Archive for category: Economy

Information and stories about economy.

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World Bank Framework Reducing Poverty in Nigeria

Poverty in NigeriaLocated on the western coast of Africa, Nigeria is a country with diverse geography and an even more diverse population. An estimated 250 ethnic groups call Nigeria home, with hundreds of languages spoken across the nation. Building on Nigeria’s diversity and economic potential, the World Bank Group has endorsed a new Country Partnership Framework that will run from 2026 to 2032. By encouraging private-sector investment and supporting economic growth in Nigeria, the framework aims to create more job opportunities.

New Policies Aim to Strengthen Nigeria’s Economy

As part of this effort, the World Bank also approved the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing operation to help strengthen Nigeria’s economy. The program aims to encourage investment from businesses and entrepreneurs while supporting government efforts to create jobs and promote economic growth. By attracting both private and public investment, the initiative seeks to expand economic opportunities and strengthen key sectors across the country.

Through the new framework, 32 million Nigerians are expected to gain access to electricity, while broadband connectivity will expand to reach 58 million people. Health and nutrition services will improve for 40 million people, and 9.5 million farmers will receive support to increase agricultural productivity. By investing in energy, digital infrastructure, health care and agriculture, the framework aims to improve living standards and support long-term economic growth in Nigeria.

Poverty in Nigeria

Despite these efforts, poverty remains a significant challenge in Nigeria. According to the World Bank, 41.8% of Nigerians lived below the international poverty line in 2022. Rising inflation and limited economic opportunities have made it difficult for many families to afford necessities such as food, housing, education and health care. The World Bank estimates that an additional seven million Nigerians fell into poverty in 2025, increasing the share of people living below the national poverty line from 61% in 2024 to 63%.

For many Nigerians, poverty affects daily life in tangible ways. Families often struggle to afford basic necessities and maintain stable housing as the cost of living continues to rise. By expanding access to electricity, internet services, health care and agricultural support, the Country Partnership Framework aims to address some of the barriers that contribute to poverty and limited economic opportunity.

In a 2022 poverty assessment, the World Bank reported that four in 10 Nigerians lived in poverty and lacked access to essential services such as education, safe drinking water, electricity and sanitation. The report also found that only 17% of workers held jobs that provided wages sufficient to lift them out of poverty, as many Nigerians rely on small-scale farming and household businesses for income.

A New Framework: Reducing Poverty

The World Bank identified three key areas for reducing poverty in Nigeria: implementing macroeconomic reforms, supporting farm and nonfarm household enterprises and expanding access to electricity, water and sanitation. The new Country Partnership Framework aligns with these priorities by investing in infrastructure, agriculture and human development programs designed to improve economic opportunities.

With Nigeria’s population expected to continue growing, expanding economic opportunities for young people will be critical to the country’s long-term development. If successful, the partnership could help create jobs, strengthen businesses and improve access to essential services for millions of Nigerians. Through investments in key sectors and support for economic growth in Nigeria, the World Bank hopes to help build a stronger and more prosperous future for the country.

– Alexandra Pedroza

Alexandra is based in Salt Lake City, UT, USA and focuses on Good News for The Borgen Project.

Photo: Pexels

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Infrastructure Investment in Southern Africa

infrastructure investment in Southern AfricaThe World Bank and its partners are currently financing loans to support socioeconomic regional infrastructure investment in Southern Africa. These efforts aim to enhance transboundary interconnectedness, economic prospects, sustainability, electricity and energy access and sanitation services. One flagship regional effort, the Regional Infrastructure Finance Facility, has already connected 3.02 million people to new or improved electricity service across Eastern and Southern Africa. More than half of those connected are women. Households report increased study time for children and reduced time spent fetching fuel or cooking with kerosene and wood.

Extreme poverty affects 45.1% of Southern Africans, according to the United Nations Economic Commission for Africa. Since the COVID-19 pandemic, 60% of Namibians, South Africans and Zambians have reported significant losses in work and income. This has pushed 51 million more people into extreme poverty. Southern African countries face challenges with power supplies, logistics and job opportunities. These challenges make the World Bank-supported loans vital for the region’s citizens living in extreme poverty.

Infrastructure Investment in Southern Africa

  • South Africa: The World Bank and the International Bank for Reconstruction and Development have issued their fourth development policy loan to South Africa, valued at $1.5 billion. South Africa’s economy was growing at just 1% annually, with electricity tariffs leading to frequent power shortages and transportation issues harming productivity. The World Bank’s loan aims to create 600,000 new and higher-paid jobs by 2032. It will also help alleviate domestic burdens related to structural damage, water fetching time, family health risks and electricity connection issues for 300,000 households. Investment in renewable energy has increased sixfold, with rail, port and freight financing doubling since 2023.
  • The Kalahari and Namib Deserts: The African Development Bank and its partners are administering the southern Great Green Wall Accelerator, allocating $4 million across Botswana, Namibia, South Africa and Angola. The program focuses on improving water access, renewable energy, resilient ecosystems, climate-resilient infrastructure, sustainable agriculture and inclusive economic development.
  • Zambia: By 2024, fewer than 10 million people in Zambia had access to electricity, with supplies often unreliable due to drought-prone conditions. The International Development Association grant of $200 million from the World Bank will provide more sustainable energy services to a million Zambians. An additional $43 million supports transboundary electricity transmission projects between Zambia and Malawi, enhancing socioeconomic prospects for households and businesses.
  • Malawi: The 2019 Malawi Electricity Access Project increased electrification rates from 11% overall and 4% in rural areas. The rate now stands at 25.9%, thanks to a $100 million World Bank grant. Currently, nearly two million Malawians have electricity access, fueling community economies and infrastructure systems. Close to 30% of these newly connected households are female-headed. The project set a benchmark for future infrastructure investments, as demonstrated by the $43 million IDA grant funding the Zambia-Malawi Interconnector Project.

Conclusion

Before World Bank financing, the Southern African infrastructure sector hindered millions of residents’ well-being, health, businesses, and economic prosperity. While challenges persist, loans from the World Bank and its partners provide hope for residents. These investments also strengthen socioeconomic diplomatic relations, endorsing efforts that enhance Southern African livelihoods.

– Oliver Jones

Oliver is based in Manchester, UK and focuses on Business and Global Health for The Borgen Project.

Photo: Flickr

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The Limits and Economic Effects of Cuba’s Market Reforms

Cuba’s Market ReformsOn June 18, 2026, Cuban lawmakers approved a collection of 176 free-market and decentralization reforms, marking the most significant transformation to Cuba’s socialist model since the 1959 revolution led by Fidel Castro. These reforms principally seek to authorize private real estate development, private banks, private enterprise (effectively lifting the previous 100-employee limit on private businesses and mandatory intermediaries), and to dissolve the requirement that foreign investors form joint ventures with the state.

The U.S. Embargo and Cuba’s Economy

The United States (U.S.) has maintained a comprehensive economic embargo on Cuba since 1962, originally implemented by President John F. Kennedy. President Donald Trump strongly enforced and expanded these restrictions during both his first and second terms, introducing several “maximum pressure” campaigns to isolate the Cuban government. The Trump administration’s pressure campaign toward Cuba forms part of “a broader strategy to assert U.S. primacy in the Western Hemisphere and limit the influence of adversaries such as China and Russia,” according to the Council on Foreign Relations.

When the embargo was first implemented, Cuba efficiently adjusted through trading opportunities with Soviet Bloc countries. According to a 2001 study from the U.S. International Trade Commission, “Soviet economic assistance, which peaked at nearly $6 billion annually in the 1980s, largely offset any adverse effects of U.S. sanctions and enabled the Cuban economy to grow.”

However, in 1991, upon the collapse of the Soviet Union and consequent loss of Soviet assistance, Cuba experienced an extended economic crisis called Período Especial (“Special Period”). Deprived of vital trade subsidies and cheap oil, the country’s GDP plummeted by 35%, bringing about severe food and fuel shortages, leading to widespread power blackouts and famine.

Since the Special Period, the U.S. embargo has cost the Cuban economy nearly $144 billion, as estimated by the Cuban government. Humanitarian organizations such as the Washington Office on Latin America, a United States nongovernmental organization (NGO) working for social and economic justice in Latin America and the Caribbean, argue that expanded sanctions and travel restrictions have contributed to shortages in fuel, medicine and food. As of 2025, a reported 89% of Cubans live in extreme poverty, according to a survey by the Cuban Observatory of Human Rights (OCDH), a Madrid-based group that has received U.S. government funding. Notably, that same OCDH survey found Cubans themselves cited power outages, food scarcity and low wages as their top concerns, while only 3% named the U.S. embargo as a primary worry. The continued impact of the embargo provides important context when evaluating the extent to which Cuba’s market reforms can improve conditions, as the embargo has not been lifted alongside the reforms — though Cubans’ own reported priorities suggest domestic factors weigh heavily on daily life as well.

Economic Effects of Cuba’s Market Reforms on Banking

Cuban Prime Minister Manuel Marrero stated that new private banks will operate under the regulatory supervision of the Central Bank of Cuba and theoretically on “equal terms” with existing state commercial banks. The reforms also authorize private and foreign capital institutions to set up operations on the island and provide microcredits directly to its growing entrepreneurial sector.

Due to U.S. secondary sanctions, many global banks are reluctant to conduct business with Cuban financial institutions. However, the banking reforms provide alternative channels for international investors, remittance companies and foreign vendors to route transactions through private entities, which significantly lowers the risk of triggering U.S. compliance penalties. If these changes attract greater foreign capital into the newly privatized banking sector, they could increase the financing available to domestic businesses and support expansion within the economy, potentially creating more employment and income opportunities for Cuban households.

Reviving Real Estate and Tourism

In his speech at the Extraordinary Plenary Session of the Central Committee of the Communist Party of Cuba (PCC), Miguel Mario Díaz-Canel Bermúdez, first secretary of the Central Committee of the PCC and president of the republic, announced plans to “develop a productive, regulated real estate market” that includes leasing idle state-owned properties, renting commercial and industrial spaces, and opening transparent bidding to state, private, cooperative and mixed-ownership entities.

Although the reforms are intended to stimulate tourism and economic activity, widespread flight cancellations persist due to U.S. sanctions, fuel shortages and the departure of major international hotel chains such as Blue Diamond Resorts (Canada), Meliá Hotels International and Iberostar (Spain). In January 2026, the U.S. government imposed additional tariffs on imports from countries that directly or indirectly supply oil to Cuba. Following the action, Cuba experienced a 58.4% decrease in international visitors during the first five months of the year compared to the same period in 2025, according to the Oficina Nacional de Estadística e Información. These external pressures may limit the effectiveness of Cuba’s efforts to support the economy through revitalizing tourism despite the introduction of private and mixed-ownership opportunities.

Retail and Food Services

The sector of Cuban food and retail services will undergo substantial change under Cuba’s market reforms alongside the shifts in the financial, tourist and real estate sectors. The government is eliminating “la libreta,” the state-issued booklet established in 1962 that entitled each Cuban household to a ration of heavily subsidized goods, and replacing it with a system of subsidized assistance exclusively for the “socially disadvantaged,” according to IPS News.

Simultaneously, state-owned enterprises and agricultural cooperatives will become autonomous, gaining authority to set their own worker pay scales, keep or reinvest their profits and directly partner with private companies. MiPymes, or MSMEs (private micro, small and medium-sized businesses), no longer have to navigate state intermediaries to purchase goods from abroad, allowing for direct imports of agricultural products, retail merchandise and other goods.

While the reforms are expected to increase the availability of imported goods through private trade, they may also deepen existing economic inequalities. Because MiPymes price imported goods in dollars at unregulated market rates, their shelves remain out of reach for millions of Cubans still living on fixed peso salaries or small pensions. For example, according to reporting from Barron’s, a liter of cooking oil at one Havana MiPyme costs $3, which makes up half of the monthly pension of retired security guard Joaquín Velázquez.

The Prospects for Economic Recovery

The economic effects of Cuba’s market reforms may rewire how business is conducted on the island, but they are unlikely to transform the country’s financial reality in isolation. By expanding the role of private enterprise, the government has created new opportunities for investment and commercial activity, yet many of the conditions that have contributed to Cuba’s economic crisis remain in place. As inflation continues to erode purchasing power, the benefits of greater market liberalization may remain out of reach for many Cubans. Nevertheless, greater access to private financing and fewer restrictions on businesses could allow the reforms to generate new sources of income and economic activity even under significant external and domestic constraints. If effectively implemented, the reforms could make Cuba’s emerging private economy a greater source of economic opportunity for its population.

– Nilani Mathur

Nilani is based in Longmeadow, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Currency Crisis Deepens Food Insecurity in Laos

Food Insecurity in LaosDespite a decrease in poverty, food insecurity in Laos has increased amid a currency crisis. According to the World Food Programme (WFP), the prevalence of food insecurity is significantly higher in rural (12.8%) and mountainous areas (19.3%) than in urban (5.6%) and non-mountainous (7.1%).

A Currency Crisis Affects Household Budgets

The Lao kip has fallen by 60% against the U.S. dollar since 2022, driving up prices for food and fuel and straining households already dealing with malnutrition. Inflation climbed above 40% in 2023 before easing to just under 20% by late 2024, following tightened monetary policy and new exchange rate controls.

High food inflation has increased food insecurity in Laos, particularly among urban households that do not grow their own food. The World Bank conducted a survey between May and June 2024, finding that average wages grew 8% in the first half of the year, far below the 26% inflation rate at the time. The share of households reporting a significant negative impact from inflation rose to 58% by June. Many families responded by scaling up home food production and foraging, while rising numbers of workers migrated to Thailand for better pay.

Heavy flooding in 2024 further reduced agricultural output in the country’s northwest, putting pressure on a population where nearly one in three children experiences stunting. According to reports, 20% of the population also remains food-insecure. Even still, Laos is one of the fastest-growing economies in the Asia-Pacific region and is expected to graduate from least-developed country status in 2026, though persistent malnutrition and rising anemia and wasting rates continue to threaten that progress.

WFP’s Two-Decade Investment in School Meals

WFP has spent two decades partnering with the Lao government on nutrition and school feeding programs, providing nutritious food and cash assistance when needs exceed government capacity. School feeding began in Laos in 2002 as a pilot program serving 30,000 children and has since expanded to reach hundreds of thousands of students nationwide. The program has been credited with increasing school enrollment by helping 140,000 children in 1,430 schools. According to WFP’s Country Director and Representative, well-nourished, healthy schoolchildren are better equipped to learn, to “fulfill their potential as adults” and to contribute to national development.

With this assistance, there has been a growing number of children enrolled over the past two decades, including children receiving school meals. Thanks to this, they have spent six months longer at school in contrast to their peers who do not receive meals.

WFP’s current strategic plan targets improved nutrition for women, girls and children under 5, alongside a national school meals program intended to reach vulnerable districts by 2026. The plan builds on a partnership with the Ministry of Agriculture and Forestry. It helps smallholder farmers, especially women, to supply diversified, nutritious food directly to schools, strengthening local agricultural markets alongside child nutrition outcomes.

ADRA’s Community-Based Nutrition Programs

The Adventist Development and Relief Agency (ADRA) also runs programs addressing hunger and malnutrition directly, focusing on reproductive-age women and children under 5 in Lao, Khmu and Hmong villages. ADRA staff, village health volunteers and health center staff visit pregnant and lactating mothers at their homes to inform them on health messages and teach them how to take care of their own health, their families and children.

Its Positive Deviance/Hearth approach enrolls malnourished children in a 12-day community feeding and education program, teaching mothers to prepare nutritious meals while monitoring children’s growth for a full year afterward. In Xiengkhuang Province, acute malnutrition among children under 5 has reached as high as 10.43%, chronic malnutrition 33.43% and underweight 12.71%, underscoring the need for sustained intervention.

In addition, through past projects like the Mok Mai Integrated Development Initiative, which was implemented in Lao and Hmong villages in Mok Mai District, Xiengkhuang Province from 2010 to 2016, ADRA analyzed the local communities to determine what kinds of agriculture systems are suitable in the local context.

ADRA worked to provide training for the establishment of Group Enterprises to aid in the development and sustainability of local markets, which helped local value-adding processes within the target villages. By having farmers and producers collaborate, the Group Enterprises empowered local producers to not only improve their livelihoods but to improve the overall agricultural landscape within their communities.

The project’s goal was to increase resilience and decrease vulnerability to poverty in target rural communities through a comprehensive integrated approach to ground-level community development.

Building Resilience Amid Economic Uncertainty

These programs are building long-term resilience against food insecurity even as Laos navigates continued economic uncertainty. With the launch of the National Action Plan on Transition toward Sustainable Food Systems Transformation in partnership with the United Nations Resident Coordinator’s Office, the Food and Agriculture Organization of the United Nations and Asian Development Bank, the plan focuses on specific areas to bring action and prioritize inclusive, resilient and nature-positive food systems. As it heads toward graduation from least-developed country status, this will be an opportunity for change.

– Joy Kohol

Joy is based in Muncie, IN, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Unsplash

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How Remittances in Kyrgyzstan Are Building Financial Opportunity

Women farmers in Kyrgyzstan learning to dry tomatoes for business diversification.For many families in Kyrgyzstan, money sent home by loved ones working abroad is more than financial support. As organizations work to expand financial education, digital services and access to banking tools, remittances are creating new opportunities for families to build financial security.

The Role of Remittances in Kyrgyzstan

Remittances in Kyrgyzstan provide income for thousands of families, helping reduce poverty and strengthen household financial security. According to the World Bank, remittances remain a key part of Kyrgyzstan’s economy, alongside agriculture, while strong economic growth from 2022 to 2025 has helped lower poverty rates. Despite this progress, the World Bank estimated that approximately 0.9 million people in Kyrgyzstan were living on less than $4.20 per day in 2024.

In August 2025, the International Fund for Agricultural Development and Kompanion Bank announced a partnership under the REMIT PRIME Central Asia Programme, co-funded by the European Union, to help Kyrgyz people make better use of remittances. The initiative supports migrants, returnees, aspiring migrant workers and their families by expanding access to financial services and knowledge that can help them make informed financial decisions and build economic stability.

How Remittances Reduce Poverty

For many families in low-income rural areas of Kyrgyzstan, remittances help bridge household income gaps. According to the International Organization for Migration, about one million workers from Kyrgyzstan work in Russia, reflecting the country’s long-standing migration ties with the Russian Federation. Remittances have historically accounted for roughly a quarter to a third of Kyrgyzstan’s gross domestic product, though that share has declined in recent years. It highlights their continued importance to the country’s economy. In rural areas, one in four people rely on money sent home by relatives working abroad, demonstrating the vital role remittances play in supporting households.

Remittances in Kyrgyzstan have also helped reduce poverty. The International Organization for Migration reported that remittances lowered the national poverty rate by 11.1 percentage points in 2019, from 31.2% to 20.1%. Many migrant workers come from low-income rural communities, making the money they send home especially important for household stability. However, many families rely on remittances to cover basic needs. Declining remittance flows reduce their ability to pay for essentials such as food, health care and education.

The Challenges of Remittance Dependence

Although remittances have reduced poverty in Kyrgyzstan, heavy reliance on income earned abroad can leave families vulnerable to economic shocks. Russia has long been the primary destination for many migrant workers from Central Asia because of its geographic proximity, shared history and cultural ties. This means that economic downturns there can reduce job opportunities and the money workers can send home. During a 2022 visit to Kyrgyzstan, the United Nations (U.N.) special rapporteur on extreme poverty and human rights said remittances should not serve as the country’s long-term development strategy. It called for greater investment in education, employment opportunities and social protection to create opportunities beyond migration.

Helping Families Build Financial Security

Through the REMIT PRIME Central Asia Programme, the initiative aims to help more than 800,000 Kyrgyz people make better use of remittances. The program will introduce new digital remittance channels from Europe, Turkey, South Korea and the United States. This will allow families to send and receive money more quickly, conveniently and at a lower cost through the Kompanion mobile app. The app will also include a financial assistant to help users manage budgets, track spending and make informed financial decisions.

According to the International Fund for Agricultural Development, participants will have access to tailored savings and loan products, financial literacy training and guidance on topics such as digital safety, household budgeting and sustainable agricultural practices. By helping families save, invest and plan for the future, the program seeks to move remittances beyond day-to-day support and make them a stronger tool for financial resilience and rural development.

Building Opportunity at Home

One example of the REMIT PRIME Central Asia Programme’s impact can be seen in Uzgen, in Kyrgyzstan’s Osh Region, where migrant families and returnees have received hands-on agricultural training through Kompanion Bank, with support from the International Fund for Agricultural Development and the European Union. Among the participants is Kanat Sadykov, a farmer from Shoro Bashat village, who spent years working in Russia before returning to Kyrgyzstan in 2022 to start his own farm. With support from Kompanion Bank, he started with a single cow and now manages a herd of more than 30 cows. He also completed financial and digital literacy training to strengthen his budgeting and investment skills as he expanded his farm.

Sadykov said the training helped him better understand how to manage his income and investments, with financial literacy playing an important role in his progress. He now plans to expand his dairy production and hire local workers, showing how skills development and access to financial tools can help rural households use remittances to build economic opportunity.

Remittances in Kyrgyzstan support many rural families. Programs that combine financial education, digital tools and practical skills can help those families turn that income into long-term opportunities. Sadykov’s experience shows how remittances, when paired with the right training and resources, can help families build financial stability, invest in their futures and create new opportunities in their own communities. As REMIT PRIME Central Asia expands, families are expected to gain access to financial education, digital tools and banking services that support long-term financial stability.

– Lily Hoch

Lily is based in Midway, PA, USA and focuses on Good News for The Borgen Project.

Photo: Pixnio

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Mobile Banking in Uganda Is Expanding Economic Opportunity

Mobile Banking in UgandaMobile banking in Uganda is transforming the way its citizens grow their businesses. By expanding access to financial services, digital banking platforms are helping individuals and families increase their incomes while creating new opportunities to reduce poverty across the country. The World Bank estimates that about 41% of Ugandans live on less than $2.15 per day, making access to affordable financial services particularly important for low-income households seeking to save money, receive payments and build economic security.

Improving Access in Rural Areas

Many Ugandans, particularly those living in rural communities, have traditionally struggled to access formal banking services. Long travel distances and limited financial infrastructure have made it difficult for many people to invest in businesses because they are already struggling to save money. Mobile banking has helped bridge this gap by allowing users to complete financial transactions using mobile phones, which are now widely available across the country.

One of the country’s most significant developments has been the rapid expansion of mobile money services. Companies such as MTN Mobile Money and Airtel Money have worked alongside the Bank of Uganda to increase financial inclusion by providing secure digital payment systems that allow users to send money, pay bills, receive wages and access financial services without visiting a bank branch.

Supporting Vulnerable Populations

According to the Global System for Mobile Communications Association (GSMA), Uganda has taken steps to make mobile services more accessible for vulnerable populations, including refugees. A regulatory directive allows refugees to use officially recognized refugee identification documents to register for mobile services, making it easier for them to access mobile money and digital financial tools. By reducing barriers to mobile access, the policy can help displaced people receive payments, save money and participate more fully in the local economy while strengthening broader efforts to expand financial inclusion across the country.

Mobile banking also supports entrepreneurship. The World Bank reports that greater financial inclusion helps entrepreneurs strengthen their financial resilience and manage business income more effectively. These services are particularly valuable for small businesses, which often face challenges obtaining financing through traditional banking institutions. Access to digital payments can help businesses build transaction histories that may improve future access to credit.

Women have also benefited from expanded digital financial services. The United Nations Capital Development Fund (UNCDF) has supported initiatives that improve women’s access to digital finance by strengthening financial literacy and encouraging the use of secure mobile payment systems. According to the World Bank’s Global Findex database, the share of Ugandan women with financial accounts has increased significantly over the past decade, helping more women manage household finances, save money and participate in local economic activity.

Government Support and the Agricultural Sector

The government of Uganda continues to strengthen the country’s digital financial sector through the National Payments Strategy, which promotes safe, affordable and inclusive digital payment systems. The strategy encourages innovation while expanding access to financial services for underserved populations, helping create a more resilient and inclusive economy.

Mobile banking in Uganda is also helping strengthen the agricultural sector, which employs a large share of the country’s workforce. Digital payment platforms allow farmers to receive payments more quickly, purchase farming supplies and access financial services without traveling long distances. The Food and Agriculture Organization identifies digital financial services as an important tool for improving farmers’ access to markets and increasing resilience against economic shocks, particularly in rural communities where financial infrastructure remains limited.

Mobile banking in Uganda is doing more than modernizing financial services. Partnerships between the government of Uganda, the Bank of Uganda, MTN Mobile Money, Airtel Money, GSMA and UNCDF are helping residents build businesses while creating new pathways out of poverty. As digital financial services continue to expand, mobile banking is likely to remain an important tool for strengthening Uganda’s economy and improving livelihoods for millions of people across the country.

– Archie Monton-Black

Archie is based in Bedford, UK and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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4 Reasons Why Renewable Energy in Brunei Reduces Poverty

Renewable Energy in BruneiWith lush rainforests, a royal palace and an absolute monarchy, Brunei is Southeast Asia’s fourth-smallest country located on the north coast of Borneo. Known for its oil and gas reserves, accounting for around 90% of its exports, Brunei is turning to more renewable and sustainable energy to support its economy in the long term and build economic stability.

The Situation

Although Brunei is considered a high-income country, economic vulnerability still exists because its economy relies heavily on oil and gas. According to the World Bank, Brunei’s unemployment rate was approximately 5.3% in 2023. Brunei does not publish an official national poverty rate, and almost all households have access to electricity, thus there is no largely reported energy poverty rate. However, dependence on oil and gas leaves the country’s economy vulnerable to fluctuations in global energy prices, making economic diversification more and more important.

Although Brunei has one of the highest incomes in Southeast Asia, poverty and economic vulnerability still exist for some households due to the country’s heavy dependence on oil and gas. According to the World Bank, Brunei’s unemployment rate was about 4.9% in 2023, while fluctuations in global energy markets create long-term economic uncertainty. Expanding renewable energy in Brunei can help create a more diverse economy, improve employment opportunities and strengthen long-term economic stability.

Although renewable energy sources such as solar and wind energy are mostly known for their environmental benefits, transitioning to renewable energy also helps alleviate poverty by diversifying economies, lowering energy costs and creating more job opportunities. The Energy Transition Division is advancing renewable energy in Brunei, which is leading the country’s shift toward cleaner energy.

Brunei’s renewable energy plans include solar energy projects, new national climate goals and renewable energy targets to support a more sustainable future. The government, through the Energy Transition Division, aims for 30% renewable electricity generation by 2035. One major initiative is the Temburong Smart City, launched as part of Brunei’s Smart Nation vision. The project combines solar power, smart grids and energy-efficient technology to improve sustainability while supporting economic development.

The Benefits

  • Creates New Jobs: Renewable energy efforts create jobs that provide stable incomes for workers in future industries. Some ways renewable energy in Brunei helps alleviate poverty are through creating jobs such as solar installers, engineers, construction workers, maintenance workers, technicians and other green industry careers, according to the United Nations. Brunei’s growing solar industry, including projects such as the Tenaga Suria Brunei solar power plant and new large-scale solar developments, requires engineers, technicians, maintenance workers and construction workers while supporting the country’s long-term energy transition.
  • Diversifies Brunei’s Economy: Increased use of renewable energy also helps alleviate poverty in Brunei by diversifying its economy. For decades, Brunei’s economy has relied heavily on oil and natural gas, making it vulnerable to changes in global energy prices. By investing in renewable energy, the country is creating new industries while encouraging investment in clean technology and innovation. A more diversified economy supports greater long-term employment and protects citizens from fluctuations in fossil fuel markets.
  • Lowers Energy Costs: The third way renewable energy decreases poverty in Brunei is by lowering the cost of energy over time. Although Brunei currently subsidizes electricity prices through its oil and gas revenues, renewable energy can reduce long-term electricity generation costs while helping the country rely less on fossil fuels.
  • Improves Rural Communities: The fourth and final way poverty is reduced in Brunei through renewable energy is by improving rural communities. One example is the Temburong Smart City initiative, which supports cleaner energy, smart infrastructure and sustainable development in one of Brunei’s most rural districts. The project aims to improve energy efficiency, increase the use of renewable energy and create better opportunities for businesses and residents while supporting long-term economic growth. Off-grid renewable energy also provides reliable electricity, improved education, better healthcare access and greater opportunities for small businesses according to ScienceDirect.

What Does This Mean for Brunei’s Future?

Although Brunei’s heavy reliance on oil and gas, along with renewable energy’s currently small share of electricity generation, presents challenges during the country’s energy transition, the benefits of expanding renewable energy and its growing number of successful projects outweigh these obstacles.

Brunei’s transition toward renewable energy in Brunei creates more than a greener future. It creates jobs, strengthens and diversifies the economy, provides long-term opportunities for rural communities and helps reduce poverty. As Brunei continues investing in clean energy, the country is building a stronger, more sustainable and more prosperous future.

– Kayla Moore

Kayla Moore is based in Lake Forest, Illinois, USA and focuses on Good News and Celebs for The Borgen Project.

Photo: Wikimedia Commons

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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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Yemen’s Economic Recovery

Yemen's Economic RecoveryThe World Bank recently approved a new 5-year framework aimed at supporting Yemen’s economic recovery through investments in jobs, infrastructure and essential services. The plan comes after a decade of conflict that has severely damaged Yemen’s economy and infrastructure.

More Than a Decade of War

Civil war has affected Yemen for more than a decade as conflict between the Houthis and the internationally recognized government continues to drive one of the world’s worst humanitarian and economic crises.

Yemen’s economy has faced severe strain due to policy decisions on both sides, including the relocation of the Central Bank of Yemen from Sanaa to Aden and the printing of trillions of rials in new banknotes without sufficient foreign reserves. These actions have contributed to currency depreciation and rising inflation.

One of the country’s biggest challenges is the existence of two separate financial systems. In 2019, authorities in Sanaa stopped accepting government-issued banknotes, further dividing monetary policy between the two areas.

The collapse of oil exports and reduced foreign currency inflows further weakened government revenues, accelerating economic decline. Combined with disruptions to trade and infrastructure, these pressures deepened Yemen’s overall economic crisis.

The Human Cost of Conflict

Even before the war, Yemen had one of the highest malnutrition rates in the world and ranked among the most vulnerable countries in the Middle East. Nearly half of the population lived in poverty and lacked access to safe water.

Today, food insecurity affects 17 million people, while 18 million lack access to safe water and sanitation. Additionally, 80% of the population lives below the poverty line, while displacement remains widespread across the country. Women and children account for 80% of Yemen’s 4.5 million internally displaced people. Women and girls face heightened risks of gender-based violence, exploitation and early marriage as conflict and economic hardship place additional pressures on families.

Better Livelihoods and More Jobs Amid Fragility

In response to these challenges, the World Bank’s new framework aims to support Yemen’s long-term recovery through investments in health care, infrastructure, water access and economic development.

Under the theme “Better Livelihoods and More Jobs Amid Fragility,” the new Partnership Framework aims to improve nutrition, expand access to electricity and strengthen agriculture and fisheries businesses. The framework also seeks to increase women’s participation in the economy by expanding access to jobs, resources and economic opportunities.

To support these goals, the World Bank approved four projects focused on health care, water access, infrastructure and institutional development.

One of the largest investments targets health and water security. A $94 million health, nutrition and water and sanitation project will expand access to essential services for vulnerable populations, particularly women and children. The initiative will strengthen disease monitoring systems, improve health infrastructure and provide outpatient services to more than 6 million people.

Another $153.6 million project addresses Yemen’s ongoing water crisis by restoring irrigation systems, rehabilitating water infrastructure and introducing digital tools to manage water resources more efficiently. By 2030, the project aims to expand access to water, sanitation and hygiene services to 6.4 million people.

The framework also invests in urban infrastructure. A $21 million project will restore roads, electricity and water systems in selected cities, improving access to essential services for up to 1.75 million people.

In addition to rebuilding infrastructure, the World Bank plans to strengthen public institutions. A $20 million governance project will improve financial management and statistical systems, helping rebuild government capacity and support Yemen’s economic recovery.

Looking Ahead

While Yemen continues to face economic and humanitarian hardships, the new framework offers renewed support for a country working toward recovery. Stéphane Guimbert, World Bank Division Director for Egypt, Yemen and Djibouti, said Yemen’s future “has to be built now,” adding that the goal is to create real opportunities for Yemenis, especially women, while strengthening the institutions that will carry the country forward. Although recovery will take time, the framework aims to lay the foundation for a more stable future.

– Isabella Pedroza

Isabella is based in Salt Lake City, UT, USA and focuses on Good News for The Borgen Project.

Photo: Pexels

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Small Countries Reducing Poverty

small country reducing povertyWhen people discuss global poverty reduction, they often focus on large economies like China or India. However, several smaller nations have achieved remarkable progress through targeted social programs, strong public investment and people-centered development strategies. These examples show how small countries reducing poverty can create meaningful change despite limited resources.

Many of these nations prioritize health care, education, environmental sustainability and social protection. Their success demonstrates that governments do not need massive populations or global economic dominance to improve quality of life and reduce poverty.

Costa Rica: Prioritizing People Over Military Spending

Costa Rica stands out as one of the strongest examples of a small country reducing poverty through long-term social investment. In 1948, Costa Rica abolished its military and redirected funding toward education, health care and public welfare.

This decision helped create one of the most stable social systems in Latin America. According to the World Bank, Costa Rica built a health care system that covers nearly the entire population while also maintaining high literacy and life expectancy rates.

Costa Rica also invested heavily in rural electrification, clean water access and environmental protection. The country now generates most of its electricity from renewable energy sources, which supports sustainable economic growth.

These policies reduced poverty while improving public health and economic opportunity. Costa Rica proves that governments can strengthen human development when they prioritize social investment over military expansion.

Uruguay: Building Strong Social Protection Systems

Another example of a small country reducing poverty is Uruguay. Although Uruguay has a relatively small population, it developed one of the strongest welfare systems in Latin America. The government expanded pensions, unemployment support and health care coverage while increasing access to education. Uruguay also implemented labor protections that strengthened wages and worker rights.

According to the Center for Economic and Policy Research, Uruguay consistently ranks among the countries with the lowest poverty and inequality levels in the region.

Uruguay’s economic strategy also focused on inclusion. Rather than concentrating growth among elites, policymakers expanded benefits to lower-income households and rural communities. This approach increased economic stability and reduced vulnerability during financial downturns.

The country demonstrates how democratic institutions and social spending can help small nations achieve lasting poverty reduction.

Bhutan: Progress Beyond Economic Growth

Bhutan offers a unique insight into how small countries reduce poverty as it measures national success differently from most countries. Instead of focusing only on Gross Domestic Product (GDP), Bhutan promotes the concept of Gross National Happiness (GNH). This concept emphasizes sustainable development, cultural preservation, environmental conservation and good governance. While Bhutan still faces economic challenges, the country has significantly reduced poverty over the last two decades.

According to the World Bank, Bhutan reduced poverty from 23.2% in 2007 to 8.2% in 2017 through investments in infrastructure, agriculture and social services.

Bhutan expanded road networks, improved rural health care access and increased school enrollment across remote communities. Hydropower exports also generated revenue that supported public programs.

This country’s development model shows that economic progress does not need to come at the expense of environmental sustainability or social well-being.

Mauritius: Diversifying Economy

Mauritius transformed itself from a low-income agricultural economy into an upper-middle-income country through diversification and investment in human capital. During the ’60s, many predicted economic difficulties because Mauritius relied heavily on sugar exports. However, the government expanded into tourism, manufacturing and financial services while investing in education and infrastructure.

The World Bank credits Mauritius with maintaining strong growth and reducing poverty through inclusive economic reform.

Mauritius also developed trade partnerships and encouraged foreign investment, which created jobs and increased income opportunities. Free education and health care strengthened social mobility and supported long-term development.

The country’s success demonstrates how smaller economies can adapt and compete globally through strategic planning and inclusive growth, moving itself away from the effects of poverty.

Important Lessons from Small Nations

The successes of these countries reveal several patterns behind small countries reducing poverty: Governments invested in health care and education. Leaders prioritized long-term human development. Social protection systems supported vulnerable populations. Economic growth reached rural and low-income communities. Policymakers emphasized sustainability and inclusion.

These nations also adapted policies to fit local conditions rather than copying outside models without modification. These examples are important to highlight because they demonstrate that poverty reduction remains available with the right policies and political commitment.

Global poverty still affects hundreds of millions of people, but the achievements of these smaller nations provide hope and practical guidance for others to follow. As governments continue to work toward the U.N.’s Sustainable Development Goals (SDGs), these examples of small countries reducing poverty remind the world that size does not determine impact. Strong social policies, inclusive economic growth and investment in people can help nations build a more equitable future.

– Leah Denning

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

Photo: Flickr