Archive for category: Economy

Information and stories about economy.

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Currency Crisis Deepens Food Insecurity in Laos

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

A Currency Crisis Affects Household Budgets

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

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

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

WFP’s Two-Decade Investment in School Meals

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

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

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

ADRA’s Community-Based Nutrition Programs

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

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

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

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

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

Building Resilience Amid Economic Uncertainty

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

– Joy Kohol

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

Photo: Unsplash

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How Remittances in Kyrgyzstan Are Building Financial Opportunity

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

The Role of Remittances in Kyrgyzstan

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

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

How Remittances Reduce Poverty

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

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

The Challenges of Remittance Dependence

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

Helping Families Build Financial Security

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

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

Building Opportunity at Home

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

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

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

– Lily Hoch

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

Photo: Pixnio

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Mobile Banking in Uganda Is Expanding Economic Opportunity

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

Improving Access in Rural Areas

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

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

Supporting Vulnerable Populations

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

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

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

Government Support and the Agricultural Sector

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

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

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

– Archie Monton-Black

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

Photo: Flickr

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4 Reasons Why Renewable Energy in Brunei Reduces Poverty

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

The Situation

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

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

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

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

The Benefits

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

What Does This Mean for Brunei’s Future?

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

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

– Kayla Moore

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

Photo: Wikimedia Commons

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How China Plus One is Creating Jobs in Vietnam

China Plus OneOver the past decade, a shift in global manufacturing has quietly reshaped Vietnam’s economy. As companies move to reduce their dependence on a single country for production — a strategy known as “China Plus One” — Vietnam has become one of the world’s favored alternatives. The result is a wave of factory investment that is pulling rural Vietnamese workers into steady, formal jobs and helping drive one of the developing world’s most dramatic reductions in poverty.

What “China Plus One” Means for Vietnam

The China Plus One shift took hold after 2018, when U.S. tariffs on Chinese goods pushed multinational firms to diversify their supply chains. Vietnam, with labor costs roughly half those of neighboring China, a young and growing workforce, and membership in 17 free-trade agreements, positioned itself to absorb the change. It has become a leading destination for electronics, footwear and apparel manufacturing.

The investment figures are striking. In 2024, Vietnam attracted around $38.2 billion in registered foreign direct investment and a record $25.35 billion in actual disbursements, up more than 9% from the year before, with most of it flowing into manufacturing, according to figures from Vietnam’s Ministry of Planning and Investment. Much of that capital builds factories, and factories create jobs.

The Anchor: Samsung

No company illustrates the trend better than Samsung. The South Korean electronics giant has invested about $23.2 billion in Vietnam, making it the country’s single largest foreign investor, and now employs roughly 87,000 people across six manufacturing plants. Its footprint is so large that Samsung’s operations accounted for around 13% of Vietnam’s GDP and export turnover in 2024, according to Vietnam’s National Statistics Office. Its network of local suppliers employs tens of thousands more, spreading the benefits well beyond Samsung’s own payroll.

The Role of U.S. Companies

American firms sit at the center of Vietnam’s China Plus One boom. Vietnam is now Nike’s largest manufacturing base worldwide, producing roughly 51% of the company’s footwear, and the factories that supply Nike employ close to 500,000 Vietnamese workers. Apple’s suppliers have followed suit: contract manufacturers like Foxconn now assemble iPads, AirPods and other devices in Vietnam, work that once happened almost exclusively in China. This deepening trade relationship has paid off for both sides. U.S. imports of Vietnamese goods surged more than 360% in the decade to 2023, topping $144 billion, according to U.S. government data reported by CNN.

From Factory Floors to Poverty Reduction

The human impact makes this a development story. Manufacturing jobs have drawn workers out of subsistence agriculture and into the wage economy, often transforming quiet rural provinces into industrial hubs. Regions like Thai Nguyen and Bac Ninh, once farming districts, now host sprawling industrial parks that employ tens of thousands.

That transition tracks closely with Vietnam’s broader gains. The World Bank reports that Vietnam’s extreme poverty rate fell from 14% to under 4% between 2010 and 2023, while GDP per capita climbed from under $700 in 1986 to nearly $4,500 in 2023, a rise that export manufacturing largely powered. For millions of families, a factory paycheck has meant predictable income, access to benefits and a path into the middle class.

Why It Matters

The model has real limits. Much of Vietnam’s electronics work remains lower-margin assembly that depends on imported components, and factory towns can suffer when global demand slumps. Analysts note that sustaining progress will require Vietnam to move up the value chain and build domestic capacity.

Still, the core lesson offers hope to advocates of global poverty reduction: integration into world markets, combined with steady investment, can lift large numbers of people into stable work. For Vietnam, China Plus One has been more than a supply-chain footnote — it has been a jobs engine.

– Jen Phan

Jen is based in Hanoi, Vietnam and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Yemen’s Economic Recovery

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

More Than a Decade of War

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

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

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

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

The Human Cost of Conflict

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

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

Better Livelihoods and More Jobs Amid Fragility

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

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

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

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

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

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

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

Looking Ahead

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

– Isabella Pedroza

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

Photo: Pexels

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Small Countries Reducing Poverty

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

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

Costa Rica: Prioritizing People Over Military Spending

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

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

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

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

Uruguay: Building Strong Social Protection Systems

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

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

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

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

Bhutan: Progress Beyond Economic Growth

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

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

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

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

Mauritius: Diversifying Economy

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

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

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

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

Important Lessons from Small Nations

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

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

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

– Leah Denning

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

Photo: Flickr

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Higher Education in Kazakhstan and its Transitioning Economy

Higher Education in KazakhstanHigher education in Kazakhstan, in more recent years, has reformed its systems with the support of the European Union, increasing enrollment rates in higher education. 

Since the fall of the Soviet Union, Kazakhstan has been a country in transition. This has not only affected its economy and central government but also its education system. As of 2024, more than half of children in primary education are unable to read and understand age-appropriate text. This created challenges in secondary education, which can reduce students’ motivation to pursue higher education.

Promoting Higher Education

After the fall of the Soviet Union, private schools expanded, but were later deemed to be of poor quality. During this time, the government controlled public schools and universities. Following the country’s independence, public universities introduced fees.

As Kazakhstan’s oil-driven economy grew, its need for higher education increased. This created a slight increase in enrollment in universities as employers demanded more skilled professionals. However, in recent years, employment rates among university graduates have remained low.

Driven by education reforms, the country’s 2050 Strategy pledged to diversify Kazakhstan’s economy. This strategy includes goals to improve the quality of teaching while providing access to higher education for poorer students. The European Bank for Reconstruction and Development (EBRD) has identified the need to “improve inclusion across regions and for vulnerable population groups.”

The Republic of Kazakhstan launched many bold internationalization goals within the implementation of the Academic Mobility Strategy in Kazakhstan 2012-2020. These goals focused on increasing the number of international students in Kazakhstan as well as the number of students studying abroad. To support these programs, Kazakhstan joined the Bologna Process. According to a WENR article, “The government has embraced educational reforms aimed at opening education provision to the free market.”

The European Union’s Help With Higher Education

Kazakhstan became part of the Bologna Process in 2010, which is making higher education in Kazakhstan more inclusive and accessible. The Bologna Process started with the Sorbonne and Bologna Declarations, which addressed the difficulties in the recognition of degrees in Europe. 

The Bologna Process consists of a three-cycle education system that includes bachelor’s, master’s and doctoral degrees. Among the 28 counties involved, there is an agreed system that creates a standard for qualifications and principles.

The Republic of Kazakhstan also incorporated the Paris Communiqué to create more inclusive learning approaches to learning to create more participation in higher education. The main focus of this implementation was to make university degrees more accessible to all citizens, especially those with lower representation.

When it comes to accessibility in lower-income households, the government does provide support to help improve access to primary and secondary education, but it does not target financial support for higher education. Only about 50% of students enrolled in universities in Kazakhstan receive financial support. Kazakhstan is currently introducing measures to help increase participation, but it has only adopted two of four proposed measures.

Another major program introduced to Kazakhstan was the European Credit Transfer and Accumulation System (ECTS). This allows a way to transfer loans from one institution to another, specifically if a student studied abroad. According to the Independent Agency for Quality Assurance in Education, “Currently, this system plays an additional role in the accumulation of loans, the development, description and implementation of programs.”

Current Institutions in Kazakhstan

According to the admission quota, “64,300 people study in higher education institutions.” Of those enrolled in higher education, 45.1% are in attendance in public institutions, 54.1% attend private institutions, while the last 0.7% are enrolled in foreign universities. Students are accepted based on general secondary education, technical and vocational education, and on the basis of higher education.

There are different types of organizations offered for higher education in Kazakhstan. These include research universities, academies, conservatories as well as national research universities for postgraduate degrees. Research universities offer five-year programs approved by the government, while institutions considered National Organizations of Higher Education are granted special status.​

At the national level, Al-Farabi Kazakh National University holds the highest ratings for its educational programs. The institution has been ranked in the top 3% of the best universities in Asia. On a global level, the institution is ranked 166th due to its academic reputation, graduate employment and large share of foreign students and professors.

Working Towards the Future

​Although Kazakhstan is still in a transitional period, changes are still occurring to education in order to align their education system with international standards. Still today the country’s government is working on improvements to inclusion within higher education. Scholarship programs have played a major role in establishing international partnerships providing more opportunities.

Poverty continues to be a problem in the country, as factors such as aftershocks of COVID-19 and the war in Ukraine have affected employment and inflation. There is a correlation between poverty levels and the percentage of those enrolled in higher education. As of 2023, only 25% of the bottom 40% have post-secondary education, whereas 75% of the top 60% have higher education.

Looking Ahead

Improving education systems within the country is not only beneficial to their education rates, but also to their economy. As dependence on petroleum for the economy increased, so did pledges of diversification, leading to the many reforms that have expanded higher education. As the economy continues to grow, so do the rates of education within Kazakhstan.

– Jacquelyn Orr

Jacquelyn is based in Philadelphia, PA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Wikimedia Commons

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What Leaders Are Doing To Address Extreme Poverty in Curaçao

Poverty in CuraçaoWhile Curaçao reached an athletic milestone by becoming the smallest country to compete in a FIFA World Cup, recent data has hinted at failures in other, more pressing aspects of the small island country’s society. Despite its growing tourist industry and GDP, the country is also one of the most unequal in its region, according to recent government reports and projections have determined that the situation will likely only become worse. Here is more information about poverty in Curaçao and efforts to address it.

Extreme Poverty in Curaçao Despite Growth?

While Curaçao’s economy has recovered from its COVID-era recession, with inflation peaking at 7.4% in 2022 according to its Centrale Bank, the country’s most recent GINI index of 46% reports extreme income inequality. With its booming tourist, hospitality and financial sectors dominating approximately 75% of GDP, Curaçao has seen lower unemployment rates since the COVID years due to job growth solely within its low-skilled and informal sectors.

This places Curaçao’s economy in a precarious state with more than 30.4% of households below the monetary poverty line in 2023, a 5% increase from 2011. Furthermore, a recent publication by its Central Bureau of Statistics is similarly disturbing, reporting 37.7% of the country—more than a third of all households—are vulnerable to multidimensional poverty. Thus, top leadership has recently started to meet these challenges as external events continue to have negative effects on fuel and food prices.

Response From Top Leadership

Top ministers within Curaçao’s national government have not ignored its status as an increasingly impoverished Caribbean country. In 2021, Charetti America-Francisca became the first woman to serve as the President of the Parliament of Curaçao, and has recently championed efforts to combat poverty in Curaçao through her new role as the Minister of Social Development, Labor and Welfare (SOAW). Emphasizing the government’s commitment to “working on a new approach focused on targeted and active intervention, aimed at creating lasting change rather than temporary relief,” Minister America-Fransisca stressed “the two most important pillars for combating poverty are education and work” during a parliamentary question hour.

In April, she heavily advocated for creating “an interministerial task force together with NGOs, so that the problem can be addressed in an integrated, more effective and more efficient manner.” America-Fransisca recognized varying forms of poverty citing relative, social, cultural and temporary poverty, all of which represent structural barriers apart from just financial instability that can inhibit upward mobility.

Furthermore, her recent investigation into poor working conditions in the island’s large retail industry has only furthered her experience with fighting poverty in Curaçao. In May, following reports of retail workers alleging that they are required to stand continuously for eight or more hours, she “instructed the labor inspectorate to carry out inspections and further investigations into the alleged practices.”

Looking Ahead

Curaçao is a testament to poverty’s existence as a multidimensional problem. Despite promising economic stability from its booming service industries, important voices like Minister America-Fransisca have cited the shortcomings of solely using financial measurables to understand Curaçao’s more structural issues: “A person can have an income and still be poor, can work and still be unable to make ends meet. Although we do see that the economy is partly recovering and unemployment is declining, poverty remains high.”

– Thaddaeus R. Rios

Thaddaeus is based in Washington, DC, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Unsplash

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How Street Vendors Drive Microenterprise Poverty Reduction

Microenterprise Poverty ReductionMicroenterprise poverty reduction is rarely discussed in the streets of Chennai, but it is happening there every day. More than 10 million street vendors operate across India, quietly sustaining one of the world’s largest informal economies. This sector accounts for 4.2% of total urban employment and contributes an estimated 63% of the country’s GDP, according to India’s Ministry of Urban Development and Poverty Alleviation.

In Chennai, the kulfiwallas — ice cream cart vendors earning less than $5 a day — are demonstrating what sustainable microenterprise poverty reduction actually looks like without a single development program behind them. Some of these families are now in their third generation of street vending, having weathered financial crises, urban redevelopment drives and increasingly brutal summer heat. That kind of multigenerational survival does not happen by accident.

Built Without Banks

In Chennai’s older neighborhoods, street vendors have built financial support systems largely outside formal banking structures. Among the most common are informal lending groups known as chit funds, in which members regularly contribute small amounts and take turns receiving a larger pooled payout. For many vendors, these funds serve as a crucial financial lifeline. 

A kulfi vendor facing cart repairs or a slowdown during the monsoon season can access much-needed capital without navigating interest charges, paperwork or credit requirements. The system relies on long-standing relationships and mutual accountability, with trust acting as the foundation of transactions that have supported local businesses for generations. Members are typically neighbors, relatives or vendors who operate along the same trade routes, creating networks built on familiarity and trust. 

Within these groups, failing to repay a contribution carries consequences that extend beyond finances, potentially damaging relationships and reputations within the community. That social pressure has helped sustain the system for decades, encouraging high repayment rates and accountability. In many cases, the arrangement achieves outcomes that formal microfinance institutions frequently struggle to match.

For context, India’s formal microfinance sector, which serves more than 50 million clients and holds a gross loan portfolio exceeding $5 billion, still faces rising delinquency rates, with 90-plus days past due increasing in recent periods. Informal finance, meanwhile, still accounts for 31% of rural loans in India, demonstrating how deeply communities continue to rely on trust-based systems rather than formal alternatives. Chit funds remain one of the most effective grassroots microenterprise poverty-reduction tools precisely because they carry no such institutional overhead. 

Routes as Inheritance

In Chennai’s street-vending world, a trade route is not just a path; it is an asset. Families pass down specific streets, market corners and residential lanes the way other families pass down land. Customers along these routes expect the same vendor or their son or their grandson.

This inherited geography gives third-generation vendors a head start that no microenterprise poverty-reduction program can replicate. Their customers already trust them. Their competitors already know not to encroach. The route itself is a form of capital, entirely invisible to any balance sheet but utterly real in its economic effect. 

Research on street vending across Indian cities documents how these vendors build “ad hoc alternatives” and create “informal institutions” that sustain livelihoods despite the total absence of legal frameworks or institutional support.

Loyalty as Credit

The third pillar of the kulfiwalla economy is supplier relationships built over decades. Long-standing vendors receive informal credit from kulfi manufacturers — product now, payment later — a system unthinkable for a newcomer but routine for a family known to a supplier for 30 years. In lean months, this acts as a lifeline. In good months, it frees up cash for other needs.

No contract enforces this. Reputation does. The vendor who has never defaulted in 20 years is a better credit risk than any algorithm can calculate — and a more powerful argument for community-based microenterprise poverty reduction than most academic papers manage. Formal microfinance institutions acknowledge this gap implicitly: a 2025 microfinance sector report found that more than 90% of MFI borrowers are women and that institutional lending still struggles to penetrate the trust networks informal communities have already built.

What Policymakers Are Missing

India’s street vendors remain legally precarious. The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, was intended to change this. However, more than a decade later, implementation remains partial in most cities, with many vendors still subject to eviction orders and police harassment rather than the law’s protections. Urban redevelopment regularly displaces them without compensation, as documented in multiple Indian cities, including Bhuj, where post-earthquake redevelopment displaced large numbers of vendors with no adequate alternatives provided.

Rising heat is compounding the threat. A 2025 WIEGO policy brief, drawing on surveys of nearly 500 street vendors in Delhi, found that extreme temperatures are already measurably affecting vendors’ health, incomes and working hours — losses that fall hardest on those with the fewest formal protections. A November 2025 report by The Bridgespan Group estimated that India needs approximately $52 billion annually to address urban climate adaptation needs across the informal sector.

According to the Ministry of Urban Development and Poverty Alleviation, India’s street vendors contribute 50% of the country’s savings. The sophistication of the economic infrastructure they have quietly constructed — the chit funds, the inherited routes and the decades-long supplier credit lines — is rarely cited. Before policymakers design the next microenterprise poverty-reduction intervention, they might first ask what the kulfiwalla already knows.

– Parthivee Mukherji

Parthivee is based in Edinburgh, UK and focuses on Celebs and Politics for The Borgen Project.

Photo: Flickr