Archive for category: Economy

Information and stories about economy.

, ,

How Costa Rica is Addressing Economic Inequality

Costa Rica is Addressing Economic Inequality
Costa Rica’s political stability and economic prosperity have earned the country its global status as “the Switzerland of Central America.” In 2025, the World Bank Group classified Costa Rica as a high-income economy, noting that the nation’s national poverty rate had fallen to 15.2%. Meanwhile, Trading Economics reported a 7% unemployment rate for the second quarter of 2026. Despite the country’s progress in reducing unemployment and national poverty, inequality remains high, according to the World Bank. Here is information about how Costa Rica is addressing economic inequality.

Informal Employment

Informal employment often leaves workers without social protection and job security. In its 2025 report, the Organisation for Economic Co-operation and Development reported that around 40% of workers in Costa Rica are informally employed. Meanwhile, a 2023 IMF report found that Nicaraguan migrants and refugees represented 82% of Costa Rica’s foreign-born population, while 55% of Nicaraguan workers held informal jobs.

The International Organization for Migration (IOM) has helped migrant workers enter formal employment through its initiative, Migrant Labour Traceability System. Between 2025 and 2026, the initiative helped more than 15,000 agricultural migrant workers gain temporary work permits. Furthermore, through various labor inclusion programs, IOM provided support to more than 500 companies to aid in the recruitment of migrant workers.

Not only do these opportunities help migrant workers progress toward economic and job security, but they can help employers fill shortages. For example, there was a shortage of 1,500 drivers in Costa Rica.

Labor Training

Costa Rica is addressing economic inequality in a dual economy, which consists of an advancing technological and manufacturing sector and a slower-growing domestic market. The nation has a shortage of workers skilled in the advancing, knowledge-intensive industries.

The Trade and Investment Promotion Agency of Costa Rica (Procomer) has created a range of initiatives designed to develop and strengthen professional and technical skills. Procomer’s Talent Development Incentive for Exporting Companies and Free Trade Zone Businesses initiative co-finances technical and specialized training for current employees and people being recruited by companies in the foreign-trade sector. By August 2026, the program had benefited more than 10,000 people.

Another Procomer initiative, Talent Up, offered 10,000 free Google Cloud and Artificial Intelligence scholarships. Its August 2026 announcement said 5,000 had been awarded and 5,000 remained available.

Increasing the technical skills of the workforce could help increase a person’s employability in the fast-growing, knowledge-led industries.

Extortion

An exploitative scheme active in Costa Rica is the Gota a Gota Loans, which involves an informal process of acquiring loans. These loans can carry interest above the legal ceiling and, in many cases, late repayments of the loans can lead to violence and threats. This form of lending can be dangerous to a person’s livelihood and could lead to debt and poverty.

On Sept. 29, 2025, a United Nations report noted the loans operation, its structure and the impact on Costa Rica. Significantly, the report provides details on the operation, which could help the Costa Rican government assess patterns and gain more knowledge on the operation. The report also proposes 10 recommendations for combating the exploitative scheme. One suggestion of the report was the implementation of financial education to different age groups so that people are knowledgeable about which lending schemes could be exploitative and dangerous.

In May 2024, eight financial institutions announced a plan that included an awareness campaign about the dangers of informal extortionate lending.

For Global Money Week in March 2026, Costa Rica announced activities to teach young people about financial safety and responsible financial decisions.

The Path to Economic Stability

Costa Rica is addressing economic inequality through initiatives and international assistance. Furthermore, the initiatives can support national economic growth through creating a more skilled and protected workforce.

Costa Rica’s efforts to address economic inequality show practical ways to expand access to safer work, training and financial education.

– Jasmine Chaudhry

Jasmine is based in Burnley and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

, ,

Burkina Faso’s First Gold Refinery Targets Economic Sovereignty

Burkina Faso's President Ibrahim Traore meets Russia's President Vladimir Putin at a formal meeting.
On Sept. 28, 2026, Burkina Faso’s first gold refinery opened as part of an initiative to control the nation’s natural resources. Ibrahim Traoré, who heads the military-led government, has severed ties with many traditional Western partners and expects this refinery to bring greater economic sovereignty.

At the inauguration of the refinery, President Traoré said, “From now on, gold from Burkina Faso must not only be extracted in Burkina Faso, it must be processed, controlled, valued and certified in Burkina Faso.”

Importance of Gold in Burkina Faso

Gold is highly important for Burkina Faso’s economy, as it is the nation’s leading export and responsible for close to 94% of its export earnings in the first seven months of 2026. It supports both industrial and artisanal mining sectors.

In 2025, Burkina Faso produced more than 94 metric tons of gold. The majority of this production was exported as doré to be refined into gold. By exporting the metal for refining, the nation loses some of the gold’s value. Raffinor-BF will allow the entire value chain to be domestic.

Regional Push Toward Natural Resource Control

In 2024, Traoré’s government established a state-owned mining company and required foreign mining firms to give the state a 15% stake in new mining projects and train local workers. According to the World Gold Council, output rose by 17% year-on-year in the second quarter of 2026.

Raffinor-BF reflects Burkina Faso’s participation in the regional push toward processing minerals domestically and controlling its natural resources. Guinea and Ghana both restricted gold exports, while Mali plans to build a gold refinery with Russia’s Yadran Group. Ivory Coast announced that its refinery will likely open in 2027.

Raffinor-BF

Burkina Faso’s first gold refinery, Raffinerie Nationale d’Or du Burkina Faso, or Raffinor-BF, is located on five hectares in the nation’s capital, Ouagadougou. It includes a foundry, a laboratory, secure storage and a jewelry workshop. The refinery cost more than 11 billion CFA francs ($19 million) and its development was funded by both the government, including through the National Precious Metals Company (SONASP), and private sector investments. Construction began in November 2023.

Raffinor-BF will process, assay, certify and store Burkinabe gold domestically. It could reduce dependence on exporting unrefined gold.

Officials expect that Raffinor-BF will create around 100 direct jobs and more than 5,000 indirect jobs. The refinery has an initial design capacity of 164 metric tons a year and has an expansion target of 515 metric tons a year. The disparity between refining capacity and current production numbers demonstrates Burkina Faso’s ambition for Raffinor-BF to become a regional refining hub.

Raffinor-BF has great potential to support poverty reduction. The refinery is expected to create direct and indirect jobs and could help keep the value chain of gold domestic, leading to economic growth. The refinery might also be used as a training source for young Burkinabè building advanced technical skills.

Potential Challenges for Raffinor-BF

In the past, regulation of the artisanal and small-scale mining industry has been difficult because of smuggling and informal trading. Jihadist violence has also impacted regulation of the informal sector.

Will the refinery change who captures the value of the gold?

Burkina Faso’s first gold refinery shifts where the metal is processed, but it does not necessarily mean the economic value will remain in the nation. Ensuring local value capture requires certain circumstances.

According to Time Africa, “Turning that capacity into a functioning domestic and regional business will depend on more than the refinery itself. It will depend on the mines that supply it, the roads and systems that move the gold, the security conditions around production and the policies that determine who participates in the chain.”

– Pritam Khalsa

Pritam is based in New Orleans, LA, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

, ,

Italian Communities Without Infrastructure and Services

Italian Communities Without Infrastructure
The death of cable car maintenance worker Silvano Dellea in 2018 left Monteviasco, an isolated village in northern Italy, dependent on a mule track during the subsequent closure. Reporting in November 2022 described residents relying on the Carabinieri, Italy’s military police, to deliver food, medicine and mail a few times a week. Here is more information about Italian communities without infrastructure and the efforts in place to address their challenges.

Challenges Facing Peripheral Communities

Monteviasco is an extreme example of the difficulties facing some peripheral communities. Italian governments have attempted to counter marginalization through the National Strategy for Inner Areas, known as SNAI. The strategy aims to improve services and economic opportunities in territories at risk of marginalization.

SNAI identifies inner areas principally by their distance from centers offering services such as education, mobility and health care. Most are not in Monteviasco’s position. Figures discussed in research on the 2014-2020 cycle describe inner areas covering around 60% of national territory, almost 52% of municipalities and 22% of the population. Classification as an inner area does not mean that all residents lack basic infrastructure.

The Challenge of Maintaining Services

In March 2026, ANSA reported that 10 mountain municipalities in Piedmont had applied to a regional infrastructure funding call. The requests concerned improvements to mountain settlements, illustrating continued demand for investment in basic infrastructure.

Infrastructure such as sewerage can be challenging to extend. Piedmont’s 2026 environmental report states that further expansion is strongly affected by the physical terrain and fragmented settlement patterns. It says resources are prioritized toward improving existing networks and treatment arrangements rather than extending collection networks to scattered homes.

Missing Networks and Temporary Interruptions

There are communities in Italy without basic public infrastructure, but a gap in service access is not itself evidence that every resident is living in poverty. ISTAT’s 2025 Noi Italia summary reports that in 2022, approximately 58,000 people lived in 13 municipalities with no public drinking-water distribution service. It also identifies 41 municipalities, with around 397,000 residents, entirely without a public sewerage service. These definitions concern public networks, not proof that all those households lack every alternative water or sanitation arrangement.

Buonanotte, a hamlet in Angrogna near Turin, illustrates a network gap. Rai reported in July 2026 that public drinking water did not reach some homes and that there was no sewerage network. Residents relied on private springs or collected water, while drought put pressure on those supplies. Their appeal was for an aqueduct to help the village remain habitable.

A different problem occurred at Planet di Gignod in August 2022. About 10 hamlets temporarily lost drinking-water service after a reservoir dried up. The municipality arranged a tanker supply while the network delivered water unsuitable for drinking. This was a disruption to an existing network, rather than a place that had never had one.

Missing sewerage is not confined to remote mountain settlements. A July 2022 Corriere della Sera article described the lack of a sewer network in Bergamo’s Castagneta area, despite high property values, and also discussed the need for a network in Casal di Principe in Campania.

Initiatives to Counter Marginalization

SNAI seeks to improve essential services, particularly education, health care and mobility, while supporting local economic opportunities. Research on its programming emphasizes context-specific approaches and the involvement of local communities in identifying priorities. This matters because communities face different combinations of distance, depopulation and service constraints.

Looking Ahead

Italian communities without infrastructure face different problems: some need new public networks, while others need reliable maintenance and continuity of existing services. These examples show geographic inequalities within a high-income country. SNAI provides a framework for addressing access to services and local development, while the continuing challenges underline the importance of investment tailored to each community.

– Sebastiano Brussato

Sebastiano is based in United Kingdom and focuses on Politics for The Borgen Project.

Photo: Unsplash

, ,

The Modernization of India’s Railways Can Support Poverty Reduction

India's Railways
India’s railways transport millions of passengers daily, connecting cities and communities across the country. However, connectivity between major cities and tier-2 and tier-3 cities has been historically uneven. Since the turn of the century, increased government investment has accelerated railway modernization, including faster trains, upgraded stations and new safety technologies. Services such as Vande Bharat and Amrit Bharat, alongside the Amrit Bharat Station scheme, are reshaping passenger rail connectivity across the country. This article examines how these investments can expand economic opportunities and potentially contribute to poverty reduction.

Why Does Railway Connectivity Matter?

Smaller cities, rural communities and remote regions often have weaker connections to jobs, education and health care. Poor connectivity can limit businesses’ access to larger markets and make it harder for workers to pursue opportunities outside their immediate areas. Better connectivity can also encourage tourism and increase spending in less-developed regions. The Borgen Project spoke with Lakshya Bafna, an international business student with a scholarship from Macquarie University. He said, “From an economic-development perspective, improved railway connectivity reduces generalized transportation costs—not just the ticket price, but also travel time, reliability and the cost of accessing economic opportunities.”

Vande Bharat: Faster Connectivity and Economic Opportunity

The first Vande Bharat service was launched in 2019 between New Delhi and Varanasi. Since then, the service has expanded across India. While its fares may make it inaccessible to some lower-income households, its economic effects can extend beyond direct passengers. Faster connections can help workers reach economic centers, facilitate business activity and increase access to tourism destinations. These effects may contribute to the growth of smaller cities along its routes. Bafna explained that “positive externalities and indirect economic benefits” are important, noting that Vande Bharat can contribute to “positive effects on labor market forces, increased productivity and business activity, increased tourism, infrastructure spillovers, and improved railway network effects.”

Amrit Bharat: Expanding Affordable Connectivity

Amrit Bharat is a non-air-conditioned long-distance train service operated by Indian Railways, designed to provide affordable travel for low- and middle-income passengers. By reducing the cost of long-distance rail travel, it can make employment and economic opportunities more accessible to lower-income households. While Vande Bharat demonstrates how faster connectivity can create economic spillovers, Amrit Bharat illustrates how affordability can make those opportunities accessible to a wider population. Bafna said, “This is arguably a more direct poverty-reduction mechanism because affordability determines whether lower-income households can actually participate in the transport network. Affordable rail services can reduce the cost of accessing employment.” He continued, “For example, suppose someone lives in a smaller town but works in a larger city. If affordable rail makes daily or weekly commuting economically viable, the worker gains access to a much larger labor market.”

Amrit Bharat Station Scheme: Modernizing India’s Railway Gateways

The Amrit Bharat Station Scheme is a railway station redevelopment program aimed at modernizing facilities across India. Announced in 2022, the scheme targets more than 1,300 stations for redevelopment. Upgrades include improved passenger facilities, accessibility infrastructure and wider platforms designed to accommodate growing passenger numbers. By making stations more accessible and functional, the scheme can improve people’s ability to use rail services and connect with employment, education, health care and markets. Better stations can therefore complement improved train services by making the wider railway network more accessible to communities.

How Can Railway Modernization Support Poverty Reduction?

Better rail connectivity can expand the geographical area in which people can seek employment. Railway construction, maintenance and associated activities can also generate jobs. Improved mobility can give workers and businesses greater access to markets and suppliers, while lower transportation costs can make economic activity more efficient.

Railway modernization can also support local economic activity around stations. Bafna said, “A railway station can function as an economic node, not merely a place where passengers board trains.” He explained that modernization can create opportunities in construction, maintenance, retail and services, while potentially increasing demand for hospitality, taxis and logistics. Better stations could also make surrounding areas more attractive to businesses and investors, creating additional opportunities for employment and economic activity.

Kavach: Strengthening Railway Safety

Kavach is an indigenous Automatic Train Protection (ATP) system that the Research Designs and Standards Organisation (RDSO) developed to improve railway safety. The system provides automated train protection and collision-prevention capabilities, including protection against Signal Passing at Danger (SPAD), overspeeding, rollback and certain side, head-on and rear-end collisions. Kavach can also automatically apply brakes in specified situations, including when a train exceeds its permitted speed or when the system detects two trains moving toward each other on the same track section.

By adding another layer of protection to train operations, the system can support safer and more reliable rail services. Reliable rail services matter to passengers and businesses that depend on trains for mobility and the movement of goods. However, Kavach should not be presented as a direct poverty-reduction measure. Instead, safer, more reliable railway operations may limit disruptions to the movement of people and goods, complementing broader railway investments in connectivity and affordability.

Who Benefits From Railway Modernization?

The modernization of India’s railways requires significant public investment and can create employment through construction and infrastructure projects. Upgraded stations, including wider platforms, escalators and lifts, can also make rail services more accessible to passengers such as students, migrant workers, vendors and transport operators. However, connecting a poorer region with a wealthier one does not automatically make its residents richer. The benefits depend on affordability, accessibility, employment opportunities and local economic capacity. Bafna said the economic impact of railway modernization should be evaluated “not only by passenger numbers or travel-time savings,” but also by its effects on productivity, labor mobility, market access, employment, regional development and the distribution of benefits across income groups.

Conclusion

The modernization of India’s railways does not directly reduce poverty, but it can support the economic conditions that help communities escape it. Better rail connectivity can reduce transportation and logistics costs, expand access to employment and markets and create opportunities for businesses, tourists, students and migrant workers. If lower-income communities can access these opportunities, railway modernization may contribute to higher incomes and long-term poverty reduction. Ultimately, rail infrastructure is not a cure for poverty, but a tool connecting communities to economic opportunities.

– Dhruv Bandhu

Dhruv is based in Bengaluru, India and focuses on Good News, Technology and Solutions, and Global Health for The Borgen Project.

Photo: Pexels

, ,

How Hydrogel in Zambia Could Help Women Protect Livelihoods

Hydrogel in Zambia
Forests can be an important source of income for families in rural Zambia. Forest products contribute about 20% of rural household income, while forests and other natural resources support the livelihoods of about 60% of rural households. For women who depend on these resources, environmental degradation can put an existing source of income under pressure.

The Booma Women Cooperative

In Southern Province, the Booma Women Cooperative is investigating whether hydrogel can help recently planted trees withstand dry conditions. The cooperative uses natural resources such as mongongo to produce oils and cosmetics, linking forest resources to women’s existing livelihood activities.

Women in Mukuni Village, Southern Province, collect forest resources for food and income. Mongongo nuts are one such resource, traditionally collected and processed by local communities. The Booma Women Cooperative buys mongongo seeds from local women and processes them into cooking and cosmetic oils for local shops, lodging facilities and wellness centers. The cooperative also produces cosmetic oils and butters from other locally sourced forest products.

Mendel University reports that the cooperative gives women opportunities to earn income by collecting and selling mongongo products.

Drought and Forest Pressure

These livelihoods face pressure from environmental degradation. Drought, logging, charcoal production, agricultural expansion and uncontrolled fires can place additional pressure on forests. Research from the International Growth Centre found that drought-related crop failures can push smallholder farmers toward charcoal production as a coping strategy, increasing pressure on forests.

Testing Hydrogel in Drought-Prone Areas

Hydrogel absorbs water in soil and gradually releases moisture as surrounding conditions become drier. Hydrogel can retain water in soil and release moisture gradually; its effects on seedling survival vary by species and conditions.

At the Booma Women Cooperative, researchers from Mendel University in Brno are testing whether hydrogel can support tree establishment in drought-prone areas. The project receives funding and support from the Czech Ministry of Foreign Affairs through the Czech-UNDP Partnership. It initially aimed to support at least 400 native and oil-bearing trees. By early November 2025, more than 1,500 seedlings from eight species had been sown, and more than 1,000 had germinated. Six species are native and two are introduced.

Women receive training in planting, hydrogel application and early seedling care, while researchers collect field data and use sensors to monitor tree growth and local conditions. A 2023 field study of four Central European tree species found that hydrogel treatment reduced seedling mortality by 1% to 9%, although responses varied by species.

Future Income Benefits Remain Uncertain

The potential economic benefit of the Booma project depends on whether the seedlings survive and mature. If they do, the trees could eventually contribute to forest resources used for activities such as mongongo collection and processing. However, the project has not yet demonstrated that hydrogel will produce this outcome in Southern Zambia.

It remains uncertain how many seedlings will survive and mature, whether the technique will perform similarly under local conditions and whether healthier trees will eventually produce enough forest products to affect women’s incomes. The cost and scalability of hydrogel also remain questions.

Most importantly, Booma members have not yet received measurable income benefits from the project. Evidence that hydrogel can improve seedling survival under some conditions does not establish that it will increase incomes in Southern Zambia.

The Booma project is testing whether a drought-adaptation technique can help protect forest resources connected to existing women’s livelihoods. Whether the approach eventually strengthens those livelihoods remains to be determined.

– Zeba Vagh

Zeba is based in Melbourne, Victoria, Australia and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

, ,

Education in Indian Languages: Expanding Economic Opportunity

Education in Indian Languages
India’s linguistic diversity is an important part of its culture, but language can also affect how students access education. For students who are more comfortable learning in their home or regional language, being taught primarily in another language can make it harder to understand lessons and participate in school. Education in Indian languages could help reduce this barrier while expanding access to educational and economic opportunities.

The Government of India has recently increased its focus on multilingual education. The Bharatiya Bhasha Pustak Scheme, announced in the 2025 Union Budget, aims to provide digital educational books in Indian languages for school and higher education. The scheme envisions making educational content available in 22 Indian languages.

When Language Becomes a Barrier to Learning

For some students, the language used in the classroom may not be the language they understand best. UNICEF India has found that children can struggle when they enter school and are expected to learn in a language different from the one they speak at home. These difficulties can affect understanding, confidence and participation and can increase the risk of leaving school early.

A UNICEF-supported language mapping project in Chhattisgarh examined more than 400,000 first-grade students and 30,000 teachers across 24 languages, including 11 tribal languages. The project found that about three-fourths of students and nearly half of teachers had minimal or functional understanding of the language used for instruction. The project responded by developing teacher training and learning materials that better reflected students’ languages.

These challenges can be especially important for students from communities with fewer educational resources. When students have difficulty understanding classroom material, they may also have fewer opportunities to build the knowledge and skills needed for higher education and employment.

Education and Economic Opportunity

Education is closely connected to economic opportunity. The World Bank describes education as a foundation for developing skills, finding employment and building a pathway out of poverty. Higher levels of education are also associated with better employment opportunities and higher earnings.

For this reason, improving access to educational materials is not only about making lessons easier to understand. It can also help students develop the academic foundation needed to continue their education and prepare for the workforce. Education in Indian languages can be particularly relevant for students who face language barriers in school. Providing textbooks and other learning materials in languages students already understand can make educational resources more accessible and support students as they move through different levels of education.

Expanding Books Across 22 Languages

The Bharatiya Bhasha Pustak Scheme is one of the Government of India’s recent efforts to expand access to educational content in Indian languages. According to the Ministry of Education, the scheme is intended to provide digital books for school and higher education in 22 Indian languages. The Ministry is working alongside organizations including the University Grants Commission and the All India Council of Technical Education on initiatives to increase educational content in Indian languages.

The effort builds on earlier government initiatives. In 2024, the University Grants Commission launched ASMITA, a project intended to produce 22,000 books in 22 scheduled Indian languages over five years. Other initiatives have also focused on multilingual dictionaries and technology for real-time translation.

Making Education More Accessible

India’s National Education Policy 2020 also emphasizes multilingual education. The policy recommends that, wherever possible, the medium of instruction remains a student’s home, mother or regional language until at least grade five and preferably through grade eight and beyond.

Digital resources can make these efforts more accessible because students can use educational materials without depending entirely on physical textbooks. The government’s Rashtriya e-Pustakalaya, for example, provides thousands of digital titles in multiple Indian languages and is intended to promote more equitable learning opportunities for underserved and marginalized readers.

The Government of India is also using newer technology to expand multilingual education. In 2026, the Ministry of Education reported that AI-based tools such as ANUVADINI and BHASHINI were being used to support translation and language-enabled digital services across Indian languages.

A Step Toward Greater Opportunity

Education in Indian languages cannot solve poverty by itself, but it can address one barrier that affects how students access and understand education. For students from underserved communities, having learning materials available in a familiar language can make educational opportunities more accessible.

As India continues expanding multilingual textbooks, digital resources and translation technology, these efforts could help more students participate fully in their education. Improving language access can support the larger goal of ensuring that a student’s language does not become a barrier to gaining the knowledge and skills needed for higher education and future economic opportunity.

– Anvitha Nakka

Anvitha is based in Frederick, Maryland and focuses on Politics for The Borgen Project.

Photo: Unsplash

, ,

Updates on SDG 8 in the Maldives

SDG 8 in the Maldives
The Maldives is an archipelago of more than 1,000 islands located in the Indian Ocean. The Maldives has the longest chain of coral atolls in the world and a rich and unique marine biodiversity. Tourism and fishing drive the economy, with tourism representing about 21% of GDP. The country is among the 193 nations that took the pledge in September 2015 to achieve the 17 Sustainable Development Goals (SDGs) by 2030, and it is ranked 63rd out of 169 countries in the 2026 SDG Index.

The Sustainable Development Goals are a roadmap of 17 goals that the United Nations initiated, which call on all nations to join efforts to end all forms of poverty, ensure equality and take action to protect the planet, while making sure that no one is left behind. Therefore, the UN in the Maldives has been working tirelessly with the Maldivian government to achieve the SDGs, and this article will particularly pinpoint the updates on SDG 8 in the Maldives.

SDG 8

Within the framework of the 17 Sustainable Development Goals, SDG 8 highlights decent work and economic growth. This goal has been established to promote sustained, inclusive and sustainable economic growth. Hence, SDG 8 encompasses 12 targets that are meaningful for achieving the goal. Among those targets are the promotion of youth employment, their education and their training; the protection of labor rights, and the promotion of safe working environments; the promotion of beneficial and sustainable tourism; and the promotion of full employment and decent work with equal pay. In achieving SDG 8 in the Maldives, the government took several actions, such as empowering policies for women’s economic growth through the development of small and medium-sized enterprises (SMEs) and the tourism sector, as well as accelerating economic diversification.

The Importance of Tourism and Fisheries

The Maldives has a successful development story. Economic growth combined with the expansion of social services and infrastructure development has allowed the country to sustain poverty reduction, human development, and socio-economic progress over the past 30 years. Nonetheless, almost a third of the population is poor across several dimensions, even if income poverty is relatively low in the Maldives. As a Small Island Developing State (SIDS), the Maldives is highly vulnerable to climate change and other environmental hazards that impact its economy. To this extent, the resilience of its economy and society depends on a significant reliance on natural resources.

In 2025, the real GDP grew by an estimated 6.3%, driven by strong tourist arrivals and a recovery in fisheries. Tourist arrivals increased by 9.8% and reached their peak of 2.25 million in 2025. In 2026, after a strong start, tourism performance declined. In February, an increase of 15.7% was recorded in tourist arrivals, but it declined by 20.7% in March and 24.4% in April due to disruptions caused by the conflict in the Middle East, including airspace closures and flight cancellations. Year on year, as of May 13, 2026, tourist arrivals were down 5.4%.

Concerning fisheries, the other economic pillar of the Maldives, exports have increased by 91.8% in 2025, with 76,360 metric tons of fish exported. This rise in fish exports is due to an increase in frozen tuna exports. The largest share of the Maldives’ exports is still fish and fish products, according to the numbers. Consequently, the government’s key priority is to increase revenue from the fisheries sector and strengthen its contribution to the economy.

Overall, those two pillars of the Maldivian economy are vital for its growth and development. On one hand, the tourism sector is the main employer in the Maldives and enhances related industries such as construction, transportation and retail; on the other hand, fisheries also provide employment and community livelihoods to many Maldivians living in rural and island communities.

The MEERY Project

The COVID-19 long-term effects on the Maldivian economy have led to numerous challenges, encompassing limited job prospects for the youth. In 2020, the youth unemployment rate was 17.7% due to a competitive job market and a lack of employment opportunities. To address youth unemployment, the MEERY (Maldives: Enhancing Employability and Resilience of Youth) project, a five-year initiative jointly implemented by the Ministry of Higher Education, Labor and Skills Development, the Ministry of Economic Development and Trade, and the World Bank, launched in 2019 and is now in its final phase.

The MEERY is a $20 million USD project that receives funding from the World Bank to “improve the relevance of technical and vocational skills and foster entrepreneurship to promote youth employment in project priority sectors.” The project’s focus is to equip youth in the Maldives with tools, training, and the opportunities they need to be successful in a rapidly evolving job market. The MEERY project also addresses skills gaps and gender equality in the job market by providing women with more opportunities to contribute to the national economy. It also prioritizes tourism, tourism-related construction, agriculture and ICT sectors.

A Supportive Policy Landscape, Slowly Evolving for Women

In recent years, the Maldives has made significant advancements in women’s education and empowerment. The archipelago has one of the highest female literacy rates in South Asia, and more women are graduating and entering the workforce than in the past. Nevertheless, the female labor force participation rate is 40.7% compared to 76.4% for males, while the female rate is also below the global female labor force participation rate of about 48.9% in 2025.

To reverse these disparities and achieve SDG 8, the Maldivian government has implemented the National Gender Equality Action Plan (2022-2026), developed under the Gender Equality Action Act of 2016. The plan lists strategic goals to promote equal participation in governance, economic development, and protection from gender-based violence. This plan has enabled a 33% quota for women in local councils, which has led to an increase in women’s political representation at the local level.

The government also enacted policies that promote gender equality, including a flex policy that offers women working for the government six months of paid maternity leave, a significant support that eases the process for women to re-enter the workforce after giving birth. Besides, civil society organizations are actively advocating for women’s rights and providing support for female entrepreneurs, opening the way for more companies to recognize the value of gender-diverse workforces. Consequently, investing in women in the Maldives is an economic strategy. By harnessing the full potential of its women, the Maldives is building the foundation of a more resilient, inclusive and dynamic society, which is imperative for national progress.

Looking Ahead

To conclude, the updates on SDG 8 in the Maldives show that the country is continuing to work toward decent work and economic growth while significant economic and employment challenges remain. Ranked 63rd out of 169 countries in the 2026 SDG Index, the Maldives is striving toward its economic growth by investing in its youth and women, important pillars of Maldivian society. By also investing in the development of tourism and fisheries, other vital pillars of its.

– Milcah Yann 

Milcah is based in Chicago, Illinois, USA. She is focused on Technologies and Solutions, and Global Health for The Borgen Project.

Photo: Flickr

, ,

Plastic Roads in Kenya Turn Waste Into Opportunity

Plastic Roads in Kenya
Nairobi faces an ongoing challenge in managing the waste produced by its growing population. According to UN-Habitat, the Kenyan capital generates approximately 3,085 metric tons of municipal solid waste each day. About 65% is collected, while only 15% is recovered, leaving much of the remainder to end up in open dumpsites. One Kenyan company is finding a productive use for some of that discarded material by turning plastic waste into paving blocks. Plastic roads in Kenya offer an example of how local innovation can address pollution while creating employment and providing alternative construction materials.

Turning Plastic Waste Into Pavement

Nairobi-based Gjenge Makers collects discarded plastic and processes it into construction materials. Founded by Kenyan materials engineer Nzambi Matee, the social enterprise combines processed plastic waste with sand before molding the mixture into paving blocks and tiles. The company produces several types of pavers, including heavy-duty blocks designed for roads and areas used by heavy machinery.

The approach gives difficult-to-reuse plastics another purpose. Gjenge primarily works with plastics such as high-density polyethylene, low-density polyethylene and polypropylene. According to the company, its pavers provide a strong alternative to conventional concrete paving materials.

The technology has already been used in several paving projects around Nairobi. According to Gjenge Makers, in 2022 the company completed an installation at Kenya’s Ministry of Transport on Jogoo Road that used approximately nine metric tons of recycled plastic to create 564 square meters of paved space. The company also reports that earlier installations at residential developments repurposed several metric tons of plastic.

Creating Jobs Through Recycling

The benefits extend beyond removing plastic from the waste stream. In 2024, Gjenge Makers received an Impact Award at the United Nations SDG Action Awards. The United Nations reported that the enterprise had recycled more than 200 metric tons of plastic and created more than 600 jobs for women and young people while promoting a culture of recycling in Kenya.

This employment component strengthens the connection between recycling and poverty reduction efforts. Waste collection and recycling can provide income opportunities while supplying businesses like Gjenge with the material needed for production. The company’s model turns discarded waste into a product that can be sold and used for infrastructure.

Plastic roads in Kenya therefore represent more than an environmental solution. By connecting waste collection, manufacturing and construction, the process demonstrates how a circular economy can create economic opportunities while reducing the amount of material sent to dumpsites.

Kenya’s Growing Circular Economy

Recent government action could further support recycling efforts. Kenya’s National Environment Management Authority introduced new Extended Producer Responsibility regulations in 2024. The regulations require producers to take responsibility for the post-consumer management of their products. Kenya also introduced regulations aimed specifically at improving the management and recycling of plastic packaging.

These policies complement businesses that find commercial uses for discarded materials. Kenya’s efforts are also part of a larger shift toward circular economies across Africa. In July 2025, the African Union and its partners launched the Continental Circular Economy Action Plan for Africa 2024-2034 in Nairobi. The plan seeks to promote resource efficiency, green growth and inclusive economic development across the continent.

What’s Ahead

Gjenge Makers cannot solve Nairobi’s waste challenges alone. The low share of municipal waste currently recovered shows the scale of the problem. However, the company’s work demonstrates how locally developed technology can turn part of that challenge into an economic resource.

By converting discarded plastic into durable paving materials, creating jobs and supporting a growing recycling economy, plastic roads in Kenya provide one example of how environmental innovation can also support livelihoods. Continued investment in recycling businesses and waste collection could help Kenya build cleaner communities while creating new opportunities for workers and entrepreneurs.

– Ben Jordan

Ben is based in Freiburg im Breisgau, Germany and focuses on Good News, and Technology and Solutions for The Borgen Project.

Photo: Wikimedia Commons

, ,

Congolese Fashion and its Potential For Economic Growth

Congolese Fashion
Since October 2023, the French Ministry of Europe and Foreign Affairs has collaborated with 300 professionals to help foster the growth of creative industries in 33 African countries. This is part of their Création Africa program, which focuses on connecting young African entrepreneurs with funding opportunities to help their creative businesses grow. The Colloque Scientifique International Conference in September 2026 is their latest venture and will spotlight the Congolese fashion movement, La Sape.

Création Africa

Expanding from 16 to 33 eligible countries in 2024, Création Africa has connected 300 African and French professionals to open doors for creatives. By fostering the growth of the art sector, Création Africa hopes to stimulate economic and cultural flourishing across Africa.

The program operates in three key stages:

  1. Online networking through its website, where creatives can connect with both each other and sponsors. By streamlining resources and communication, Création Africa’s website increases businesses’ visibility.
  2. A tailored mentoring scheme for a dozen individuals at a time to aid their structuring and development plans. This includes insight into Création Africa’s work mapping, which has traced the emerging trends across the continent. Individuals leave with future-oriented business models backed by professional guidance.
  3. International partnerships through ties to French and European experts. This allows creatives to develop both regional and international prominence.

Roundabout is one organization that has benefited from Création Africa’s work. Following the 2025 Création Africa Forum where their project “Heritage in Motion” was spotlighted, the zero-waste collective engaged with over 500 guests and six cross-continental collaborators. Roundabout was one of 27 creative organizations from Lesotho, South Africa and Malawi showcased at the two-day event, where high-profile guests, including President Emmanuel Macron, were spotted.

The 2026 Colloque Scientific International Conference in the DRC hopes to follow on from this success, bringing together experts in sociology, history, economics, technology and art to see the work of Congolese organizations. This will coincide with the opening of Kinshasa’s permanent exhibition on Congolese fashion and La Sape.

What is La Sape?

La Sape stands for the “Société des Ambianceurs et des Personnes Élégantes” (Society of Ambiance Makers and Elegant People) and is a fashion subculture in Brazzaville, Republic of Congo and Kinshasa, Democratic Republic of Congo (DRC).

Clad in colorful and boldly styled suits, the Sapuers and Sapueses are taxi drivers, laborers and shopkeepers. They are the everymen and women who turn the streets into catwalks worthy of the finest fashion houses.

Emerging in the mid-20th century, La Sape originated from Congolese sailors, workers and traders who returned from sea with European suits. Traditionally for the colonial elite, the suits were paired with personal pieces and reinterpreted to assert a distinct Congolese Creole identity.

This identity extends into a code of honor, politeness and pacifism where clothing is shared and the whole community is lifted up through innovation.

The Kobo Hub highlights this innovation potential as founder Sidonie Latere is providing technical training to Sapeur designers so they can streamline their supply chains. For the textile brand Kilubukila, this enables them to supply their Kasai velvet to Monoprix in France and export designs across Europe and the U.S.

Latere is working alongside Création Africa and the Kinshasa exhibition and has highlighted how this will honor La Sape’s role in shaping the two nations’ history and future. She shows how investment into the Congolese fashion industry can create an upward spiral of economic growth alongside individual empowerment.

The World Cup

The DRC’s national team drew further attention to La Sape at the 2026 World Cup when they landed in Houston impeccably dressed in leopard-print suits. The designer, Alvin Junior Mak, drew heavily from La Sape’s visuals and described how he wanted to promote the artistic identity of the DRC.

Prior to the World Cup, Mak’s personal Instagram had only 8,000 followers and his brand, Jmakxparis, fewer than 4,000. However, following the World Cup and coverage from magazines such as Vogue and Forbes, the accounts grew to more than 40,000 and 12,000 followers respectively. One post featuring the national team, the Leopards, exceeded 79,000 likes.

The widespread attention also saw an influx of pre-orders from across the world, with Jmakxparis predicted to exceed €100,000 in revenue.

For Mak, this success extends beyond a viral moment and is a step toward solidifying a legacy that can create jobs and opportunities for others in the Congo.

Looking Ahead

The World Cup highlights how Congolese fashion innovation fosters international connection and can create opportunities for both economic growth and cultural understanding. Where many have historically recognized Europe for its fashion prowess, the DRC and Ivory Coast teams drew attention to Africa’s artistry, both past and present. Through programs like Création Africa, this talent can continue to be under a spotlight and opens the door for further investment.

– Elizabeth Holden

Elizabeth is based in London, UK and focuses on Business and New Markets, and Politics for The Borgen Project.

Photo: Wikimedia Commons

, ,

Remittances to Kenya Lift Households Out of Poverty

Remittances to KenyaBetween June 2024 and May 2025, remittances to Kenya totaled KES 931.8 billion (approximately $7.2 billion). Recipients spent the largest share of remittance income on food, household goods, education and medical care, a pattern linked to progress on the Sustainable Development Goals covering poverty reduction. Even so, the reported spending patterns do not by themselves prove that remittances caused progress on the SDGs. Behind Kenya’s remittance figures are families like Mohammed Juma’s, who lived better lives thanks to the money they received.

Kenya’s Economic Reality at a Glance

When discussing the economy of a country, dry statistics often obscure the human reality. However, behind every data point lies a real household trying to pay school fees or put food on the table. To understand the weight of a single household remittance, consider the broader financial environment facing families: In 2022, nearly 40% of the population (39.8%) lived below the national poverty line, while 45.48% survived on less than $3 a day. The Multidimensional Poverty Headcount Ratio, which tracks deprivations in health, education and basic living standards, sat at 47.28% in 2022. Between 2015 and 2021, total per capita income dropped by 3.09%, and for the poorest 40% of the population, it fell even faster at an annualized rate of 1.18%. For Kenya’s population of over 56 million people, the overall unemployment rate hovered at 5.4% in 2024, with youth unemployment more than double that at 11.93%.

With nearly half the population experiencing multidimensional poverty and most new jobs anchored in the unpredictable informal sector, financial stability is a daily balancing act for many Kenyan families.

One Wage Abroad Rebuilds a Family’s Future

Mohammed Juma, known locally as Modi, grew up along Kenya’s coast in Kilifi County—a region known globally for tourism. While its attraction makes the coast popular, locals in Kilifi often experience an air of hopelessness because of poverty. Poverty pushes many people out of Kilifi to find better work. Juma’s wife, Aisha, wanted a fresh start. She found a job as a house manager in Saudi Arabia in 2023. A licensed employment agency helped her make the big move abroad. Aisha sends home about $1,200 a month. That money pays school fees for the couple’s two daughters. It also funds eight rental units the family is building for extra income. Juma volunteers at a local community-based organization, where he shares his family’s experience with neighbors who hope for the same kind of opportunity.

The Next Step for Remittances to Kenya

Kenya’s government and financial regulators are working to simplify inflows. The Central Bank of Kenya licensed six new remittance operators over an 18-month period, bringing the total to 24.

Mobile money adoption among Kenyan adults climbed from 27% in 2011 to 92% in 2024.

Fintech platforms carried just 1.92% of remittance inflows in 2024, leaving considerable room for growth as more digital operators enter the market.

Costs remain a barrier to efficient remittances. Sending $200 to Kenya carries an average fee of 9.15%. That is above the United Nations Sustainable Development Goal target of 3%.

Digital platforms, mobile wallets and newly licensed fintech operators could help make remittances more accessible to Kenyan households, particularly in rural areas. Initiatives supported by the International Fund for Agricultural Development and the European Union have highlighted the potential for digital remittances to reduce transaction costs and expand financial inclusion. For families receiving money from abroad, even a small reduction in transfer fees could leave more funds available for tuition, livestock or food.

– Otieno Onyango

Otieno is based in Nairobi, Kenya and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash