Archive for category: Economy

Information and stories about economy.

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Seaweed in Indonesia: How a Plant Can Reduce Poverty

How Poverty Is Being Reduced by Seaweed in IndonesiaSeaweed is becoming a growing industry globally and Indonesia has become the second-largest seaweed producer in the world. Located between the Indian and Pacific oceans, Indonesia comprises more than 17,000 islands, making its vast coastlines a prime location for growing seaweed. Indonesia sits within the world’s largest archipelago, making seaweed production a year-round industry. The country has centered its economy around this sector, which has helped boost its GDP.

How Seaweed Reduces Poverty in Indonesia

Global demand for seaweed is rising as the product gains recognition for its low cultivation cost and short production time and Indonesia’s exports are expected to continue climbing. With more than 267,000 families depending on seaweed farming for income, the industry has become vital to the region. The industry is generating employment, allowing the economy to grow at a time when other job opportunities along the coastlines have become scarce. It also provides an alternative food source for people in the region, aligning with the United Nations (U.N.) Sustainable Development Goals (SDGs). 

Indonesia’s Economy

Indonesia’s economy has experienced ups and downs throughout its history, but it has recently been undergoing a period of growth. The country has employed macroeconomic policies, focusing on creating better jobs within the middle class that will lead to improved standards of living. 

One of the markets responsible for Indonesia’s economic growth is seaweed. Indonesia’s seaweed production capacity is second only to China’s. It has become an industry that is integral to the many coastal communities in the country, where these families depend on seaweed farming to live. As a result, seaweed farming in Indonesia has helped reduce poverty and bolster economic growth. 

Seaweed from Indonesia is gaining global popularity, creating a higher demand for the product. The country’s trade exports have steadily increased, contributing to economic growth. This growth is largely due to the rising value of the seaweed trade and Indonesia’s consistently lower price per ton compared to competitors, giving the country an opportunity to increase its economic gains and invest further in infrastructure.

Current Challenges

The seaweed industry is currently facing three challenges that limit its capabilities to expand even further. The first is its limited processing capabilities domestically, which local farmers can potentially resolve by investing in processing infrastructure. Currently, Indonesia can produce seaweed cheaper than any other country, but it does not have the same processing capabilities as its competitors.

Its second challenge is an inefficient supply chain, which stems from the issue of scale. Due to the relatively recent boom in the seaweed industry, seaweed farmers in Indonesia are not used to producing on this large a scale. They are currently addressing this issue by standardizing the process in an effort to create more uniformity across the industry. The third challenge it is facing is weakened compliance with international standards, which reduces consumer confidence in the product. Indonesia is addressing this by developing national standards that all seaweed farmers must follow. While the country is facing challenges, they are actively developing policy and infrastructure designed to combat these challenges and continually grow the industry as well as its economy. 

Looking Forward

As Indonesia continues to develop its infrastructure and policies, it can further expand its economic growth. Seaweed has become an integral part of life, as thousands of families rely on the product for income. Due to the industry’s growth, many citizens in coastal regions have been able to improve their livelihoods.

– Olivia Peters

Olivia is based in Newport, RI, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Oman’s Poverty Eradication: A Global Model for Ending Poverty

Oman’s Poverty EradicationIn May 2025, Oman became one of the first countries in the world to completely end extreme poverty. According to the National Centre for Statistics and Information, no one in the country is living on less than $1.25 a day which is the global line for extreme poverty. Other countries now see Oman’s poverty eradication efforts as a model to follow.

Oman guided its fight to end poverty through a national plan called Vision 2040. It focuses on improving education, creating more jobs outside of oil and helping people in every part of the country. Another plan, called the 10th Five-Year Development Plan, helped turn these goals into real projects. As of 2025, Oman has completed 95% of the programs in the plan and invested more than $28 billion to help improve people’s lives.

Expanding Social Protection

A big part of Oman’s poverty eradication came from a new social protection law. This law, which started in 2024, created a national program to give financial help to more than 1.5 million people. Families now get support for children, seniors, people with disabilities and workers who lose their jobs. The program is paid for by the government and makes sure no one is left behind. Oman also worked closely with international groups like the United Nations International Children’s Emergency Fund (UNICEF). Together, they launched a Child Protection Guide to keep children safe and supported across the country.

Investing in Education, Health and Housing

Oman has made big improvements in education and health. The country now ranks among the top 20 in the world for how much it spends on each student and nearly 98% of adults can read and write. Health care is free for all citizens and new hospitals and digital systems are making care even better. Housing is another important part of reducing poverty. Oman has given money to thousands of low-income families to help them build or fix homes. The country is also building Sultan Haitham City, a new city with 20,000 homes, schools, parks and clean energy. It will house 100,000 people once finished.

Looking Ahead

Even with all this spending, Oman has managed to keep its finances under control. It used oil money wisely, paid off debts and still had enough left to support the country’s programs. In fact, its credit rating was upgraded in 2024, suggesting higher levels of trust from global investors. Oman tracks its progress using the United Nations’ Sustainable Development Goals. These goals help countries measure how well they’re doing on issues like poverty, education and health care. Oman has met or is close to meeting many of them.

– Cameron Jones

Cameron is based in Hendersonville, TN, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Everything to Know About Poverty in Italy

Poverty in italy
Poverty in Italy remains a challenge the country faces. Italy has an older population and not great job opportunities, and has seen an increase in poverty in recent years. The COVID-19 pandemic has worsened the trend in recent years. However, the issue of poverty in Italy has been an ongoing problem for a long time, with a slight population decline and a stagnant economy. Here is everything to know about poverty in Italy.

Poverty Rate

According to Reuters, the poverty rate has risen to  9.8% or 5.1 million people in 2023. One contributing factor can be the COVID-19 pandemic, Reuters notes, which caused a health crisis and a slowdown in economic recovery. The hardest hit regions in Italy in regards to increased poverty are in the south at “12.1,” lower in the center and the north. The COVID-19 pandemic caused a deeper health disparity, disproportionately hurting the poor. The poor were hit the hardest economically than those who were not. Among the older population group, the poor lack the resources they need than those who are not poor.

Poverty in Italy affects 5.1 million Italians living below the poverty line. Euro News reported that 2.18 million families also live below the poverty line as of 2023. Meanwhile, in southern Italy alone, 56% of the population lives in poverty.

A significant number of families in Italy are in poverty, representing almost half of the total people living in poverty. Most Italians living in poverty are predominantly in southern Italy. 

Aging Population

Another issue with poverty in Italy is the recent rise in poverty, Italy is due to the aging population. Italy’s median age is 48.4 years old. The older the population of a country, means more retirees and a decline in the workforce. This could lead to a strain on the economy and force government action to help its citizens in need.

All of the economic indicators in Italy show that the economy will likely experience slower growth in the coming years due to a continued increase in the elderly population, which will continue the slower economic trend. When Italy’s population begins to contract, it will create new challenges to Italy’s economy. 

The Economy

The economy in Italy is slowly growing, with its annual GDP at 0.7% in 2024. The unemployment rate is steadily high at 6.8%. The GDP per capita is $39,003.30, which indicates a low GDP output per person. The average person in Italy’s per capita GDP is considered poor because many citizens don’t make enough and therefore cannot afford to spend as much, only spend on essential needs to get by.

Italy’s increase in poverty reflects the recent events that have unfolded, which have naturally created worsening economic conditions. The COVID-19 pandemic worsened the impact on Italy’s economy due to the shutdown, which the economy has not yet fully recovered from. 

Southern Italy, in particular, is the poorest area in Italy because it lacks job opportunities compared to the center and the north. The economy in the south relies on agriculture, which tends to have lower income and little economic activity. 

Solutions

The Italian government approved the first income initiative called the Inclusion Income in 2017. Since its implementation in 2017, the program has been reformed twice. The government implemented the newer program in 2024, and the new initiative is called the Inclusion Allowance to help people in need.

Almost 40% of its citizens are covered under the program, and almost half of Italy’s population benefits. The program provided supplemental income to the disadvantaged population in the country, particularly families. The citizens who work but are poor are also qualified for the program. Many of the people in need who will benefit from the program are from the south. The government of Italy has partnered with the World Bank to implement the initiative because of its goal to fight against poverty. The effect the program has is to lift people out of poverty, and approximately “8,000 communities” in Italy use the inclusion allowance for those in need. The initiative would help boost economic upward mobility.

Looking Ahead

In the case of poverty in Italy, the poverty rate could likely increase under the current conditions the country faces from its aging population and a stagnation of economic conditions. Even though the COVID-19 pandemic is not the primary cause of the ongoing poverty struggle that Italy faces, it has not helped the situation either. There is no easy fix to the problem, but there are solutions that will take time to see results. The Italian government has taken action. Their initiative for implementing a national income program is helping to improve people lives in need to get out of poverty. 

– Michael Glaser

Michael is based in Brookfield, WI, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Economic Conditions in Syria After International Sanction Relief

A Look at Economic Conditions in Syria After Sanction Relief Despite continued instability, reinvestment initiatives increased in Syria after international sanction relief. The Syrian civil war has entangled the country since 2011, causing significant loss of life, mass emigration and destruction of the nation’s security and development. Before the conflict, poverty in Syria was 33%. However, it has almost tripled to 90% in 2025. Furthermore, extreme poverty is six times higher than before the conflict, going from 11% to 60%.

On May 21, 2025, the European Union (EU) announced its decision to lift its economic sanctions on Syria. On May 23, 2025, the U.S. Office of Foreign Assets Control (OFAC) issued the Syria General License (GL) 25, authorising transactions previously prohibited by the Syrian Sanctions Regulations. 

Alongside this, the U.S. State Department issued a 180-day waiver of the Caesar Act, effectively lifting sanctions until a bipartisan bill is passed through Congress repealing the act completely. The sanctions existed as a result of human rights violations from the Syrian Assad regime, which was removed from power six months prior. Since the U.S. and EU lifted sanctions on Syria, the country has experienced increased reinvestment in infrastructure and businesses.

Background: Syria’s Long Conflict and Economic Toll

The Syrian Civil War began in 2011, when Arab Spring protests erupted across the nation against the Assad regime. By September that year, it had developed into a militarised conflict. The Civil War consisted of multiple campaigns, including both violence between the government and opposition forces, in addition to coalition efforts against Islamic state forces. Moreover, Turkish operations against Syrian Kurds introduced further conflict. On 8 Dec. 2024, Hay’at Tahrir al-Sham (HTS) forces, supported by the Turkish-backed Syrian National Army, deposed Bashar al-Assad during a major offensive in Damascus.

The Assad family had been in power for 54 years, with Bashar al-Assad succeeding after his father’s death in 2000. Human rights violations, mass atrocities and war crimes characterised the family’s authoritarian rule. Despite his ousting, war continues to flog the country. In a report from the United Nations Development Programme (UNDP), an estimated that $800 billion in GDP has been lost over 14 years of conflict.

Finance Sector Shows Signs of Recovery

In spite of current conflicts in the country, Syria continues to show small signs of economic rejuvenation. After a six-month closure, the Damascus Securities Exchange reopened on June 2, 2025, as the transitional government attempted to bolster the economy in Syria after international sanction relief. On June 17, 2025, Syria announced that the country had completed its first electronic transfer in 14 years with a European bank. The SWIFT system is a global network for electronic transfers between banks, showing that in the wake of recent sanction reliefs, Syria is taking steps back into the international market and community.

The governor of Syria’s Central Bank, Abdulkader Husrieh, said in a statement: “This step represents gradual progress toward reintegrating the Syrian financial system into global financial channels.” 

New Energy Deal Aims to Revive Power Infrastructure

Syria’s 14-year civil war utterly ravaged its power grid, leaving people in daily bouts of blackouts, which can last upwards of 20 hours. Furthermore, the fighting has damaged 70% of power plants and transmission lines, causing a fall in energy production by 80%. On May 29, 2025, the Syrian transitional government signed a $7 billion energy deal with a consortium of Qatari, Turkish and U.S. companies to reinvest and revive Syria’s war-decimated power sector. The consortium, led by Qatar’s UCC Concession Investments, aims to generate 5,000 megawatts of energy as well as create more than 50,000 direct and 250,000 indirect jobs.

Using U.S. and European technology, developments include four gas-powered plants in central and eastern Syria and a 1,000-megawatt solar farm in the south. The U.S. Special Envoy for Syria, Tom Barrack, said: “This agreement represents a landmark step in Syria’s path to reconstruction and energy security. “This consortium will promote  stability, infrastructure development and economic recovery and deliver tangible results for the Syrian people.”

Oil Exports Resume After Years of Sanctions

Syria’s crude oil is typically ‘heavy’ and has a high sulphur content, requiring alternative refinery methods. This made the Syrian economy more dependent on crude oil and gas exports to foreign markets, typically EU markets, accounting for 25% of government income. According to the European Commission, European countries imported more than $3 billion worth of oil from Syria in 2011. Overall, Syria produced 383,000 barrels of oil and 316 million cubic feet of natural gas every day.

Sanctions placed on Syria by the EU, as well as other countries, limited the number of markets available to export to and process Syrian oil. This resulted in a shrinkage of government revenue and worsening of impoverished conditions. On June 18, 2025, Syria resumed exports of refined petroleum products from its main refinery located in Banias after months of closure.

The restarting of oil exports follows the deposition of Bashar al-Assad, as well as interruptions of crude oil supplies from Iran. The state-owned Syria Trading Oil Company (Sytrol) announced that an initial cargo of 30,000 metric tonnes of petroleum products departed from the Banias refinery for foreign markets. It marks an important development in restoring the petroleum industry in Syria after international sanction reliefs.

World Bank Project to Rebuild Regional Power Links

On June 24, 2025, the World Bank approved the Syria Electricity Emergency Project (SEEP), which will restore Syria’s regional connectivity to Jordan and Türkiye through the revival of high-voltage transmission lines, including two vital high-voltage interconnector transmission lines. Likewise, it will repair damaged high-voltage transformer substations near demand centres in the most impacted areas and provide technical assistance and investment plans to inform policy and regulatory reforms for long-term sustainability.

In a statement about SEEP, H.E. Yisr Barnieh, the Minister of Finance at the World Bank, said. “Electricity is a foundational investment for economic progress, service delivery and livelihoods. “This is the first World Bank project in Syria in almost four decades. We hope it will lay the ground for a comprehensive and structured support program to help Syria on its path to recovery and long-term development.”

Looking Ahead

Overall, recent events in Syria suggest that the country is heading down the right path in certain regards. While the country continues to contend with instability from both its transitional government and forces who are still in combat, it has shown resolve and strides of change in Syria after international sanction relief.

Abdallah Al Dardari, the UNDP Assistant Administrator and Director of the UNDP Regional Bureau for Arab States, said: “Syria’s future hinges on a robust development recovery approach. This demands a comprehensive strategy addressing governance reform, economic stabilisation, sector revitalisation, infrastructure rebuilding and strengthened social services. By implementing these interconnected reforms, we can help Syria regain control over its future, reduce reliance on external aid and pave the way for a resilient and prosperous future for all in Syria.”

– Samuel Devine

Samuel is based in Cardiff, Wales and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Improving Economic Stability in Bangladesh

Economic Stability in BangladeshSince gaining independence in 1971, Bangladesh has seen impressive economic growth, with an average gross domestic product (GDP) growth of 6.4% between 2010 and 2023. Poverty has even declined to 5% since 2022. However, there is still work to be done to improve the economic stability of Bangladesh so that the country can thrive.

Challenges

Bangladesh faces several obstacles on the path to upper-middle-income status. The financial sector faces numerous issues, including rising inflation and a balance of payment deficit. Private sector credit growth has decreased due to “tighter liquidity conditions, reduced demand for trade finance, and rising uncertainty.” In 2023, Bangladesh Bank’s reports showed an increase in loans written off, unpaid, or rescheduled, a detriment to economic stability in Bangladesh.

The industrial sector has taken a hit in tandem with Bangladesh’s financial woes. Due to disruptions in imports, high energy prices, and power shortages, production has slowed to a crawl. Furthermore, because of rising inflation, demand for products has decreased. GDP growth declined from 7.1% in 2022 to 6% in 2023.

Despite these challenges, Bangladesh’s young population, expanding digital economy, and ongoing infrastructure projects offer a path forward. With strategic reforms targeting financial stability and industrial resilience, the country still has a real shot at breaking free from these constraints and reaching its development goals.

Solutions

Bangladesh needs to strengthen trade competitiveness through reform to improve the financial sector. Suppose Bangladesh expands its export markets, develops trade skills, and monitors performance. In that case, its economy may improve through a diverse collection of imports made by a skilled workforce.

Another way to improve economic stability in Bangladesh would be to enhance domestic resource mobilization by deepening local capital markets. This would promote alternative solutions without a reliance on foreign capital. In addition to reforms necessary to improve stability, a group also aids low-income regions locally where poverty persists.

The Pathways to Prosperity for Extremely Poor People

The Pathways to Prosperity for Extremely Poor People (PPEPP) is a project focusing on poverty reduction within villages in Bangladesh. From October 2022 to September 2025, the project’s mission is to provide low-income districts with three important tools:

  • Sustained livelihoods and income 
  • Improved nutritional habits, primarily among women and children
  • Improved access to agricultural services to promote labor and receive wages

In addition to these objectives, the PPEPP project focuses on clean resources for impoverished districts, working to improve water salinization.

Between the broader solutions for banks and businesses and the narrower solutions taking place in their homes, Bangladesh has the potential to achieve upper-middle income status. Due to the change in government in 2024, Bangladesh has taken strides to improve economic stability. However, the risks to stability are still prominent. Therefore, if Bangladesh hopes to achieve upper-middle income status, its government has to be careful how it conducts itself in the future in these uncertain times.

– Matthew Perduk

Matthew is based in Chantilly, VA, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Vocational Education Training Centers in Singapore 

Vocational Education Training Centers in SingaporeSingapore, a country that claimed independence from its colonial origins in 1965, is a budding country that has an extraordinary amount of economic and educational opportunities. Just decades after its independence, the country has begun its rapid development, topping the charts as one of the world’s highest GDP growth in recent times. From face value, it seems that Singapore’s growth was almost magical. However, many scholars and experts attribute vocational education training centers in Singapore with its growth, and this article takes a closer look at these institutions.

History of Singapore

Singapore’s growth does not come without issues. Before its independence, the British ruled Singapore, who saw the country as a trading center and did not have any interest in improving the region itself. During independence, Singapore’s citizens had an average income of $500. More than 70% of the citizens lived in poor conditions, and Singapore faced double digit rates of unemployment. During this time, Singapore wanted to design a formalized form of education in order to begin its industrialization and growth. Vocational education, which is a form of education that teaches individuals practical skills for the workforce, was an opportunity to swiftly equip Singapore’s population with the skills necessary for economic growth, and vocational training centers in Singapore were perfect for this task.

A New Future

In 2015, Singapore launched the SkillsFuture Initiative, a national movement that emphasized the need for skills relevance and paved the way for more vocational education. From there, vocational education training centers in Singapore began to form in all regions of Singapore in order to serve all demographics.

Singapore’s most major vocational education center is the Institute for Technical Education. This institution reformed curricula, created new initiatives and created a closer tie with the workforce and education. These institutions, alongside others, are responsible for the massive growth that Singapore’s economy has been going through because it teaches its citizens technical skills that can help benefit themselves and the country.

The Impact

The impact of Singapore’s vocational education training centers has been profound. Once vocational education began to improve with the newly elected government, benefits began to appear. Indeed, by 2005, graduates of vocational education centers had an employment rate of 90%, marking it one of the highest in the world.

The impact goes beyond individuals. By creating an educated population that understands the workforce and economy, Singapore has effectively created a workforce that wants to improve its own country. Technological innovation, medicine breakthroughs and manufacturing booms were the result of a workforce that is quickly growing in quantity and quality. 

The Next Steps

The impact of vocational education training centers in Singapore has only just begun. Indeed, considering the short history of Singapore, experts project that the economy will only improve. Furthermore, as it is looking more towards expanding into the global market through its highly qualified workforce, more and more major companies are considering doing business in this small yet mighty country.

This will result in more economic growth and opportunities for the people of Singapore, and it is through that, the lives of the people in Singapore will continue to improve at impressive rates. What was once a region mistreated by its colonial owner has transformed into a hub of technological growth and global leadership. On top of topping the charts for impressive GDP growth, Singapore is a country that has improved each of its citizens’ lives through a transformed economy. 

Due to a national movement that involved teaching Singaporeans technical skills, the vocational education centers have effectively transformed the area into the bustling region it is today.

– Kallen Zhou

Kallen is based in Hattiesburg, MS, USA and focuses on Business and Technology for The Borgen Project.

Photo: Wikimedia Commons

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The Divide Between Wealth and Poverty in Abuja

poverty in abujaNigeria, Africa’s most populous nation, has one of the youngest populations in the world, with more than 50% of its citizens aged less than 30. However, survival is a daily struggle for the majority due to limited opportunities and weak job creation. Nigeria’s social and economic situations have made migration attractive to the youth, with more than 3.6 million Nigerians leaving the country between 2022 and 2023.

Similarly, internal migration has become a growing trend in Nigeria, as those without the means to move abroad relocate to urban centers in pursuit of greener pastures. According to the United Nations (U.N.), approximately 49% of Nigerians now live in urban areas compared to 16% in 1960, highlighting the significant shift toward urbanization over the decades.

Internal Migration to Abuja

With terrorism, banditry and kidnappings in the north, along with separatist agitations in the southeast, internal migration to Abuja has been on the rise, especially among those who prefer it over Lagos. Abuja, Nigeria’s capital, is often seen as a city of wealth and opportunity. Skyscrapers, luxury estates and high-end shopping malls paint a picture of prosperity. However, beyond this facade lies a harsh reality for many residents. While the city continues to grow economically, this growth benefits only a small fraction of the population.

Poverty in Abuja

For the majority, poverty in Abuja is a daily struggle. Following a change in administration in 2023, Nigeria’s government removed fuel subsidies and floated the currency, increasing the nation’s inflation rate to more than 30% in September 2024. The government announced a new minimum wage of $43 per month in July 2024 to ease the financial burden on its citizens. However, it has yet to be implemented for primary school teachers and nurses in the Federal Capital Territory (FCT).

Consequently, more than 50% of people living in Abuja experience poverty, according to the Global Data Lab. Low-income earners, including cleaners and security guards, are the most vulnerable. Housing costs are exorbitant, with rents for studio apartments in Abuja ranging from $1,000 to more than $1,300 per year. Meanwhile, the average Nigerian employee earns less than $1,000 annually, forcing many into overcrowded slums or makeshift housing.

Despite Abuja’s reputation as a thriving metropolis, its wealth remains concentrated in the hands of a few, leaving the rest to struggle to make ends meet.

No Middle Ground

Abuja’s wealth gap is striking. In upscale areas like Asokoro and Maitama, luxury cars ply smooth roads, while nearby communities like Mpape and Dakibiyu struggle with poor infrastructure, scarce clean water and unreliable electricity. This stark contrast reflects the deep economic divide, where prosperity is concentrated among the few while many struggle to make ends meet.

The wealthiest 20% of Nigerians control 42% of the national income, while the most impoverished 20% share a mere 7%. This imbalance suggests that economic opportunities are disproportionately accessible to the affluent, leaving a significant portion of the population struggling to ascend the economic ladder.

Increased inflation has reduced purchasing power, making necessities harder to afford. The financial strain has sparked public outcry, with protests in major cities, including Abuja, as citizens demand relief from soaring living costs.

Can Change Come?

The Federal Government of Nigeria has implemented several economic reforms, including devaluing the Naira to stabilize the economy. However, these measures have also contributed to increased living costs, prompting debates about their efficacy and impact on the vulnerable population, especially those in the informal sector.

Therefore, nongovernmental organizations (NGOs) like Oxfam have highlighted the urgency of implementing progressive taxation and increasing social investments to bridge the widening economic divide. In pursuit of this goal, Oxfam actively works to enhance livelihoods, promote gender equality, strengthen governance and deliver humanitarian aid, all while creating sustainable economic opportunities for vulnerable populations.

Another NGO, the Ambience of Hope Exceptional Foundation, launched Operation Feed Abuja Municipal Area Council in December 2023, targeting vulnerable people in the city. The foundation distributed food items, sewing machines, generators, wheelbarrows, hair dryers, grinding machines, and more to uplift residents. Similarly, in 2024, the World Bank committed $12.2 billion to Nigeria’s economy to drive diversified growth, job creation and social inclusion, focusing on youth, women and marginalized communities.

Conclusion

While Abuja stands as a symbol of Nigeria’s aspirations and growth, it also embodies the profound challenges of economic inequality. Observing the city’s dual realities underscores the pressing need for policies that foster inclusive growth, ensuring that prosperity is accessible to all residents, reducing poverty in Abuja.

– Staff Reports
Photo: Flickr

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Gelephu Mindfulness City: Bhutan’s Model for Poverty Reduction

Gelephu Mindfulness CityIn 2025, Bhutan launched the Gelephu Mindfulness City, a $100 billion development project to bolster economic prosperity by focusing on spiritual well-being. The project’s primary goal is to reduce poverty and youth unemployment by building an international economic hub based on the principles of Bhutan’s unique philosophy of Gross National Happiness (GNH).

Renowned Danish sustainable architect Bjarke Ingels will design Gelephu Mindfulness City, which will span more than 2,000 square kilometers near Bhutan’s southern border with India. The project aims to transform the underdeveloped Gelephu region into a thriving center of sustainable commerce, cultural exchange and holistic living.

A Philosophy of Happiness Over Pure Growth

The project’s foundation lies in Bhutan’s GNH framework, which prioritizes psychological well-being, cultural preservation and environmental sustainability alongside traditional economic development. Rather than focusing solely on financial metrics like GDP, Bhutan uses GNH to measure societal success and quality of life.

“Happiness and well-being of people must be the purpose of capitalism,” said Bhutan Prime Minister Tshering Tobgay in conversation with TIME Magazine. “We are talking about creating a new paradigm, an entirely new system of urban development.” Gelephu Mindfulness City plans to advance all four pillars of GNH: sustainable development, environmental conservation, cultural preservation and good governance.

The project will employ green infrastructure, Buddhist architectural motifs, wellness centers and organic agriculture in all construction and community planning. This is part of a broader strategy to boost quality of life and address the root causes of poverty.

Job Creation Through Holistic Infrastructure

More young people are entering the workforce in Bhutan than the economy can absorb. Gelephu Mindfulness City aims to address this problem by creating thousands of jobs across construction, education, hospitality, agriculture and the wellness sector. The city will include schools and universities focused on sustainability, health and traditional knowledge. The plan aims to create short-term employment and long-term professional pathways for Bhutanese citizens.

The project also hopes to attract foreign direct investment through its designation as a Special Administrative Region. This status allows Gelephu to adopt more flexible policies and business regulations than the rest of Bhutan, to encourage ethical investment aligned with Bhutan’s values. The region will screen potential businesses and investors based on their respect for Bhutanese culture and commitment to sustainable and equitable development before extending an invitation to do business in the city.

Sustainability as an Economic Engine

Gelephu Mindfulness City plans to become a global blueprint for mindful urbanism, leveraging ecological integrity to increase economic inclusion. The city will feature renewable energy sources, pedestrian-first planning and strict limits on pollution. Organic markets and traditional healing centers will support local farmers and artisans, further stimulating small business development. These plans aim to attract climate-conscious businesses and tourists while preserving Bhutan’s pristine environment.

The emphasis on sustainability is particularly well-suited for the Gelephu region, a large flatland situated among the Himalayan foothills. Bhutan’s famously rugged terrain and limited industrial capacity render sustainable development the most viable long-term growth strategy. Sustainable transportation also plays a central role in the plans, with neighboring India committed to connecting border towns to the region via railway and improving roads in and out of Bhutan.

A Strong Likelihood of Success

Bhutan’s credibility in launching the Mindfulness City stems from its long-standing success in aligning development with environmental goals and overall well-being. The country is one of the few in the world that is carbon negative. Thanks to its vast forest cover, reliance on hydropower and constitutional mandate to maintain at least 60% forestation.

Past infrastructure projects have effectively incorporated eco-friendliness and community well-being principles, such as green schools and health initiatives emphasizing holistic care. These past successful initiatives demonstrate Bhutan’s capacity to balance modern development with its commitment to Gross National Happiness and provide a strong foundation for the ambitious goals set forth for Gelephu Mindfulness City.

A Blueprint for the Global South

Gelephu Mindfulness City provides a bold example of how low- and middle-income countries might reimagine development. Rather than regarding happiness and prosperity as unrelated metrics, Gelephu Mindfulness City treats them as inextricably intertwined. By reimagining capitalism and aligning economic goals with human well-being, Bhutan proposes a revolutionary mindset shift that could improve the lives of the 99% around the globe.

If successful, this model could inspire similar initiatives across the Global South, particularly in regions where conventional economic growth has failed to address deep-rooted inequalities. As Bhutan pushes forward with this ambitious project, it offers a fresh perspective on the fight against poverty: one that values sustainability, community and joy as invaluable elements of prosperity.

– Kelsey Eisen

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

Photo: Flickr

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The Hidden Struggles of Japan’s Working Poor

Japan's Working PoorHidden beneath cutting-edge industries, technological advancements and economic resilience, Japan’s working poor is rising. Due to a lack of visibility and cultural stigma, many workers in Japan are left struggling without any safety net or means of improving their circumstances.

The Reality of the Working Poor

The term “working poor” originated in the United States (U.S.) and refers to individuals who remain below the poverty line despite being employed. More than 30% of employed individuals in Japan fall into this category. Those most affected include younger workers earning lower wages, graduates unable to secure stable employment and middle-to-older generations with limited access to skills development.

A significant factor contributing to the growing population of Japan’s working poor is the decline of Shūshin koyō or lifetime employment. This traditionally guarantees job stability from graduation to retirement. In contrast, there has been an increasing shift toward temporary and contract-based employment, leaving workers vulnerable to financial instability. Budget cuts, particularly within Japan’s civil service, have also led to an increase in irregular jobs that offer lower wages and uncertain futures.

Japan’s economic stagnation has exacerbated financial insecurity, reducing the government’s role in providing social welfare and emphasizing individual responsibility more. As irregular work contracts become more common, private pensions and health care benefits decline, leaving workers unprotected. Critics say “years of deregulation of the labor market and competition with low-wage China have brought a proliferation of such low-paying jobs in Japan. These jobs are “largely uncovered by an outdated social safety net, created decades ago as a last resort in an era when most men could expect lifetime jobs,” compounding the circumstances of Japan’s working poor.

Cultural Barriers

With 80% of those living in poverty included in Japan’s working poor, the country’s deeply ingrained societal norms further complicate matters. The stigma surrounding financial struggle discourages individuals from seeking government aid, even when entitled to assistance. Many people avoid discussing poverty due to concerns about social judgment or personal shame.

The concept of “invisible homelessness” is on the rise. Financially unstable workers, though employed, often resort to living in internet cafés rather than renting permanent housing. The bureaucratic complexity of accessing public assistance discourages individuals from getting the needed help.

Efforts to Combat the Issue

Government intervention has played a role in alleviating poverty through tax reforms and welfare policies. However, historically, Japan has emphasized family and community-based support rather than direct state intervention. Many relief laws, such as the 1874 Relief Regulations and the 1929 Relief and Protection Law, limited aid to only the most vulnerable individuals while excluding the working poor.

However, Japan’s welfare programs have expanded since the Daily Life Security Law (1946, revised 1950). Policymakers have now reviewed plans to increase Japan’s spousal tax deduction threshold to help relieve household financial pressures further. Additionally, in October 2021, Japan’s minimum wage increased from approximately $6.3 to $6.4. For context, Japan’s average loaf of bread costs roughly $1.58. Many argue, therefore, that this minimum wage must be increased further or that a universal “basic income” should be introduced. This would mean that the Japanese government would provide every individual with a standard fund needed to live.

However, this is contentious as there is, as yet, no other country in the world with such a system. There are concerns over where the funds could come from and objections because it could reduce the country’s work ethic. Nongovernmental organizations (NGOs) also play a vital role in supporting struggling workers. Groups such as the Moyai Support Center in Tokyo and HomeDoor in Osaka provide housing assistance, job training and community advocacy efforts. However, as these organizations are only local to certain cities and with the perpetuation of stigma, there are still members of Japan’s working poor who need help.

Key Takeaways

Japan’s working poor continue to face economic uncertainty exacerbated by stagnating wages, irregular employment contracts and deeply ingrained cultural stigma. While governmental policies and NGO efforts aim to combat the issue, lasting change requires systemic reform and societal shifts.

Expanding employment assistance can help workers transition to stable jobs with better pay and benefits and strengthening vocational training will also improve their chances of securing steady work. Critics maintain that increased state involvement is paramount for protecting wages and benefits, regardless of employment type.

Greater awareness and open conversations about financial struggles are critical for breaking the stigmas that reinforce the cycles of poverty. By fostering a culture of support and advocacy, Japan could create a future where no worker is left to struggle in financial hardship.

– Amber Lennox

Amber is based in Suffolk, UK and focuses on Business and Politics for The Borgen Project.

Photo: Pexels

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Vietnam’s Transformed Economy: The Rice Revolution

Vietnam's Transformed Economy: The Rice RevolutionIn recent history, Vietnam—a country once associated with war and humanitarian crises—has emerged as one of Southeast Asia’s most resilient and rapidly developing economies. Through agricultural innovation and strategic reforms, millions have been lifted out of poverty. At the heart of this revival is Vietnam’s rice sector, which has secured food security and turned the country into a global exporting powerhouse.

From Crisis to Recovery

Following the end of the Vietnam War in 1975, the country faced profound challenges. Widespread poverty, food shortages, devastated infrastructure and a stagnant economy threatened national survival. Humanitarian aid from countries like the United Kingdom (U.K.), Australia, Japan and the United States (U.S.) helped avert famine. The turning point came with the launch of Doi Moi in 1986—an economic and political reform policy initiated by the Communist Party. Doi Moi shifted Vietnam’s centrally planned economy toward a more market-oriented system, unlocking the potential of its agricultural sector, especially rice production.

Rice Revolution Powers Rural Prosperity

According to the Observatory of Economic Complexity (OEC), Vietnam ranks as the world’s third-largest rice exporter out of 184 countries. In 2023 alone, the country exported $3.88 billion of rice, mainly to the Philippines, Indonesia, China, Ghana and Côte d’Ivoire. Vietnam supplies more than 7 million tons annually to countries across Asia, Africa and the Middle East. Vietnam’s transformed economy depends on the Mekong Delta, often called the “Rice Bowl of Vietnam,” producing more than half of the country’s rice, accounting for 95% of its exports.

The government’s dismantling of the collective farming system and its return of land-use rights to households drove this transformation. As Dr. Matthew Morell, Director General of the International Rice Research Institute (IRRI), explained: “Vietnam contributes more than 6% of global rice production. Promoting good agricultural practices such as the ‘1 Must Do, 5 Reductions’ will help farmers reduce pesticide use and at the same time increase productivity toward sustainable rice production and gradually improve the brand of Vietnam rice.”

The government also heavily invested in rural infrastructure. Roads and electricity are used by almost 100% of the population, enabling farmers to access markets efficiently. This helped lift millions out of poverty, especially in rural provinces such as A Giang, Dong Thap and Kien Giang. During the COVID-19 pandemic, domestic rice production ensured national food security and reinforced Vietnam’s role in global food supply chains.

Beyond Agriculture: A Diversified Economy

While agriculture remains central, Vietnam has broadened its economy to include manufacturing, services and technology. The country has become a preferred destination for foreign investment in electronics and textiles, with tech companies like Samsung, Intel and LG establishing operations since 2008. In 2023, Vietnam launched its first homegrown electric vehicle brand, Vinfast, which began exporting to North America and Europe.

The Road Ahead

Vietnam’s transformed economy and current economic trajectory illustrate how agricultural reform, infrastructure investment and market liberalization can contribute to poverty reduction. Rice production remains a central driver of development, while diversification into manufacturing and technology has expanded economic opportunities. As the country aims for upper-middle-income status by 2030, ongoing efforts can potentially address rural-urban inequality, adapt to urbanization pressures and navigate shifting global dynamics. Continued focus on inclusive growth and structural reforms could shape the next phase of Vietnam’s development.

– Sebastian Llerena

Sebastian is based in Edison, NJ, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr