Archive for category: Aid

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Informal Economy in Uganda Supports Poverty Reduction

Informal Economy in UgandaThe informal economy in Uganda plays a significant role in employment and household income across the country. According to the International Labour Organization (ILO), the majority of workers in Uganda operate in informal jobs, including street vendors, small-scale farmers, artisans and micro-entrepreneurs. While these activities provide income opportunities, many workers face challenges such as limited access to credit, training and legal protections. In response, the government and development partners have introduced initiatives designed to strengthen informal businesses and help individuals transition into more stable economic opportunities.

Parish Development Model

One policy initiative addressing the informal economy in Uganda is the Parish Development Model. Launched by the government of Uganda in 2022, the program aims to help subsistence households participate more actively in the country’s money economy.

The Parish Development Model focuses on delivering financial services, agricultural support and business development resources at the parish level. Through local savings groups and small business financing, the initiative encourages entrepreneurship among low-income households. By supporting small-scale economic activity within communities, the program aims to improve income stability and reduce rural poverty.

SENTE

Another initiative addressing the informal economy in Uganda is the Supporting Jua-Kali Enterprises to Transition into the Formal Economy (SENTE) Program. The SENTE Program provides tools, equipment and training to informal business groups such as mechanics, metalworkers and carpenters.

These programs focus on helping workers increase productivity and expand their operations. Access to improved equipment allows artisans to produce goods more efficiently and improve product quality. In turn, these changes help small enterprises increase income and create employment opportunities within their communities.

Affordable Empowerment Credit Program

Financial inclusion initiatives also play a role in supporting informal workers. The Affordable Empowerment Credit Program offers low-interest loans designed to help individuals start or expand small businesses.

Access to credit remains a barrier for many informal entrepreneurs who lack traditional banking relationships. Programs that provide affordable financing allow small business owners to purchase materials, invest in equipment and grow their enterprises. These financial tools can reduce economic vulnerability while encouraging long-term economic participation.

Skilling Uganda Program

Workforce training initiatives also contribute to strengthening the informal economy in Uganda. The Skilling Uganda Program focuses on vocational education and technical skills development for young people and unemployed workers.

Through training in trades such as construction, mechanics and tailoring, the program helps individuals gain practical skills that can support income generation. Many graduates use these skills to establish small businesses or secure employment in local industries. By expanding access to technical education, Skilling Uganda supports workforce development and economic mobility.

Looking Ahead 

Programs supporting the informal economy in Uganda demonstrate how policy initiatives can help strengthen small businesses and improve economic stability. Government initiatives such as the Parish Development Model, SENTE Program, Affordable Empowerment Credit Program and Skilling Uganda Program provide financial resources, training and equipment that support workers seeking to expand their economic opportunities.

As these initiatives continue to develop, they highlight the importance of supporting informal workers as part of broader poverty reduction strategies. Strengthening the informal economy in Uganda can help expand employment opportunities, increase household incomes and support long-term economic development across communities.

– Jason Hill

Jason is based in Fullerton, CA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

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Inside the $1.2 Billion US–DRC Health Partnership

U.S.–DRC Health PartnershipOn Feb. 26, 2026, the United States (U.S.) and the Democratic Republic of the Congo (DRC) signed a $1.2 billion health cooperation Memorandum of Understanding (MoU). This is the latest bilateral agreement between the U.S. and more than a dozen African countries following significant aid cuts and the dismantling of the United States Agency for International Development (USAID). The deal aims to support the DRC in its efforts to fight HIV/AIDS, malaria, tuberculosis and other infectious diseases. However, while the DRC has embraced the agreement, a number of other African countries have declined similar deals after raising questions about what may be required of them in return.

What the Deal Could Mean for the DRC

The partnership spans from 2026 to 2031, with $900 million in targeted U.S. government assistance and $300 million in gradually increased domestic health expenditure from the DRC government.

The DRC’s volatile history means that despite progress in recent years, the national health system continues to face significant challenges. Disparate access to health care, a shortage of medical personnel and damage to health infrastructure caused by ongoing conflict are not issues that can be resolved through short-term emergency funding.

Substantial long-term investment aimed at expanding and stabilizing the DRC’s health system could therefore present an opportunity. Beyond supporting the fight against infectious diseases, the deal also aims to strengthen maternal and child health services, improve national epidemiological surveillance and enhance preparedness and response to health emergencies. If implemented effectively, it could represent progress in addressing recurring public health emergencies.

Concerns Surrounding the Agreements

Before Donald Trump came into office, USAID previously provided health grants to many of the African countries that have now entered bilateral agreements. These funding routes were closed under the Trump administration due to concerns that aid channeled through nongovernmental organizations (NGOs) resulted in high overhead costs. However, while the new deals involve substantial U.S. investment, they represent an average 40% decrease in the health funding these countries received from the U.S. over the previous five years.

Moreover, despite promoting the goal of encouraging countries to match donor funds and reduce dependence on aid, certain elements of the MoUs have been labeled “exploitative” by several African countries.

Zimbabwe’s government declined a similar deal with the U.S. over concerns about national data protection. In exchange for U.S. funding, the proposed agreement involved extensive U.S. access to Zimbabwean health data without any guarantee of access to medical innovation such as vaccines or treatments. As explained by government spokesperson Nick Mangwana, Zimbabwe would “provide the raw materials for scientific discovery without any assurance that the end products would be accessible” to its population in the event of a health crisis.

For similar reasons, Kenyan courts suspended implementation of a $2.5 billion health aid deal with the U.S. last December after complaints about the potential sharing of Kenyans’ personal medical records under the agreement.

For the U.S., these deals also offer a way to support American pharmaceutical companies in developing and producing vaccines. In addition, distributing aid through bilateral agreements allows the administration to bypass multilateral aid frameworks that traditionally distribute decision-making power across donors and recipient countries.

Reasons for the DRC’s Acceptance

Despite concerns raised by other governments, the Democratic Republic of the Congo may view the agreement through a different strategic lens. The country faces one of the highest infectious disease burdens in Africa, including persistent outbreaks of Ebola, measles and cholera alongside high rates of malaria and tuberculosis.

Combined with ongoing conflict in eastern provinces and decades of underinvestment in public health infrastructure, these pressures have left the national health system heavily dependent on external support.

For Kinshasa, the scale and stability of the U.S. commitment may outweigh potential concerns surrounding oversight provisions. The agreement promises sustained investment over a five-year period and requires increased domestic spending, potentially helping stabilize long-term health financing rather than relying on short-term emergency interventions. In addition, strengthening diplomatic ties with Washington may carry broader strategic benefits for a government navigating regional insecurity and economic constraints. In this context, the deal may represent not only a health partnership but also an effort to secure critical resources for a fragile health system.

Looking Ahead

The U.S.–DRC health partnership illustrates the evolving nature of global health diplomacy. For the DRC, the agreement offers an opportunity to strengthen disease surveillance, expand health care services and build resilience against future outbreaks. At the same time, the hesitation shown by other countries highlights the balance between securing vital funding and protecting national sovereignty over sensitive health data and research resources.

– Andrew Geddes

Andrew is based in Edinburgh, Scotland and focuses on Global Health for The Borgen Project.

Photo: Flickr

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€1.9 Billion: European Commission’s Humanitarian Aid Budget

European Commission’s Humanitarian AidThe European Commission has announced its €1.9 billion humanitarian aid budget for 2026. With 239 million people in need worldwide and major donors drawing back their support, this budget marks the EU’s sustained commitment to humanitarian assistance. Holding firm in its position as the world’s leading aid donor, the EU delivers life-saving assistance in its efforts to provide emergency food, shelter, and healthcare to those in need. This article first explains the structure of the EU’s humanitarian budget, then breaks down where the European Commission’s €1.9 billion in humanitarian aid will be allocated and the types of life-saving assistance it supports, and finally situates the commitment within the broader context of the EU’s leadership as a global humanitarian donor.

How the European Commission’s Humanitarian Aid Budget Works

The European Civil Protection and Humanitarian Aid Operations (ECHO) distributes and manages the EU’s annual Humanitarian Aid Budget. However, more broadly speaking, the budget falls within the EU’s 2021-2027 Multi-Annual Financial Framework (MFF). The 2021-2027 MFF allocates approximately €1.65 billion annually toward humanitarian assistance, amounting to a total of €11.57 billion for the six years. To reach a specific figure, the EU budgeting authority presents drafts informed by the status of global humanitarian need before their eventual adoption by the European Council and European Parliament.

In addition to the initial budget, the EU Solidarity and Emergency Aid Reserve can be called upon in instances of unforeseen crises in order to finance humanitarian emergency response, civilian crisis management and protection operations. The scale of the EU’s humanitarian commitment is matched by the breadth of its delivery network, with more than 200 organizations responsible for translating funding into action.

What does the funding support?

The EU’s humanitarian assistance partners implement EU-funded programs that prioritize life-saving assistance for vulnerable populations. These programmes represent an ethos of “principled aid that reaches people in need, wherever they are,” operating on needs-based objectives. The assistance provided takes many forms, ranging from supplies such as medicine, shelters, or water-purification units to specialised response teams, including firefighters or search and rescue personnel. To activate a humanitarian response, any country may alert the EU’s Civil Protection Mechanism, which serves as a single point of contact for EU countries and participating states to coordinate assistance. The EU activated the mechanism 64 times in 2025, responding to the conflict in the Middle East, the war in Ukraine and many other situations of emergency. With this in mind, central to the EU’s humanitarian response is the strategic prioritisation of funds, determining where limited resources can have the greatest impact.

Regional Allocation

When broken down by region, the €1.9 billion allocation prioritises areas experiencing protracted armed conflict, food insecurity, and weather-related shocks.

  • €557 million for West and Central Africa, the Sahel, the Lake Chad Basin, North-West Nigeria, Central and Southern Africa, the Great Lakes region and the Greater Horn of Africa, reflecting the scale of protracted conflict, displacement and climate-driven food insecurity across the continent.
  • €448 million for the Middle East, with a particular focus on Gaza following last year’s fragile ceasefire, as well as continued humanitarian needs in Iraq, Yemen, Syria and Lebanon.
  • €145 million for addressing humanitarian needs in Ukraine as Russia’s invasion enters its fourth year, alongside an additional €8 million to support humanitarian operations in Moldova.
  • €126 million for Afghanistan, Pakistan and Iran, where overlapping crises continue to drive acute humanitarian needs.
  • €95 million for Central and South America and the Caribbean, a region affected by complex emergencies linked to armed violence, political instability, deep inequalities and environmental pressures.
  • €73 million for Southeast Asia and the Pacific, with particular emphasis on the humanitarian crisis in Myanmar and its cross-border impact in Bangladesh.
  • €14.6 million for North Africa, where persistent political, economic and social challenges continue to generate humanitarian needs.
  • €415 million for responding to sudden-onset global emergencies as well as maintaining a strategic supply chain.

The EU’s Global Role in Humanitarian Assistance

The EU’s humanitarian engagement extends beyond annual budget commitments, reflecting a long-standing role in coordinating international responses to crises. Through its partnerships with international organisations, non-governmental organisations and specialised agencies, the EU supports humanitarian operations in more than 110 countries. As pressures on the global humanitarian system intensify and funding gaps widen, this sustained engagement positions the EU as a key actor in maintaining predictable, needs-based assistance. Efforts to mobilise additional resources, including engagement with private-sector actors, further reinforce the EU’s approach to sharing responsibility for addressing humanitarian crises.

The European Commission’s €1.9 billion humanitarian aid budget for 2026 underscores the importance of structured, targeted and cooperative approaches to humanitarian assistance. By directing resources toward regions facing the most acute needs and preserving flexibility for emerging crises, the EU aims to maximise the impact of limited funding. In a global context marked by growing humanitarian demand, continued leadership and international cooperation remain essential to preventing further deterioration in conditions for vulnerable populations.

– Andrew Geddes

Andrew is based in Edinburgh, Scotland and focuses on Politics for The Borgen Project.

Photo: Flickr

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Venezuelans in Poverty: Life Under Maduro

Venezuelans in Poverty: How Economic Collapse Shaped Life Under MaduroAt the turn of the New Year, the seizure of Nicolas Maduro by the United States (U.S.) military in an operation conducted in Caracas dominated the headlines. The move drew criticism from some who cited concerns about international law violations against a sovereign nation, as well as the fact that the executive branch of the U.S. directed the military action without prior congressional approval. Many in Venezuela, meanwhile, expressed support for the end of an administration widely blamed for declines in quality of life over the course of this century. Life for Venezuelans, particularly under the Maduro government, has been shaped by prolonged economic and humanitarian challenges.

A Population in Dire Need

Multiple sources highlight a longstanding humanitarian crisis in Venezuela. As of 2026, 7.9 million Venezuelans need humanitarian assistance. An additional 7.9 million Venezuelans have been forcibly displaced due to deteriorating economic conditions, a figure the United Nations High Commissioner for Refugees (UNHCR) describes as the “largest displacement situation in the recent history of the Americas.”

Furthermore, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) reports that 5.4 million people are projected to receive some form of international assistance, leaving 2.5 million Venezuelans, nearly 9% of the country’s population, without projected coverage. In addition, 56% of Venezuela’s population lives in extreme poverty.

The Driving Factors

Venezuela’s humanitarian crisis is closely tied to prolonged economic hardship. The Council on Foreign Relations (CFR) identifies the country as a petrostate, meaning it depends heavily on fossil fuel income. Petrostates face the risk of “Dutch disease,” where over-reliance on oil revenue contributes to the deterioration of other sectors of the economy.

Despite having the world’s largest oil reserves, Venezuela experienced significant economic contraction. Time reports that the U.S. first imposed sanctions in 2017 in response to democratic backsliding, further impacting an already struggling economy. From 2013 to 2021, Venezuela’s economy shrank by 70%. Former finance minister Jorge Giordani stated that between 2008 and 2014, officials redistributed two-thirds of oil profits into the economy, while one-third “slipped through the cracks.”

Support Venezuelans: Current Needs

A poll by Gold Glove Consulting indicates that a majority of Venezuelans report optimism following Maduro’s removal. However, economic recovery remains uncertain. The U.S. appointed Delcy Rodriguez as interim president. Although she served in the Maduro administration, she has pledged cooperation with Washington, though not without caveats.

According to Al Jazeera, the Venezuelan government no longer controls its income streams. Funds are deposited into a Qatari account subject to U.S. veto power. Venezuela must submit monthly budget requests for the distribution of those funds. Al Jazeera also reports that experts have raised concerns regarding transparency in the allocation of these funds.

OCHA projects a funding requirement of $606 million for 2026 and reports a funding gap of $587.1 million, constituting coverage of 3.12%. Continued humanitarian funding remains central to supporting Venezuelans facing displacement and poverty.

Looking Ahead

While Venezuela continues to face significant economic and humanitarian challenges, coordinated international assistance and transparent management of resources could help stabilize conditions. Sustained humanitarian funding and targeted support for vulnerable communities remain essential to improving living standards and promoting long-term recovery for Venezuelans living in poverty.

– Luca Hanlon

Luca is based in Brooklyn, NY, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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How the Global Citizen Festival Helped Fight Global Poverty

Global Citizen FestivalGlobal Citizen is an organization working to create a better environment for people experiencing extreme global poverty. The charity advocates for those who are experiencing inequalities, such as racial, ethnic, gender and economic disparities, which in turn influence the rise in poverty. To help eradicate extreme poverty worldwide, Global Citizen prioritizes advocacy campaigns and encourages others to support.

The organization’s key goals include promoting access to quality education, urging governments to increase funding for poverty reduction, improving water and sanitation, addressing hunger and fighting inequality. It also works to protect human rights, support freedom of expression, advance the rights of girls and women and improve access to health care systems.

New York’s Global Citizen Festival

To achieve this, it needs public support. So, every year, Global Citizen holds a festival to “amplify the movement.” On September 27, 2025, Global Citizen held the Global Citizen Festival in New York.

A-list celebrities such as Shakira, Tyla and Cardi B made appearances, influencing around 60,000 attendees. By taking their cause to a wide audience, the Global Citizen Festival helped exceed set targets, thanks to the support of the singers’ fans.

What did the Global Citizen Festival Achieve?

As a result of the festival, Global Citizen achieved 4.3 million actions from this event alone. Global Citizen launched the “Scaling Renewables in Africa” campaign with the European Commission due to the number of people in Africa without access to electricity. The Global Citizen Festival influenced “4.6 million homes across Africa to be powered by 2030.”

The event helped drive a widespread boost in support for the campaign. Another result of the Global Citizen Festival was “$140 million mobilized for children’s education and nutrition, including $30 million for the FIFA Global Citizen Education Fund.” This will significantly help reduce poverty by giving children access to high-quality education and football, which supports movement and health worldwide.

What is even more significant about the amount of money going toward the FIFA Global Citizen Education Fund is that “Global Citizen is getting closer to its $100 million goal by the 2026 FIFA World Cup.” A portion of this funding will be used to teach invaluable “skills, learning and community development through football around the world.”

Safeguarding the Amazon Rainforest

Global Citizen has a campaign to raise $1 billion. The goal is to safeguard 25 million hectares of the Amazon rainforest and protect the rights of the Indigenous peoples living there. These communities are deeply involved in protecting wildlife and nature full-time.

To date, the Protect the Amazon campaign has raised $280 million.

Final Thoughts

Global Citizen can fight extreme poverty more effectively thanks to the Festival, which gives the organization the boost it needs to implement its campaigns. Celebrity appearances allow the general public to get involved by appealing to their interests, even if they have not previously engaged in anti-poverty efforts. This benefits the organization and helps it make a real difference.

– Freya Bryers

Freya is based in the UK and focuses on Good News and Celebs for The Borgen Project.

Photo: Flickr

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How OCHA Plans To Tackle the Humanitarian Crisis in Myanmar

Humanitarian Crisis in MyanmarMyanmar is facing one of the world’s most complex humanitarian crisis. Prolonged internal armed conflict, widespread displacement and economic decline have been compounded by new shocks, including the devastating earthquake that struck the country in March 2025. In response, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) has published the “Myanmar: Humanitarian Needs and Response Plan 2026 (HNRP),” a 70-page document outlining the scale of need and the international support required.

Setting Out the Humanitarian Crisis in Myanmar

Myanmar has endured escalating internal armed conflict since 2021, with hostilities between the Myanmar Armed Forces and nonstate armed groups driving unprecedented humanitarian need. As of November 2025, 3.6 million people are internally displaced, the highest figure ever recorded in the country, including 1.7 million living in the most severely affected regions of the Northeast, Rakhine and the Southeast. In the first half of 2025, Myanmar ranked second globally for conflict intensity.

It was the fourth most dangerous country for civilians, with more than half the population exposed to violence. This protracted crisis was further intensified by a 7.7-magnitude earthquake on 28 March 2025, the world’s largest since 2023. The disaster claimed 5,400 lives, injured thousands and caused an estimated $11 billion in economic losses.

Ten months on, recovery efforts continue amid severe economic decline, with inflation reaching 31% in the 2025–26 financial year. Economic disruption and insecurity have sharply reduced access to food. By late 2025, more than 12 million people faced acute food insecurity, including one million at emergency levels, placing Myanmar among the world’s most severe hunger hotspots and underscoring the urgent need for international humanitarian support.

OCHA’s Humanitarian Needs and Response Plan for Myanmar

The Myanmar 2026 HNRP asserts that 16.2 million people (including 8.4 million women and five million children) need humanitarian assistance. While the HNRP for the previous year included the entire population, funding shortfalls and operational constraints have led the 2026 plan to adopt a tier-based approach to humanitarian assistance. Myanmar’s population is divided into people in need, people targeted and people prioritized.

Within this system, humanitarian needs are organized across nine clusters of concern, including access to shelter, health care and protection. An individual’s classification is determined by the cumulative severity of their situation across these clusters. This approach identifies 2.6 million people requiring prioritized humanitarian assistance and 4.9 million people to be targeted.

As specified by OCHA, this system was designed to guide the HNRP’s priorities while ensuring that targeted assistance “remains realistic and feasible.” In strategic terms, the HNRP operates around two primary objectives: saving lives and alleviating suffering and protecting safety and rights. The former seeks to reduce crisis-related morbidity and mortality, while the latter aims to restore safety and reinstate lost rights.

Central to achieving these goals is a locally led response strategy, described as the “backbone” of the operation. By placing local actors at the center of decision-making and implementation, OCHA aims to strengthen local leadership, foster equitable partnerships and promote direct access to resources at the community level. Particular emphasis is placed on reaching populations in hard-to-access, conflict-affected areas, requiring innovative and adaptable operational approaches.

To manage these challenges safely, the HNRP places strong emphasis on risk-informed planning, including the use of the U.N.’s INFORM Risk Index to assess operational hazards.

Funding and Resource Allocation

The Myanmar HNRP 2026 uses an activity-based costing model to ensure donor funds are allocated as efficiently as possible. Each humanitarian cluster calculates an average cost per person based on specific activities, resulting in a combined cost of approximately $182 per person assisted. This approach allows funding to be directly linked to measurable outcomes.

However, OCHA highlights that soaring inflation, rising fuel and food prices and the continued devaluation of the Myanmar kyat have significantly increased the cost of delivering aid. To account for this, clusters have applied inflation projections to their budgets, ensuring funding levels reflect on-the-ground realities. Overall, the plan appeals for $890 million, with $521 million prioritized for the most urgent life-saving assistance.

This underscores the critical role of international donors in sustaining humanitarian operations and preventing further deterioration in conditions for millions of vulnerable people.

Conclusion

The convergence of armed conflict, economic collapse and the aftermath of a major natural disaster defines the humanitarian crisis in Myanmar in 2026. OCHA’s HNRP outlines a targeted, locally led and cost-conscious strategy to address these challenges. However, its success ultimately depends on sustained international funding and political commitment.

Without adequate support, the gap between humanitarian needs and available assistance will continue to widen, placing millions of lives at further risk.

– Andrew Geddes

Andrew is based in Edinburgh, Scotland and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Poverty Reduction 2025: Top 10 Landmark Achievements

Poverty Reduction 2025: Top 10 Landmark Achievements The following is a “Good News” rundown of 2025, bringing important, positive stories to the top of the agenda. Here are 10 poverty-reduction 2025 landmark achievements that continue to spur the movement forward in the fight against global poverty.

Top 10 Landmark Achievements

  1. Safer Standing. Firstly, recognition for the 300,000th landmine removed from Sri Lankan land this year. The landmines were remnants left behind from the country’s civil war, which persisted for more than three decades and ended in 2009. A nonprofit organization conducted the operation, highlighting the role institutions outside government can play in improving society. The removal of these landmines has allowed 280,000 people to return to their homes. The nonprofit in question, HALO, has rendered 120 square kilometers of land safe again. People can now return home and travel safely and freely. This marks an important accomplishment that promises a safer life for communities across Sri Lanka.
  2. India. Traveling north to India, the second entry on this list of poverty reduction achievements, the country has seen a significant drop in the proportion of its population living in poverty. This includes the declaration of Kerala as India’s first state free of extreme poverty. This progress is linked to the Extreme Poverty Program, which established initiatives including providing families with homes, allocating land and assisting with home repairs. These efforts relied on cooperation among communities, government and local assemblies. This achievement stands as one of the most notable 2025 poverty-reduction milestones.
  3. Bangladesh. Moving east to Bangladesh, nearly the entire population has gained access to basic electricity for the first time. This development supports the United Nations goal of universal electricity access by 2030. Over the past 30 years, access to electricity in Bangladesh has increased by about 85%, compared with just 14% of the population having power in 1991. This improvement signals continued progress. Access to electricity affects daily life in critical ways, including the ability to read after sunset.
  4. Nigeria. Turning toward technological innovation, 2025 saw a young inventor spreading light across Nigeria using recycled plastic tiles to create clean-power charging stations. Named the Commonwealth’s Young Person of the Year in March, Anigbogu has delivered energy access to communities with little or no power across Nigeria, Rwanda, Zimbabwe and Tanzania. This supports education, communication, health, safety and poverty alleviation. Anigbogu’s focus on clean power also promotes a future less dependent on fossil fuels. Beyond the technology itself, LightEd prioritizes community welfare by creating safe spaces and providing energy access to displaced people. This includes lighting refugee camps, increasing safety and offering education on environmental sustainability.
  5. Democratic Republic of the Congo. Poverty reduction 2025 landmark achievements also included renewed peace efforts. In June, Rwanda and the Democratic Republic of the Congo declared a peace agreement known as the Washington Accord, aiming to end conflict dating back to 1994. The agreement includes the withdrawal of Rwandan soldiers from eastern Democratic Republic of the Congo. In return, the Democratic Republic of the Congo government agreed to stop supporting anti-Rwandan insurgents. The deal also includes commitments to economic cooperation.
  6. Mozambique. In Mozambique, 2025 marked the introduction of the first fully inclusive emergency data collection tool designed to close the disability gap in emergency response. The tool aims to improve inclusion by involving people with disabilities in response planning. The Elrha project developed the tool to assess barriers faced by people with disabilities during emergencies. The approach integrates disabled people as data contributors through its SIRA survey. Field use in Mozambique identified the tool as vital for improving accessible humanitarian aid.
  7. Tibet. The seventh achievement on this list was announced in July, when Chinese officials demonstrated progress on what is forecast to become the world’s largest solar farm. Located in Tibet, the project is expected to cover an area comparable to the city of Chicago. China reported a decrease in carbon emissions within the first six months of the year. The solar farm stretches across desert land, reducing wind and soil erosion while allowing vegetation to take root. The project represents a milestone in demonstrating economic growth alongside emissions reduction.
  8. Indonesia. In Indonesia, the government launched a free meal program for children and pregnant women. Within four years, the initiative aims to reach 82.9 million people. The program addresses high rates of maternal and child malnutrition. The free meal program was a central policy of President Prabowo’s election campaign. Government officials and soldiers now serve meals including fried chicken, tofu, rice and oranges. Mothers across more than 20 provinces have reported positive outcomes, supporting efforts to address food insecurity, stunting and wasting.
  9. Switzerland. The first malaria treatment designed specifically for babies received approval in Switzerland in July. In 2023, malaria caused more than 597,000 deaths worldwide. Until now, available treatments were unsuitable for infants due to liver development concerns. The pharmaceutical company Novartis developed the treatment, commonly known as Riamet Baby. After nearly three decades of research, the treatment is scheduled for rollout in eight African countries this year.
  10. Ireland. Ireland announced that a basic income is now a legal right for artists. The policy aims to reduce financial instability and discourage people from leaving the arts sector. The scheme pays 2,000 artists and creative workers €325 per week. After a pilot program launched in 2022, the initiative expanded nationwide and will continue until February 2026. The policy supports artists affected by the COVID-19 pandemic and strengthens Ireland’s arts sector.

Looking Ahead

These poverty reduction 2025 achievements highlight steady progress toward improving living conditions worldwide. From expanded access to basic services to peace initiatives and innovation, these efforts demonstrate that targeted solutions can create lasting change. Together, they show continued momentum in the global fight against poverty.

– Maya Hollick

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

Photo: Pexels

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Belize Fund for a Sustainable Future

Belize Fund for a Sustainable FutureIn the coastal community of Chunox, members of the local fishermen’s association are now planning the construction of a new multipurpose building, a hub for training, meetings and budding small businesses. Their project is one of the first “Community Grants” awarded by the Belize Fund for a Sustainable Future (BFSF), designed to build the capacity of grassroots organizations to manage money and create sustainable local livelihoods. This restorative endowment in a fishing village’s economic future is a tangible measure of the Blue Bond’s success, showcasing one of the developing world’s most innovative financial mechanisms.

Belize’s 2021 “Blue Bond” is a landmark debt-for-nature swap that may finally spell freedom from foreign debt entrapment and the revival of a degenerated sovereign economy.

The Problem & The Financial Innovation

For years, Belize’s economy struggled with unsustainable public debt, which reached 127% of GDP in 2020. In an agonizing retelling of a story unfolding in countless nations across the developing world, the cost of servicing this debt drained resources from critical needs, including the stability of Belize’s vital coastal communities. As a result, virtually every major district was plundered deeper into destitution, with an average 10% increase in poverty rates from 2009 to 2018 and increases as high as 22% in the coastal district of Toledo, where poverty rates reached 82%.

The breakthrough came in a deal which The Nature Conservancy (TNC) brokered. It bought back Belize’s old, expensive debt and replaced it with a new, cheaper “Blue Loan.” The terms of the agreement stipulated that Belize was legally obligated to redirect a portion of its debt savings—an estimated BZ$360 million over 20 years—into a dedicated conservation fund. This money went into the newly created, independently managed Belize Fund for a Sustainable Future (BFSF). In effect, the deal not only alleviated a noteworthy portion of Belize’s debt obligation but also contained an internal mechanism that operates to develop Belize’s economic self-sufficiency and by extension, its means of independently repaying its remaining debts, ensuring the Blue Bond’s success.

Belize Fund for a Sustainable Future: The Impact

The BFSF, established as the vessel for this investment stream, is a private conservation trust fund which a board with a non-governmental majority governs. Its mission is to mobilize investment for the responsible development of Belize’s coastal resources. In its first three years, the BFSF has committed BZ$25.8 million for projects, disbursing BZ$7.2 million directly to non-government partners and BZ$8.1 million to government programs. The Fund’s strategy focuses on thematic pillars like Sustainable Fisheries and Blue Business Innovation, making it clear that the Blue Bond’s success is contingent upon poverty alleviation of coastal communities.

From Finance to Livelihoods

The true measure of the Blue Bond’s success is in the projects it enables, which build economic capacity within communities dependent on functioning marine ecosystems

A principle imperative of the agreement is revitalizing the coastal foundation of the “blue economy’s”. Through its Community Grants program, the BFSF provides direct funding to local fisher groups like The Chunox Fishermen Association, which received a grant to construct a community building and train members in entrepreneurship to launch micro-businesses, according to the 2024 report. Similarly, the Shark Fishers Association received funds to train junior fishers in sustainable practices and international compliance.

Beyond fishing, grants also help with seed diversification and sow complexity into the coastal economy. One project trained tour guides in marine ecology to build a skilled workforce for sustainable tourism, while another explores creating a sustainable seaweed farming industry, according to the 2024 report.

For broader impact, the BFSF makes strategic allocations to government agencies. The largest is a BZ$3.04 million grant to the Belize Fisheries Department to strengthen fisheries governance and enforce policies for ecological conservation, according to the 2024 report.

This funding also directly supports national initiatives like the Oceans Economy and Trade Strategies (OETS) project, which aims to improve fishers’ livelihoods by promoting sustainable harvests and adding value to seafood. By resourcing the government’s own poverty-reduction strategies, the Blue Bond mechanism amplifies its reach to raise incomes for thousands.

The Bigger Picture

The Belize Blue Bond’s legacy is unfolding on multiple fronts. The deal has already helped Belize expand its marine biodiversity protection zones to 25% of its ocean space, contributing to a cautiously hopeful improvement in the health of the Mesoamerican Reef.

Financially, analysts hail the deal’s “credible climate conservation commitments” as an important evolution in green finance, creating a binding link between debt relief and on-the-ground investment. Indeed, this robust structure has already served as a blueprint for similar swaps in Barbados, Ecuador, and Gabon

Belize’s model demonstrates that solving a national debt crisis goes hand in hand with investing in local economic livelihoods. By legally mandating that debt savings flow into a community-focused trust fund, it turns a macroeconomic problem into a microeconomic solution. The Blue Bond is now saving the ocean itself while funding a sustainable future for the people who live beside it. For other nations navigating the concatenating perils of a public debt crisis and disaster vulnerability, Belize offers a powerful precedent: with innovative structuring, the tools of global finance can help build resilience from the bottom up, proving that economic stability and poverty reduction can stem from the same source.

– Georgio Moussa

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

Photo: Wikimedia Commons

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How Foreign Aid Cuts Hurt Global Poverty Reduction

Global Poverty at Risk as Foreign Aid Cuts Accelerate WorldwideGlobal poverty eradication faces a growing threat as wealthy nations reduce foreign aid and international relief programs. After years of modest growth, official development assistance has dropped sharply, with reductions of 15–22% as governments redirect spending from humanitarian programs toward defense budgets. These cuts coincide with a worsening debt crisis across the developing world, raising fears that millions of people could be pushed back into extreme poverty. This trend illustrates how foreign aid cuts hurt global poverty reduction and threaten to undo decades of hard-won progress.

The Reversal of Aid Growth and Its Immediate Effects

Between 2018 and 2023, foreign aid from high-income countries grew by approximately 6% annually, signaling a fragile commitment to global poverty reduction. However, this momentum has now reversed. Across the United States and Europe, governments are rescinding foreign aid commitments and scaling back international relief programs in favor of increased defense spending. According to the Council on Foreign Relations, official development assistance has fallen by as much as 22% as countries reallocate resources from social investment to military priorities.

In the United States, this shift has been particularly stark. Cuts to traditional foreign assistance programs, proposals to eliminate long-standing aid mechanisms and the use of pocket vetoes on appropriated funds have weakened development institutions. These reductions have occurred alongside an estimated $1 trillion surge in U.S. defense spending, highlighting a broader policy realignment away from poverty-focused engagement abroad. While defense budgets have expanded, funding for health care, food security and humanitarian relief in low-income countries has contracted, placing vulnerable populations at heightened risk. This reallocation demonstrates how foreign aid cuts hurt global poverty reduction as essential resources for health and food security are withdrawn.

The Debt Crisis and Vulnerabilities in Developing Countries

The timing of these foreign aid cuts has raised concerns. A 2025 briefing paper by the Finnish Institute of International Affairs warned that more than 50 low-income countries faced a high risk of sovereign default due to post-pandemic borrowing, rising global interest rates and declining access to concessional financing. As debt servicing costs rise, governments often divert funds away from education, health care and social protection, investments essential for reducing poverty. This dynamic threatens to reverse decades of progress against extreme poverty and widen global inequality.

The U.S. retreat from foreign assistance has amplified these pressures. The FIIA briefing describes recent aid retrenchment as part of a broader global development crisis, noting that cuts to humanitarian and democracy assistance have destabilized international relief systems on which millions depend. European governments have mirrored this trend by redirecting aid budgets toward domestic priorities and defense, further shrinking the global pool of resources available to fight poverty. When combined with the debt crisis, the evidence shows that foreign aid cuts hurt global poverty reduction by leaving fragile economies without a vital safety net.

Foreign aid has become increasingly politicized. In the United States, development assistance is often portrayed as wasteful and disconnected from taxpayers’ needs. CFR argues that aid advocates have struggled to maintain public support by emphasizing moral obligation rather than strategic value (CFR, 2025). As a result, foreign aid is vulnerable to cuts during periods of political polarization, making sustained investment in poverty reduction more difficult to defend.

A Shift From Aid to Investment

Not all forms of international engagement have declined. Funding for the U.S. International Development Finance Corporation increased by approximately 280%, reflecting a shift toward investment-driven development approaches.

While such tools can stimulate economic growth, experts caution that they cannot replace poverty-focused aid and humanitarian relief programs designed to directly reach the world’s poorest populations. Financial and capital investments should be supported by targeted efforts that have historically been delivered via NGOs, nonprofits and collaborative philanthropic work. This distinction is important because many investment tools are return-driven, while humanitarian and nonprofit programs prioritize poverty reduction outcomes.

The Center for Global Development warns that reductions in U.S. funding threaten multilateral development banks and sector-specific programs that play a critical role in combating poverty. Concessional finance windows and institutions such as the World Food Programme and global health funds provide lifeline services that stabilize fragile economies and protect vulnerable communities. When these programs are disrupted, food insecurity, disease and economic instability rise, conditions that deepen poverty and increase long-term development costs.

Political Pressures and the Path to Recovery

Foreign aid also serves broader strategic goals. The CFR identifies three core objectives for effective assistance: preventing crises abroad that threaten the U.S. homeland, competing with geopolitical rivals through soft power and strengthening supply chains that support economic stability. Cuts to foreign aid weaken U.S. influence, create openings for rival powers and increase the likelihood of economic shocks that can affect American consumers.

Perhaps the most concerning issue is the long-term impact of sustained aid retrenchment. The CFR cautions that the deeper and longer foreign assistance budgets are cut, the harder it becomes for future administrations, regardless of political affiliation, to justify restoring them. As institutions lose capacity and partnerships erode, rebuilding effective poverty reduction programs becomes increasingly difficult and costly. This institutional decay shows how sustained foreign aid cuts hurt global poverty reduction by dismantling the architecture needed to fight it.

Looking Ahead

The debate over foreign aid reflects broader questions about global responsibility and international engagement. Without renewed commitment and clearer accountability, continued reductions risk entrenching deeper global poverty and increasing the long-term costs of inaction.

– Christopher Pellant

Christopher is based in Evansville, IN, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Humanitarian Crisis in Venezuela: Who’s Helping?

Humanitarian Crisis in VenezuelaVenezuela was once the richest country in Latin America. With the largest oil reserves in the world, many people had stable jobs, affordable food and access to health care and education. Oil wealth supported the economy and helped families live with security.

Today, that reality is gone. After years of falling oil prices and production, corruption, political repression and poor economic management, Venezuela has been pushed into a humanitarian crisis, one of the most severe emergencies in the world.

Economic Collapse

Venezuela’s economy depends heavily on oil and now oil prices are dropping rapidly and abruptly. Under President Nicolás Maduro, global oil prices fell and the economy entered a deep recession. Inflation rose rapidly and shortages of food and medicine became common.

Every day of life became a struggle for millions of people. Inflation reached extreme levels, with estimates as high as 682%, leaving families unable to afford medicines and other essentials such as food because the prices keep increasing. At the same time, the minimum wage dropped to about $0.53 per day, far below the international extreme poverty line of $3 per day.

Even people with jobs can no longer afford necessities and in 2019, only 19% of adults worked full-time.

Widespread Poverty and Hunger

Poverty and hunger are widespread across the country, with more than 70% of Venezuelans living in poverty. Additionally, more than two-thirds live in extreme poverty. When measured by income alone, almost the entire population falls below the poverty line.

Hunger has become part of daily life and a central feature of the humanitarian crisis in Venezuela. Many families skip meals or go entire days without eating. In 2025, 60% of Venezuelans reported struggling to afford food, with even some of the wealthiest households struggling. Children are among the most affected, facing malnutrition, interrupted education and limited access to health care.

Out of a population of about 30 million people, 8 million require humanitarian aid, including four million children. Government restrictions have made the situation worse by limiting the work of soup kitchens with a new law restricting NGOS. Although free school meals are guaranteed by law, many children have not received them for years.

As conditions worsened, millions of people left their country. Food shortages, violence, political repression and economic collapse have caused one of the largest migration crises in the world. Around 8 million Venezuelans, more than a quarter of the population, have fled in search of safety and stability.

Humanitarian Support

Despite these challenges, humanitarian organizations continue to provide lifesaving support. UNICEF plays a key role through its Humanitarian Action for Children program, delivering clean water, nutrition, health care and education services to children. In 2025 alone, UNICEF reached almost 600,000 vulnerable people across Venezuela, including more than 400,00 children.

The World Food Program (WFP) focuses on food assistance through school meals and monthly food baskets. In total, as of December 2025, it delivered 792.3 megatons of food and, in 2025, reached more than 750,000 people. Similarly, the International Rescue Committee (IRC) supports Venezuelans both inside the country and in neighboring Colombia, which hosts almost three million Venezuelan refugees and migrants.

The IRC helps people affected by the crisis to survive, recover and rebuild their lives, reaching more than 50,000 people in Venezuela in 2025. Following political developments in January, the IRC stated it was prepared to expand its help if needed. Furthermore, World Vision has supported more than two million people through its Hope at Home program, focusing on child protection, education, food security and access to clean water, sanitation and hygiene.

The R4V Inter-Agency Coordination Platform for Refugees and Migrants also coordinates support for Venezuelan refugees and migrants. Its 2026 Regional Refugee and Migrant Response Plan, backed by 152 partner organizations, aims to assist 1.2 million people while promoting long-term integration and giving them access to housing, food, water and education.

Finally, UNHCR, the U.N. Refugee Agency, protects Venezuelan refugees and migrants by providing emergency aid and legal support. It also supports integration in host countries and relocation to places with better employment opportunities.

Hope for Venezuela

The future remains uncertain. Venezuela faces three overlapping crises: a humanitarian emergency, mass migration and political repression. Recent political developments have added a new layer of instability and it is still unclear who will lead the country next or how quickly conditions may change.

Experts outline different possible paths forward, from economic recovery and gradual return of migrants if conditions improve to partial stability or further displacement if political violence and insecurity increase. Yet, even in uncertainty, there is reason for hope. A political transition could open the door to economic reform and the restoration of democratic rights.

Combined with continued humanitarian support and international cooperation, real change is possible. The recent political events have also brought renewed global attention to a country already experiencing one of the world’s largest humanitarian and displacement crises. Increased international attention can be a positive force, helping to channel aid, reinforce humanitarian programs and keep the needs of Venezuelans at the centre of the global agenda.

The humanitarian crisis in Venezuela has defined generations, but it does not have to define the country’s future. With sustained aid and political reform, recovery remains within reach. Venezuela’s story is not over and its next chapter could be one of renewal and hope.

– Jeanne Pellet

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

Photo: Flickr