Information and stories about economy.

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Africa’s Investment in 2026: The Continent’s Economic Rise

Africa's Investment in 2026Amid declining foreign aid and shifting global alliances, Africa’s investment in 2026 is telling a new story. Recent reporting by The Economist highlights a shift in Africa’s economic trajectory, as the continent demonstrates resilience despite declining foreign aid and changing global financial conditions.

For decades, global narratives have often framed Africa as a recipient of aid, a perception shaped by economic crises, humanitarian emergencies and international development campaigns. However, in recent years, a shift has begun. According to projections from the International Monetary Fund (IMF), Sub-Saharan Africa is expected to outpace Asia in economic growth in 2026 for the first time. Six out of the 10 fastest-growing economies of 2026 are African countries. This growth signals a broader transition from aid dependency to investment-driven development.

Africa’s Investment in 2026

Africa is now receiving less in aid than it is in remittances and foreign direct investment (FDI). More countries are participating in African investment in 2026 than at any previous point. FDI in Africa rose sharply in 2024, increasing by 75% to $97 billion and raising the continent’s share of global FDI from 4% to 6%.

Europe, the United States and China remain the lead investors in Africa. However, in 2025, a broader range of countries began to increase their presence on the continent. Japan and India are committed to a partnership focused on investing in African mineral resources. An Emirati conglomerate, International Resources Holding, acquired a controlling stake in a tin mine in the Democratic Republic of the Congo, following a similar investment in a Zambian copper mine in 2024. Meanwhile, Saudi Arabia’s Public Investment Fund (PIF) purchased a majority stake in Olam Agri, a Singaporean agribusiness firm with a significant presence in Africa.

Gulf-based companies such as DP World are also expanding port infrastructure across the continent, while firms like France’s TotalEnergies continue to invest in large-scale energy projects in Mozambique. Global technology companies, including Microsoft and Google, are increasing investments in digital infrastructure, reflecting growing interest in Africa’s emerging tech markets. Venture capital is also expanding, with initiatives such as Norrsken22, a $200 million tech investment fund focused on African startups, supporting innovation and entrepreneurship.

An Opportunity to Become a Global Player

Although recent global challenges, including the COVID-19 pandemic and ongoing conflicts, have exposed Africa’s reliance on imports and structural weaknesses, they have also created opportunities for the continent. More countries, particularly in Europe, are turning toward Africa for resources such as critical minerals and oil, as well as for opportunities to invest in infrastructure projects. This growing external interest is one of the key drivers behind the surge in Africa investment in 2026.

Africans are also increasingly investing in Africa. Nigerian billionaire Aliko Dangote has focused on finding opportunities across the continent. Dangote Cement is Africa’s largest cement producer, with operations from Ethiopia to Senegal to South Africa. Dangote Refinery and Petrochemicals operates an oil processing facility with a capacity of 650,000 barrels per day, designed to supply fuel to West, Central and East Africa. The Dangote Group recently announced a minimum $1 billion investment in a pipeline, power generation and cement plant in Zimbabwe. Ranked by Forbes as Africa’s wealthiest individual, Dangote has demonstrated the value of investing in the home continent.

African Governance and Sovereignty

African countries are building more robust economic systems. In 2025, South Africa, Ghana, Uganda and Rwanda, among others, made changes diverting more funds toward private equity and venture capital.

With encouragement from the African Union (AU), countries have also begun increasing exchanges with one another, whether through trade, cash flows or movement of people. African governments are becoming more integrated rather than relying solely on partnerships with Europe, the U.S. and China.

This assertion of agency extends beyond economics. Mali, Burkina Faso and Niger have removed French as their official language, reflecting broader efforts to assert political and economic sovereignty and redefine relationships with former colonial powers.

Looking Ahead

The continent continues to face significant challenges, including extreme poverty, ongoing conflicts and a historical dependence on foreign powers. However, the trajectory of Africa’s investment in 2026 points in a new direction. Africa’s tech sector continues to expand, with startups attracting increasing investment and driving innovation in finance, logistics and digital services. African countries are also diversifying their global partnerships, attracting investment from the Middle East, Asia and private sector actors beyond traditional Western donors. These developments signal a broader transition toward investment, self-sufficiency and long-term economic growth.

As stated by South African business executive, Euvin Naidoo: “You can make money, you can lose money in Africa. But opportunities, boy oh boy, they exist.” Africa investments in 2026 reflect that growing confidence.

– Chloe Bonnefil

Chloe is based in Miami, FL, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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From Party Town to Ecotourism: Reducing Poverty in Vang Vieng

Poverty in Vang ViengA small and often overlooked country in Southeast Asia, Laos remains popular among backpackers and intrepid travellers seeking an alternative to highly developed tourist destinations. Nestled against the striking backdrop of the Karst mountains and vast expanse of paddy fields, Vang Vieng has long benefitted from tourist interest. However, it is only in recent years that the rural town has departed from its hedonistic party history to a model centred on ecotourism, with growing implications for local livelihoods and the reduction of poverty in Vang Vieng.

Background

Situated in central Laos, is providing an idyllic escape for respite between the cities of Luang Prabang and Vientiane. Laos is one of the poorest countries in Southeast Asia, with World Bank statistics suggesting that 15% of the population lived below the national poverty line in 2024. Vang Vieng itself is located in the relatively wealthy Vientiane Province. Its poverty severity index of 0.5-1 indicates relatively low levels of extreme poverty; the low poverty rate is extremely significant considering its status as a rural town in a country that experiences regional economic disparities. The reduction of Poverty in Vang Vieng can partially be attributed to its sustained commitment to tourism and the economic opportunities for local people that the sector provides.

Tourism and Poverty Reduction

In Laos, tourism has become increasingly important to the economic welfare of the country, with 4.1 million tourists visiting in 2024, representing an increase of 21% from 2023. This rise in foreign interest has had a direct financial impact, bringing in $1 billion to channel back into the economy. These developments in tourism have had a tangible impact on the country’s GDP; in 2024 Laos recorded a GDP growth of 4.1%. According to the Laotian Times, tourism in Vang Vieng specifically created a revenue of $57.4 million in 2024 and the target for 2025 stood at $78.6 million. This sustained growth highlights the sector’s expanding role in generating income and strengthening economic resilience in communities like Vang Vieng.

Tourism’s Dark Past in Vang Vieng:

Tourism in Vang Vieng however, has had neither a linear or pleasant historical progression. Famed for its party reputation, backpackers in the 1990s flocked to the area to enjoy its lax approach to regulating drugs and unrestrained nightlife. Thirty years ago, a visit to Vang Vieng would have entailed a blur of mushroom laced nights and intoxicated days. This lifestyle undeniably harmed local environments and livelihoods, with the prolific drug culture compounding the impact of poverty in Vang Vieng.

A hedonistic party culture is by no means the darkest chapter of Vang Vieng’s past. The evolution of tourism in the area has been punctuated by a series of fatal tragedies. In 2011, 27 tourists died while tubing down the Nam Song river, a popular activity characterised by riverside bars and high levels of alcohol consumption. This event resulted in authorities officially banning the activity, although one can still participate in tubing with some companies in Vang Vieng even today.

The summer of 2024 saw Vang Vieng once again become the site of a serious incident, in which six tourists died in Nana’s Backpacker Hostel after consuming methanol-contaminated alcohol reportedly provided by staff. Lao authorities responded by closing down the hostel. It has since been reopened under a different name, illustrating once again a schism between official regulation and the reality of enforcing such measures.

Developments in EcoTourism: Transformation of Vang Vieng

Today, the region has largely reclaimed its turbulent past and has become home to a flourishing ecotourism industry that has been vital to the reduction of poverty in Vang Vieng. Despite the continued presence of certain high-risk recreational activities, tourists are now increasingly engaged in more regulated forms of leisure, such as hiking in Tha Hon Kham and visiting the Blue Lagoons.

Companies like Wonderful Tours Laos offer dedicated Eco-tours that allow travellers to enjoy the countryside safely and sustainably. Additionally, there has been a huge influx of eco-friendly hotels in the town, such as The Elephant Crossing Hotel. These hotels focus on sustainability, environmental protection, and creating community-driven job opportunities.

The transition to ecotourism has important socio-economic implications, particularly in terms of poverty reduction. According to the Vang Vieng District Authorities, the rate of poverty in 2017 in the area was just 2.03%.  Recent developments have generated employment, diversified income sources and increased local participation in the tourism sector.

For the Riverside Boutique Resort in Vang Vieng, a commitment to local Community and culture is central to its ethos. Indeed, the hotel prioritises the employment of Vang Vieng residents, ensuring that revenue generated through tourism goes to the local economy and supports local livelihoods.

Conclusion

A problematic and controversial past undeniably marks the history of tourism in Vang Vieng. Once sought out for its party scene and nightlife, the town has since undergone a significant transformation into a hub of ecotourism that has proved vital for local development and poverty reduction. Its metamorphosis serves as a model for other tourist destinations to keep sustainability and community central to their economic structures.

– Polly Laws

Polly is based in Cardiff, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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How EU Accession Reduced Poverty in Croatia

Poverty in CroatiaAs one of the European Union’s recent success stories, Croatia has followed a remarkable path toward economic recovery and integration, only three decades after the devastation of the Yugoslav wars. Like many countries in the Balkans, Croatia emerged from the 1990s conflict with a shattered economy: the war of independence from 1990 to 1995 claimed around 20,000 lives and caused damage equivalent to 160% of its GDP.

In 1991 alone, GDP contracted by 21.1%, and between 1991 and 1993, real output fell cumulatively by nearly 30%.

Despite gradual stabilization in the mid-1990s, Croatia faced another major setback during the global financial crisis. Between 2009 and 2015, the country endured a prolonged recession that stalled growth and deepened social hardship. Against this backdrop, Croatia undertook significant political and economic reforms to meet EU standards, ultimately joining the European Union in 2013, less than two decades after the war. Since then, it has deepened its integration by entering the Eurozone and the Schengen Area, positioning itself ahead of many of its regional neighbors.

In many ways, EU accession reduced poverty in Croatia by providing financial resources, institutional frameworks and market access that played a decisive role in fostering economic growth.

Rebuilding Croatia’s Economy After the War

In the aftermath of the war, Croatia transitioned from a socialist economy to a market-based system under difficult conditions. Inflation surged, infrastructure lay in ruins and regional instability discouraged investment. Although tourism and trade helped spark a modest recovery in the mid-1990s, structural weaknesses persisted for years.

Croatia’s path to EU membership began with the Stabilisation and Association Process in 1999. It gained candidate status in 2004 and spent years aligning its legislation with EU law across 35 negotiation chapters. This process required reforms in governance, judiciary independence, market regulation and regional cooperation. While politically demanding, these reforms laid the groundwork for a more stable and transparent economic environment, an essential precondition for poverty reduction.

EU Membership as a Driver for Growth

Since joining the EU in 2013, Croatia has significantly improved its key socioeconomic indicators, showing how EU accession reduced poverty in the country. Unemployment dropped sharply from 17.25% in 2013 to 6.1% in 2023.

This drop reflects not only favorable economic conditions but also structural transformations supported by EU integration. Croatia received approximately 8 billion euros in structural and investment funds between 2014 and 2020, targeting competitiveness, employment and regional development.

These funds supported infrastructure projects, education and training programs and initiatives aimed at improving labor market participation. Large-scale investments such as the Pelješac Bridge, railway modernization and rural development programs stimulated economic activity and created jobs across multiple sectors.

Expanding industries such as manufacturing, retail and tourism employed many lower-income workers. Economic growth increased wages and improved living standards for vulnerable populations. Croatia also strengthened its social policies by expanding family benefits, child support and welfare programs, many co-financed by the EU. Rising labor income and better employment outcomes drove more than half of the reduction in poverty between 2013 and 2016. Overall employment grew by 17% between 2013 and 2024.

Currently, Croatia’s GDP per capita exceeds 70% of the EU average, up from around 59% a decade ago. The country has also received more than it contributed to the EU budget, with a net benefit exceeding 10 billion euros in its first 10 years of membership.

Sustaining Growth Beyond EU Support

Despite these achievements, Croatia now faces the challenge of sustaining this momentum beyond EU-driven support. Structural problems such as low productivity, bureaucratic inefficiencies and a challenging business environment continue to limit the full impact of EU-driven reforms. Small and medium-sized enterprises struggle to access financing, while public administration inefficiencies reduce the effective use of EU funds.

EU integration has also accelerated emigration. Since 2013, more than 300,000 Croatians have left the country in search of better opportunities elsewhere in the EU, shrinking the domestic workforce and deepening demographic decline, particularly in less developed regions. These trends highlight that, although EU accession reduced poverty in Croatia, it has not resolved all underlying structural challenges.

To sustain its progress, Croatia must strengthen its economic fundamentals, improve governance and enhance its domestic attractiveness. By addressing these structural barriers, the country can maintain growth, retain its population and remain competitive for future EU investment.

Looking Ahead

Croatia’s experience demonstrates how EU accession can serve as an engine for poverty reduction and economic recovery, especially in post-conflict contexts. Through financial support, institutional reforms and access to a larger market, EU membership has transformed the country’s economy, reduced unemployment and improved living standards. At the same time, Croatia’s trajectory highlights the importance of sustained domestic reforms to fully unlock the benefits of integration.

The reduction of poverty in Croatia offers a model for other Western Balkan states. With strong political commitment to reform and effective use of EU support, these countries could work toward replicating similar gains and building more resilient economies.

– Inès Maudire

Inès is based in Paris, France and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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Strait of Hormuz Conflict Could Hinder Poverty Reduction in Iraq

Poverty Reduction in IraqRecent tensions around the Strait of Hormuz –  a channel for an estimated 20% of the world’s oil and liquified natural gas supplies that the Iranian government shut down after U.S.-Israeli airstrikes – has put a strain on Iraq’s already fragile economy, threatening recent progress towards poverty reduction in Iraq. Fortunately, there may be a solution to prevent future threats to Iraq’s economic prosperity.

Recent Progress Towards Poverty Reduction in Iraq

In 2003, the United Nations established its Assistance Mission for Iraq (UNAMI) to assist in rebuilding the country following the fall of Saddam Hussein’s regime. Since then, the people of Iraq have seen their fair share of struggle; they faced years of war, political corruption and economic struggle. However, in more recent years, the government of Iraq has made strong efforts to understand and reduce poverty for its people; in 2025, the Iraqi government officially announced the launch of its Multidimensional Poverty Index analytical report, and in the last three years, Iraq’s poverty rate has dropped from 23% to 17.5%.

On top of that, in 2024, Iraq reached a score of 0.712 on the Human Development Index (HDI), which measures life expectancy, education and quality of living for its citizens. By achieving this number, they surpassed the average HDI for Arab nations, a significant sign of progress for the country. After the UN declared its mission successful in 2025, the UNAMI mandate came to an end. Despite recent progress, many of Iraq’s citizens, including children, still face deprivation across education, health care and living standards.

Now, with the closure of the Strait of Hormuz and the halt of oil production, the challenge Iraq now faces is “the most serious operational threat” it has faced in more than 20 years, according to a senior Iraqi oil ministry official.

The Effects of the Strait’s Closure 

Since the war began in late February, the Iranian government has controlled, restricted and blocked access to the Strait of Hormuz. “Tehran is leveraging the global economy’s inability to tolerate a sustained closure of the waterway,” said Landon Derentz of the Atlantic Council.

The problem for Iraq, a strategic trading partner of the United States, is that it relies on crude oil for nearly 90% of its total income, which they export via the Strait of Hormuz. Following the closure of the checkpoint, Iraq was forced to shut down oil production from its southern fields, halting nearly all of its oil exports.

Now, nearly two months since Iran closed the strait, after much negotiating, several U.S. threats, ultimatums and even a naval blockade, despite a couple of false alarms, the strait remains closed. The difficulty in reopening the waterway proves to be a problem within itself, but even when ship traffic does continue, Iraq’s economy will remain vulnerable to future threats made on the Strait of Hormuz.

‘Build Around it,’ He Says 

While reopening the waterway by force may offer a quick fix to the problem, it has proved to be a difficult and costly task. Derentz, who served as director of energy at the White House during the Trump administration’s first term, suggests that building infrastructures around the channel to bypass it would offer a more long-term solution, ending Iran’s ability to leverage the Strait of Hormuz entirely. 

“Saudi Arabia’s East-West pipeline…has already proven that bypass infrastructure can relieve part of the bottleneck created by the closure of the Strait of Hormuz. That model should now be scaled dramatically,” says Derentz. If the government were to ever consider it, this suggestion could very well prove to be effective: the maneuver would permanently weaken Iranian leverage against the global economy, foster economic resilience for Iraq and only cost a fraction of the $200 billion the United States was willing to spend on military operations against Iran.

Final Thoughts 

Lately, Iraq has shown significant progress toward poverty reduction. However, if the country ever wishes to climb out of destitution completely, sustainable economic growth remains crucial. The United States government has recently stated that it is “dedicated to our enduring strategic partnership with the Government of Iraq and the Iraqi people,” with several U.S. companies currently active in Iraq. U.S. resolution to the Strait of Hormuz will not only be a service to its enduring trading partner, but to the entire global economy as well. The Strait of Hormuz conflict may be a speed bump for poverty reduction in Iraq, but it is surely not the end of the road.

– Tommy Bass

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

Photo: Pixabay

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Economic Opportunity in Morocco: A Look Into the Textile Sector

Economic Opportunity in Morocco: A Look Into the Textile Sector While Morocco’s youth unemployment rate remains high at around 23%, the country is using its thriving textile sector to lower unemployment rates, boost the economy and expand economic opportunity in Morocco.

Morocco’s Textile Sector

Morocco’s textile sector provides more than 200,000 jobs, accounting for 27% of industrial employment, and contributes 7% of the country’s industrial value. The country is taking the opportunity to create jobs through textile training programs that connect participants directly to an established industry, further supporting economic opportunity in Morocco.

Backed by organizations such as the United Nations Educational, Scientific and Cultural Organization (UNESCO) and Alwaleed Philanthropies, these programs and initiatives provide participants with skills in not only garment production but also small business development. The Alwaleed Philanthropies initiative has reached more than 6,300 people, with approximately 5,000 people benefiting in 2024 alone.

Strengthening Competitiveness

Morocco’s textile development efforts extend beyond a single initiative. Programs supported by the International Trade Centre (ITC) focus on improving competitiveness in the textile and clothing sector by helping small and medium-sized enterprises strengthen production, increase exports and integrate into global value chains. These efforts complement training initiatives by ensuring that newly skilled workers are entering a sector with growing demand and stronger international market access.

At the national level, Morocco has invested in industry-focused initiatives such as the Industrial Acceleration Plan, which emphasizes workforce training, investment and sector growth to support long-term job creation.

Training and Cultural Preservation

By combining textile production skills with workforce training, these programs create a direct pathway for Moroccans to go from learning to earning. The programs also provide specialized training to more than 500 artisans, focusing on areas such as fashion design, model development and creative production.

This program also prioritizes creativity and recognizes the importance of cultural preservation. It helps participants modernize traditional Moroccan textiles so that the sector remains competitive while preserving tradition. Traditional Moroccan textile practices such as the kaftan, are recognized by UNESCO as part of the country’s cultural heritage, highlighting the importance of preserving these techniques while adapting them for modern use.

This combination of preservation and modernization allows participants to maintain cultural identity while also accessing opportunities in tourism, where handcrafted textiles are often sold in local markets and cultural centers, as well as in broader fashion and export markets that value traditional craftsmanship. The textile and clothing sector’s strong export base further supports these opportunities by connecting locally produced goods to international buyers and global supply chains, contributing to economic opportunity in Morocco across both local and global markets.

Looking Ahead

Rather than creating entirely new industries, this approach focuses on strengthening what already exists, making job creation more immediate and reinforcing economic opportunity in Morocco. With youth unemployment remaining a challenge, programs that connect training directly to employment opportunities can help address the economic conditions that contribute to poverty. By equipping individuals with both technical and entrepreneurial skills, Morocco’s textile initiatives expand access to income and create more stable economic pathways.

– Kale Overton

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

Photo: Flickr

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Estonia’s Startup Ecosystem Supports Economic Growth

Estonia's startup ecosystemThe startup ecosystem in Estonia has become a key driver of economic growth and innovation in recent years. Known for its advanced digital infrastructure and business-friendly policies, Estonia has created an environment where startups can develop and scale efficiently. These efforts have contributed to job creation, increased foreign investment and a more diversified economy. 

As a result, Estonia is often recognized as one of the most digitally advanced countries in Europe. Government initiatives and public-private partnerships play a central role in supporting startups. By combining digital governance with entrepreneurial support programs, Estonia has built a system that encourages innovation while reducing barriers to entry for new businesses.

Startup Estonia

One of the primary initiatives supporting Estonia’s startup ecosystem is Startup Estonia. This government-backed program aims to develop the country’s startup sector by connecting entrepreneurs with funding, mentorship and global markets.

Startup Estonia works to attract international investors while also supporting local entrepreneurs through networking opportunities and training programs. The initiative has helped foster a collaborative environment where startups can grow and access global resources. By strengthening connections between businesses, investors and policymakers, the program supports long-term economic development.

E-Residency Program

Another major contributor to Estonia’s startup ecosystem is the e-Residency program. This initiative allows individuals from around the world to establish and manage businesses in Estonia entirely online. Through e-Residency, entrepreneurs can access Estonia’s digital services, including company registration, banking and tax filing. 

This program has attracted thousands of international business owners, increasing foreign investment and expanding Estonia’s economic reach. By reducing administrative barriers, e-Residency enables startups to operate efficiently in global markets.

Digital Infrastructure and Innovation

Estonia’s digital infrastructure plays a central role in the success of its startup ecosystem. Platforms such as X-Road allow secure data exchange between government institutions, reducing bureaucracy and improving efficiency.

Digital ID systems also enable citizens and entrepreneurs to access services quickly, from signing contracts to filing taxes. These systems reduce the time and cost associated with starting and running a business. As a result, startups can focus more on growth and innovation rather than administrative processes.

Investment and Economic Impact

The Estonian startup ecosystem has attracted significant investment from both domestic and international sources. Venture capital funding and accelerator programs provide startups with the financial resources needed to scale their operations.

These investments have contributed to job creation in sectors such as technology, finance and logistics. As startups expand, they create employment opportunities and contribute to economic diversification. This growth can also benefit low-income Estonians by opening up new pathways to stable employment, particularly for young people and job seekers looking to enter emerging industries. 

Over time, a stronger, more diversified economy can help reduce poverty by increasing household incomes and expanding access to economic opportunities.

The Big Picture

The Estonian startup ecosystem demonstrates how targeted policies and digital innovation can drive economic growth. Programs such as Startup Estonia and e-Residency, combined with strong digital infrastructure, create an environment where businesses can thrive.

As Estonia continues to invest in entrepreneurship and innovation, its startup ecosystem offers insights for other countries seeking to promote economic development. By reducing barriers to entry and supporting small businesses, the startup ecosystem in Estonia contributes to long-term economic stability and opportunity.

– Jason Hill

Jason is based in Fullerton, CA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Unsplash

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Madhubani Art and Poverty in Bihar

Madhubani ArtAccording to the Multidimensional Poverty Index (MPI), the Indian state of Bihar is the most impoverished state in terms of multidimensional poverty. Poverty in Bihar goes beyond a lack of income; it reflects an impoverished state of health, education and living standards.

Bihar is heavily reliant on agriculture for its economic survival. However, with 73% of its area designated as flood-prone, the state’s people find themselves stuck in a vicious cycle of survival and sustenance. It has been noted that 76% of the population lives under the recurring threat of floods. 

Despite the recurrent cycle of ruin and revival, the people of north Bihar, specifically in Madhubani District, have found a way to use their indigenous knowledge and Madhubani art tradition to generate income. Madhubani art, a distinctive folk art form originating in the region and also known as Mithila painting, has grown from a purely cultural expression into a livelihood that now sustains tens of thousands of families.

From Tradition to Economic Empowerment

Madhubani art originated in the villages of Mithila long before the modern era, where women decorated mud walls and floors with elaborate patterns expressing mythology, nature and community life. The art is defined by bold lines, bright, often natural colors and intricate geometric motifs depicting gods, animals, wedding scenes and ritual imagery. 

As droughts struck rural Bihar in the mid-20th century, artists began transferring this heritage onto paper, cloth and canvas, a transformation that unlocked commercial horizons. Today, Madhubani art manifests across surfaces from canvas and handmade paper to sarees, notebooks and decorative homeware, giving artisans access to urban markets, exhibitions and global tourism. 

Economic Impact: Numbers That Matter

Recent government records indicate that this traditional craft now provides regular income support to artisan families in Madhubani district. This support also extends to other surrounding areas, far beyond its original birthplace. In core hubs such as Jitwarpur, nearly 70% of local families depend on the sale of Madhubani art for income, with many artists coming from low-income backgrounds. 

Formal support measures have also made tangible gains. More than 5,000 artisans in the region have applied for specialized artisan credit cards designed to help them access loans for materials, training and other business needs. Tax policy reforms have reduced the Goods and Services Tax (GST) on handicrafts from 12% to 5%, making artworks more affordable for buyers and providing greater earnings stability for artisans. 

Though precise income figures can vary widely by artist and medium, studies of artisan households show that sales revenues often constitute a major share of family earnings. The revenues help cover daily expenses, schooling and health care, providing breakthroughs for communities once mired in seasonal migrant labor. Moreover, success in Madhubani art has given women greater public visibility. 

Many women now represent their communities at fairs, exhibitions and cultural events across India and abroad, breaking social norms that once confined them to the home. Women artisans report greater influence over family finances, improved household decision-making power and a stronger ability to invest in their children’s education, outcomes that can improve household well-being and reduce economic vulnerability.

Government Programs and Policy Support

The Bihar government has launched handicraft promotion campaigns and training programs to improve design quality, market access and digital selling skills for rural artisans. It aims to transform the craft into a sustainable enterprise. Nonprofit and livelihood programs, such as Bihar Rural Livelihoods Promotion Society (Jeevika), have also engaged Madhubani artists, linking them to broader rural development and poverty-alleviation strategies. 

Such initiatives typically emphasize skills development, collective marketing and cooperative organization to empower artisans economically and socially. Government programs have helped transform this cultural skill into economic opportunity. The National Handicrafts Development Program funded a $1.1 million craft village in Jitwarpur. 

The program created artist stalls, training centers and tourism infrastructure that reduce dependence on intermediaries. Meanwhile, Bihar’s JEEViKA self-help groups have enabled rural women artists to access credit, expand production and negotiate better prices. Despite these gains, artists and observers note ongoing challenges. 

These include limited year-round demand, exploitation by middlemen and uneven institutional backing, indicating that more coordinated policy is still needed for long-term sustainability. 

Changing the Narrative

The growing value of Madhubani art extends beyond individual households. Local tourism circuits, craft villages and cultural initiatives attract visitors interested in heritage experiences, catalyzing secondary employment in hospitality and travel. Artisans have also benefited from global interest, with works reaching buyers in the U.S., Europe and Japan and appearing in prestigious cultural forums and museum collections. 

This blend of heritage preservation, gender empowerment and economic diversification offers a replicable model for other rural communities seeking to leverage cultural capital into sustainable development. 

A Work in Progress

Despite notable strides, deep rural poverty has not vanished. Many households still supplement art earnings with agricultural or migration income and the market continues to fluctuate with seasonal and economic cycles. Yet, for villages once marked by limited livelihood options, Madhubani art has expanded economic horizons, giving thousands of families greater stability and hope.

Poverty in Bihar has not disappeared, but the shift from single-source farm income to diversified art-based earnings has improved household stability. It also reduced migration pressures and created one of Bihar’s few homegrown rural creative economies.

– Sayanee Mandal

Sayanee is based in Glasgow, UK and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Working With Seaturns To Strengthen Mauritius’ Ocean Economy

Mauritius' Ocean EconomyIn March 2026, a two-megawatt (MW) wave energy pilot project was announced and launched in Mauritius, an island nation in East Africa. Developed by the French company Seaturns in partnership with Taylor Smith Group, a privately owned family business in Mauritius, it is designed to be grid-connected to the Central Electricity Board (CEB). This pilot project represents a significant step in the company’s full-scale trials scheduled for 2026 and 2027.

Wave energy is a renewable, high-density power source generated by harnessing the movement of ocean surface waves. In Mauritius, wave energy is vital for assessing renewable energy potential, informing coastal protection against erosion and planning marine infrastructure. This project aligns with the United Nations (U.N.) Sustainable Development Goals (SDGs). 

It contributes to the implementation of the European strategy, as defined in the Strategic Research and Innovation Agenda for Ocean Energy (SRIA) 2024. Seaturns is also supported by the FRANCE 2030 program, run by Business France. This project aims to keep Mauritius on the path to a better future since it gained independence.

Staying Above the Poverty Line

Mauritius has been above the poverty line since the late ’80s. By changing the trajectory it was on after gaining independence in 1968, the country set poverty on a path toward eradication. By 2017, extreme poverty had been virtually eradicated. 

In recent years, poverty has remained relatively stable at around 7%. With Seaturns being developed with support from the local company Taylor Smith Group, the project aims to create local job opportunities within the maritime sector.

Seaturns’ Goals

The Seaturns technology features a floating, cylindrical buoy that harnesses wave motion for power generation. Choosing Mauritius was a strategic choice for Seaturns. Mauritius is an island country in the Indian Ocean, east of Madagascar and has high-potential, consistent wave energy resources and a commitment to change. 

The project is part of the Mauritius Renewable Energy Agency (MARENA) initiative. The initiative supports Mauritius’s energy transition, aims to expand to 10 MW in the future and seeks to establish Mauritius as a regional hub for wave energy technology in the Indian Ocean. In 2025, Mauritius emitted 6.96 megatonnes of CO₂e.

Mauritius relies heavily on fossil fuels, mainly oil and oil products. In 2023 alone, the total energy supply in Mauritius accounted for nearly 62%. With Seaturns providing a clean energy solution, the project helps decrease the island nation’s dependence on imported fossil fuels and reduce greenhouse gas (GHG) emissions from electricity generation. With a goal of reducing GHG emissions by 40% by 2030, Seaturns is a stepping stone for other countries to follow Mauritius’ footsteps. 

Countries have the opportunity to learn from this pilot project in Mauritius and become active in lowering their GHG emissions while advancing the blue economy.

The Blue Economy

The blue economy is the sustainable use of ocean, sea and coastal resources for economic growth, improved livelihoods and jobs while preserving the health of marine ecosystems. Mauritius joined this economy in 2013 to become a large ocean state and updated that goal in 2023. Being surrounded by water, Mauritius has a high economic dependence on the ocean relative to its landmass, which has driven its interest in ocean energy.

This economy is vital for poverty reduction in Mauritius, aiming to diversify beyond tourism and sugar by leveraging its large Exclusive Economic Zone. The Mauritian ocean economy contributed 10% to 12% of GDP in 2026. Given that the ocean economy is relatively new, Mauritius is seizing the opportunity to expand in a positive direction.

With the ocean economy growing 2.5 times since 1995, outpacing other global sectors, wave energy is yet another stepping stone toward combating climate instability. Wave energy provides a consistent, renewable and emission-free source of electricity.

Final Remarks

Ocean energy is a relatively new, untapped renewable energy source. It has the potential to cut GHG emissions by up to 3.60 gigatonnes per year in 2050. As countries implement more stringent measures to limit GHG emissions, using renewable resources is a key element toward a better future. 

– Elizabeth Fryer

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

Photo: Wikimedia

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Grassroots Groups Driving Women’s Empowerment in Haiti

Women's Empowerment in HaitiGrassroots groups driving women’s empowerment in Haiti are addressing the deep intersection of poverty and gender inequality in one of the most economically challenged countries in the Western Hemisphere. More than 60% of Haiti’s population lives below the poverty line, with more than 25% in extreme poverty. Despite these conditions, women remain active in the workforce, with a labor force participation rate of 58.3% compared to 69.7% for men. 

However, economic participation has not translated into equality. Haiti ranked 163rd out of 170 countries on the Gender Inequality Index and its Gender Development Index score of 0.898 falls well below the regional average of 0.963. These figures highlight that women contribute significantly to the economy but still lack access to resources, financial security and decision-making power.

Barriers Facing Women in Rural Economies

Women in Haiti face persistent structural barriers that limit their economic advancement. In rural areas, where agriculture supports nearly half of the workforce, women play a central role in farming and household management but often lack access to land, credit and formal markets. Environmental challenges such as drought, soil degradation and limited infrastructure further reduce productivity and income stability. 

Cultural norms also restrict women’s participation in leadership and higher-paying sectors. For example, in the fishing industry, women are often confined to processing and selling fish while relying on fishermen for supply, which limits their bargaining power. These overlapping challenges reinforce cycles of poverty and economic dependence.

Grassroots Solutions Creating Economic Opportunity

Grassroots groups in Haiti are responding to these challenges through community-led, cooperative-based solutions. One example is the Women’s Initiative from The Haiti Project, which supports women in the rural village of Chermaitre. The initiative began when women came together to share their experiences of hardship and resilience, eventually forming the Chermaitre’s Women cooperative.

This program focuses on developing business skills, strengthening collaboration and creating sustainable income opportunities. By centering local leadership, the initiative ensures that women actively shape their economic futures and build solutions tailored to their community’s needs.

Women’s Empowerment in Haiti

The cooperative model combines economic opportunity with long-term social empowerment. Women in the Chermaitre’s Women cooperative produce goods such as coffee, peanut butter and handmade crafts, including textiles and jewelry, which they sell in local and international markets. By pooling resources and sharing profits, the cooperative reduces financial risk and increases collective bargaining power. 

Women use their earnings to pay school fees, invest in agriculture and improve household stability, particularly during periods of environmental stress. Participation also builds financial literacy, confidence and leadership skills. This creates a clear chain of impact: income leads to independence, independence strengthens decision-making power and decision-making power increases women’s influence in their communities. 

In this way, these grassroots organizations empowering women in Haiti transform economic participation into meaningful advocacy.

The Impacts of Grassroots Cooperatives on Women

The success of this model reflects a broader global pattern in which grassroots women’s cooperatives drive sustainable development. Evidence shows that cooperatives increase income while also expanding leadership capacity by giving women opportunities to make decisions, manage finances and resolve conflicts. Many women in these groups take on leadership roles for the first time, helping to challenge traditional gender norms. 

These cooperatives also support environmental sustainability through activities like reforestation and soil restoration. Globally, gender equality is essential to achieving development outcomes, including poverty reduction, food security and climate resilience. In fact, empowering women is considered critical to achieving all 17 Sustainable Development Goals (SDGs), reinforcing that economic inclusion drives long-term progress.

Funding Gaps Limit Grassroots Impact

However, despite their effectiveness, grassroots organizations in Haiti face significant funding challenges. For instance, of the total $6.43 billion invested in Haiti’s development from 2010-2012, only 0.6% of that funding has gone directly to Haitian-based nonprofit organizations. At the same time, 90% of women-led and women’s rights organizations globally report experiencing funding cuts.

Despite limited resources, grassroots groups in Haiti continue to strengthen leadership, improve safety for women and girls and respond to ongoing crises. This imbalance highlights a critical gap: the most effective, community-based solutions often receive the least financial support. Expanding direct investment would allow these organizations to scale their impact and reach more women.

A Path Toward Sustainable Change

Ultimately, women’s grassroots groups in Haiti demonstrate that economic empowerment can drive lasting social change. Programs like the Women’s Initiative show that when women gain access to income, skills and leadership opportunities, they do more than support their families; they strengthen entire communities. Expanding support for grassroots, cooperative-based initiatives offers a clear pathway toward reducing poverty, advancing gender equality and building a more sustainable future for Haiti.

– Kianna Hines

Kianna is based in Brooklyn, NY, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Poverty Reduction in Vietnam

Poverty Reduction in VietnamSince the Vietnam War, the country faced severe poverty, with major upheavals leaving many people struggling until around 1990. Since then, however, it has taken significant steps to transform itself into a dynamic and developing nation rather than one defined by poverty. Three key approaches to reducing poverty from the late ’90s to the present are economic growth, agricultural development and poverty reduction programs.

Economic Growth

Economically, Vietnam has reduced poverty over the past decades through several key strategies, including the introduction of the Đổi Mới reforms and increased participation in international trade. Initiated to shift the country from a centrally planned system to a more market-oriented economy, these reforms allowed individuals to start businesses, supported agricultural workers and attracted foreign investment.

International trade expanded significantly not only because of the Đổi Mới reforms but also because Vietnam joined the World Trade Organization (WTO) in 2007. This move introduced new trading partners, including the U.S. and the European Union. It opened the door to new economic opportunities, advanced technology and business growth.

By transforming its economy in these ways, Vietnam created more financial opportunities and improved living conditions for its people. These changes helped many communities rise out of poverty and move toward a more stable and prosperous future.

Advancing Agriculture

Another way Vietnam has reduced poverty is by developing its agricultural sector. The government promoted household farming, which significantly increased productivity, created jobs and improved food distribution. These changes began with the Đổi Mới reforms and continued to expand in the years that followed. 

Vietnam transformed from an impoverished nation into one of the world’s leading rice exporters. As global demand for rice grew, incomes for agricultural workers increased. Access to personal land also made it easier for people to find work and earn a stable income, reducing barriers related to location and job availability.

Overall, the growth of agriculture played a major role in reducing poverty, with poverty declining by about 1–2% per year.

Poverty Reduction Programs in Vietnam

Vietnam has alleviated poverty by implementing various poverty reduction programs in recent years to prevent its recurrence. These include the National Target Program on Sustainable Poverty Reduction (2021–2025) and the National Targeted Program on New Rural Development (NTP-NRD).

Vietnam’s National Target Program on Sustainable Poverty Reduction focuses on reducing poverty among the poorest regions and ethnic minorities. The program aimed to halve the number of poor and near-poor households by 2025. It supports projects like infrastructure, livelihood programs, vocational training, housing and access to social services to improve living standards and reduce inequality.

The NTP-NRD is a program designed to modernize rural areas in Vietnam by improving education, healthcare, income and livelihoods, while also reducing poverty. It focuses on supporting communities that have not experienced significant economic progress over the past decade, particularly those in areas with limited access to resources and services. The program extends to more than 9,000 communes across all 63 provinces in the country.

Final Remarks

Over the past decade, Vietnam has made significant strides in improving living conditions, transforming from widespread poverty to a country admired for its progress. The nation has advanced across diverse sectors, including economic and agricultural development and the implementation of various social programs.

– Danielle Johnson

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

Photo: Flickr