Archive for category: Economy

Information and stories about economy.

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Everything You Need to Know About Poverty in Chile 

Poverty in ChileChile is located on the west side of South America and is an area rich in natural resources and minerals, like copper. These resources make up a large part of the Chilean economy, making the country a relatively wealthy one – however, the wealth is not equally distributed, leaving many people living in poverty. ‘Poverty’ equates to different things in different countries; poverty in Chile includes people who struggle to afford enough food for survival and people who have to spend the majority of their income on food.

Economic Inequality and Poverty in Chile

Of all the world’s most industrialized countries, Chile has one of the highest levels of economic inequality. The wealth inequality has often been so extreme that in 2006, for example, the richest 20% of the population was earning 10 times more than the poorest 20%, leaving a large divide between people living comfortably and people living in poverty.

As so much of the country’s wealth comes from the copper industry, the economic growth does not benefit everyone, as people in rural or marginalized areas lack access to high-paying mining jobs or industrial resources. Without these roles, many citizens end up struggling to deal with the rising cost of living, and cannot easily break out of the poverty cycle.

Inequalities in Education and Work

Children face the impacts of gender and economic inequality as soon as they start school. People in different education systems have noticed that teachers in Chile often encourage boys to focus on math and science, while girls do not often access these topics. This leads to the underrepresentation of Chilean women in STEM subjects and professional roles.

The quality of a child’s education also depends on whether their family can afford a private education, creating another economic divide. This means children from richer families are much more likely to get a better education, better grades and a better job in the future than their peers with a lower socioeconomic status. Additionally, children in rural areas without internet access miss out on a lot of key learning – this was a big issue during COVID-19 lockdowns when all learning occurred online, leaving a lot of children unable to access the lessons they needed.

Student-led peaceful protests are a huge factor in changing the education systems in Chile: in 2019, high school students convinced the government to give discounts on public transport to school, and university students achieved free tuition for almost half the country. Many teachers and other workers in the education sector are also battling to give students better opportunities and more equality in their learning.

Infrastructure

Poor infrastructure in rural areas is a major issue in reducing poverty in Chile. While most urban areas are well equipped, there are many rural areas that struggle to access clean water, reliable electricity, internet connection and good health care. These areas are therefore separated from the modern economy, and the citizens have to travel longer distances and pay more money for any kind of medical help. This disproportionately affects poorer families who are struggling with the cost of living and a lack of resources.

 Improved transport infrastructure could have a big impact, by removing geographic barriers to economic activities. When travel is easier, businesses grow and more resources become available to people all over the country. As it stands, a lot of rural areas have challenges accessing these resources and end up in a poverty cycle. 

Progress Addressing Poverty in Chile

Over recent years, wages have been increasing and poverty has been decreasing, with GDP growth at 2.5% in 2024. The economic conditions of Chile are steadily improving, with help from organizations like the World Bank Group (WBG), which has supported the country’s development for more than 75 years with loans, insurance and technology. For example, the WBG is currently working on a project providing universal health care to Chileans, improving the efficiency of reliable medical care for the whole country. Families in rural areas often struggle to access hospitals and have to travel long distances only to receive very basic support. This project aims to relieve this issue and help more than half of Chile’s population by 2027.

However, poverty in Chile is still prevalent. The Chilean President, Gabriel Boric, stated, “We have reduced income poverty and multidimensional poverty to historic levels…but there are still so many people living in poverty. This is good news, but it is not news to celebrate, because the poor have to come first.” The government, as well as other global organizations, are still constantly and actively fighting to improve conditions for everyone suffering from poverty in Chile and begin to close the gap between the richest and poorest parts of the country.

– Maisy Brown

Maisy is based in Leeds, UK and focuses on Technology and Celebs for The Borgen Project.

Photo: Flickr

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Migration to Brazil and Its Effects on the Economy

Migration to BrazilFrom 1870 to 1930, between two to three million immigrants resettled in Brazil. In the early days of migration to Brazil, most settlers were Europeans. However, toward the latter ’30s, Brazil saw a massive influx of Middle Eastern and Asian immigrants settle in various parts of the country. Due to the multiple types of settlers, Brazil has become known for its rich and diverse culture, which has spread across the country. With this, Brazil’s economy greatly benefited in the mid-2010s, seeing sizable economic growth. With fewer migrants coming in the 2020s, Brazil’s economy has dipped.

Economic Benefits

Immigration to Brazil has led to many economic benefits across the financial landscape. According to the Inter-American Development Bank (IADB), when Brazil sees an increase in immigration, it could see up to a 35% increase in total imports. The IADB concluded through a specialized study that an increase in the Haitian population led to a 6% increase in exports to Haiti.

Brazil has also been the relocation destination of more than 100,000 Venezuelan refugees. Through a government initiative, the country relocated them to the border of Roraima, where they received access to proper housing, food and jobs. A 2021 follow-up survey of 2,000 Venezuelans found they took advantage of education and housing opportunities during their relocation, with eight in 10 adults securing employment or starting businesses.

Migrant Challenges

While migration to Brazil has brought people from all over the world, many struggle not with reaching the country but building a sustainable life once they arrive. Due to inadequate asylum procedures and limited proficiency in Portuguese, many migrants face challenges in their early days in Brazil.

Recognizing the inequality of opportunity for migrants in the Brazilian workforce, foreign agencies such as the United Nations High Commissioner for Refugees (UNHCR) have looked to create initiatives in Brazil to immerse migrants into formal work.

Brazilians of Lebanese Descent

Home to the world’s largest Lebanese diaspora, Brazil is estimated to have between seven and 10 million people of descent, according to Brazil’s Ministry of Foreign Affairs. Migration from the Middle East, primarily Lebanon, began in 1870, deeply integrating Lebanese culture into Brazilian society. In August 2016, Michel Temer became Brazil’s first president of Lebanese ancestry. While many Lebanese migrants faced the same challenges and discrimination as today’s newcomers, at one point, 10% of the Brazilian Congress had Lebanese origins.

A Bright Future

Although migration to Brazil has been at a plateau in recent years, the previous and continued migration allows for the potential of a bright future for migrants and natives alike. Economic growth, along with migrants’ rights reform, opens the door for more migrants to enter Brazil. Despite challenges at the beginning of migrants’ journeys in Brazil, the work of government initiatives and foreign agencies gives hope for a bright future in Brazil.

– Naseem Rahman

Naseem is based in Staten Island, NY, USA and focuses on Business and Global Health for The Borgen Project.

Photo: Flickr

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A Short Guide to Higher Education in Bosnia and Herzegovina

Higher Education in Bosnia and Herzegovina
Bosnia and Herzegovina (BIH), also referred to as the ‘Heart Shaped Country,’ is known for its natural beauty, diverse culture and kind-hearted people. However, its higher education system continues to face challenges due to the country’s complex political and economic history.

As of 2023, 45% of students who complete secondary education in Bosnia and Herzegovina enroll into tertiary education institutions. However, a decrease in enrollment has been a consistent trend over the past decade, with the current number of students being about 35,000 fewer than 10 years ago. This decrease is primarily due to young people leaving the country in order to seek out a better future, correlating with the fact that BIH had the second largest diaspora in 2020 as well as other issues that will be explored within this article. Here is information about the current issues with higher education in Bosnia and Herzegovina.

Fragmented Education System

Following the war in the 1900s, the Federation of Bosnia and Herzegovina (fBIH), Republika Srpska (RS) and the Brčko District divided BIH into separate regions. There are also 10 cantons within fBIH, each with its own Ministry of Education, that independently implements its own curriculum. Because of this, there is a very decentralized higher education system in Bosnia and Herzegovina, including languages like Cyrillic and Latin, and history like Serbian history in RS and and Bosniak-Croat history in fBIH.

Foreign Countries Not Recognizing Diplomas

European nations often do not recognize degrees in BIH, which makes it difficult for students to secure jobs or continue postgraduate studies worldwide. One of the reasons for this is that many universities in BIH include the word ‘international’ in their names, but they lack international accreditation, hence students are urged to conduct research before embarking upon higher educational journeys in BIH. The problem of the fragmented education system undermines Bosnian diplomas because it raises doubts whether they meet uniform quality standards. 

There are also weak quality assurance mechanisms. According to Eurydice, the accreditation process begins when Higher Education Institutions (HEI) prepare a self-evaluation report and submit it to the relevant authority. Then, an expert panel visits the site and conducts an assessment. The authority grants accreditation based on the panel’s recommendation and lists the HEI in the National Registry, which the Agency for Development of Higher Education and Quality Assurance manages. Unfortunately, due to the fragmented system, corrupt political involvement and capacity issues, these guidelines are not fully met, therefore raising questions about the validity of Bosnian diplomas. 

Limited Funding

Higher education institutions receive financing through different budgets depending on the region. In RS, the entity budget, which the Ministry of Education and Culture RS manages, funds higher education. Meanwhile, in fBIH, there are cantonal budgets that cantonal ministries of culture manage which fund higher education. There is no state- level funding for higher education, resulting in 13 separate budgets across the country. Furthermore, there is a lack of strategic planning of how to spend the budget, alongside no accountability – funds therefore do not need to be allocated effectively and higher education institutions are not legally required to justify their spending.

Another issue with higher education in Bosnia and Herzegovina along the lines of finance is the effect that poverty has on those who wish to pursue university studies. According to Study Abroad Aide, tuition fees in BIH can range from as little as 440 BAM (approx. £200 or $250) to 18,400 BAM (approx. £9,200 or $11,360). While this is significantly cheaper than tuition fees in the U.K. or the U.S., for citizens living there, this can unfortunately be an unrealistic amount. For example, almost a third of children between the ages of 5 and 15 in BIH are at risk of poverty due to the inadequate implementation of the 2015-2018 Action Plan for Children.

Furthermore, the COVID- 19 crisis had a detrimental impact on poverty levels in BIH. It was estimated that poverty would rise from 11.8% to as high as 14.6% from 2019 to 2020. These factors affect higher education in Bosnia and Herzegovina in that students may simply not be able to afford tuition fees, preventing them from following the path of university and higher education. Here are some progressions that higher education in Bosnia and Herzegovina has made.

Financial Support

While most students are required to attend university on a self financed basis, The Ministry of Education and Culture in RS and the cantonal ministries of education in FBiH provide scholarships for those who meet the qualifications. This does not take into account students’ background or social status, allowing anyone to qualify, given that they pass the entry exam. Furthermore, BIH also offers fully-funded scholarships to international students to excellent universities, such as the University of Banja Luka and the University of Sarajevo, if students are able to demonstrate excellent academic achievement and financial needs.

Not only does this open up opportunities for students to explore the rich history and indulge in the flavorful culture of, but it also tackles the issue of ‘brain drain.’ ‘Brain drain’ describes young talent leaving BIH due to the futile future they will have if they remain. Welcoming more international students allows talented young people to find opportunities within Bosnia, hence tackling the problem of brain drain.

The Bologna Process

The Bologna Process is a European higher education reform initiative aimed at creating a cohesive and compatible system of higher education across Europe, which BIH has been a member of since 2003. Because the Bologna Process aims to create an education system within Europe that everyone adheres to, this means that it will increase the validity that Bosnian degrees have across Europe. It has specifically introduced the three-cycle degree structure and established quality assurance mechanisms, but any positive outcomes of the Bologna Project have been overshadowed by how the students affected feel about it.

A study conducted with 81 students from the English Literature and Language departments in the universities of Tuzla and Banja Luka claimed that the students did not perceive it that way. About 40% of students claimed that they believed the Bologna Process was “forcing them to study constantly” with 62% of students saying they felt it was incomplete or misapplied. This can unfortunately be deemed as true due to the underfunding of higher education. The simplest things, such as old classrooms and outdated technology, can prevent higher education in Bosnia and Herzegovina and the Bologna Project from reaching their full potential. 

Recommended Changes

While there has been no news of significant changes that the Bosnian government is bringing about to higher education, the Swiss Agency for Development and Cooperation has presented recommended action. These include:

  • Ensuring a fully functional system for the accreditation of higher education institutions throughout the country, which lies with the responsibilities of education authorities and academia. This should be an immediate priority.
  • Ensuring justified funding for education, including establishing a needs-based coefficient for pupils with disabilities. This should be a medium-term priority.
  • Reforming initial teacher education needs, in line with developed qualification and occupational standards and developing a Vocational Education and Training Strategy that addresses the needs of the labor market. This should be a long term priority, which lies with the responsibilities of APOSO and the education authorities, national education specialists and NGOs and teachers and parents’ organizations.

To summarize, decentralized education, limited funding and unrecognized diplomas are the main causes of the pitfalls in higher education in Bosnia and Herzegovina. However, there has been progress with the implementation of scholarships and elements of the Bologna Project, although there is still a way to go to further improve access to higher education in Bosnia and Herzegovina. 

– Emina Bolic

Emina is based in England, UK and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Exploring the Economic Impact of Renewable Energy in Mali

Renewable Energy in Mali
Many citizens in Mali, a Sub-Saharan desert country in Africa with a population of almost 24.5 million, struggle to afford energy, and simmer in poverty. In 2022, poverty rates hit 19.1%, meaning almost 20% of their population makes less than $2.15 a day. With their growing impoverishment, their government has decided to take initiative and implement renewable energy in Mali. Not only does renewable energy create a cheaper alternative for those who cannot otherwise afford it, but it also creates jobs for those who need them. A staggering 52% of the population has access to electricity, less than 5%  have access to clean cooking, and as of 2023, the unemployment rate sits at 3.01%.

What is Renewable Energy?

In general terms, renewable energy is harnessed power that is derived from a continuously and naturally replenishable source, and is often a carbon-free source. Renewable energy sources include: 

  • Hydropower
  • Wind Power
  • Biomass
  • Solar Energy

All of these create a form of electricity.

Today, electricity greatly enhances people’s lives, which they use for everything from evening illumination to laundry, food preparation, factory operation and even things like international communication. It is essential for raising living standards, promoting economic growth and reducing poverty.

How Does Renewable Energy Affect Mali?

Currently in Mali, the average lifespan is only 59 years. On average, 97 newborns out of 1,000 pass away before they turn five. About 80% of Malians lack proper sanitation, and many do not have access to safe drinking water. The population is growing at a pace of 3.2% each year, and 47% of Malians are under the age of 15.

In 2006, Mali’s government implemented the National Energy Policy, which is supported by its five main objectives:

  • Improving access to energy
  • The rational use of existing energy sources
  • The efficient use of existing natural resources to produce energy
  • Sustainable use of biomass resources through the conservation and protection of forests
  • Strengthening government capacity and streamlining administrative procedures within the energy sector

These objectives aid in getting more electricity access across the continent, and also has the potential to create employment opportunities across the globe. According to the International Renewable Energy Agency (IRENA), transitioning to renewable energy in Mali is expected to “create 40 million additional jobs in the energy sector by 2050, with 18 million more jobs globally in renewables alone.”

Actions That Mali is Taking

Mali already has many jobs created for its citizens from these renewable energy projects. For example, in 2019, “ECREEE supported the Government of Mali in 2015 to develop a BOOT model tender for the development of grid-connected renewable energy projects.” From this BOOT (Build, Own, Operate, Transfer) model, a whopping 450 jobs emerged in Mali across the duration of the project.

The imminent arrival of these jobs can provide skills to allow workers to obtain future employment once it becomes available. However, in order for this initiative to work, there are several things being prioritized starting at early ages. With aid and funding from the U.S. Agency for International Development (USAID), the Education Development Center (EDC) has been able to provide a lot of help to the youthful Malians through the PAJE-Nièta— the Mali Out-of-School Youth project. These are the main pursuits of the project:

  • Give young people access to basic education, training in entrepreneurship and technical instruction in the service and agro-pastoral sectors
  • Teach volunteers to conduct business and basic education classes and to support program participants as they pursue entrepreneurship
  • Teach young people how to use Stepping Stone, an app that the EDC created, to access basic education lessons on mobile devices
  • Teach young people to start internal lending and savings organizations to support social and corporate loans
  • Boost the current youth associations’ organizational capabilities to oversee and carry out project operations

Looking Ahead

In order to produce employees for future jobs, once renewable energy projects reach completion, creating skilled workers from the inexperienced youth is key to furthering the continent’s progression. Renewable projects in Mali will likely develop the country’s economy, improving the conditions its citizens live in.

– Taylor Naquin

Taylor is based in Gilbert, AZ , USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Poverty in Jamaica: The World Bank Renovates Kingston’s Waterfront

Poverty in jamaicaOn October 18, 2024, Jamaica’s government and the World Bank announced a $12 million investment to renovate Kingston’s Waterfront. The project aims to boost tourism, improve job accessibility and reduce poverty in Jamaica. This development is promising for Jamaica, where poverty in the area has made it challenging for many residents to sustain themselves.

The revitalized Waterfront has the potential to invigorate the local economy. Nigel Clarke, former Jamaica’s Minister of Finance and Public Service, commented: “This government is creating public spaces to serve the Jamaican people. This will revitalize downtown Kingston.”

The Timeline for Waterfront Renovations

Phases one and two of the Kingston Waterfront Improvement Project, known as KIWI, will run from 2024 to 2030. The project’s first phase will fund the creation of a multi-use park along Kingston’s waterfront. It will feature recreational amenities like bike paths, playgrounds, sports fields, street furniture and landscaped areas.

The second phase will “focus on the park’s construction, small-scale infrastructure works and urban upgrading.” The total amount that the budget covers for both phases is approximately $40 million. This large sum will work to reestablish Jamaica’s economy by its inherent benefit to the community. This could benefit around 700,000 Jamaicans by providing them with new job opportunities in the tourism sector, retail or small business booths in downtown Jamaica.

Kingston’s Waterfront Statistics and Employment Rate

In September 2022, Jamaica’s economic enrichment statistics from tourism indicate how urbanization of Kingston’s waterfront has the potential to further fortify its economy. Tourism keeps Jamaica involved in foreign commerce, building its independent value. Statistically, tourism in Jamaica directly employs 175,000 Jamaicans and indirectly employs around 354,000.

Professor Lloyd Webber highlighted tourism’s necessity in Jamaica by saying that consistent efforts must be made toward the Jamaican economy to maintain Jamaica’s status as a tourism hotspot. The Kingston Waterfront would do just that, building jobs, a more bustling economy and community cohesion, which would mitigate crime rates inherently.

Long-Term Jobs Create Long-Term Solutions for Islanders

While Jamaica is known as a bustling island nation, it faces significant socioeconomic challenges, including poverty and crime. According to the World Bank, approximately 17% of Jamaica’s population lives in poverty, with low-quality jobs leaving many Jamaicans vulnerable to economic shocks.

According to Graeme Young, “a Research Fellow at the University of Glasgow,” the lack of sustainable jobs makes it difficult for Jamaicans to afford nutritious food. Young argued that government policies fail to address the root issue: supply and demand. Young also highlighted Kingston’s primary challenges: low sales and insufficient customers.

Therefore, the renovation of Kingston’s Waterfront presents an opportunity to rebuild the economy, creating a vibrant, safe environment that benefits tourists and locals alike, whilst reducing poverty in Jamaica.

– Madeline Star Heintz

Madeline is based in Los Angeles, CA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Pexels

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Poverty in Southeastern Turkey: A Brighter Future

A Brighter Future for the Southeastern Regions of TurkeyThe southeastern regions of Turkey face significant challenges as the poorest part of the country, struggling with underdevelopment and ethnic tensions. Recent developments, however, provide hope for a revitalized future in this historically rich area. The government plans to invest $14 billion in the region, a move aimed at reducing poverty and creating economic opportunities. Coupled with the normalization of relations with post-Assad Syria and Kurdish groups, this could transform the area and stimulate growth. This investment focuses on developing agricultural infrastructure to bolster the regional economy. Officials expect the initiative to create more than 500,000 jobs, offering a much-needed boost to local livelihoods.

Poverty in Southeastern Turkey and the GAP Project

Southeastern Anatolia ranks among Turkey’s regions with the lowest average income. Despite limited research on poverty in the region, existing studies indicate that conditions have seen little improvement since the early 2000s. The $14 billion investment aims to partially fund the Southeastern Anatolia Project (GAP) with the hopes it can continue its construction of needed infrastructure.

The GAP project was launched in the 70s as a region-wide investment project to provide the energy and water infrastructure to support an economic boom. However, throughout its history, the project continues to falter in its aims of revitalization. With renewed government support, the region now has a chance to attract further investment and drive sustainable development.

Insights from Mardin

The city of Mardin illustrates many of the challenges facing southeastern Turkey. This ancient city, which dates back to the Neo-Assyrian period, highlights the region’s rich history and its socioeconomic struggles. Mardin suffers from one of the country’s highest relative at-risk-of-poverty rates at 14.4%.

In 2021, Dr. Nurdan Atalay conducted ethnographic research in Mardin, revealing how top-down financialization and investment strategies exacerbate economic inequality and limit employment opportunities for women. In her book chapter, she noted, “…the women in this neighborhood have very limited opportunities to change their position in society… The impending economic crisis has the potential to worsen their situation.”

Mardin also accommodates a large population of refugees who fled Syria’s civil war and the 2023 earthquakes. More than 88,000 Syrian refugees live in the city, contending with the trauma of displacement and the strain on local resources. Reports detail the economic burden that border cities faced during the Syrian conflict. With the end of Assad’s rule, many refugees now look toward a hopeful future and the possibility of returning home.

The Potential of Tourism

Neighboring political progress isn’t the only cause for optimism in southeastern Turkey. The tourism industry holds immense potential to reduce poverty in the region. This area, rich in historical monuments and natural beauty, stands poised for economic growth if supported by infrastructure and investment.

The 1982 Tourism Incentives Act excluded southeastern Turkey, denying the region the development needed for a thriving tourism sector. Despite this, cities like Mardin actively seek to expand their tourism potential. Research indicates that Mardin’s residents support tourism growth, which promises to benefit both urban and rural communities.

In 2023, Mardin welcomed nearly 650,000 tourists, reflecting the industry’s growing role in the local economy. By fostering tourism, southeastern Turkey can unlock new opportunities for sustainable development and cultural preservation.

A New Chapter for Southeastern Turkey

With the government’s $14 billion investment and the prospect of peace in Syria, poverty in southeastern Turkey faces a turning point. The region’s lack of infrastructure has long created a cycle of poverty and underdevelopment. This new funding and strategic focus could break that cycle, paving the way for meaningful progress and prosperity.

– Charley Dennis

Charley is based in London, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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The Intersection of Disability and Poverty in Portugal

Disability and Poverty in PortugalIn Portugal, the intersection of disability and poverty is a pressing issue. Despite progress in disability rights and social support, many individuals with disabilities continue to face economic hardships. This challenge is not only about physical impairments but also the systemic barriers that contribute to persistent poverty.

The Reality of Disability in Portugal

Portugal has implemented laws like the “Basic Law on the Rights of Persons with Disabilities” (Law 38/2004). This legislation underscores the country’s commitment to protecting the rights of individuals with disabilities and fostering their active participation in society.However, the reality for many individuals with disabilities remains one of exclusion, especially in rural areas where services and infrastructure are limited.

Challenges are exacerbated by geographical isolation and a lack of targeted support, leaving many unable to benefit from these legal advancements fully. According to a report, more than 10% of Portugal’s population lives with a disability. Yet, many still struggle to access education, employment and health care. This persistent inaccessibility not only hinders personal development but also perpetuates a cycle of economic disadvantage, marginalization and social exclusion.

Disability and Economic Struggles

A key factor in the poverty faced by persons with disabilities is the lack of accessible employment opportunities. According to data from EU-SILC, the employment rate for people with disabilities in Portugal is about 58.4% compared to 77.4% for people without disabilities. Discrimination and inadequate workplace accommodations often hinder job prospects. Furthermore, the lack of accessible transport and facilities adds to the difficulty. Moreover, public services, including health care and transportation, can be inaccessible in many parts of the country.

Portugal lacks a national personal assistance scheme, leaving many individuals with disabilities reliant on family members or institutional care. This makes many of them report difficulty in accessing public transportation, especially in rural and less-developed regions. This lack of access further isolates individuals living with disabilities from society, making it even harder to engage in education, employment or social life.

Moving Toward Inclusion

Breaking the cycle of disability and poverty in Portugal requires a comprehensive approach that includes greater investment in inclusive education, better access to public spaces and increased employment opportunities for people with disabilities. The Convention on the Rights of Persons with Disabilities (CRPD) emphasizes that people with disabilities should have the right to choose where and with whom they live, free from mandatory institutionalization.

Integrating individuals with disabilities into the workforce holds immense potential for economic growth. This is a benefit acknowledged by the Portuguese government as part of its commitment to inclusivity under the 2030 Agenda for Sustainable Development. The success of these top-down-oriented strategies is crucial, not only for Portugal but for Europe as a whole, in addressing and reducing poverty effectively via political and administrative change.

– Lambros Andrikopoulos

Lambros is based in Birmingham, UK and focuses on Global Health for The Borgen Project.

Photo: Pexels

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Hunger in Guinea-Bissau

Hunger in Guinea-BissauGuinea-Bissau is a small West African country on the Atlantic Ocean coast, with a population of approximately 2 million. Despite its abundant natural resources, Guinea-Bissau faces significant challenges. Years of political instability and other factors have led to increased hunger and poverty in Guinea-Bissau. 

Facts and Figures

  1. In 2023, GDP grew by 0.1%, reaching an overall growth rate of 4.3%.
  2. The poverty rate, defined as living on $3.65 a day, has worsened and now stands at 65% in the country. 
  3. According to the Global Hunger Index, Guinea-Bissau ranks 114th out of 127 countries facing a severe hunger crisis. 
  4. The prevalence of undernourishment in the population has increased over the past decade, rising from 34.8% to 37.9%. 
  5. The percentage of children under 5 suffering from stunting has grown from 26.4% in 2012 to 27.7% in 2019 and 72 out of 1000 die before their fifth birthdays. 
  6. Guinea-Bissau is one of the five countries with the highest maternal mortality rate, which is 725 per 100,000 live births.

Underlying Issues

  • Political: Guinea-Bissau gained independence in 1974 but faced challenges such as military coups, political unrest and weak governance. Additionally, widespread drug smuggling has worsened corruption and undermined the government. These issues significantly contribute to the country’s weak economy, hunger and poverty.
  • Weak infrastructure: The country has underdeveloped infrastructure, including poorly maintained roads, limited electricity supply and inadequate health care facilities. Weak governments and corruption have further hindered infrastructure development.
  • Over-dependence: Guinea-Bissau relies almost entirely on cashew nuts for its export revenues, which account for 95% of its total exports. This heavy dependence makes the economy highly vulnerable to price fluctuations. Additionally, the lack of diversification in agriculture and exports worsens issues such as poverty, food insecurity and hunger in Guinea-Bissau.
  • Extreme weather: Guinea-Bissau is among the top five countries most affected by extreme weather, experiencing problems such as rising sea levels, erratic rainfall, prolonged droughts and flooding. These environmental issues have negatively impacted biodiversity, fishing and agriculture. As a result, the country is facing rising poverty levels, increased food insecurity and heightened hunger. 

Development Programs

International organizations are working with the government to reduce poverty and hunger in the country.

  • Food security- The WFP provides cash assistance to families needing immediate support and school meals to prevent malnutrition and stunting in children. UNICEF and the World Bank have partnered to launch a Scale Up Nutrition program. The initiative targets reducing stunting and malnutrition while improving maternal and child health.
  • Agriculture Development- Organizations like the Food and Agriculture Organization and the World Food Program assist farmers by supplying seeds, fertilizers and training. The FAO is also collaborating with the government to develop drought-resistant crops. The aim is to build resilience and mitigate impending climate impacts.

Towards A Sustainable Future

Guinea-Bissau faces daunting challenges, including high poverty rates, food insecurity and the impacts of political instability and weather events. However, through collaborative efforts between the government and international organizations and a focus on sustainable development, agricultural resilience and the promotion of food security, Guinea-Bissau can work towards a future where all citizens have access to basic needs and opportunities. Continued commitment and investment from the international community in these areas will be crucial to breaking the cycle of poverty and hunger in Guinea-Bissau. 

– Maria Waleed

Maria is based in Yokohama, Kanagawa, Japan and focuses on Good News and Global Health for The Borgen Project.

Photo: Wikimedia Commons

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Microfinance in Egypt: A Tool to Ease Poverty

Microfinance in EgyptMicrofinance in Egypt has been used to promote financial inclusion and empower low-income individuals, particularly women. It does so by providing them with access to small loans and financial services, allowing them to satisfy their household’s needs independently. This has been supported by both government initiatives and NGOs, helping to stimulate entrepreneurship and improve livelihoods in impoverished communities in Egypt.

The Aim of Microfinance Loans

Among other things, microfinance in Egypt aims to extend loans and other financial services to women who need more collateral to access traditional banking services. The microfinance institution covers around 82% of Egyptian poor and low-income households. It not only empowers entrepreneurs and small businesses but stimulates local economies by promoting self-sufficiency and reducing poverty.

Crucially, microfinance loans have a positive effect on the household incomes of women borrowers. While women make up nearly half of Egypt’s population, they make up less than a quarter of the country’s total labour force, many of whom work in the informal sector. As a result of working for the informal sector, women often cannot access financial services, which is an issue that the use of microfinance loans could tackle.

Prioritizing Financial Inclusion

As part of Egypt’s Vision 2030, the national Egyptian government seeks to prioritize women’s financial inclusion and economic empowerment. Already, the Central Bank has begun initiatives to allow female owners of micro, small and medium enterprises (MSMEs) to be part of the formal financial system, according to the Economist Impact. This is important as the Central Bank’s policies indirectly impact the microlending system where its initiatives to enhance digital financial services and financial inclusion can heighten access to microloans for impoverished communities.

The International Monetary Fund (IMF) calculates that increasing the female labor force participation rate to the male level and increasing employment opportunities could increase Egypt’s GDP by 34%, the Economist Impact reports.

Further Developments

Additionally, to support the government’s efforts, HSBC Bank Egypt and Reefy Microfinance Enterprise Services signed a deal earlier this year to provide 150 million Egyptian pounds to micro businesses in Egypt, with one-third of that figure going towards female-led enterprises. On top of this, HSBC has pledged it will provide between $750 billion and $1 trillion dollars by 2030, to support sustainable financing, the Economist Impact reports.

Despite the significant improvements for some, a large number of old clients who have not seen an improvement in household income following the scheme, remain.

Moreover, there are operational risks such as fraud prevention and technology dependency. The risks of fraud are high considering the digital nature of many interactions whereby the implementation of robust fraud detection systems is crucial. Moreover, technology dependency appears to be another operational risk as “the increasing reliance on technology for loan disbursement and collection processes creates risks related to cybersecurity and system reliability,” according to Andersen. Other potential issues include market saturation or funding and liquidity management. Market saturation means that many “entities are competing for the same customer base,” a current example being Valu.

Overall, microfinance in Egypt offers a promising future for financial inclusion and economic empowerment, bar the potential for certain risks. By providing access to small loans and financial services, Microfinance enables individuals to meet their household needs, stimulate entrepreneurship and enhance livelihoods in underprivileged communities. The support from both government initiatives and NGOs has been extremely helpful in facilitating this process, aligning with Egypt’s Vision 2030.

– Amani Almasri

Amani is based in Durham, UK and focuses on Good News and Technology for The Borgen Project.

Photo: Unsplash

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The Recent Poverty Spike in Argentina

poverty in argentinaBetween 2021 and 2022, it was fair to say that poverty in Argentina was heading towards a positive reform. Of course, it is important to consider the effect that the COVID-19 pandemic will have on reducing poverty numbers, but in 2021 poverty in Argentina sat at 11.4%, a 4% decrease from 2020, and in 2022 it decreased even further to sit at 10.9%.

Poverty Spike in Argentina

Argentina is now grappling with an alarming surge in poverty, which has risen to levels not seen in over 20 years. As of mid-2024, more than 50% of the population is living below the poverty line, with 27 million people affected. The poverty spike in Argentina correlates to current economic instabilities. President Javier Milei has established particular austerity measures recently, primarily implementing a significant reduction in spending, that exists as a major factor in the South American nation’s monetary issues.

Milei, a staunch libertarian, came into power in late 2023 and proposed methods aimed at stabilizing an otherwise fluctuating economy. He focuses on three main areas: cutting funding to social assistance programs; layoffs in the public sector and freezing public investment. In the end; however, each inadvertently ended up doing more bad than good. For example, the government’s layoffs in the public sector have led to thousands losing their jobs, thus exacerbating unemployment, according to The Guardian.

Inflation and Purchasing Power

A spike in poverty like this is often the result of years of build-up, and for Argentina, it can be seen through its long-lasting fight with inflation. Annual inflation in Argentina sits at one of the highest on the globe at over 230%, The Guardian reports.

Such rampant inflation has drastically eroded purchasing power, leaving necessities like food out of reach for many. The cost of staple goods has soared, making daily survival a challenge for millions. A further damning scenario occurred in May 2024, with subway fares in Buenos Aires tripling, rising from 125 pesos (14 cents) to 574 pesos (64 cents).

Unsurprisingly, all of the recent living difficulties have been met with protests in response. In June 2024, anti-government protestors clashed with police forces in Buenos Aires in retaliation to the Argentine Senate passing Milei’s reforms. In spite of all this, Milei’s government has defended the situation, deferring away from the negative effects of his policies, instead “celebrat[ing] the fact that his administration had managed to lower spending to a level below tax income for the first time since 2008.”

NGOs Helping

There are efforts underway, working to address the challenging circumstances in Argentina, with several organizations actively working to alleviate the impacts of poverty and inflation. NGOs are playing a key role in supporting vulnerable populations by providing essential resources and services. For instance, organizations like the Red Cross are distributing food, offering shelter and facilitating access to health care.

Additionally, programs such as Project Noemi focus on promoting job training and small business development are helping individuals gain economic stability, contributing to longer-term solutions for affected communities.

Overall, the surge in poverty in Argentina is a stark reminder of the fragile balance between economic reforms and social equity. While the Milei administration’s austerity measures may have been established with positive intentions, aimed at stabilizing Argentina’s finances, their immediate impact has plunged millions into hardship. Navigating a path out of this crisis will require not only bold economic decisions but also a commitment to social justice and inclusion.

– Joe Lockett

Joe is based in the Wirral, UK and focuses on Business and Politics for The Borgen Project.

Photo: Unsplash