Archive for category: Developing Countries

Information and stories about developing countries.

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The Shadows of the Himalayas: Poverty in Nepal

Poverty in NepalNepal, a developing country, has nearly one-quarter of its population living below the national poverty line. The rural areas, which constitute a significant portion of the country’s demographic, are particularly affected. In such regions, poverty manifests in multiple dimensions, including lack of access to basic health care, education, clean water and sanitation.

The mountain people of the Himalayas frequently stay on the outskirts of socioeconomic and geopolitical opportunities, living on the fringes of society. Agriculture remains the backbone of the Nepalese economy. However, the sector is plagued by low productivity, limited modernization and vulnerability to adverse climatic conditions, maintaining a cycle of poverty in Nepal.

Education and Child Labor

Education is a critical factor in breaking the cycle of poverty. Yet, many Nepalese children face significant barriers to accessing quality education. School facilities are often inadequate and qualified teachers are scarce. Furthermore, child labor is a persistent issue, with many children forced to work to support their families instead of attending school. About 13.4% of children aged 5 to 9 are engaging in agricultural activities during the prime years of their basic education.

Health Care Challenges

Health care in Nepal is another sector that highlights the disparity between urban and rural populations. While the capital, Kathmandu and other metropolitan areas have seen improvements in health care infrastructure, rural regions lag far behind. However, the government has introduced a health policy encouraging the private sector to invest in the production of health workers and in providing quality health services. While this is an important step, it may harm low-income people who have nowhere to turn to but to rely on their government. Many villagers have to travel long distances to reach the nearest health facility. Once there, they often need more medical supplies and trained professionals.

The Role of Tourism

Tourism significantly contributes to Nepal’s economy, bringing in substantial foreign exchange and creating employment opportunities. However, the benefits of tourism are not evenly distributed. The industry is heavily concentrated in certain areas, like Kathmandu and Pokhara, leaving other regions with little to no benefit.

Steps Toward Alleviating Poverty

Cordaid, a nonprofit dedicated to addressing the causes of fragility, has been working in Nepal since the ’80s, phasing out activities in the nation. Cordaid works with smallholder farmers to build their resilience to adverse weather. They provide vocational training and certification to increase employment opportunities.

Furthermore, CARE Nepal helps improve marginalized communities’ lives through various programs. These program included initiatives in health, education, women’s empowerment, economic development, disaster risk reduction and water, sanitation and hygiene (WASH) programs. It provides maternal and child health care, promotes gender equality in education, empowers women with vocational training and economic opportunities and supports sustainable agricultural practices.

In 2023, CARE Nepal’s “Gender Justice and Health and Education Rights” program reached nearly 40,000 people, empowering women and girls from vulnerable communities to lead healthy, violence-free and distinguished lives.

Conclusion

With its towering peaks and deep cultural roots, Nepal is a country of immense potential and equally significant challenges. Poverty remains a persistent shadow over its picturesque landscapes. Addressing this issue requires sustained efforts from the government, international community and local stakeholders. By focusing on education, health care, economic diversification and equitable development, Nepal can begin to lift its people out of poverty. The future is as bright as the sunlit peaks of the Himalayas.

– Rika Mokal

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

Photo: Pixabay

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Poverty and Population Growth in Tanzania

Population Growth in TanzaniaTanzania, located on the eastern coast of Africa, struggles with high rates of poverty. About 25.2 million Tanzanians lived in extreme poverty in 2022, based on the threshold of $1.90 a day. While the poverty rate has declined in the last few decades, the absolute number of Tanzanians living in extreme poverty has remained stagnant. A major reason for this is rapid population growth in Tanzania, which increases the number of people born into poverty. Tanzania has one of the highest fertility rates in the world, at 4.5 births per woman.

Population Growth in Tanzania and Its Effects on Poverty

According to the National Library of Medicine, rapid population growth tends to be more common in developing countries such as Tanzania due to higher unplanned pregnancy rates, social structure and economic prosperity levels. From 2015 to 2019, 46% of pregnancies in Tanzania were unintended. The nation also faces a high teen pregnancy rate. As of 2021, about one in four girls had become pregnant or given birth by age 18.

The Guardian, in an article on population growth in Tanzania, cites the low use of contraceptives as a major contributing factor. Poor sex education and misinformation about the effects of birth control reinforce these numbers. A high unplanned pregnancy rate not only increases the nation’s overall birth rate but also reduces career options for the women involved, limiting their ability to participate in the economy. Many women are unable to work full time given the added responsibility of child care. For teenage girls, pregnancies reduce their net years of employment considerably. This is an obstacle to overcoming poverty not just for women themselves but also for Tanzania as a whole.

Effect of Population Growth in Tanzania

According to the United Nations (U.N.), the current balance between economic and population growth is not working in Tanzania’s favor. While the nation’s economy has grown steadily in recent years, its agriculture sector still has untapped potential. As of February 2024, it contributes one-third to the gross domestic product (GDP) and employs two-thirds of Tanzania’s population.

A fertility rate as high as 4.5, however, which more than doubles the replacement rate of 2.1–2.3 births per woman, can put significant pressure on these resources. Suppose Tanzania does not realize the full potential of its agricultural sector. In that case, high population growth may push more and more people into poverty.

Reconciling Economic Growth with Population Growth

Addressing the intertwined problem of poverty and population growth in Tanzania requires two major approaches. The first is to improve sex education, increase the use of contraceptives and reduce Tanzania’s unplanned pregnancy rate. The second is to maximize economic growth, specifically to tap into the potential of Tanzania’s sizable agricultural sector to provide for a growing population.

SolidarMed focuses on the first approach. This nonprofit organization, concentrated on improving health throughout Africa, works specifically in Tanzania to train health workers in sexual health counseling and host awareness campaigns to promote sexual education. In March 2024, SolidarMed trained six young men and women to counsel adolescents. Furthermore, they examined flaws in the nation’s current sexual education system.

Building a Better Tomorrow: Youth and Women Initiative for Agribusiness (BBT-YIA) focuses on the second approach. An initiative championed by Tanzania’s Minister of Agriculture Hussein Bashe, this organization aims to increase youth participation in the agricultural sector. The initiative aims to boost productivity and enhance sustainable food systems. Youth (aged 15–35) account for roughly 56% of Tanzania’s active labor force. By 2030, BBT-YIA hopes to increase youth employment by 1.5 million people and grow the agricultural sector by 10%. As an 8-year plan, it also aims to set up at least one youth-led agribusiness in each of the nation’s 12,000 villages.

The United States Agency for International Development (USAID) has also recently introduced a program to reduce poverty and malnutrition in Tanzania by strengthening its agricultural sector. It will work with the Tanzanian government, nongovernmental organizations (NGOs) and other organizations to develop the industry in four key ways. These include boosting productivity and competitiveness through targeted investments and private sector engagement, improving nutrition through the Feed the Future program, building long-term sustainability and enhancing the sector’s business environment.

Looking Ahead

By increasing the productivity of the agricultural sector and improving sexual education for its population, Tanzania may enhance its economic growth. With the help of USAID, SolidarMed and BBT-YIA, the country may be able to provide for its rapidly growing population.

– Lana Swindle

Lana is based in Princeton, NJ, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Youth Organizations in Yemen and Myanmar

Youth OrganizationsYemen and Myanmar face significant humanitarian issues. The issue is due to governments imposing restrictions and regulations preventing assistance. The threat of economic collapse also hinders the delivery of resources needed to rebuild broken communities. It is not just the work of today’s older generations that can stop these unnecessary hardships but also the help of younger minds who amplify their voices through youth organizations to bring about the needed change. Adolescents in humanitarian action provide more support to nations in need through their contributions and by leading solutions that call for change to stop negative possibilities.

Yemen

A 23-page report titled “Progress Study on Youth, Peace and Security” written by Youth4Peace reflects the views of more than 4,000 people and the impact the younger generation makes on the world. Youth organizations play a crucial role in turning young people’s ideas into reality, significantly impacting and revitalizing broken communities.

Yemen Youth Lead is considered an important initiative for effecting change in Yemen’s climate. In association with Partners Global, Yemeni youth have successfully highlighted to government officials and international donors the importance of including young people in policy conversations to affect communities in need positively. Mohammed Al-Shami, a Yemen-born computer engineer turned advocate and guest blogger for Partners Global, volunteered with local communities and civil societies before partnering with Yemen Youth Lead. “I have personally witnessed the fearlessness, hope and commitment that the youth of Yemen had to offer,” he said, “I know firsthand Yemen’s transformation will come through the efforts of the youth.”

The Youth Without Borders Organization for Development is another nonprofit Yemeni foundation focusing on socially empowering Yemeni youth. Part of its mission is to work with passionate professionalism to provide an environment conducive to young people playing more significant roles later in life. Based on its belief that youth play a major part in public decision-making, the organization seeks to empower them through sustainable programs designed for the Yemeni reality. It cooperates with local and international partners to enhance community work, delivering effectiveness in public life and peacebuilding in Yemen.

Additionally, the Yemen Relief and Reconstruction Foundation aims to increase public awareness of humanitarian crises in Yemen, support relief and reconstruction efforts and facilitate campaigns to bring peace to the country through U.S. lobbying and policymakers. Its best strategic aim is promoting broad awareness of grave health and security issues by raising funds to support critical needs and relief efforts. Ultimately, this accumulates into advocating and facilitating support for the Yemeni people during the reconstruction efforts. The organization’s president, Aisha Jumaan, a Yemeni-born citizen, uses her experiences to help build health-related development and training activities to improve the living conditions of Yemeni citizens.

Myanmar

In Myanmar, the Myanmar Youth Empowerment Opportunities (MYEO) offers a mobile-based platform to reach out to the country’s youth and provide the skills necessary for being ready for future employment. The organization’s app delivers social media content that includes jobs, internships and volunteering, complete with online training, mobile partners and membership programs at an affordable cost.

Another Myanmar program that offers support is Peace Point Myanmar (PPM). PPM is a group of Myanmar’s youth that offers different kinds of support and empowerment training to develop skills later in society. PPM offers human rights programs along with peace-building and youth development. One of its greatest strengths as an organization is the ability to deliver library projects that educate those vulnerable by promising fun activities and learning materials to all. PPM’s library project greatly reduces anger and tension among the youth and encourages more moderate positions with social cohesion.

Youth Organizations in Yemen and Myanmar

The efforts to make a change in both countries with the youth in mind are progressing slowly. While these efforts are taking longer due to increasing global issues, Yemen and Myanmar represent the first steps toward building a better future for the world’s youth.

– Jacob Barker

Jacob is based in Ames, IA, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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Widening Access to Vaccines in Mali

Vaccines in MaliAccess to vaccines in Mali has been an issue for many years, with 14% of children having received no vaccinations at all. Ensuring that everyone globally has access to health care, including vaccinations, is essential to downsizing poverty. Furthermore, it is also key to achieving Sustainable Development Goals (SDGs) Target 3. Yet, conflict in the country has limited access to vaccines in Mali. After a military coup in 2012, political instability has impacted access to basic health care, preventing people from getting vaccinated.

Why Are Vaccines Needed?

Infant mortality is a real issue in Mali, with one in 10 children dying before the age of 5. Only 45% of children receive basic vaccines in Mali. This leaves a significant proportion of the population vulnerable to dangerous and life-threatening diseases. This has been worsened by health centers being destroyed or badly damaged in the conflict. Vaccinations can help downsize poverty and so a lack of access to them exacerbates poverty. In Mali, the rate of poverty is at 90%, with much of this concentrated in the rural south. In 2022, 19.1% of the population were in extreme poverty. By increasing access to vaccines in Mali, this can be reduced.

Vaccinations help improve livelihoods by increasing life expectancy, reducing the spread of disease and minimizing infant mortality. It also decreases the possibility that a person will require more expensive health care later in their life if they contract a preventable disease. Many in Mali cannot afford the health care that would be needed to treat diseases such as polio, hepatitis and meningitis, which can all be vaccinated against. Moreover, there is a need, to stall population growth; reducing infant mortality has been proven to reduce the number of children parents are likely to have, therefore halting population growth.

What Has Been Done to Help?

The United Nations Children’s Fund (UNICEF) is working with the Ministry of Health and Social Affairs, Gavi and the World Health Organization to increase access to vaccines in Mali. UNICEF, alongside these stated organizations, are creating digital registers of those who have been vaccinated. Hence, there is sufficient information available to medical professionals.

UNICEF is also setting up mobile and accessible services. These are situated in places like markets, schools, mosques and even bus stations so people can easily and receive vaccinations. In 2019 alone, UNICEF vaccinated nearly four million children against measles. Vaccines often require cool temperatures, which is usually difficult as Mali does not always have a reliable source of energy. Hence, UNICEF is using solar-powered refrigerators to make sure vaccines do not go to waste, due to incorrect storage.

Furthermore, in 2022, the United States (U.S.) government invested $95 million to “improve the health and well-being of more than 17 million Malians,” launching the “PROPEL Adapt” scheme that aims to increase access to affordable health care. This is part of a wider goal to achieve health and water security. On a more local level, in Yirimadio, located in the south of Mali, free doctors were sent door to door to offer free health care. This resulted in infant mortality rates falling very dramatically from 154 deaths per 1,000 live births in 2018 to only seven in 2015. This shows that access to free health care and vaccines can greatly benefit people and save many, many lives.

Looking to the Future

Overall, Mali has seen a significant drop in infant mortality rates from 61 per 1,000 live births in 2021 to 56 in 2024. However, there is much more to do to ensure that access to vaccines in Mali is widespread. Investment in health care infrastructure and innovative thinking can transform the lives of the Mali population for the better. Vaccines play a vital role in downsizing poverty and improving the livelihoods of millions.

– Eryn Greenaway

Eryn is based in the UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Poverty and Diversifying Production in India

Diversifying Production in IndiaDiversification of production implies a shift from crop farming to nonfarming activities. Diversifying production in India has employed millions of small and marginal farmers. It has helped them navigate sustainable ways of making a livelihood. Nonfarming activities, including but not limited to animal husbandry, fisheries and horticulture farming, have been sustaining farmers in India throughout the years by serving as alternative sources of income.

Animal Husbandry

Animal Husbandry, also known as livestock farming, refers to the rearing of animals for meat, hide, milk and other products. India has one of the largest livestock populations in the world, serving as an alternative source of sustenance for a large number of farmers throughout the country. More than 20 million workers in India are engaged in livestock farming and 87.7% of livestock is owned by “farmers of marginal, small and semi-medium operational holdings.”

Under the Government of India, the Department of Animal Husbandry and Dairying incentivizes subsidies to farmers to set up their own livestock farms and gain more income. Since a large portion of India’s farming population is multidimensionally poor, it is advantageous for them to indulge in livestock farming because livestock can be reared by extremely low-income families as well.

The only risks involved in animal husbandry are the chances of livestock diseases. Though many diseases affecting livestock are curable, the focus of treatment is mostly on larger livestock and smaller livestock is often ignored. However, steps are being taken by the government and other charitable organizations to immunize livestock by employing women to nurse them back to good health without farmers having to incur any extra costs.

Fisheries

Fishing is a large-scale activity in India and employs more than 28 million people nationwide, “especially [those from] marginalized and vulnerable communities.” As of 2024, under the administration of the Department of Fisheries, more than 26,000 fishing facilities, 6,498 replacement boats, 586 cold storages and 720 Fish Farmers Producers Organizations (FFPOs), among others, have been approved by the Pradhan Mantri Matsya Sampada Yojana (PMMSY).

The PMMSY was established in 2020 to regulate the functioning of the fisheries sector in India. The Department of Fisheries has also approved more than 59,000 fisher families to get “livelihood and nutritional support during fishing ban/lean period.” Alongside this, the Department also supports farmers during circumstances of loss of fish stock due to natural calamities.

Horticulture

Approximately 43% of India’s population is employed in the agricultural sector. Horticulture is a type of agriculture that encompasses the farming of fruits, vegetables and ornamental plants. The horticulture sector in India “provides alternate rural employment opportunities, diversification in farm activities and enhanced income to farmers.” Transitioning from agriculture to horticulture is, however, a difficult task for farmers because horticulture happens to be labor-intensive and therefore entails more capital requirements.

Government schemes like the Operations Greens help farmers overcome this burden by assuring Minimum Support Price (MSP) for their produce, which would thereby “help to a great extent in shielding farmers from external variables.” The focus is placed on increasing farmers’ incomes by guiding the gains of their horticultural produce.

Additional Remarks

In 2018-19, the Government of India extended credit facilities to fish farmers and animal husbandry farmers, enabling them to meet their working capital requirements. Such efforts by the government and other organizations have helped uplift farmers from a bare minimum to a more comfortable flow of income. Diversifying production in India through the three sectors mentioned above significantly contributes to the growth of the Indian economy. It simultaneously serves as an additional means of rural employment.

– Adya Umesh

Adya is based in Bangalore, Karnataka, India and focuses on Good News and Global Health for The Borgen Project.

Photo: Wikimedia Commons

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Poverty Reduction in Burkina Faso

Poverty Reduction in Burkina FasoLandlocked among other West African nations, Burkina Faso’s struggle against poverty spans centuries. Despite a past of radical politics, with serious efforts to redistribute wealth and reduce poverty, the country is considered to be one of the least developed in the world. Efforts in favor of poverty reduction in Burkina Faso are underway, but there are several hurdles to tackle. 

The country ranks 185th out of 193 others in the Human Development Index, which tracks levels of national development in health, education, income and living conditions. “More than 40% of the population lives below the national poverty line” due to limited natural resources, a lack of development and political instability.

History of Violence

Burkina Faso has faced considerable turbulence over the years. Originally a French colony, under self-governance the nation saw further political violence occur in several coup d’état’s with governments overthrown as recently as 2022.

Recently, armed Islamist groups propagating large-scale violence have contributed to widespread impoverishment. This has led to “over 237,000 people fleeing their homes in 2021” with the government struggling to care for the increasing number of displaced while maintaining suitable levels of stability and rule of law.

Policies for Poverty Reduction in Burkina Faso

Previous governments have made poverty reduction in Burkina Faso a primary political concern. Former president Thomas Sankara, for example, took several steps towards national self-reliance through legislation against his country’s impoverishment. This was seen with infrastructure projects, redistribution of land reform, or educational and healthcare development.

The contemporary political climate in Burkina Faso complicates proposals of poverty reduction. However, government initiatives alongside non-governmental organizations persist. In May 2024, USAID pledged “nearly $55 million in additional, urgent humanitarian assistance to continue addressing emergency food and nutrition needs of the most vulnerable.” At the same time, relief and development charities such as Christian Aid have worked since the 1970s in confronting the cause and consequences of poverty, with the latter operating across four provinces, thirteen municipalities and 353 villages. Poverty alleviation is implemented through strategic partnerships, emergence support, income generation and resilient farming techniques. These methods were utilized most recently with the “Breaking the Barriers” program. The program covered several other African nations with a key focus on women’s working and living conditions.

Currently, the European Commission highlights three key priorities: inclusive human development, a green, resilient economy and peaceful social cohesion. These recommendations, regardless of their applicability, are made less viable by the turbulent legal and political status of the country.

Political Rejuvenation

Since the successive coup attempts in 2022, Ibrahim Traore has governed Burkina Faso. A military leader with similar ideological influences and sensibilities to Sankara. Traore committed himself to dealing with both the terrorism from Islamist insurgents and the humanitarian crisis that it has produced.

As of 2024, the persistence of these issues – and poverty in the country on a wider level – prompted the Institute for Security Studies to critique Burkina Faso’s withdrawal from ECOWAS, a political and economic union of 15 West African Countries. Meanwhile, the current government demonstrates closer ties to Russia. This is evident by “the steady increase in Russian soldiers on missions, the landing of Russian aircraft, and a visit to the Kremlin in July 2023.”

Uncertainty prevails in Burkina Faso. However, efforts in favor of poverty reduction will continue. The viability of these efforts will depend upon resolving the present instability and violence. In doing so, efforts against poverty may be better implemented. Furthermore, this could lead to improving self-reliance, economic opportunity, and social cohesion in the country under a lasting peace.

– Cameron Bowles

Cameron is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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3 Nonprofits Improving Education for Children in Belize

Education for Children in BelizeDue to Belize’s economic and political pressures, much of the population experiences significant social and economic inequality, leading to severe disparities in access to services, particularly for children. The United Nations Children’s Fund (UNICEF) reports that about 49% of all Belizean children live in multidimensional poverty, lacking basic needs, including adequate nutrition and housing, clean drinking water, sanitation and education. The education system in Belize is particularly concerning as only 55% of children currently have access to early childhood education and again, only half of them continue to secondary school.

The World Bank defines learning poverty as being unable to read and understand short, age-appropriate text by age 10. In 2021, about 76% of all Belizean children at their late primary age were not proficient in reading. Reading is a gateway for learning as one progresses through school, so this lack of education and literacy severely restricts individual progress and undermines Belize’s broader efforts toward sustainable growth and poverty reduction. However, here are three nongovernmental organizations (NGOs) working to improve education for children in Belize:

Ocean Academy

Caye Caulker Ocean Academy was founded in 2008. It provides a highly subsidized education to all its students, offering individualized attention, free tutoring and work studies. Through partnerships with local tourism industries, Ocean Academy offers students free apprenticeships in scuba diving, kayaking, fly fishing and windsurfing. These opportunities allow the students to become involved within their community, often leading to full-time employment offers after graduation. Before its opening, only 35% of students in Caye Caulker progressed past primary school. More than 90% have enrolled in high school, many becoming the first in their family to attend.

Holy Cross Education Foundation

The Holy Cross Education Foundation’s mission is to provide administrative and financial support to disadvantaged schools around Belize, giving the children the best possible quality education. It covers the construction and maintenance of the schools, staff salaries, classroom supplies, computer labs, office equipment and more. Moreover, it created a lunch program staffed with local women, allowing children access to a hot lunch without leaving campus. The program has consistently provided nutritional meals to more than 400 students daily.

Pathlight Belize

PathLight International was founded in 2007. It aims to empower impoverished children in Belize to receive a quality education, break away from poverty and reach their fullest potential. Through its Teaching Training program, PathLight equips Belizean teachers with formal training in various subjects alongside providing tuition, supplies and transportation for all students. Each student also receives a personalized mentor to assist with job readiness training, social skills training and leadership development. By the end of 2024, PathLight aims to become the leading NGO in Belize to achieve its ambition of having more than 60% of students graduate at the secondary school level.

Meaningful Impact

In light of pressing challenges, several nonprofit organizations have been working diligently in Belize to address the educational deficiencies and improve children’s general well-being, creating a tangible impact in improving academic outcomes and empowering the next generation. With ongoing support, there is hope that their efforts will elevate educational standards in Belize and allow Belizean children to break the cycle of generational poverty by obtaining the necessary skills and knowledge.

– Kewe Chen

Kewe is based in Memphis, TN, USA and focuses on Good News for The Borgen Project.

Photo: Picryl

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The Sida Power Africa Team Is Supporting Africa’s Energy Growth

The Sida Power Africa TeamIn 2013, President Obama launched Power Africa, an ambitious initiative to double access to electricity in sub-Saharan Africa by tapping into the region’s vast renewable energy resource. The goal was to add 30,000 megawatts of new, cleaner power capacity and create 60 million electrical connections.

The Sida Power Africa Team

In 2014, Sweden became the first international government to back Power Africa. The Swedish International Development Cooperation Agency (Sida) committed to mobilizing $1 billion over the next decade for sustainable energy investments. In 2015, Sida entered a 10-year partnership with the United States Agency for International Development (USAID). The partnership was formed under the Power Africa program. The focus of the partnership was to focus on knowledge exchange and utilizing existing strategies and resources to boost energy sector development. As a result of this partnership, the Sida Power Africa Team was created, dedicated to creating sustainable energy solutions in sub-Saharan Africa.

Development Challenges

The lack of modern energy services is a critical barrier to economic development and quality of life in sub-Saharan Africa. Approximately 600 million people lack access to electricity and around 900 million lack clean cooking alternatives. Addressing these gaps is vital for economic development, health improvement, education and employment.

Vision for 2030

Sida’s mission document outlines a comprehensive strategy for energy efficiency until 2030 as a pathway out of poverty. Building upon its successful partnership with USAID, the overarching goal of the Sida Power Africa Team is to contribute to Sustainable Development Goals 7 (SDG 7) and other energy-dependent goals by developing markets, mobilizing capital and reducing poverty.

Focus Areas

Sida’s revised mission document identifies five key focus areas to guide its efforts:

  1. Access to Electricity: Developing sustainable business models to provide renewable energy to underserved populations alongside supporting policies and regulations to facilitate this access.
  2. Regional Economic Integration and Institutional Capacity: Strengthening capacities and policies for efficient local, national and regional power markets.
  3. Energy Efficiency: Promoting the market development of energy-efficient lighting and appliances.
  4. Productive Use of Energy: Supporting business models that enhance energy-dependent value chains.
  5. Access to Clean Cooking: Developing sustainable markets for clean cooking solutions, targeting neglected communities.

These focus areas intend to expand energy access. They enhance regional integration, improve energy efficiency, stimulate productive energy use and provide clean cooking solutions.

Quantitative and Qualitative Goals

Sida has set aspirational performance targets for 2030 to mobilize approximately $2.3 billion toward energy sector development, with a leverage factor of five. With help from existing partnerships between Sida and the European Union (EU), the World Bank, USAID and other Swedish agencies, these aims prioritize increasing access to renewable electricity and clean cooking, enhancing energy efficiency and reducing greenhouse gas emissions and biodiversity loss.

These priorities will boost economic growth, health and education. Furthermore, they will cut costs, support agriculture and reduce environmental problems that disproportionately affect these regions. The Sida Power Africa Team will also report on transitions related to poverty focus, gender equality, conflict area activities, innovative financial methods, democratic engagements and anti-corruption measures.

– Georgia O’Keeffe

Georgia is based in Wiltshire, UK and focuses on Technology and Politics for The Borgen Project.

Photo: Pexels

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How Microfinance in India Transforms the Lives of Rural Women

<span style=India is a rich, diverse nation in Southern Asia, within what is known as the “Indian subcontinent.” It has long boasted extremes of all sorts, with Antilia – the residence of India’s richest family – located on Billionaire’s Row adjacent to the Dharavi Slum, which houses more than one million people. This extreme poverty is nothing short of ubiquitous.

Microfinance in India

Microfinance in India, which surfaced in 1974, refers to financial services aimed specifically at low-income individuals who do not meet traditional banking services requirements. The microfinance institutions offer small business loans at reduced interest rates to finance entrepreneurial initiatives for low-income individuals. In India, microfinance has proven instrumental to more than 160 million impoverished households as of 2023.

The Impact of Microfinance in India

Rajpoot was a homemaker in Narela, Madhya Pradesh, in rural India. She had fallen into loan shark schemes, borrowing twice to cover emergency medical expenses and her son’s college tuition. However, loan sharks are notorious for their high interest rates, which only prove troublesome for low-income borrowers. Rajpoot could not repay the 5% daily interest on her last loan in 2019, forcing her to give away a family heirloom as compensation.

However, in 2020, her life changed when she registered for a low-cost loan program with a group of women from her village. She used the funds to start a dairy herd business. Today, she proudly owns seven cows and one buffalo. She comfortably repays the $19 monthly installment to the microfinance company, Spandana Spoorthy Financial Ltd, while also affording her expenses, freeing her from crippling poverty.

The success story of Rajpoot highlights the impact of microfinance in India. Her story comes in addition to prominent microfinance banks, such as the National Bank for Agriculture and Rural Development (NABARD), which have empowered more than 160 million impoverished Indian households as of 2023.

The Importance of Microfinance in India

In India, where about 80% of women are financially illiterate, loan sharks often charge high daily interest rates. This practice drives more people into extreme poverty as they are forced to borrow from one lender to repay another. Microfinance provides an alternative to predatory lending, offering fair and manageable loan terms. By empowering women with access to financial resources and education, microfinance helps break the cycle of debt and fosters economic independence and stability.

Final Remark

Microfinance in India plays a critical role in bridging the nation’s economic extremes. Encouraging this practice involves supporting the banks directly engaged in microfinance. It increases marketing prospects in villages where microfinance would yield the greatest benefits in alleviating poverty. These measures would ensure that the initiative is maximized and that as much of the population as possible is aware of this initiative. Additionally, the initiative can help brighten the nation’s future by empowering illiterate women as legitimate income earners.

– Disheta Anand

Disheta is based in Dubai, United Arab Emirates and focuses on Business and Politics for The Borgen Project.

Photo: Pexels

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Affordable Housing and Poverty Reduction

Creating Affordable Housing in Developing Nations In the age of urbanization, access to affordable, sustainable housing has become increasingly diminished, burdening developing nations aiming to provide their growing populations with necessities for survival. It is estimated that 40-75% of individuals located within rapidly growing sittings are densely concentrated in squatter settlements, with higher legal standards in housing, zoning and public services restricting many of the rights to home ownership.

According to the United Nations (U.N.) Department of Economic and Social Affairs, there are more than 1.1 billion people currently living in slums or slum-like conditions, with an additional two billion expected within the next 30 years. Yet, creating affordable housing has proven itself to be a multifaceted operation, balancing the present needs of pre-existing low-income communities while opening new opportunities for citizens to purchase homes that they can preserve in the long term.

Defining Housing

Housing itself can be a difficult term to entirely define, as it is oftentimes relative to the overarching living conditions within a city, state or nation. The World Health Organization (WHO) defines housing as a residential environment that includes all necessary services…for the physical and mental health and social well-being of the family, indicating adequacy for human habitation. Housing can thus be classified as affordable if it does not surpass 30% of the household income of a family, allowing for financial allocation to other living requirements. Comparatively, slums, in the most fundamental sense, are shelters that do not conform to the degrees established by the WHO or legalized housing codes: they may not have proper sanitation measures, structural qualities or number of permitted occupants.

Constraints to Affordability

Creating affordable housing is not straightforward, especially given the financial resources governments need to expand low-income housing programs. Simply increasing the number of available houses does not automatically make them affordable. Public housing construction often requires additional measures such as rent control and subsidies to be truly accessible. Ira Peppercorn, former deputy federal housing commissioner, argues that subsidies can be inefficient and ineffective if they do not align with long-term sustainability goals and fail to tackle the root causes of illegal ownership.

The creation of modernized homes often involves demolishing existing slums, which disrupts long-established urban communities. Peppercorn points out that slums are not merely residential areas for low-income citizens but also hubs of cultural and economic growth, fostering commercial activity with fruit stands, barber stalls and other small businesses. Instead of demolishing these communities for noncompliance with housing codes, governments could provide access to resources that help residents meet legal standards. While this strategy may not enhance living standards in every aspect, it could prove more sustainable in the long term compared to enforcing home ownership and relocating families.

Success of the National Housing Authority in Thailand

The National Housing Authority (NHA) in Thailand is one program that has been notably successful in creating affordable housing and linking community development measures with access to secure housing. Thailand has one of the highest rates of home ownership throughout the world, previously estimated at 81% in 2010, primarily due to the successes of its NHA programming. The NHA, first established in 1973, combines the interests of private investors—looking for the opportunity to develop highly subsidized land—with the manufacturing of affordable homes. NHA housing hosts a low-selling point, enhancing access for low and middle-income families, while offering subsidies up to $2,000. In 2020, amid the COVID-19 pandemic, the NHA instated more than 141 programs to sell residences at prices less than $31,000, granting thousands the ability to remain in Bangkok in this period of economic turmoil.

Affordable Housing as a Poverty-Reduction Strategy

Creating affordable housing is undoubtedly a prospective strategy for poverty reduction, grounding families in a central, stagnant and safe domestic environment. While owning a home can be beneficial on the individual level, it additionally stimulates economic growth on the national level. Samuel Munzele Maimbo, Director of the IDA Resource Mobilization and IBRD Corporate Finance for the World Bank Group, has stated that “making affordable housing…is key for long-term, sustainable development outcomes,” displaying the power of governmental investment into the housing sector.

Looking Ahead

Addressing the housing crisis in rapidly urbanizing regions requires multifaceted solutions that balance affordability and sustainability. Programs like Thailand’s National Housing Authority demonstrate the potential for success by combining community development with secure housing initiatives. Ensuring access to affordable housing not only benefits individual families but also stimulates broader economic growth, highlighting its importance as a key strategy for poverty reduction and sustainable development.

– Eileen Lincoln

Eileen is based in Oakton, VA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr