Archive for category: Business

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Brazil’s Legislative Strategy for Informal Workers

 

Brazil's legislative strategy for informal workersHistorically, Latin American economies have left informal laborers and gig economy workers completely outside state regulatory safety nets. This structural gap traps millions of street vendors, domestic cleaners, and ride-hailing drivers in structural vulnerability. In Brazil, where approximately 37.3% of the workforce operates informally—representing over 38 million citizens—the lack of formal protections historically meant that a medical emergency, an economic downturn, or a sudden vehicular breakdown could instantly plunge low-income families into absolute destitution. However, a major legislative turning point is underway in South America. The Brazilian federal government, through the Ministry of Labor and Employment, has systematically advanced groundbreaking labor frameworks designed to formally absorb informal workers into the state’s social architecture. This proactive strategy provides a scalable blueprint for developing nations worldwide, proving that targeted poverty reduction can effectively align with modern technological growth.

Aligning With Global Progress and the ILO Treaty

Brazil’s transformative domestic policy is moving forward alongside historic international milestones. In June 2026, the United Nations’ International Labour Organization officially adopted its landmark global treaty on platform work, known as the Decent Work in the Platform Economy Convention (Convention No. 193). This groundbreaking treaty represents the first time the global community has established a binding international standard to guarantee fundamental rights, algorithmic transparency, and social safety nets for those earning their livelihood via digital platforms. The convention still requires individual member states to ratify it before it becomes legally binding in those countries.

By positioning its domestic laws to align with the June 2026 ILO treaty, Brazil has demonstrated notable leadership on this issue. The synchronization between international guidelines and Brazil’s legislative strategy for informal workers has accelerated the implementation of vital safety nets across the country. Rather than viewing technological innovation as a legal loophole to bypass labor protections, Brazil’s current approach utilizes these modern business models to systematically lift citizens out of precarious financial situations. The shared momentum between Geneva and Brasília ensures that millions of ride-share drivers and couriers now operate under a recognized, legally protected framework that guarantees algorithmic transparency, a predictable baseline income, and clear avenues for legal recourse against unfair platform account deactivations.

The Dual Strategy

At the heart of Brazil’s legislative strategy for informal workers is a sophisticated, dual-pronged strategy that directly addresses the root causes of systemic financial insecurity. The first component focuses on legal enforcement and immediate economic stability. The federal framework introduces a mandatory minimum hourly wage specifically calculated for app-based workers, ensuring that corporate algorithms cannot drive base payouts below a livable standard. Simultaneously, the legislation establishes strict working-hour caps. These caps actively prevent individuals from enduring the extreme exhaustion and hazardous conditions that previously characterized unregulated gig labor, directly fostering a healthier, safer, and more sustainable working environment.

The second component of the strategy secures long-term structural mobility by integrating these newly recognized workers into the official state public pension and maternity benefit systems. Historically, an informal courier or driver had no access to retirement security or paid parental leave. The new system remedies this through an innovative, shared social security contribution model. Under this architecture, digital tech giants are legally mandated to co-contribute to the state social security fund alongside the workers, meaning that companies pay a fixed percentage of the labor costs directly into the social security system to match the individual worker’s inputs.

This model effectively shifts the sole burden of risk away from the individual and shares it with multinational digital platforms. These policy adjustments deliver clear, measurable safety nets for vulnerable households:

  • Guaranteed Retirement: Platform workers accumulate verifiable years of service toward a state pension.
  • Maternity Protection: Female gig workers and domestic cleaners access full maternity benefits, protecting maternal and infant health without risking a total loss of household income.
  • Injury Buffers: Universal coverage provides automated disability and workplace injury buffers, preventing temporary health crises from turning into long-term economic disasters.

The CNPJ Surge and the Decline of Informality

The positive impacts of Brazil’s legislative strategy for informal workers extend far beyond the digital gig economy. Simultaneously, a national surge in registrations within the Cadastro Nacional da Pessoa Jurídica (CNPJ), Brazil’s official National Registry of Legal Entities, has transformed the country’s broader macroeconomic landscape. By simplifying the registration process and offering clear fiscal incentives, the government has encouraged millions of micro-entrepreneurs, independent traders, and traditional street vendors to formalize their small businesses.

According to data released by the Brazilian Institute of Geography and Statistics (IBGE) in 2026, this national wave of formalization has driven the country’s informality rate down to 37.3%, the lowest level recorded in over five years. At the same time, IBGE tracked a historic rise in the usual real monthly earnings of Brazilian workers, reaching an average of 3,652 Brazilian reais (BRL), which represents a 5.4% increase in an annual comparison. Transitioning into the CNPJ registry opens up a vast array of previously inaccessible economic opportunities for independent workers. Registered individuals can now open official business bank accounts, secure low-interest public credit lines through state-backed banks to expand their operations, and issue legal tax invoices.

This shift meaningfully changes the socioeconomic outlook for millions of citizens. By replacing structural vulnerability with institutional legitimacy, the registry acts as an engine for upward financial mobility. It transforms survival-based informal labor into thriving, more protected micro-enterprises.

A Sustainable Blueprint for Global Poverty Reduction

The measurable success of Brazil’s legislative overhaul provides an encouraging template for the global development community. For decades, international organizations combating extreme poverty struggled with the reality that informal economies in developing nations represent a massive, unprotected block of human labor. Brazil’s current trajectory suggests that modern states do not need to choose between technological advancement and human rights; instead, regulatory frameworks can evolve alongside digital platforms.

By successfully absorbing vulnerable populations into the formal state architecture, Brazil is effectively building a stronger defense against sudden poverty. The positive outcomes visible across the country—ranging from stabilized weekly household incomes to comprehensive social protection access for over 38 million citizens—illustrate that targeted legislative action yields significant systemic benefits. As other emerging markets look to address the expanding gig economy, Brazil’s legislative strategy for informal workers stands out as a notable example of progressive, balanced socioeconomic policy.

– Ioana Marin

Ioana is based in Bucharest, Romania and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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How China Plus One is Creating Jobs in Vietnam

China Plus OneOver the past decade, a shift in global manufacturing has quietly reshaped Vietnam’s economy. As companies move to reduce their dependence on a single country for production — a strategy known as “China Plus One” — Vietnam has become one of the world’s favored alternatives. The result is a wave of factory investment that is pulling rural Vietnamese workers into steady, formal jobs and helping drive one of the developing world’s most dramatic reductions in poverty.

What “China Plus One” Means for Vietnam

The China Plus One shift took hold after 2018, when U.S. tariffs on Chinese goods pushed multinational firms to diversify their supply chains. Vietnam, with labor costs roughly half those of neighboring China, a young and growing workforce, and membership in 17 free-trade agreements, positioned itself to absorb the change. It has become a leading destination for electronics, footwear and apparel manufacturing.

The investment figures are striking. In 2024, Vietnam attracted around $38.2 billion in registered foreign direct investment and a record $25.35 billion in actual disbursements, up more than 9% from the year before, with most of it flowing into manufacturing, according to figures from Vietnam’s Ministry of Planning and Investment. Much of that capital builds factories, and factories create jobs.

The Anchor: Samsung

No company illustrates the trend better than Samsung. The South Korean electronics giant has invested about $23.2 billion in Vietnam, making it the country’s single largest foreign investor, and now employs roughly 87,000 people across six manufacturing plants. Its footprint is so large that Samsung’s operations accounted for around 13% of Vietnam’s GDP and export turnover in 2024, according to Vietnam’s National Statistics Office. Its network of local suppliers employs tens of thousands more, spreading the benefits well beyond Samsung’s own payroll.

The Role of U.S. Companies

American firms sit at the center of Vietnam’s China Plus One boom. Vietnam is now Nike’s largest manufacturing base worldwide, producing roughly 51% of the company’s footwear, and the factories that supply Nike employ close to 500,000 Vietnamese workers. Apple’s suppliers have followed suit: contract manufacturers like Foxconn now assemble iPads, AirPods and other devices in Vietnam, work that once happened almost exclusively in China. This deepening trade relationship has paid off for both sides. U.S. imports of Vietnamese goods surged more than 360% in the decade to 2023, topping $144 billion, according to U.S. government data reported by CNN.

From Factory Floors to Poverty Reduction

The human impact makes this a development story. Manufacturing jobs have drawn workers out of subsistence agriculture and into the wage economy, often transforming quiet rural provinces into industrial hubs. Regions like Thai Nguyen and Bac Ninh, once farming districts, now host sprawling industrial parks that employ tens of thousands.

That transition tracks closely with Vietnam’s broader gains. The World Bank reports that Vietnam’s extreme poverty rate fell from 14% to under 4% between 2010 and 2023, while GDP per capita climbed from under $700 in 1986 to nearly $4,500 in 2023, a rise that export manufacturing largely powered. For millions of families, a factory paycheck has meant predictable income, access to benefits and a path into the middle class.

Why It Matters

The model has real limits. Much of Vietnam’s electronics work remains lower-margin assembly that depends on imported components, and factory towns can suffer when global demand slumps. Analysts note that sustaining progress will require Vietnam to move up the value chain and build domestic capacity.

Still, the core lesson offers hope to advocates of global poverty reduction: integration into world markets, combined with steady investment, can lift large numbers of people into stable work. For Vietnam, China Plus One has been more than a supply-chain footnote — it has been a jobs engine.

– Jen Phan

Jen is based in Hanoi, Vietnam and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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3 Notable USAID Programs in Mongolia

USAID Programs in MongoliaEven with its significant economic growth in recent decades, poverty remains a serious issue in Mongolia. According to the Asian Development Bank, 27.1% of the population—about 900,000 people—lived below the poverty line in 2022. The World Bank reports that while Mongolia’s economy grew by 6.9% in 2025, inflation also increased from 6.8% in 2024 to 8.6% in 2025. Higher food and energy costs have made everyday essentials more expensive, while global trade disruptions and the Third Gulf War could further slow economic growth.

The United States Agency for International Development’s (USAID) recent launch of the five-year Mongolia Strategic Framework in 2023 aims to facilitate the country’s economic growth. As stated in a GoGo Mongolia article, the framework’s primary goals are to improve how democracy functions in Mongolia, strengthen its independence and expand its economy—goals that directly address the root causes of poverty in the country. Here are three specific USAID programs in Mongolia operating under this framework:

1. BEST

One of the key USAID programs in Mongolia is called the Business Excellence for Sustainability and Transparency (BEST) Program. USAID created this program in 2019 to help the country’s smaller businesses grow. The BEST program received $15 million in USAID funding to teach business owners how to handle their money, market their products and fill out loan paperwork. USAID especially wanted to reach two groups: businesswomen and business owners living in Mongolia’s countryside.

By December 2024, a news release from the U.S. Embassy in Mongolia stated that 5,397 small businesses acquired loans totaling $100.4 million through the program. These loans helped create more than 4,000 jobs. Women-led businesses received more than half of all loan funding, benefiting 3,005 female entrepreneurs. Another $500,000 went to 176 rural businesses, helping them buy new equipment and hire more workers.

By helping small businesses access financing and expand operations, the BEST program creates income opportunities for Mongolians. Its focus on women-led enterprises and rural businesses is particularly important because these groups often face greater barriers to economic opportunity and financial services. The creation of more than 4,000 jobs demonstrates how the program can help impoverished families improve their financial stability.

2. MEG

Another of the USAID programs in Mongolia focuses on the country’s struggling energy sector. Mongolia relies heavily on old coal plants that cannot keep up with demand, forcing the government to buy power from Russia and China. Though the nation has plenty of sun and wind for clean energy, the coal industry has blocked progress. This has contributed to the rising air pollution in Mongolia’s capital, Ulaanbaatar. In 2022, USAID launched the Mongolia Energy Governance (MEG) activity in collaboration with Abt Global to fix these issues.

The program works with the government and energy companies to make the power sector more secure by encouraging private investment, developing contingency plans and adopting clean energy technology. So far, MEG has shown real results. The Abt Global 2024 report says 1,727 people have received direct help from the program, 40% being women. With MEG’s help, Mongolia strives to make all of its own electricity by 2030 and sell clean power to neighboring countries by 2040.

Reliable and affordable electricity is integral to poverty reduction. When power shortages occur, households and businesses face higher costs and fewer economic opportunities. By advocating for cleaner, more reliable energy sources, the MEG activity strengthens access to dependable electricity, minimizing disruptions to the economy and reducing pollution that disproportionately affects lower-income communities.

3. CRC

A third USAID program in Mongolia is the Climate Resilient Communities (CRC) project, which helped Mongolians prepare for climate-related disasters through improved disaster planning and climate-smart agriculture. Funded by USAID’s Bureau of Humanitarian Assistance, the project operated in Ulaanbaatar and the provinces of Dornod, Dundgobi, Dornogobi, Gobi-Altai and Uvs before ending early in March 2025 due to a U.S. government Stop Work Order.

Despite the early shutdown, the project directly benefited 65,666 people and supported 29 community-led disaster preparedness projects involving 4,217 participants, according to World Vision Mongolia. The project also helped herders grow their own animal feed through soil-free planting methods. Four herder groups received training and $201,576 in equipment, harvesting more than 40 tons of livestock feed that helped animals survive harsh winter conditions.

Climate disasters can push vulnerable families deeper into poverty by killing livestock and reducing agricultural production. Because many rural Mongolians depend on herding and farming for income, improving disaster preparedness can help protect households from economic setbacks. The CRC project preserved an important source of income and food for rural families, ensuring that they won’t be susceptible to poverty-causing weather conditions.

Why It Matters

These three programs demonstrate the benefit of a long-term effort like the Mongolia Strategic Framework. For Mongolia, a country facing challenges in jobs, energy and climate, this support makes a real difference. That is why USAID programs in Mongolia matter. They help the country build a more resilient future that can benefit the U.S., opening new markets for American products and maintaining a stronger standing for democracy in Asia. With continued funding, Mongolia can thrive.

– Melody Ruiz

Melody Ruiz is based in the Bronx, NY and focuses on Good News and Technology for The Borgen Project.

Photo: Pixabay

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Turning the Cassava Industry in Nigeria into a Thriving Business

Casava industry in nigeriaCassava is one of Nigeria’s most ubiquitous crops, a staple food eaten daily as garri or fufu. But for Yemisi Iranloye, cassava became much more than just a dependable source of sustenance. She transformed it into an industrial powerhouse. This is the story of how the cassava industry in Nigeria was revitalized through science-driven entrepreneurship and rural value-chain investment.

From Weekend Hobby to Industrial Vision

Iranloye first experimented with cassava as a weekend hobby; buying a small plot in Oyo State, multiplying superior cassava stems and sharing them with neighboring farmers to raise yields. Her formal scientific training informed her vision: a degree in food biochemistry and nutrition and years of work at a Lagos glucose syrup plant gave her deep insight into root crop chemistry. This blend of academic knowledge and grassroots practice laid the foundation for Psaltry International, the company she built by placing industrial processing where cassava is grown.

In 2011, at age 40, Iranloye left her salaried work, moved onto her farm and used a loan to build a 20-tonne-per-day cassava starch mill with equipment imported from China. Her decisive innovation was logistical: cassava spoils quickly after harvest, so building processing adjacent to smallholder production cut spoilage, improved quality and shortened the supply chain. That locational advantage helped Psaltry pass demanding quality tests and secure Nestlé as its first major customer; multinational buyers such as Unilever, Nigerian Breweries and Promasidor followed as Psaltry expanded its product range.

Growing the Cassava Industry in Nigeria

Across Nigeria, cassava is better used for garri or fufu, essential starchy accompaniments for soups and stews. But its industrial potential is broad: cassava roots can be refined into starch, ethanol, glucose syrup, flour and sweeteners. Food manufacturers use cassava starch as a binder and thickener. Packaging companies use it in corrugation. Rising demand for gluten-free products has given cassava flour new markets. By treating cassava as an industrial feedstock rather than merely a subsistence crop, Iranloye helped displace some imports and created higher-value market channels for farmers who previously sold raw roots into low-margin chains.

The company’s success shows how value addition can transform national supply chains. By embedding processing in the zones where cassava is grown, Psaltry boosted efficiency, raised quality standards and helped build the cassava industry in Nigeria into a more resilient and globally competitive sector.

Turning Infrastructure Challenges Into Competitive Advantage

When Psaltry set up its first mill, it was “in the middle of nowhere,” without an access road, unreliable power and a seasonal stream that ran dry. The company built its own road, installed generators until grid connections arrived and drilled boreholes for community and factory use. Financially, Iranloye blended loans and public credit schemes to buy equipment and scale operations; operationally, Psaltry invested in farmer training, traceability and stem multiplication so suppliers could meet industrial quality standards. Those investments turned logistical constraints into competitive advantages, delivering higher quality, faster processing and a dependable supply chain that appealed to major buyers.

Scaling Farmer Partnerships and Cassava Products

What began with 17 smallholders grew into a network of roughly 16,000 farmers supplying Psaltry. Expansion came in phases: after the initial starch mill, Psaltry opened a second factory in 2015 to produce cassava flour; in 2022 it added a sorbitol plant after Unilever sought a reliable local supplier. Producing sorbitol domestically helped reduce dependence on imports from Asia and showcased how downstream processing can capture more value within national borders. At each stage, Psaltry emphasized quality control, traceability and predictable procurement, lifting suppliers into market-grade production rather than subsistence selling.

The expansion of the cassava industry in Nigeria not only boosted local manufacturing, it helped reinforce Nigeria’s agricultural economy by creating jobs, reducing import reliance and solidifying new export pathways.

Competition, Economic Shocks and New Crop Frontiers

As Psaltry’s success became visible, competitors proliferated: Nigeria now hosts dozens of cassava processors. But local demand rose too, particularly after naira volatility made imports costlier and import substitution more attractive. Iranloye views this as an opening for broader agricultural industrialization: sweet potatoes (high starch and naturally gluten-free) and coconuts (where nearly every part has commercial value) are promising next wave crops for similar processing approaches. Her perspective mirrors broader development prescriptions: diversify local value chains, encourage agro processing and link smallholders to paying markets to create jobs and build resilience.

Entrepreneurship Lessons From the Farm

Iranloye’s reflections are practical and pointed. Passion for agriculture is nonnegotiable: the sector rewards persistence when markets and infrastructure lag. Deferred gratification matters. She counsels entrepreneurs to reinvest earnings rather than treat early revenues as personal paychecks, separating personal finances from business growth. Finally, iterative learning and persistence were crucial; Iranloye admits she did not have a perfect plan at the start, but steady experimentation revealed viable products and markets.

Why This Story Matters

Psaltry’s rise from experimental stems and a makeshift rural mill to multi-product processing supplying multinational companies shows how applied science, strategic location and farmer partnerships convert staple crops into industry. For policymakers and development practitioners, the lessons are concrete: invest in rural infrastructure, de-risk finance for processors and farmers and scale extension services so smallholders can meet industrial quality. For entrepreneurs, the takeaway is equally clear: patient mission-driven reinvestment and proximity to raw materials can turn agribusiness into a durable engine of local jobs and import substitution.

– Josephine Dokpesi

Josephine is based in the United Kingdom and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

 

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rYojbaba Rings Nasdaq Opening Bell to Fight Poverty

rYojbabaOn May 26, 2026, Ryoji Baba rang the Nasdaq Opening Bell at the Nasdaq MarketSite in Times Square, New York. Baba is the chief executive officer and representative director of rYojbaba, a Japanese consulting and health services company dedicated to fighting poverty through professional expertise and community-based services.

In traveling from Japan to New York to ring the Opening Bell, Baba aimed to further the organization’s anti-poverty cause. It is a goal the organization has pursued since its inception and may have an even bigger chance of achieving through this excursion.

rYojbaba’s History

rYojbaba’s roots trace back to 1989, when the Japanese health care organization Sakai Seikotsuin was founded. Over the past 38 years, it has served local health care communities throughout Japan, providing countless individuals with a better quality of life.

When rYojbaba was officially created in 2021, it sought to expand on the foundation Sakai Seikotsuin had established nearly four decades earlier. The organization was founded by professionals with deep experience in Japan’s legal and labor systems, including certified social insurance and labor consultants. These consultants are nationally licensed specialists in labor relations, employment matters, social insurance and human resource management.

On the “Our Story” section of rYojbaba’s official website, Baba explains how his personal experiences with poverty across Japan informed their goals to combat it. During his time working as a police officer, certified social insurance labor consultant and administrative scrivener, he encountered those severely disadvantaged by the systems they lived within. He decided to start this company to fundamentally solve these labor issues he had witnessed.

Baba acknowledges that these labor issues cannot be solved by corporate consulting or technology alone. It is important to involve individuals who can provide impartial consulting to companies, workers and labor unions. Provided these individuals have fair judgment and a true sense of justice, they can be crucial in providing rational solutions to these labor issues.

rYojbaba’s Accomplishments

rYojbaba has successfully created a labor union that waives union dues. This accomplishment, which no one else has achieved, has significantly increased the possibility of resolving labor issues altogether. Considering that labor issues directly inspired Baba to found this company, it represents a tremendous milestone.

The strengths of rYojbaba’s services lie in their ability to consult with both labor unions and employers. They can work productively with these groups, despite their interests often being at odds and resolve the problems of each employer one-on-one. This is aided by their understanding of various laws and regulations and their awareness of those in poverty who are often overlooked.

rYojbaba Attends Opening Bell Ceremony

As part of Nasdaq’s “Opening Bell” ceremony, Baba took the stage at the Nasdaq MarketSite alongside Brian Joyce, who works at the company’s market intelligence desk, to deliver a speech about his company’s efforts to fight poverty. “Our mission is to fight poverty and create opportunities for the next generation,” he said early in the speech. “We do not measure success only by profit, but by how many lives we can improve.”

After Baba finished his speech, he received the Nasdaq Opening Bell Crystal to commemorate the day’s bell ringing. Surrounded by other rYojbaba representatives, a 10-second countdown led to him ringing the Opening Bell by pressing a small screen in front of him, triggering applause from his team.

Final Remarks

“We know today is just one milestone,” Joyce remarked to Baba shortly before the bell ringing. “You have had many milestones up until this point and we know you will be back. We look forward to welcoming you back to celebrate future milestones.”

These words symbolize rYojbaba’s mission over the years. With every accomplishment, the company has worked to spread awareness of poverty globally. Whether or not they ring the Nasdaq Opening Bell again, achieving this for the sake of furthering a noble cause is a remarkable achievement.

– Benjamin Parker

Benjamin is based in South Burlington, VT, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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AGOA is Building a Global Middle Class Via Fashion

AGOAFor many years, critics treated globalization as a race to the bottom. Brands chased cheaper labor while workers struggled to move beyond the poverty line. However, in recent years, a different model has emerged in some sectors of the apparel industry. When governments pair trade access with local production rules, fashion can help create stable jobs, stronger communities and something much more durable: a middle class. This model works best when countries build local manufacturing ecosystems that keep more value at home. Ethical fashion succeeds when it connects consumer demand to long-term local investment rather than short-term outsourcing.

Peru: Luxury Cotton in a Local Industry

Peru offers one of the strongest examples. The country built a premium textile sector around Pima cotton, a high-end fiber cultivated for thousands of years and tied closely to Indigenous agricultural traditions. Peruvian Pima cotton requires roughly 50% less water than conventional cotton because of its drought tolerance, making it both economically and environmentally valuable.

The apparel brand Nation LTD shows how this ecosystem works in practice. After starting production in Los Angeles, the company moved much of its manufacturing to Peru to access a vertically integrated supply chain that tracks production from cotton cultivation to finished garment production. Around 80% of Nation LTD’s clothing now comes from Peru through a “seed-to-garment” system in which cotton is grown, spun into yarn, knitted into fabric, cut and sewn locally, primarily around Lima.

That local concentration matters. Strong middle classes rarely emerge from fragmented subcontracting systems. They grow through industries that create layers of stable employment: agriculture, logistics, factory management, quality control, transportation and technical apparel manufacturing. Peru’s vertically integrated apparel model keeps more production inside the country while reducing transportation emissions and strengthening long-term industrial capacity.

The point extends beyond sustainability branding. High-value exports encourage investment in skills, product quality and long-term partnerships that create more economic opportunity. This model shows how ethical fashion can support local production instead of rewarding short-term supply chains.

East Africa: Apparel and AGOA

East Africa shows a different version of the same idea. Beginning in the early 2010s, global brands increasingly explored sourcing from Kenya and Ethiopia as buyers searched for alternatives to China and Bangladesh. McKinsey research found rising buyer interest in East African sourcing, particularly in Ethiopia and Kenya, supported in part by preferential U.S. trade access through the African Growth and Opportunity Act (AGOA). Ethiopia attracted buyers with lower labor costs while Kenya developed larger and more efficient factories through foreign direct investment and export-processing zones that expanded local apparel manufacturing.

The broader social impact matters just as much as exports. Most apparel-related jobs in sub-Saharan Africa go to women, who often direct income toward family health care and education. McKinsey also found that African firms average 25% female representation on corporate boards, above the global average of 17%.

In other words, apparel manufacturing creates one of the clearest pathways into formal employment for women, especially in economies where middle-management pipelines remain weak. Those jobs have helped families move toward a more stable middle class for years.

How Trade Policy Creates Opportunity

The U.S.-Peru Trade Promotion Agreement uses a “yarn-forward” rule for apparel. To qualify for tariff-free access to the U.S. market, companies must complete key production stages, such as spinning yarn, knitting fabric and sewing garments, within the trade region. The rule discourages companies from importing cheap textiles from overseas suppliers and finishing garments only locally. Instead, it rewards complete supply chains that sustain manufacturing jobs across multiple sectors. This kind of trade policy helps countries build industries rather than depend on temporary aid.

AGOA follows a similar logic. The program gives eligible sub-Saharan African countries duty-free access to the U.S. market for more than 6,000 products, including apparel, which helps attract foreign direct investment from manufacturers eager to benefit from tariff exemptions.

No industry can eliminate poverty on its own. However, smart trade policy like AGOA, paired with ethical fashion, can help create stable jobs, stronger local industries and more opportunities for people to build better lives.

– Camila Correch

Camila is based in Orangeville, Ontario, Canada and focuses on Good News, Politics for The Borgen Project.

Photo: Flickr

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Women’s Economic Empowerment in Hasbaya

Women’s Economic Empowerment in HasbayaAgainst the backdrop of Mount Hermon, the Hasbaya region of South Lebanon features ancient olive groves, terraced hillsides, and the winding Hasbani River.

Yet, beneath this scenic tranquility, rural communities face deep economic marginalization intensified by national financial instability and geographical isolation. In the lanes of Hasbaya’s historic souks, a new narrative is taking shape; not of crisis, but of enterprise.

Hounna Lil Tamkeen Project

Launched in late 2025 and scaling through 2026, the “Hounna Lil Tamkeen” project (Women for Empowerment) equips participants with the technical skills and business resources to establish their own guesthouses and craft enterprises.

The project is part of a broader movement; the United Development Program (UNDP) recently provided $1.5 million in assistance and technical support to women-led enterprises and cooperatives to restore local production and livelihoods across Lebanon.

The Leadership and Vision

Al Madad Foundation established the project as a core initiative under the vision of its founder, Lebanese-British artist and humanitarian Aya Haidar. Haidar’s work frequently explores themes of cultural heritage and the value of women’s domestic labor, actively shifting the focus from traditional aid toward a model of “creative empowerment.” The leadership’s philosophy for Hounna Lil Tamkeen pushes business ownership rather than one-time food parcels. It also professionalizes the production of mouneh (traditional preserves), ensuring that Lebanese heritage becomes a marketable asset in the modern economy. The project acts as a direct intervention against the rising poverty rates in rural Lebanon, where one out of every three citizens now lives below the poverty line. It provides a sustainable path toward women’s economic empowerment in Hasbaya in this traditionally conservative region.

How it Works: From Training to Table

Instead of requiring women to travel to urban hubs for work, the initiative brings the professional economy directly to their doorsteps through three distinct phases:

  • Phase 1: Professional Skill Acquisition: Participants receive intensive hospitality training from the foundation, mastering international service standards, rigorous food safety protocols, and foundational digital literacy. This specialized instruction enables them to list their traditional homes on global booking platforms, effectively turning underutilized domestic spaces into reliable revenue streams. This localized approach tackles the regional inequality affecting 44% of the population while prioritizing women’s economic empowerment in Hasbaya as a core engine for rural recovery.
  • Phase 2: The Culinary Tourism Pipeline: Women are trained to scale and professionalize their traditional production of mouneh (artisanal Lebanese preserves). By standardizing product quality, safety and packaging, the project helps these local entrepreneurs sell their goods directly to visiting tourists and high-end urban markets. This provides a vital, insulated source of income at a time when the tourism sector’s contribution to Lebanon’s economy fluctuates around 5.5%.
  • Phase 3: Digital Visibility and Infrastructure: The initiative provides the physical tools and marketing training necessary for women to establish an online presence. Creating a digital footprint is essential for bypassing Lebanon’s ongoing banking hurdles, offering a critical intervention in a country where female labor force participation stands at just 27.54%; significantly lower than the global average of 51.07%.

From Blueprint to Reality

The tangible reality of this economic shift is documented directly by the field updates of the “Hounna Lil Tamkeen” initiative on social media. Supported by the Mediterranean Women’s Fund and guided by expert trainer Omar Abou Ali, the project successfully executed its specialized “Treasures of Hermon: Feminine Tourism” training modules across rural South Lebanon. After conducting successful training blocks in the towns of Kfayr and Mimes, the foundational phase concluded with an intensive two-day workshop in the village of Khalwat. The field execution seamlessly bridged hospitality with the region’s culinary heritage, featuring a traditional rural lunch that served as a practical showcase for professionalized, homemade preserve production (mouneh). Moving forward, these real-world assessments are being translated directly into localized tourism brochures for each village, creating a permanent marketing infrastructure that connects rural women directly to the modern travel economy.

Looking Ahead

The success of these rural initiatives mirrors a broader national effort to revitalize Lebanon’s economy through women’s economic empowerment in Hasbaya. International partners have mobilized substantial support for micro, small and medium-sized enterprises (MSMEs), which comprise 90% of Lebanon’s economy and serve as the backbone of local livelihoods. Under the Women’s Economic Empowerment Project, a total of $1.106 million in grants has reached 96 SMEs, providing both financial capital and United Nations Industrial Development Organization’s (UNIDO) technical support to strengthen operations and expand market reach. Ultimately, the project aims to support more than 1,000 women-led businesses, ensuring that as Lebanon navigates its recovery, women remain at the heart of a more equitable and sustainable economic future.

– Celine Dib

Celine is based in London and focuses on Good News, Technology and Solutions for The Borgen Project.

Photo: Flickr

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How Thrifting Reduces Poverty in Guatemala

Poverty in GuatemalaMany people in developing countries rely on second-hand clothing imported from other countries. The second-hand clothing (SHC) sector trades more than 24 billion items annually. As of 2023, the national rate of poverty in Guatemala was 56%. With more than half of the population living in poverty, the ability to afford brand-new clothes is often not possible.

Second-Hand Clothing Industry in Guatemala

According to the Garson and Shaw report on secondhand clothing imports from the United States to Guatemala, in 2023, Guatemala imported 131.25 million kilograms of second-hand clothing, 98.6% of which originated from the United States. HS Code 6309 is an international trade classification for worn clothing used to determine costs and tariffs. People in Guatemala have a high demand for low-cost clothing, as many are unable to meet basic food and health needs. The Guatemalan economy is the largest in Central America and relies heavily on the SHC market to support economic activity.

The largest second-hand retailer in Central America, Megapaca, is based in Guatemala. Megapaca is comparable to the North American company Goodwill, with similarly large stores and a fast turnover rate of clothing.

The SHC market is particularly appealing to women in Guatemala, as a high proportion of people do not complete more than primary or secondary education, with more women than men stopping after primary school. The SHC market is one of the few accessible jobs that generate income for people with limited education. A study conducted by Garson and Shaw found that almost all surveyed participants reported that the SHC market has a positive impact on their families.

Supporting Women Through Fair Trade

The SHC market is a key component of reducing poverty in Guatemala. With a large number of women involved in the sector, it promotes financial independence for women who do not have many other job opportunities.

Trades of Hope is a fair trade company founded by Gretchen and Elisabeth Huijskens in 2010. The organization gives women living in poverty the opportunity to support their families by making clothes, jewelry and bags. Trades of Hope pays these artisans a fair and livable wage and markets their items on its website.

One Guatemalan artisan, Clara, said that she built a workshop in her home so she could work while staying with her children, and that other parents in her village who previously had to travel far for work now work alongside her.

Looking Ahead

With more than half the population of Guatemala living in poverty, second-hand clothing is a necessary industry for people to access affordable clothing and participate in the economy. Companies like Trades of Hope work with women artisans to create stability for them and their families by selling handmade goods at fair wages. The second-hand clothing industry plays an important role in many developing countries in efforts to reduce poverty.

– Kaitlyn Crane

Kaitlyn is based in Rohnert Park, CA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Don’t Just Eat Chocolate; Grow the Ghana Cocoa Industry

Ghana Cocoa IndustryChocolate is one of the most beloved sweets that people all around the world consume. Switzerland continues to rank as one of the top countries where people consume chocolate (8.8kg per capita/per person) followed closely by Austria, Germany and Ireland. However, cocoa in these sweet treats is not produced in any of the countries named. The top two countries that produce cocoa are Cote d’Ivoire (Ivory Coast) and Ghana.

Despite the cocoa industry bringing in a high export of $1.46 billion, in 2024, many farmers are below the poverty line. They are facing delayed payments from local regulators on top of a very low minimum wage, some earning only $3 per day

Global Poverty of the Chocolate Industry

Only a small share of chocolate’s final value reaches producers. As Frontiers in Sustainable Food Systems reports, “only 7% of the price that consumers pay for chocolate makes its way back to the producers.” Cocoa farmers are on the very end of the value chain because Ghana ships more than 80% of its cocoa abroad in raw form, which means that the most profit is made from the final product.

Though smallholder farmers dominate Ghana’s cocoa industry, they often work on small plots with limited resources. As emphasized in the Cocoa Barometer, poverty is not just one issue among many; it is a central factor underlying many challenges in the cocoa sector.

The Cocoa Barometer highlights how this system reflects deeper historical inequalities tied to colonial trade structures. The result is a persistent “extraction” model, where value leaves producing countries instead of being reinvested locally.

The cocoa industry and cocoa farming have been in the traditions of many farmers in Ghana. There are approximately 800,000 smallholder farm families across regions including Ashanti, Western, North, Eastern and Central Ghana. For this livelihood of many to disappear, farmers would face severe poverty and trigger an economic downturn.

Cocoa Industry in Ghana

Recently, John Mahama, the president of Ghana, has made major efforts to prioritize local processing of raw bean exports, aiming to cease raw cocoa sales by 2030.

In a recent visit to Temple University, in Philadelphia, PA., President Mahama brought light to this situation and his reasoning behind the push.

“It is because for almost 70 years after we gained independence, we’re still exporting raw beans to the world,” Mahama said. “I believe that what has happened in the international market should be a wake up call for us.

President Mahama has put a strict deadline on when he believes the goal of this program should be where they should be; with at least 50% of the country’s cocoa beans in local production, while halting raw mineral ore exports by 2030. “By 2030, there won’t be any raw mineral ores leaving Ghana. You must process all that locally,” said President Mahama.

The Future

The hopes in these major switches have short-term and long-term goals including:

  • Farmer payment timeliness: reducing the payment delays compared to traditional financing
  • Foreign exchange retention rates: domestic revenue capture versus the traditional model
  • Semi-processed product export growth: volume and value expansion in cocoa butter, powder

President John Mahama, is pushing this advocacy of consuming local chocolate, with a short yet powerful statement of, “Eat Chocolate, Grow Ghana.”

– Elizabeth Fryer

Elizabeth is based in Philadelphia, PA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Poverty Reduction and Women Entrepreneurs in Nigeria

Women Entrepreneurs in NigeriaWomen entrepreneurs in Nigeria are redefining women’s roles in society and the greatest beneficiary of their inclusion in the entrepreneurship space is the economy. Women in entrepreneurship of Nigeria have played an increasingly significant role in reducing poverty. This shift comes after being previously excluded from formal employment and financial opportunities due to traditional systems that limited women’s participation in business.

Female-led companies have created jobs, driven local economic growth and expanded access to essential goods and services across sectors. Here are some ways women entrepreneurs continue to strengthen the economy of Nigeria while advancing broader efforts to reduce poverty.

Improving Access To Essential Health Services

Olamide Orekunrin was on one of her frequent visits to her home city, Lagos, when her sister became critically ill. With no equipment or drugs to revive her and no reliable way to get her to a hospital, the situation quickly turned critical. What would have been easily accessible lifesaving care in many places instead exposed a gap in Lagos’ health system that led to her sister’s untimely death.

This motivated Orekunrin to start Flying Doctors, a medical emergency service specializing in air ambulances. The organization introduced the first air ambulance service in Nigeria and West Africa. Flying Doctors has successfully evacuated victims of road accidents, bomb blasts, fire outbreaks and other mishaps across Africa. 

Female-led businesses like Flying Doctors combine passion with humanitarianism and have helped ensure that all Nigerians have access to essential emergency medical services.

Supporting Community Development

When it comes to entrepreneurship, women-led businesses reinvest up to 90% of income back into their families and communities, compared to 30–40% for men. Female entrepreneurs in Nigeria have launched initiatives such as skills-training programs, education services and other community-focused enterprises. Tutoring and educational initiatives help keep children in school longer.

Each additional year of schooling for girls can increase future earnings by up to 20%. Child care centers enable mothers to remain in the workforce and accelerate their career paths while balancing motherhood. Skills and training programs do the same. These services, which allow more women to join the workforce and children to stay in school longer, are tackling both child poverty and female poverty.

Job Creations

With women accounting for 43% of micro-enterprise ownership and about 40% of early-stage entrepreneurial activity, their businesses are a major source of employment and income in communities where poverty is widespread. Women-owned businesses employ several low-income women and youth. These businesses provide essential services like tailoring and clothing, transportation and logistics, food retail and hospitality and digital services and e-commerce.

These businesses not only expand access to affordable everyday services in underserved communities, but also create jobs for the people in those communities. In doing so, they are reducing reliance on Nigeria’s limited formal job market. By generating income and supporting more sustainable livelihoods, women-led enterprises are helping households and communities lift themselves out of extreme poverty.

Final Remarks

Ultimately, women-owned businesses often serve female customers and underserved communities, especially in informal sectors and rural areas. Through business networks and support systems, women are also better able to overcome barriers to finance, market access and formal business opportunities. In many cases, women-led enterprises create jobs and income opportunities for other women and young people in their communities in Nigeria.

This ripple effect strengthens local economies while expanding opportunities for groups historically excluded from formal work. Across Nigeria, female entrepreneurs are expanding access to financial services, health care, education, food and employment. From agriculture to digital finance, women-led enterprises are filling critical service gaps in underserved communities and driving more inclusive economic growth.

– Yemi Mary John

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

Photo: Unsplash