Archive for category: Developing Countries

Information and stories about developing countries.

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Fragility and Rule of Law in Serbia

Fragility and Rule of Law in SerbiaRule of law aims to delimit arbitrary power by ensuring governments must follow the same legal standards as citizens. In Serbia, leaders have repeatedly tested this principle. Nevertheless, Serbia’s post-authoritarian recovery, rooted in the stability of potential European integration, produced a rule of law that drew fair and equitable governance. However, since 2012, Serbia has faced burgeoning fragility across state institutions and a shrinking of the nation’s civic space. The following article on fragility and rule of law in Serbia highlights the impact this has on the country’s poorest.

From Recovery To Institutional Fragility

Serbia’s post-Yugolsav trajectory has moved through three distinct phases. War and international isolation defined the 1990s under the authoritarian rule of President Milošević. However, the 2000s brought political openings and rapid recovery through stronger international ties such as the EU Stabilization and Association Agreement, which helped anchor domestic reforms.

This momentum stalled after the 2008 financial crisis, as public confidence in EU accession waned. This shift aligned with the rise of the Serbian Progressive Party (SPS). In 2014, the SPS’s ascent to power under Aleksandar Vučić triggered a measurable decline in democratic performance and institutional independence. International bodies, including the OSCE have repeatedly raised concerns that the centralization of power and political pressure on institutions is producing corruption. This corruption has undercut the state’s legal accountability and exacerbated poverty for marginalized groups.

How Fragility and Rule of Law in Serbia Impacts Poverty

Serbia’s at-risk-of-poverty rate stands at around 20%, with nearly one-fifth of the population receiving an income below the poverty line. The government continues to highlight GDP growth, which grew 3.9% in 2024, as markers of success. Nevertheless, these gains have not alleviated Serbia’s poverty, partly because weakening rule of law has distorted how authorities wield state power and distribute support.

Since 2014, corruption allegations and institutional deregulation have hollowed-out watchdog bodies, limiting civic oversight and weakening the delivery of public resources. The geographies of poverty remain most concentrated in the south and east, where it affects more than 27% of residents. The region counted around 77,000 unemployed in 2025. A slowed inflow of FDI amid failing investor confidence has accelerated factory closures. Serbia’s Association of Free and Independent Trade Unions warn the shutdowns “have only just begun.”

A major turning point came with the collapse of a newly built train station in 2024. The incident triggered a series of anti-government protests. Protesters blamed the collapse on corruption and the breakdown of rule of law. Student-led demonstrations swiftly grew into a national movement, exposing Serbia’s political fragility and exacerbating concerns from foreign investors. The economy felt the impact immediately, producing a rise in job insecurity and pushing households closer to poverty.

Failing Measures

Serbia spends 19.5% of GDP on social protection. However, most funding goes toward broad social insurance rather than targeted anti-poverty support. In reality, Serbia spends only 5% of GDP on program directly aimed at poverty reduction. Opposition figures argue officials use the inflated number to portray success while masking gaps in direct support.

For many families the support is not enough. An unemployed family of three receives 22,000 dinars per month in cash social assistance, far below the estimated 56,868 dinars that make up Serbia’s minimum consumer basket.

The Future of Fragility and Rule of Law in Serbia

Despite the declining rule of law, there are signs that Serbia’s future trajectory may be shifting. The 2024 protests evolved into a more organized political force in 2025, whose push for an early election has now been announced for 2026.

Civil society has also grown more influential. NGO groups such as the A11 Initiative for Economic and Social Rights argue leaders have governed Serbia through short-term, selective measures rather than sustained, rights-based policy. This has resulted in a system that A11 states keeps marginalized people “just enough above water to survive,” rather than reducing poverty in meaningful terms.

– Rory Wesson

Rory is based in London, the United Kingdom and focuses on Politics for The Borgen Project.

Photo: Flickr

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Thailand Is Granting Myanmar Refugees Access to Employment

Myanmar Refugees Access to EmploymentThailand has enacted a policy granting Myanmar refugees living in border camps access to employment. Reuters reports that this policy shift will grant 80,000 refugees the right to work; many of them have been living at these border camps for 40 years. According to UNHCR, around 47% of refugees were born in these shelters.

Background

A violent military regime drove the refugees out of Myanmar. Since then, they have been living in nine camps spread across the Thai border and have been completely dependent upon foreign aid. A diminishing foreign aid budget, particularly from the United States, has contributed to this decision.

According to Léon De Riedtmatten, executive director of the Border Consortium (TBC), the United States was one of the largest donors to the refugee camps. The TBC is one of the largest suppliers of food to the camps. The current administration has significantly reduced the overseas budget this year, which has, in turn, forced the TBC to provide aid only to the most vulnerable. According to De Riedmatten, Thai officials knew that no other government would be willing to support as much as the United States would.

As a result, Thai officials approved employment access for Myanmar refugees to reduce labor shortages and protect human rights. Cambodian workers leaving the labor force following an armed conflict at the border also influenced this policy change.

Economic Impacts

Tammi Sharpe, a UNHCR representative, has emphasized this development as a turning point. According to Sharpe, “With this policy shift, Thailand transforms hosting refugees into an engine of growth – for refugees, for host communities and for the nation as a whole.” She further confirms that providing employment access to Myanmar refugees benefits both Thailand and the refugees themselves.

Refugees will have the opportunity to provide for themselves and their families while also stimulating the Thai economy. Job growth is expected to increase as thousands of Myanmar refugees join the workforce and, in turn, the national GDP is also projected to rise. This marks a positive step toward poverty reduction.

As more refugees gain employment, dependence on aid is expected to decrease, while social mobility improves. Sharpe explained that the UNHCR has partnered with the World Bank to analyze economic data tracking how refugees are entering and participating in the formal job market. Humanitarian organizations also hope to expand employment access for refugees living outside the camps.

Conclusion

Granting Myanmar refugees access to employment marks a turning point in their relationship with Thailand. It will serve as a mutually beneficial process; Myanmar refugees will receive the means to support themselves and increase their standard of living, while the Thai economy will experience a boost in job growth and GNP. Poverty will diminish directly for the refugees and indirectly over time for people living in Thailand via systemic change. Overall, this policy change provides a hopeful trajectory for the country’s economic future.

– Sasha Banaei

Sasha is based in San Diego, CA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Poverty in Guatemala: Hope in the Humble

Poverty in GuatemalaIn Guatemala, more than half the population lives in poverty. However, the statistics alone fail to capture the resilience and humanity of those affected. During spring break, The Borgen Project visited communities where survival is a daily endeavor and individuals like Bonita, a grandmother with a boundless work ethic, embodied strength in the face of adversity. Her story illustrated not just hardship, but a quiet dignity stitched together with grit and grace.

Poverty in Guatemala

As of 2024, 54.8% of the population of Guatemala was reported to be living in poverty. Nearly two-thirds of those individuals survive on less than $2 a day. These figures are staggering, yet they only hint at the lived realities behind them. Each number represents a person, a family and a community striving to endure and overcome systemic challenges.

A Firsthand Encounter

The Borgen Project interviewed Bonita, a Guatemalan grandmother raising her grandchildren alone after her husband’s passing. She operates a small store to support her family. Despite limited resources, Bonita welcomed visitors with warmth and generosity, offering food and soda without hesitation. According to a team member, “Bonita was the softest soul and worked for everything she had.”

In these communities, every member makes a contribution. Teenagers assist their families, older women assist with household chores and men labor in the fields. In places where missing work can mean missing a meal, rest is not a luxury—it’s a risk. Survival functions as a full-time occupation.

Clean Water, Clear Impact

Bonita received a water filter from the Filter of Hope organization. The moment marked a turning point, as access to clean water reduces illness, improves work attendance and offers a safer future for children. A team member recalled, “We gave her grandchildren cups of the clean water and they smiled so big it was something I will never forget.” The gesture underscored how basic resources can transform daily life.

Joy in Simplicity

Despite economic hardship, joy remains a constant presence in Guatemalan communities. Children played soccer in the streets using worn-out balls and improvised goals. One child used a plastic bottle as a toy, demonstrating that happiness often stems from connection and community rather than material possessions.

The visit highlighted the contrast between assumed necessities and actual privileges. Clean water, secure shelter and opportunity are not guaranteed for many. Yet dignity persists—not through wealth, but through perseverance and grace in the face of struggle.

The Illusion of Contentment

Gratitude is common among Guatemalans, but it often reflects limited exposure to broader possibilities. Poverty restricts more than material goods; it narrows perspective. Without access to clean water, its absence may not even be recognized as a deficit.

Approximately 70% of Guatemala’s employed population works in the informal sector, characterized by unstable income, limited benefits and slow long-term growth. Female labor force participation remains among the lowest in the region, at around 42%. These structural barriers hinder families like Bonita’s from reaching their full potential.

Why It Matters

Bonita’s story exemplifies the heart of Guatemala—marked by pride, love and resilience. Yet no one should have to endure such burdens alone. Organizations like Filter of Hope provide more than resources; they offer respect and recognition. Many communities have adapted to survive without assistance, but that should not be the expectation.

Poverty in Guatemala is not just a matter of numbers—it is a human issue. It affects mothers, grandmothers and children who deserve more than mere survival. They deserve the opportunity to thrive.

Resilience should not be mistaken for sufficiency. Strength does not negate the need for support and gratitude does not imply contentment. Bonita’s experience reflects millions of others. While she may never ask for help, her story calls for it because she deserves it. Because they all do.

– Marissa Schoth

Marissa is based in Benton, LA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Unsplash

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Garbage Cafes Tackle Waste and Poverty in India

garbage cafes

India is one of the most densely populated countries in the world. It has a population of more than one billion within its territory, which makes up 17.5% of the world’s overall population. The country’s growth rate, however, has stood at less than 1% since 2018. It is located in South Asia, with countries around its borders such as Pakistan, China, Nepal and Bangladesh.

The country has 28 states and eight union territories, each with its own government bodies. It is officially known as the Republic of India and is known for having one of the largest democracies in the world. India has many facts that are unique to its people, but one unexpected fact is that it is currently the world’s largest producer of plastic waste.

Plastics for Change

According to Plastics for Change, India was labeled as the world’s biggest polluter. In 2024, it was reported that the country produced 20% of the overall plastic waste that pollutes land and oceans. There are more than 9 million tonnes of waste generated by the country each year, which exceeds competing countries such as China and Nigeria. The waste is largely created by population growth, urbanization and development within the economy. As the population increases, the need for resources expands, like building more housing and grocery stores. The need for plastic resources is especially high within urban areas.

Waste and Poverty in India

Poverty in India has decreased significantly between 2016 and 2021. The number of people living in poverty decreased from more than 300 million between 2015 and 2016 to around 230 million between 2019 and 2021. As of 2025, 83 million people live in poverty in India, with more females being impacted. This shows the country has taken great strides in investing in its people.

There have been large impacts, such as investments in the economy, roads and connectivity between local and urban areas. There have also been job creations in various fields and aid programs accessible to the public. India is currently known as the fastest-growing economy in the world and has a high gross domestic product (GDP). Even though poverty in India has not been eradicated, there are cafes in the country offering meals to people in need in exchange for collecting waste.

Garbage Cafes

It all began in 2019 after multiple reports of plastic waste impacting communities and cities in India. One such city that took the initiative was Ambikapur. One of the first “garbage cafes” opened with one simple policy: every person who turns in 2.2 pounds of plastic waste gets a full meal. These meals include rice, vegetables and other staples vital to one’s diet. For those who collect 1 pound of waste, they can purchase breakfast items. With this cafe serving 20 meals daily, it presents a solution to waste polluting the city’s streets. In total, the cafe has collected more than 20 metric tonnes of waste since its creation.

This garbage cafe prides itself on its slogan, “more the waste, better the taste.” It prioritizes two main issues within its city and India as well: hunger and plastic waste pollution. People who struggle to make ends meet for their families have access to meals that can benefit them and their loved ones. The cafe is operated by the Ambikapur Municipal Corporation (AMC), which oversees this local initiative.

Creation of Jobs

It may have started in Ambikapur, but garbage cafes have spread to other cities in India, such as Siliguri and Mulugu. These cafes have similar policies that provide meals to people in need who collect waste. Another campaign offers period products to those who collect plastic waste. These initiatives help rid streets of pollution while also providing citizens with basic needs. Cambodia has also adopted similar programs, showing how positive responses to these initiatives can lead to long-term benefits.

The Municipal Corporation has also provided jobs that would not have been available otherwise. It employs more than 400 women to sort plastic waste after collection. They are given the necessary tools, such as gloves and masks, to protect themselves. They also go around neighborhoods to collect the waste from homes. This shows the creation of jobs that help people who may have been unemployed, especially women who are often most impacted by poverty.

Looking Ahead

Garbage cafes have created opportunities for people in poverty to supply meals for themselves and their families. This shows the importance of investments in communities and how corporations can assert themselves in this role. For the 83 million who remain in poverty in India, there are initiatives by the government and garbage cafes to alleviate daily burdens. There are job openings, investments in community cleanups and meal provisions where necessary. India has shown one initiative that other countries can adopt to target two issues at one time.  

– Nickaylia Anderson

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

Photo: Flickr

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Poverty Reduction in the Republic of Congo

Poverty Reduction in The Republic of CongoThe Republic of Congo, also referred to as Congo-Brazzaville, is a mineral-rich country in Central Africa. Despite its abundance in valuable natural resources, the country continues to face increasing rates of poverty. Petroleum and gas currently dominate exports in the region, however, the nation struggles to translate its economic gains into extensive social development. Extreme poverty throughout the country, especially in rural areas, has been an ongoing challenge. Fortunately, poverty reduction in the Republic of Congo has been underway.

About Poverty in the Republic of Congo

According to the World Food Programme (WFP), 46.5% of the Republic of Congo is living below international poverty lines, equating to $2 a day. In fact, poverty rates in the region have spiked to 52%. The nation’s high poverty rates have continued to threaten civilian health, education and overall wellbeing.

The Republic of Congo faces various constraints when it comes to addressing its global poverty status. Corruption and social inequalities have been ongoing barriers. Due to weak national governance, policies confronting poverty have not been effective and initiatives pertaining to social development programs have not undergone successful execution. Many civilians lack access to quality education, health services, quality food markets and overall job opportunities.

Poverty in the Republic of Congo is multidimensional. Populations in rural Congo are 3% more likely to experience multidimensional poverty, which is slightly higher than those in urban settings. On top of this, when comparing male-headed households with women-headed households, women-headed households are at risk of experiencing 2.5% more multidimensional poverty.

Access to education has also played a significant role in the poverty status of Congolese households. It is reported that households with no secondary school education are more susceptible to multidimensional poverty by approximately 24%, with household size also being a contributing factor.

Additionally, the country’s strong dependence on its oil production can pose an issue depending on international price fluctuations. The country’s high debt has also contributed to how much funds can be distributed to social development programs.

The Congo’s National Development Plan 2022-2026

To help combat poverty in the Republic of Congo, several initiatives have emerged. The Congo’s National Development Plan 2022-2026 (PND) has focused on redirecting the country’s reliance on oil and diversifying its revenue. The plan emphasized national poverty reduction, infrastructure and economic development. To support the implementation of the PND, in June 2025, the World Bank approved the final operation in its Fiscal Management and Inclusive Growth series.

The Telema Program

Telema, meaning “stand up” in Lingala, one of the nation’s local languages, is a national program with initiatives to support poverty reduction in the regions of Brazzaville, Point-Noir and Pool. The program mobilizes micro-entrepreneurs and those vulnerable to poverty to start micro-projects. The government provides participants with grants and skills training. The project launched in 2019 and has proved major recent developments. In 2025, the program received an additional 1,968,000,000 CFA from France to expand to other regions including Oyo, Niari and Lekoumou.

Looking Ahead

Although the Republic of Congo has displayed efforts in stabilizing its economy and expanding social development programs, long-term poverty reduction in the Republic of Congo is dependent on the administration providing realistic opportunities for civilians. Initiatives such as Telema and support from the World Bank give optimism for positive change focusing on inclusion and job opportunities. If effectively implemented, the Republic of Congo could transform its resource wealth into a foundation for a prosperous future.

– Gloria Bwenge

Gloria is based in New York, NY, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Pixabay

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Maternal Mortality in the KP Region

Maternal Mortality in the KP RegionConditional cash transfers (CCTs) are a common tool used by governments to alleviate poverty. It involves direct cash transfers to individuals or households to help families manage expenses. In exchange for these grants, there are stipulations of required health check-ups or testing, educational enrollment or other factors that can broadly reduce poverty and improve standards of living.

Based on current evidence, CCTs are most effective in health care-related initiatives, often improving health outcomes and encouraging increased utilization of health care offerings. The studies that provide this evidence also note that despite the clear positive impact, the efficacy of these initiatives remains ill-defined. This is due to disparate health care systems and the quality of services offered between the countries and communities where CCTs have been implemented.

Maternal Mortality in the KP Region

In Pakistan and in South Asia generally, the maternal mortality rate is significantly high. Although there has been a significant drop in the maternal mortality rate of around 60% between 2000 and 2017, the region still accounts for around 20% of maternal deaths worldwide. The 2006-07 Pakistan Demographic and Health Survey was the first effort to collect information on maternal mortality in the country.

The survey revealed that during those years, there were 276 maternal deaths for every 100,000 live births in Pakistan. In 2007-08, in the Khyber Pakhtunkhwa (KP) region, the maternal mortality rate was 275 deaths for every 100,000 live births in the region. These numbers indicated severe deficiencies in the delivery of adequate health care to expectant mothers, which the local governments of Pakistan sought to address.

The Chief Minister’s Special Initiatives

In the KP region of Pakistan, the Chief Minister’s Special Initiatives are a set of poverty alleviation measures created by the local government. These initiatives aim to improve living standards by offering financial incentives to individuals who take advantage of local services focused on education, employment and health outcomes.

For example, grants were provided to female students above grade 5 to encourage them to continue their education. Stipends were also offered to young people enrolled in government-sponsored vocational training programs. These incentives were significant because they represented key examples of CCTs used as a poverty alleviation tool in Pakistan.

In 2014, recognizing the urgent need to address maternal mortality rates and in line with a national push to improve health care for mothers and children, the government of KP launched the Chief Minister’s Special Initiative for Mother and Child Health. This conditional cash transfer program provides fixed cash stipends to marginalized mothers for attending prenatal checkups, delivering safely and completing postnatal visits.

A 2024 study evaluating the program found a substantial increase in the total number of health-seeking hospital visits, indicating that the intervention successfully achieved its intended behavioral change. Additionally, the cash incentives improved household purchasing power and supported the incomes of vulnerable families. The findings provided strong evidence for expanding the use of other CCT programs in Pakistan.

Maternal Mortality Declines in KP

In the years that followed, the maternal mortality rate declined significantly. The 2019 Pakistan Maternal Mortality Survey collected updated national and regional data, showing trends since the 2007 survey. Nationally, maternal deaths fell from 276 to 186 per 100,000 live births.

In the KP region, the figure dropped from 275 to 165, representing a slightly higher percentage reduction than the national average. This suggests that local initiatives and conditions, including the CCT programs, may have contributed to reducing maternal mortality rates.

Final Remarks

The conditional cash transfers program in the KP region has already shown promising results for improving maternal health outcomes and alleviating poverty. It could be a model for the rest of Pakistan to follow and bring down its alarming maternal mortality rates.

– Nikhil N Kumar

Nikhil is based in Lexington, MA, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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The Impacts of Savings Groups in Malawi

Savings Groups in MalawiMalawi is a low-income country in East Africa. It is one of the 10th most impoverished countries in the world in terms of GDP per capita and more than 50% of its population officially lives below the national poverty line. Many Malawians do not have access to formal banking due to a lack of banking infrastructure or a fundamental lack of personal wealth. Savings groups in Malawi have primarily replaced banking and have the potential to eradicate poverty in this country.

What Are Savings Groups?

Savings groups are small community-based groups, between 15 and 25 people, who each place an amount of money into a central holding, allowing them to save money on a small and relatively stable basis. They provide a transparent and democratic form of microfinance, serving as an alternative where formal banking is unavailable. Benefits include:

  • Loans become available to more impoverished people who cannot access them from formal institutions.
  • Young people can learn how to save, borrow and invest money in a safe environment, rather than going into adult finance without experience.
  • Women, generally one of the most vulnerable groups economically, can gain independence through savings groups.
  • Essential local infrastructure can be sustainably built and maintained.

Crucially, Plan International emphasizes that savings groups are vital in reaching the first Sustainable Development Goal (SDG). The SDGs are a set of international goals agreed upon by the U.N. and targeted for completion by 2030, with the first goal focused on eradicating global poverty in all its forms.

Impacts of VSLAs in Malawi

Village Savings and Loans Associations (VSLAs) are a version of savings groups in Malawi, organized at the village level rather than within smaller groups. They are widespread throughout the country. Impacts include:

  • Savings: Villages working under VSLAs have reported a 34% increase in savings over the last 1.5 to 3 years compared to villages without them.
  • Loans & Credit: Households that are part of a VSLA have increased access to credit and loans. In VSLA areas, the borrowing costs of people taking loans have fallen by 20%.
  • Businesses: VSLAs have correlated with a rise in the number of businesses and profits in Malawi, but household incomes have not yet changed. Although income rises with profits, the effect can be expected to be staggered. Businesses cannot realistically increase incomes until their profit gains prove to be sustainable rather than a one-off.
  • Food Security: Although savings groups in Malawi have not yet had a significant impact on food security, according to Innovations for Poverty Action (IPA), they have helped mitigate the negative effects of droughts. On average, VSLAs have also increased food consumption by one meal per week, showing gradual improvements.
  • Women: VSLAs have had a clear positive impact on women. Malawian women in savings groups report being more empowered, with greater ability to make decisions for themselves and their households.

Malawi is also pursuing digital means for its financial future. According to IPA, the main focus currently is on digitizing records and monitoring how it improves access to finance across the country.

How Effective Are Savings Groups in Malawi?

The IPA report shows that saving groups have been incredibly influential in Malawi. They have provided a vehicle through which the Malawian people can bring themselves up financially. Women have significantly benefited, able to become increasingly economically and socially independent. While there is still a long way to go in eradicating poverty in countries like Malawi, saving groups have proven to be a reliable solution in many aspects and will help push the world toward reaching the primary SDG by 2030.

– Oliver Evans

Oliver is based in Devon, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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China’s Foreign Aid Strategy in Rwanda

China’s Foreign Aid strategyRwanda, a small, landlocked country in central-eastern Africa, has made notable progress in reducing poverty over the past two decades. However, recent years have seen a troubling reversal. According to the World Bank, 63.84% of Rwanda’s population lived below the international poverty line in 2016.

As Rwanda struggles to maintain its developmental gains, China has emerged as a major partner. China’s foreign aid strategy in Rwanda ranges from health, education, agriculture and infrastructure support. But are these efforts purely humanitarian or part of a broader geopolitical strategy?

China’s Anti-Poverty Measures in Rwanda

China’s foreign aid strategy in Rwanda spans multiple sectors, with significant investments to reduce poverty and support national development. In March 2025, China partnered with UNICEF to launch “Enhancing Early Childhood Development in Rwanda through South-South Cooperation.” This 18-month project targets 11 districts and aims to improve early childhood development (ECD) services, a crucial area for long-term health, education and economic outcomes.

The initiative is expected to support 2,100 children and indirectly reach 1.5 million. It also sets national goals to increase ECD service coverage from 24% to 45% and reduce child stunting from 33% to 15% by 2029. A key element of the initiative is adopting China’s “Barefoot Social Worker” model, which trains community-based workers to deliver child welfare services directly to families.

Technical workshops and knowledge exchanges between Rwandan and Chinese experts further strengthen the project, aligning it with Rwanda’s National Strategy for Transformation (NST2).

China’s Agricultural Investments in Rwanda

China’s agricultural investments are another important piece of its poverty reduction efforts. One example is the introduction of Juncao, a sustainable agricultural technology developed by Fujian Agriculture and Forestry University. Juncao uses chopped grass to grow nutrient-rich mushrooms for human and livestock consumption. It is an environmentally friendly alternative to traditional wood-based methods and offers a cost-effective solution to food insecurity.

Known in Rwanda as “the happiness herb,” Juncao has already reached more than 4,000 farmers and created thousands of jobs across the agricultural value chain. It has also been introduced into schools to improve children’s diets, providing an affordable protein source comparable to meat. By enhancing nutrition and income generation, this technology is critical in reducing poverty and improving health outcomes.

Another example of China’s foreign aid Strategy in Rwanda is the $40 million Giseke Dam and Irrigation Project, launched in January 2025. This initiative will irrigate 2,640 hectares of farmland in the Gisagara District and provide year-round water access to more than 900 farming households. The project is designed to stabilize food supply, increase crop diversity and improve nutrition. It also supports Rwanda’s NST2 goals for climate resilience and sustainable agriculture.

Funded through a concessional loan, the dam project reflects China’s commitment to building long-term partnerships through infrastructure. However, such projects also raise important questions about cost, impact and sustainability.

Why Is China Investing in Rwanda?

China’s engagement in Rwanda is closely tied to its broader Belt and Road Initiative (BRI), a global development strategy focused on building infrastructure and boosting trade. The BRI often targets developing nations across Eurasia, Latin America and Africa with investments in roads, ports and energy systems.

To better understand China’s foreign aid strategy in Rwanda, The Borgen Project spoke with Michael Beckley, Director of the Asia Program at the Foreign Policy Research Institute. Beckley is also an Associate Professor at Tufts University.

Beckley explains, “[D]eveloped economies already have infrastructure and are wary of China’s political aims. In [underserved) states, China can buy influence more cheaply—building a road or dam there yields outsized diplomatic returns compared to, say, Europe or Japan.” Rwanda, one of the world’s least developed countries, offers China the opportunity to gain influence at a relatively low cost.

He adds, “The region sits on vital shipping lanes, offers access to raw materials and is seen as an entry point for China’s broader engagement with Africa and the Middle East.” In this context, China’s foreign aid strategy in Rwanda is clearly not just about aid but also about advancing national interests through strategic partnerships.

The Risks of China’s Model

While China’s investments offer tangible benefits, they also come with risks. Beckley cautions that “[P]rojects can displace communities, saddle countries with debt or leave behind poorly maintained infrastructure.” He also notes that “local costs—environmental damage, limited local hiring—can be steep.”

These concerns are especially relevant in countries like Rwanda, where technical capacity is limited. According to the National Institute of Statistics of Rwanda, only 2.8% of the population holds a bachelor’s degree or equivalent. Running complex infrastructure projects like dams may require skills not widely available locally. This can lead to dependence on foreign experts and limit long-term sustainability.

An Opportunity for the United States

Given the strategic motivations behind China’s foreign aid strategy in Rwanda, should the U.S. adopt a similar approach? Beckley argues otherwise, suggesting that “[T]he U.S. might instead focus on partnerships that emphasize transparency, local benefits and sustainable projects, rather than competing on raw loan volume.”

China’s efforts to reduce poverty in Rwanda are impactful but often designed to serve its geopolitical objectives. This leaves room for the U.S. and other partners to offer an alternative model: one centered on community-led development, transparency and long-term sustainability.

Looking Forward

China’s foreign aid strategy in Rwanda has produced significant gains in infrastructure, health and agriculture. Initiatives like early childhood education, Juncao technology and the Giseke Dam show how foreign investment can address poverty and improve lives. However, these efforts also highlight the importance of strategic interests and the potential downsides of debt and dependency.

As Rwanda continues its development journey, international actors, especially the U.S., have an opportunity to contribute meaningfully. The U.S. can offer a complementary and potentially more equitable path forward by emphasizing local ownership, skill-building and sustainability.

– William Brentani

William is based in San Francisco, CA, USA and focuses on Politics for The Borgen Project.

Photo: Flickr

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Local Leadership in Humanitarian Aid

Local Leadership

In recent years, global humanitarian aid has undergone significant shifts. Nationalist policies in major donor countries, including the U.S. and parts of Europe, have redirected focus toward domestic concerns, reducing foreign aid contributions. With less outside help, many countries turn to homegrown solutions to tackle poverty, health crises and displacement. Communities often understand local needs better than distant agencies, making their leadership necessary and effective.

Without adequate resources, dwindling international support has left many populations facing hunger, disease and conflict. Yet this challenge has also led to a new focus: local leadership in humanitarian aid. Across Africa, Asia and Latin America, governments, community organizations and Indigenous leaders are assuming greater roles in planning and delivery.

The Changing Landscape of International Aid

Historically, humanitarian aid relied on cooperation among donor nations and nongovernmental organizations (NGOs). Today, eligibility has become increasingly politicized, often tied to the foreign policy goals of donor nations. This shift creates uncertainty for countries struggling with poverty and displacement, underscoring the need for community-driven solutions that address priorities global agencies may overlook.

Local initiatives bring clear advantages. They leverage cultural knowledge, build trust and respond faster than large institutions. Grassroots groups, women’s collectives and youth organizations lead health, education and economic resilience projects. That way, solutions fit the communities they’re meant for and can still hold up when circumstances change.

Africa

In Nigeria, the Federal Ministry of Humanitarian Affairs and the U.N. now prioritize locally led responses, channeling resources directly to community organizations. This has improved access to aid and strengthened resilience.

In Kenya, handing more responsibility to counties has improved refugee support and crisis response. While the plan has seen successes, it has also faced opposition from some communities, showing that local leadership must balance innovation with inclusive consultation.

Asia

In Bangladesh, women’s collectives and microfinance programs have strengthened rural economies. These projects increase women’s participation in household decisions and provide financial stability. With training added in, microfinance has made a real difference in family resilience. The Consultative Group to Assist the Poorest’s (CGAP) recent analysis underscores that financial inclusion promotes empowerment only when paired with training and support to change outcomes.

Latin America

In Peru, Indigenous farmers lead projects that blend traditional farming with agroecology. Women farmers play a central role, ensuring food security initiatives draw on cultural knowledge and adapt quickly to local needs. These approaches combat hunger and address climate instability, demonstrating how traditional knowledge and innovation can work in tandem.

Advantages and Challenges

Locally led humanitarian responses are marked by agility, accountability and cultural relevance. These efforts earn public trust and often achieve lasting impact. However, local organizations still face barriers, including limited funding, a lack of technical expertise and difficulty gaining international recognition. Overcoming these hurdles takes partnerships that invest in training and flexible funding.

International donors can strengthen humanitarian outcomes by partnering directly with local organizations, supporting training and expanding flexible funding models. Empowering local communities not only improves effectiveness but also fosters global solidarity. As donor nations reassess development priorities, investing in locally led solutions is essential for sustainable progress.

Conclusion

Nationalist policies have reshaped the aid landscape, but local leadership in humanitarian aid across Africa, Asia and Latin America is leading innovation from the ground up. Supporting local leadership, through partnerships, funding and training, could offer the most sustainable path forward.

When local voices lead, aid becomes more resilient and rooted in real communities. Donors and governments that commit to this shift could improve immediate responses and build stronger foundations for future development.

– Jacob Stubbs

Jacob is based in Indianapolis, IN, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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BC Sakhi in India: Women Bringing Banking to Rural Doorsteps

BC Sakhi in IndiaAfter years of rapid digitalization, even coming across someone without a bank account has become an extremely rare sight for almost anyone today. However, this was far from reality for rural India just a decade ago, where, until 2014, only 35% of adults had an account with a financial institution, leaving millions excluded from formal banking.

This severe gap was not merely impractical, but resulted in a perpetual cycle of debt for many. Local moneylenders in rural India often charge high interest rates to exploit villagers with little to no knowledge of or access to formal credit and banking.

The Launch of BC Sakhi in India

2020 marked the start of something that completely reshaped a harsh reality for many rural Indians. Over the past five years, the Bank Correspondent (BC) Sakhi initiative has been dedicated to bridging this gap that leads to exploitation, going door-to-door to bring India closer to true financial freedom.

Launched by the Indian government under the National Rural Livelihoods Mission (NRLM), the BC Sakhi (friend) initiative aims to appoint at least one female banking correspondent for every Gram Panchayat (village council). Women from self-help groups are recruited and provided with extensive vocational training to be on the frontlines of financial inclusion, interacting with villagers to transform financial management.

These women take on roles ranging from raising financial literacy to opening bank accounts and linking villagers with credible institutions that offer credit, savings and government benefit transfers.

A Community-Centered Approach

The initiative adopts a tailored approach to overcome connectivity barriers—historically a major reason for access gaps in villages. Women within the community, often from underprivileged backgrounds and needing employment, are brought into the program. This enables them to secure a stable income to support their families while gaining vocational skills that help them advance in their careers.

Technology as a Tool for Inclusion

A door-to-door approach, while fruitful, created challenges of efficiency that needed to be resolved to speed up progress for villagers. As of 2022, only 37% of rural Indians were aware of or claimed to have used digital banking. Reflecting on this trend, the initiative tapped into an underutilized resource with great potential to transform banking for rural Indians—technology. Digital tools to accelerate adoption include: 

  1. Aadhaar-enabled payment systems: Bank accounts were linked to government IDs, allowing the use of biometrics to approve deposits and withdrawals.
  2. Micro-ATMs: To eliminate the need for a traditional branch, low-cost handheld devices enabled women correspondents to carry out common transactions at the doorstep, including extending small loans to informal workers.

Banking on Women’s Empowerment

While serving the rural population, the initiative also empowers rural women in all aspects of life. By stepping into the role of a BC Sakhis, women gain access to:

  1. Income Generation: By earning commissions on transactions and service fees, BC Sakhis can generate supplemental income.
  2. Skill Development: All correspondents receive free or heavily subsidized training in digital tools, financial services and soft skills such as customer service and communication.
  3. Social Status: While acting as facilitators between villagers and banks, Sakhis gain confidence and respect within their communities. Government-led impact studies have shown increased confidence levels among women who work with the initiative.

The initiative has already trained more than 50,000 women to serve as links between rural Indians and formal banking. By adopting a community-centered approach, the program has contributed to positive change toward reducing both financial insecurity and social marginalization of women. As more villages continue to be linked to correspondents under the scheme, BC Sakhi in India is set to remain a cornerstone of the nation’s journey to complete financial inclusion.

– Anahadhbir Singh

Anahadhbir is based in Toronto, Canada and focuses on Good News for The Borgen Project.

Photo: Unsplash