dropout Initiative offers a promising future where each child can learn and thrive in their own time and break away from the cycle of poverty.
– Marine Baume
Photo: Unsplash
How Ghana’s School Feeding Program Helps Reduce Poverty
School Lunches Opening Doors
Launched in 2005 with just 1,900 pupils across one school per district, the Ghana School Feeding Program has grown to serve more than 2.6 million children in public primary schools and kindergartens nationwide. Each school day, children in deprived communities receive one hot meal made from locally grown food. The program aligns with the United Nations (U.N.) Millennium Development Goals on hunger, poverty and malnutrition and contributes to Sustainable Development Goals 1, 2 and 4 — ending poverty, ending hunger and ensuring quality education. This initiative has become one of Ghana’s most impactful social protection programs, reaching all 261 districts across the country.
Education Outcomes
For families living in poverty, hunger is one of the most common barriers to school attendance. When a meal is available at school, attendance rates rise and the decision to attend is easier for both the child and the family. Globally, school meal programs increase enrollment by an average of 9% while simultaneously reducing dropout rates, according to the World Food Programme (WFP).
Ghana reflects this trend directly. A primary school in Gbare, Upper West Region, recorded a 34% increase in learners between October 2023 and October 2024 — attributed directly to the daily hot meal. Beyond attendance, nutrition shapes a child’s ability to concentrate and retain information. A fed child can focus, participate and learn. The GSFP sits at the intersection of educational outcomes and food security, ensuring that no child has to choose between hunger and learning.
Local Economic Impact
The GSFP creates a ripple effect that extends beyond the classroom. By sourcing ingredients from smallholder farmers and local producers, the program channels government spending directly into rural agricultural communities. Farmers gain a reliable and consistent market for their crops, supporting household incomes and reducing vulnerability to market fluctuations.
The jobs created through school feeding extend further along the value chain. Globally, the WFP estimates that approximately 1,377 jobs are created per 100,000 children fed. In Ghana, the program had employed around 24,000 caterers by the end of the 2016-2017 academic year, the majority of them women. These are not incidental benefits — they are structural ones. The economic gains of the GSFP reach far beyond school gates, strengthening the communities that need it most.
A Tool Against Poverty
The cumulative impact of better nutrition, higher school attendance and stronger local economies contributes to a measurable reduction in poverty. Ghana’s poverty rate fell from 26.4% in 2023 to 25.9% in 2024, according to the International Monetary Fund (IMF) — a shift linked in part to sustained investment in social protection programs, including the GSFP.
Education is one of the most reliable pathways out of poverty. Children who stay in school longer earn more as adults, are healthier and are better positioned to support their own families.
Looking Ahead
Ghana’s School Feeding Program invests in a future of mobility with every meal served, demonstrating that reducing poverty does not always require sweeping reform. As the program continues to expand across Ghana’s 261 districts, sustained investment in school feeding offers one of the most practical and cost-effective tools available for breaking the cycle of poverty — one meal at a time.
– Anna Morin
Photo: Flickr
Outbreak of Ebola in the DRC Poses Major Health Risk
What Have Ebola Outbreaks Looked Like for the DRC in the Past?
Ebola was first recognized in the Democratic Republic of Congo in 1976 after an outbreak in the Équateur province– 318 cases were reported, with the majority occurring within 70 km of Yambuku village. The DRC has experienced numerous, periodic outbreaks of the different strains of the Ebola virus. Some strains have a fatality rate of 90%. The current outbreak is the 16th that has plagued the country since it initially arose. The absence of approved medical countermeasures, international aid and lack of robust social services and health care exacerbate the outbreaks.
The outbreak comes as the country faces a humanitarian crisis as 26.5 million people nationwide experience food insecurity, which internal conflict and displacement mainly drive. Indeed, data that the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) collected shows that the country holds the most individuals facing food insecurity– malnutrition and food gaps run rampant, and the issue is worsened with economic insecurity, conflict and internal displacement. Flooding and the impacts of lean season (September to November) and reduced international aid push vulnerable populations to higher stages of risk. Populations in the country are far more susceptible to contracting the disease in malnourished states.
How Did the Outbreak Start?
The Congolese Health Ministry declared an outbreak of the disease on May 15, and within just under a month, the number of those infected rivals that of some of the largest Ebola outbreaks in the country’s history. The Health Ministry has confirmed more than 1,200 cases. The current death toll stands at 360.
Experts believe that the outbreak started in Mongbwalu, which is a small mining town in the Ituri province. This is due to the high presence of fruit bats, a natural carrier of the disease. Health officials on the ground warn that without urgent intervention, the virus may become the worst outbreak the country has seen.
What Does Treatment on the Ground Look Like?
Individuals in the DRC who suspect they have the virus must wait days for test results to come back from the regional capital, Bunia, as kits are difficult to come by. Many symptoms match those of other more common diseases such as malaria and typhoid, which has been further exacerbating the issue. Hospitals are underprepared to deal with the outbreak at the rate it’s been spreading. Despite warnings and knowledge of the severity of the virus and its contagiousness, caring relatives, neighbors and friends, who are striving to support and save their loved ones, frequent hospitals.
Temporary shelters and structures have emerged in North Kivu and Ituri, the two northeastern provinces where the outbreak has been most concentrated. Despite the fact that the DRC has seen an abundance of Ebola outbreaks in its history, the nature of this particular strain has made the virus extremely difficult to identify and combat. Many locals are infuriated with the way the DRC has handled treatment and have been pushing officials and hospital personnel to act faster and do more to stave off the effects of the illness.
What Has Been the International Response?
Multiple countries and world organizations, such as the United States, South Africa and the European Union Commission, have pledged millions of dollars to work to support the DRC and stop the outbreak, sending equipment, supplies, doctors and health experts. After the initial outbreak, the World Health Organization (WHO) delivered more than 11 tons of medical supplies and equipment to the country. Meanwhile, the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO) established an air bridge to send supplies from the capital Bunia to the Ituri province.
This Bundibugyo strain of Ebola does not have a cure or vaccine. The Center for Disease Control and Prevention (CDC) considers the risk of the virus spreading to the United States as low at this time. However, multiple countries have established a travel ban to the region. The United States has heavily urged individuals to stop travel to the DRC and neighboring Uganda and South Sudan, with Canada enforcing a 90 day ban.
– Ella Goulet
Photo: Unsplash
Small Countries Reducing Poverty
Many of these nations prioritize health care, education, environmental sustainability and social protection. Their success demonstrates that governments do not need massive populations or global economic dominance to improve quality of life and reduce poverty.
Costa Rica: Prioritizing People Over Military Spending
Costa Rica stands out as one of the strongest examples of a small country reducing poverty through long-term social investment. In 1948, Costa Rica abolished its military and redirected funding toward education, health care and public welfare.
This decision helped create one of the most stable social systems in Latin America. According to the World Bank, Costa Rica built a health care system that covers nearly the entire population while also maintaining high literacy and life expectancy rates.
Costa Rica also invested heavily in rural electrification, clean water access and environmental protection. The country now generates most of its electricity from renewable energy sources, which supports sustainable economic growth.
These policies reduced poverty while improving public health and economic opportunity. Costa Rica proves that governments can strengthen human development when they prioritize social investment over military expansion.
Uruguay: Building Strong Social Protection Systems
Another example of a small country reducing poverty is Uruguay. Although Uruguay has a relatively small population, it developed one of the strongest welfare systems in Latin America. The government expanded pensions, unemployment support and health care coverage while increasing access to education. Uruguay also implemented labor protections that strengthened wages and worker rights.
According to the Center for Economic and Policy Research, Uruguay consistently ranks among the countries with the lowest poverty and inequality levels in the region.
Uruguay’s economic strategy also focused on inclusion. Rather than concentrating growth among elites, policymakers expanded benefits to lower-income households and rural communities. This approach increased economic stability and reduced vulnerability during financial downturns.
The country demonstrates how democratic institutions and social spending can help small nations achieve lasting poverty reduction.
Bhutan: Progress Beyond Economic Growth
Bhutan offers a unique insight into how small countries reduce poverty as it measures national success differently from most countries. Instead of focusing only on Gross Domestic Product (GDP), Bhutan promotes the concept of Gross National Happiness (GNH). This concept emphasizes sustainable development, cultural preservation, environmental conservation and good governance. While Bhutan still faces economic challenges, the country has significantly reduced poverty over the last two decades.
According to the World Bank, Bhutan reduced poverty from 23.2% in 2007 to 8.2% in 2017 through investments in infrastructure, agriculture and social services.
Bhutan expanded road networks, improved rural health care access and increased school enrollment across remote communities. Hydropower exports also generated revenue that supported public programs.
This country’s development model shows that economic progress does not need to come at the expense of environmental sustainability or social well-being.
Mauritius: Diversifying Economy
Mauritius transformed itself from a low-income agricultural economy into an upper-middle-income country through diversification and investment in human capital. During the ’60s, many predicted economic difficulties because Mauritius relied heavily on sugar exports. However, the government expanded into tourism, manufacturing and financial services while investing in education and infrastructure.
The World Bank credits Mauritius with maintaining strong growth and reducing poverty through inclusive economic reform.
Mauritius also developed trade partnerships and encouraged foreign investment, which created jobs and increased income opportunities. Free education and health care strengthened social mobility and supported long-term development.
The country’s success demonstrates how smaller economies can adapt and compete globally through strategic planning and inclusive growth, moving itself away from the effects of poverty.
Important Lessons from Small Nations
The successes of these countries reveal several patterns behind small countries reducing poverty: Governments invested in health care and education. Leaders prioritized long-term human development. Social protection systems supported vulnerable populations. Economic growth reached rural and low-income communities. Policymakers emphasized sustainability and inclusion.
These nations also adapted policies to fit local conditions rather than copying outside models without modification. These examples are important to highlight because they demonstrate that poverty reduction remains available with the right policies and political commitment.
Global poverty still affects hundreds of millions of people, but the achievements of these smaller nations provide hope and practical guidance for others to follow. As governments continue to work toward the U.N.’s Sustainable Development Goals (SDGs), these examples of small countries reducing poverty remind the world that size does not determine impact. Strong social policies, inclusive economic growth and investment in people can help nations build a more equitable future.
– Leah Denning
Photo: Flickr
Updates on SDG 1 in Yemen
According to the United Nations Development Programme (UNDP), approximately 80% of Yemen’s population lives below the poverty line. Before the conflict escalated in 2015, poverty affected roughly half of the population. Years of violence, economic instability and disruptions to public services have pushed millions more Yemenis into poverty. Poverty in Yemen also intersects with hunger, displacement and unemployment. Families who lose income often struggle to afford food, while conflict and economic hardship have displaced millions and limited access to stable employment opportunities.
Poverty Challenges Continue Across Yemen
Yemen remains one of the world’s most fragile states. The World Bank reported that economic pressures intensified throughout 2025 as inflation rose and household purchasing power declined. Food prices increased significantly in many areas, making it difficult for families to afford basic necessities. Humanitarian organizations also faced funding shortages, limiting the amount of aid available to vulnerable communities.
The United Nations estimated that more than 17 million Yemenis faced hunger in 2025, while more than 1 million children suffered from acute malnutrition. These conditions continue to hinder progress toward SDG 1 and threaten the well-being of millions of people.
The ERRY Program Builds Rural Resilience
One of the most successful poverty-reduction initiatives in Yemen is the Enhanced Rural Resilience in Yemen (ERRY) Joint Programme. The European Union and the Government of Sweden funded the program, while UNDP, FAO, WFP and ILO implemented it through partnerships with local organizations.
From 2016 to 2025, ERRY operated in 37 districts across eight governorates. The program combined livelihood support, food security projects, local governance initiatives and employment opportunities. According to UNDP, ERRY reached more than 2.1 million people through direct and indirect interventions.
The program focused on helping communities generate income rather than relying solely on emergency assistance. It supported farmers, created jobs, strengthened local institutions and increased resilience to climate-related shocks. By investing in long-term recovery, ERRY advanced several targets under SDG 1 while helping communities rebuild their economic foundations.
The impact of the program extends beyond statistics. In a UNDP case study, Abeer, a young photographer in Taiz Governorate transformed her passion into a profession after receiving training and a start-up grant through the ERRY program. She now earns an income by photographing local events and stories. Her experience illustrates how livelihood programs can help Yemenis build sustainable sources of income and reduce dependence on humanitarian assistance.
Urban Development Projects Create Economic Opportunities
Infrastructure investments have also contributed to poverty reduction efforts. Through the Yemen Integrated Urban Services Emergency Project, UNOPS and the World Bank restored critical services while creating employment opportunities for local residents.
By the end of 2025, the project had improved services for more than 4.5 million people. Workers rehabilitated nearly 240 kilometers of roads and more than 301,000 meters of water and sanitation networks. The initiative also generated more than 1.4 million labor days of employment, providing income for thousands of households.
These investments address immediate community needs while strengthening local economies. Improved transportation, reliable services and temporary employment help families increase income and access essential resources.
Looking Ahead for SDG 1
Although Yemen continues to face severe economic and humanitarian challenges, recent updates on SDG 1 in Yemen highlight the impact of targeted development programs. Initiatives such as the ERRY Joint Programme and the Yemen Integrated Urban Services Emergency Project demonstrate how international partnerships can support poverty reduction even in fragile environments.
These programs have already reached millions of Yemenis through job creation, livelihood support and improved public services. While substantial work remains before Yemen can fully achieve SDG 1, ongoing investments in resilience and economic recovery offer a path toward a more stable future. Continued support from development organizations, donors and local communities can help ensure that more Yemeni families escape poverty and build sustainable livelihoods in the years ahead.
– Angela Qi
Photo: Pxhere
The UN’s Mission of Eradicating Extreme Global Poverty
The Basis
For many years, a country’s success has often been defined by its Gross Domestic Product (GDP). Yet, as noted in the Beyond GDP report, U.N. Secretary-General António Guterres points out that when people look at a country’s growth, they ignore the people that the growth is actually meant to help. The U.N. has recently launched the Global Dashboard, which measures progress from an environmental and human rights approach. In other words, a country’s growth does not simply rely on its factories but on citizens’ access to gender equity, technology and clean water.
Social Protection Achievement
This year, a landmark achievement was confirmed by the International Labour Organization (ILO). According to Global Issues, more than half of the world’s population now receives at least one form of social protection benefit for the first time on record. These social protection benefits range from child allowances for struggling families to pensions for people living in rural villages. The U.N. strives to extend this social protection and emphasize that financial security is not a luxury but an essential human right. The U.N.’s Pact for the Future report outlines goals including promoting universal health coverage, increasing access to quality and inclusive education and improving opportunities for decent work and universal access to social protection.
This milestone is particularly significant in sub-Saharan Africa, where social protection implementation has historically been slower and less effective than in other regions. Nations such as Ghana, Ethiopia and Kenya have expanded their cash transfer programs over the years, reaching millions of families.
A New Approach To Extreme Global Poverty
The World Bank recently updated its Multidimensional Poverty Measure (MPM) with the aim of defining extreme poverty not through income but through access. According to a U.N. report, the international poverty line was raised from $2.15 in 2017 purchasing power parity to $3.00 in 2021 purchasing power parity, meaning anyone living on less than $3.00 a day is considered extremely poor. The new standard urges countries to expand access to education, sanitation and electricity, placing a strong emphasis on the standard of living.
The new framework increases pressure on governments in sub-Saharan Africa to expand basic services such as electricity, sanitation and education, rather than focusing solely on income levels.
Looking Ahead
The World Bank shows that the extreme global poverty rate is around 10%, a significant decrease from the past, though hundreds of millions of people continue to struggle. The frameworks set by the World Bank and the U.N. represent new approaches for addressing these disparities and offer a roadmap for sustained progress in the years ahead.
– Hasini Muddapu
Photo: Pixabay
Poverty Reduction in Mongolia Through Social Protection Programs
However, challenges remain, with 27.8% of the population living below the poverty line. The government continues to implement policies to support vulnerable households and improve financial security.
The Child Money Program
One of Mongolia’s most impactful social assistance programs is the Child Money Program (CMP), which provides financial support to households with children. Under the program, children receive a monthly payment of MNT 100,000 (approximately $30), deposited into an account registered in their name.
The benefit helps families cover everyday expenses and provides additional financial support for children’s needs. Today, the CMP remains one of Mongolia’s most significant social protection measures. According to a 2025 World Bank Commitment to Equity assessment, direct transfers reduce Mongolia’s poverty rate by 14.1 percentage points, with the CMP accounting for more than half of that impact, highlighting its important role in supporting vulnerable households.
The Food Support Program
Another important part of Mongolia’s social protection system is the Food Support Program (FSP), which assists low-income households. The program is particularly effective at reaching the country’s poorest populations. Although the FSP operates on a smaller scale and provides more limited benefits than some other social assistance programs, it plays an important role in ensuring support reaches those most in need.
In 2020, food stamps benefited 240,500 Mongolians, including more than 118,000 children. Women and girls made up 53% of recipients.
After revisions in 2025, the program more specifically targets those with the most urgent needs, and monthly support for low-income households, especially those with children, has increased. By targeting vulnerable households, the program helps strengthen financial security and the country’s overall efforts for poverty reduction in Mongolia.
Current Poverty Reduction Efforts
In March 2026, Mongolia launched the National Initiative to Support Household Employment and Reduce Poverty, a program designed to help low-income households achieve financial stability by addressing issues such as limited access to education, low labor force participation and poor health and living conditions. This will be done through microloans, support for agricultural production, new contributors to social insurance and other targeted services. The government is working with the Asian Development Bank (ADB) to reach 5,000 low-income households in 2026.
By increasing employment opportunities and providing targeted assistance to vulnerable populations, the initiative seeks to improve household incomes and independence. These efforts reflect Mongolia’s commitment to strengthening financial security and reducing poverty across the country.
Looking Ahead
While poverty remains a challenge, Mongolia’s social protection programs continue to provide essential support to vulnerable households. Through initiatives that strengthen financial security and opportunity, these efforts are helping to advance poverty reduction in Mongolia and build greater economic resilience for families across the country
– Michelle Kurniali
Photo: Flickr