Archive for category: Economy

Information and stories about economy.

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The Rajpura–Mohali Rail Link & Regional Economic Access

The Rajpura–Mohali Rail LinkIndia has approved a new railway corridor from Rajpura to Mohali; the Rajpura–Mohali rail link is intended to greatly enhance travel throughout southern Punjab and the surrounding area around Chandigarh. This will improve travel to job locations, education, health care and other marketplaces. Improving the availability of these services may be particularly important for marginalized groups that rely on affordable public transportation. The rail link reflects India’s broader push to leverage infrastructure investment to expand opportunities for socioeconomic mobility.

Effective Regional Development

India’s rail network already serves as one of the largest public transportation systems in the world, carrying more than eight billion passengers annually. This development project to create a Rajpura–Mohali rail link will provide fast, affordable rail access, reduce commuting costs for low-income households and connect rural populations to urban job markets. The availability of reliable, affordable access to employment opportunities also enables workers to support themselves and their families while contributing to their communities by paying taxes and supporting local businesses.

Rail infrastructure is an important factor in reducing poverty, as it provides reliable access to employment opportunities through safe, affordable transportation. Reliable access to employment opportunities is essential to economic mobility; therefore, workers must be able to travel to their employment centers safely and affordably. Beginning with reasonably priced public transportation such as buses and trains, access to reliable employment allows workers to utilize employment opportunities they would not have had otherwise due to a lack of transportation.

Access to reliable employment opportunities also provides workers with the ability to increase their earning potential, which could provide them with a better quality of life through better living conditions, greater food security and better access to other necessities of life.

The Indian Government’s Infrastructure Development Strategy

Punjab is witnessing a significant increase in urbanization, primarily around Chandigarh. However, many rural and smaller towns are constrained by limited connectivity, hindering access to economic opportunities. The improved Rajpura–Mohali rail link may allow travelers to reach their destinations faster and rely less on expensive personal transportation.

In its pursuit to develop India, the Government of India views infrastructure as a key to long-term development. As part of this, it has committed, through the National Infrastructure Pipeline, to invest billions of rupees in transportation, energy and urban development to fuel long-term growth. Improved rail systems can create jobs during construction and support long-term employment by increasing mobility.

Research from the World Bank shows that infrastructure investment can boost productivity and reduce poverty when it improves access to markets and services. In regions where public transit remains the primary mode of travel for lower-income communities, expanding rail access can help narrow economic gaps.

Socioeconomic Mobility

Low-income households often spend a larger share of their income on transportation. Expanded rail access can reduce commuting costs and open up more job opportunities. Better connectivity also helps women access education and employment.

Students can commute safely to universities in Chandigarh, rural residents can reach specialized health care facilities and small businesses can move goods more efficiently. Transportation access is directly tied to economic participation. When people can move safely and affordably, they can earn better wages, improve health outcomes and invest in education.

Final Thoughts

The Rajpura–Mohali railway corridor shows how targeted rail development can reduce long-term geographic inequality in Punjab. The project will connect new urban centers with their surrounding areas. As construction moves forward, the corridor highlights a broader point: strategic infrastructure development is more than a physical building project. It can also be a powerful tool for reducing poverty.

– Julia Lavelle

Julia is based in New York, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Pexels

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How Remittances to Mexico Are Helping Its Population

Remittances to MexicoAs families talk over FaceTime with their loved ones thousands of miles away, Mexican migrants continue to support their families living in Mexico. The decision to leave Mexico for a better life is an important and impactful decision for millions of Mexican families. With more Mexicans living abroad, remittances to Mexico have increased and helped millions of Mexican families.

What Are Remittances?

Remittances are money transfers that Mexican nationals living abroad send back to their families living in Mexico. For the last decade, “remesas” (remittances in Spanish) have been a fundamental source of income for families with family members working abroad. Families across Mexico have used these money transfers to afford necessities and foster development in their communities.

Remittances’ Impact in Mexico

Mexico has a long history of using remittances as a major source of income for its citizens. For years, Mexico has been the second-largest recipient of remittances globally, just behind India. In 2023 alone, Mexico received 7.5% of global remittances, representing $63.3 billion distributed to millions of Mexicans across the country.

Remittances to Mexico account for roughly 4.5% of its total GDP. To put into perspective, remittances account for more of Mexico’s GDP than Foreign Direct Investment (FDI), tourism and manufacturing. Furthermore, remittances are transferred directly to the population, allowing families to spend this money on what they need. Many families use this money to pay rent, afford weekly groceries, or other daily expenses. Others save this money for future expenses, pay for their children’s education, or invest in their home.

In 2024 alone, remittances helped more than 1.1 million people escape multidimensional poverty across all of Mexico. Without remittances, the number of people living in poverty would increase from 38.5 million to 39.9 million.

Remittances to Mexico not only have short-term benefits for families, but they also have long-term positive impacts on the overall economy. Remittances increase the purchasing power of millions of Mexicans, which in turn increases the consumption of products that benefit local businesses. They are also used to send the younger generations to school, which can have positive impacts in the future as education levels increase nationwide.

Government Involvement

The Mexican government has recognized the positive impact of remittances across the country and has taken steps over the last year to protect these money transfers, helping millions of Mexicans.

In July of 2025, the Mexican government introduced the “FINABIEN” card and “FINABIEN” app, an electronic card that allows migrants to send money back to Mexico more safely and reliably. This new system will facilitate money transfers for migrants living abroad, decreasing the cost of sending money to their families.

Living abroad can be a difficult experience, with families having to talk online to stay in contact with their loved ones. However, living abroad has positive benefits for migrants and their families through remittances. Remittances have allowed millions of families in Mexico to improve their lifestyle and invest in their future, contributing to Mexico’s long-term development.

– Rodrigo Salgado

Rodrigo is based in Boulder, CO, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Unsplash

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Elderly Poverty in Slovenia

Elderly Poverty in SloveniaElderly poverty in Slovenia is becoming an increasingly pressing issue, despite the country’s reputation for strong social protection systems. A significant number of older adults struggle to afford necessities such as food, housing and health care due to rising living costs, population aging and limited pensions.

Pensions and Income Insecurity Among Older Adults

Most older people in Slovenia rely on their pensions as their primary source of income. However, they frequently do not keep up with inflation and rising living costs. The Organization for Economic Cooperation and Development (OECD) reports that many workers in Slovenia have net pension replacement rates below the OECD average, leaving retirees vulnerable to income instability.

Women, who frequently have interrupted work histories and lower lifetime earnings, are disproportionately affected by lower pensions. After retirement, the likelihood of falling into poverty rises sharply. According to the Statistical Office of the Republic of Slovenia, older individuals in Slovenia are more likely than the general population to experience poverty or social exclusion.

Due to fixed incomes and limited access to informal support networks, older single-person households are more likely to face financial strain.

Rising Living Costs and Housing Pressure

Poverty among older adults in Slovenia has worsened due to rising housing and energy costs. Although many seniors live in privately owned homes, they often struggle to pay for utilities, maintenance and heating. Income poverty and material deprivation are closely linked.

Eurostat reports that a significant share of Slovenia’s population cannot keep their homes warm enough. Older people with limited incomes are also heavily burdened by health care costs. Despite Slovenia’s universal health care system, long-term care services and prescription drugs can be costly.

Generally, older people with lower incomes are more likely to delay or forgo medical treatment due to financial constraints, increasing health risks and deepening poverty.

Social Isolation and Hidden Poverty

In Slovenia, social isolation and poverty among older people are closely related. Reduced social engagement is common among older adults with low incomes, which can worsen mental health outcomes and increase vulnerability. According to a European Commission report, poverty and insufficient income support are closely linked to social exclusion among older populations.

Policies and Programs Addressing Elderly Poverty

Energy subsidies for low-income households, social assistance supplements and minimum pension schemes are some of the policies the Slovenian government has implemented to reduce elderly poverty. Although there are still gaps for those with limited pension entitlements, the European Commission claims that these social transfers play a significant role in reducing poverty risks among older adults.

Long-term investments in adequate pensions, affordable health care and targeted social support are necessary to address elderly poverty in Slovenia. Ensuring financial security and dignity in later life can be achieved by strengthening income protection and expanding support for vulnerable older adults. In addition to improving individual well-being, reducing elderly poverty supports broader initiatives to reduce inequality and promote inclusive economic development.

– Honey Regev

Honey is based in Edinburgh, Scotland and focuses on Business and New Markets for The Borgen Project.

Photo: Pexels

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Venezuelans in Poverty: Life Under Maduro

Venezuelans in Poverty: How Economic Collapse Shaped Life Under MaduroAt the turn of the New Year, the seizure of Nicolas Maduro by the United States (U.S.) military in an operation conducted in Caracas dominated the headlines. The move drew criticism from some who cited concerns about international law violations against a sovereign nation, as well as the fact that the executive branch of the U.S. directed the military action without prior congressional approval. Many in Venezuela, meanwhile, expressed support for the end of an administration widely blamed for declines in quality of life over the course of this century. Life for Venezuelans, particularly under the Maduro government, has been shaped by prolonged economic and humanitarian challenges.

A Population in Dire Need

Multiple sources highlight a longstanding humanitarian crisis in Venezuela. As of 2026, 7.9 million Venezuelans need humanitarian assistance. An additional 7.9 million Venezuelans have been forcibly displaced due to deteriorating economic conditions, a figure the United Nations High Commissioner for Refugees (UNHCR) describes as the “largest displacement situation in the recent history of the Americas.”

Furthermore, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) reports that 5.4 million people are projected to receive some form of international assistance, leaving 2.5 million Venezuelans, nearly 9% of the country’s population, without projected coverage. In addition, 56% of Venezuela’s population lives in extreme poverty.

The Driving Factors

Venezuela’s humanitarian crisis is closely tied to prolonged economic hardship. The Council on Foreign Relations (CFR) identifies the country as a petrostate, meaning it depends heavily on fossil fuel income. Petrostates face the risk of “Dutch disease,” where over-reliance on oil revenue contributes to the deterioration of other sectors of the economy.

Despite having the world’s largest oil reserves, Venezuela experienced significant economic contraction. Time reports that the U.S. first imposed sanctions in 2017 in response to democratic backsliding, further impacting an already struggling economy. From 2013 to 2021, Venezuela’s economy shrank by 70%. Former finance minister Jorge Giordani stated that between 2008 and 2014, officials redistributed two-thirds of oil profits into the economy, while one-third “slipped through the cracks.”

Support Venezuelans: Current Needs

A poll by Gold Glove Consulting indicates that a majority of Venezuelans report optimism following Maduro’s removal. However, economic recovery remains uncertain. The U.S. appointed Delcy Rodriguez as interim president. Although she served in the Maduro administration, she has pledged cooperation with Washington, though not without caveats.

According to Al Jazeera, the Venezuelan government no longer controls its income streams. Funds are deposited into a Qatari account subject to U.S. veto power. Venezuela must submit monthly budget requests for the distribution of those funds. Al Jazeera also reports that experts have raised concerns regarding transparency in the allocation of these funds.

OCHA projects a funding requirement of $606 million for 2026 and reports a funding gap of $587.1 million, constituting coverage of 3.12%. Continued humanitarian funding remains central to supporting Venezuelans facing displacement and poverty.

Looking Ahead

While Venezuela continues to face significant economic and humanitarian challenges, coordinated international assistance and transparent management of resources could help stabilize conditions. Sustained humanitarian funding and targeted support for vulnerable communities remain essential to improving living standards and promoting long-term recovery for Venezuelans living in poverty.

– Luca Hanlon

Luca is based in Brooklyn, NY, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Labor Market Reforms & Low-Income Workers in Vietnam

Low-Income Workers in VietnamOver the past two decades, Vietnam has made exceptional progress in reducing poverty. However, low-income workers remain vulnerable to economic shocks and to informal employment. To address these challenges, the government has implemented labor market reforms to improve wages and job security for millions of workers.

There are multiple contributors to poverty in Vietnam, with low wages and informal employment being the primary ones. Instability and limited access to benefits become inevitable for workers without contracts or social insurance, especially during economic downturns. By enhancing labor market policies, the nation aims to stabilize household incomes among low-income workers, particularly in manufacturing, agriculture and the informal sector.

The nation has increased its regional minimum wage as part of broader labor reforms and in 2022, the government approved a 6% increase. This initiative raised the earnings for millions of low-income workers. An increase in minimum wages helps workers cover basic living costs and reduces in-work poverty, especially for communities that depend entirely on wage labor.

Labor Code Reforms Strengthen Worker Protections

Vietnam’s updated Labor Code, which took effect in 2021, expanded worker protections by regulating working hours and improving the procedures against unfair dismissal. The reforms also improved collective bargaining rights and extended coverage to groups previously excluded from formal protections. Collectively, these initiatives are helping reduce labor vulnerability in Vietnam and ultimately improve working environments for low-income workers.

Access to social insurance is crucial for protecting workers from poverty caused by illness, unemployment or old age. Improved access to insurance can reduce financial insecurity and help workers recover more quickly from economic downturns without falling into poverty. That said, Vietnam has expanded social insurance coverage to include more low-income and informal workers, though inevitable gaps remain.

Challenges Remain for Informal Workers

Despite progress, informal employment remains widespread nationwide, especially among rural workers and migrants. Multiple factors continue to restrict the reach of labor reforms, including enforcement gaps and uneven compliance. Addressing these challenges is crucial and will require better and stronger enforcement and continued policy coordination to ensure that the reforms reach the most vulnerable populations.

Labor market reforms have already played an effective role in supporting low-income workers and reducing poverty nationwide. However, continued investment in fair wages, worker protection and the expansion of social insurance could further enhance Vietnam’s economic resilience and promote inclusive growth.

– Hana Abulkheir

Hana is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Unsplash

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How Tradedepot Is Driving Growth for Small Retailers in Nigeria

TradeDepotAcross Nigeria, small retailers power local economies, yet remain disconnected from efficient global supply chains. This gap drives high costs, inefficient logistics and lost income opportunities for informal businesses. TradeDepot offers a digital solution to this challenge, bridging global supply networks and small retailers in Nigeria.

The Gap Between Small Retailers and Reliable Supply Chains

Small retailers, including family-run shops, street vendors and kiosks, are the backbone of developing economies. Many operate out of homes and are run by women balancing entrepreneurship with domestic work. Together, these businesses account for up to 80% of employment in Africa, making them a powerful driver of income generation and poverty reduction.

Studies by TechnoServe show that targeted support for small retailers can increase incomes by more than 30%. Given the scale of informal retail across Africa, even minor improvements can create lasting economic and social impact. As the final link in the supply chain, small retailers are responsible for distributing essential goods within their communities.

Yet persistent gaps between informal retailers and major suppliers result in fragmented logistics, limited visibility and widespread inefficiency. In Nigeria alone, these systemic gaps generate more than $4 billion in annual losses across the consumer goods supply chain. Most existing supply-chain technologies prioritize large enterprises, leaving informal retailers underserved.

By directly connecting small retailers to reliable supply networks, platforms like TradeDepot enable business owners to save time, reduce costs and increase profits.

TradeDepot’s Digital Solution

African retailers face some of the highest product distribution costs globally and TradeDepot is working to change this reality in Nigeria. By establishing a direct digital channel between manufacturers and informal retailers, the platform streamlines procurement, logistics and inventory management in a single system. Through this platform, small retailers in Nigeria can place orders, track deliveries and manage inventory in real time.

Increased price transparency and access to supplier discounts reduce costs at the earliest stages of the supply chain, directly improving retailer margins. TradeDepot positions itself as the middleman between global brands seeking new markets and Nigerian retailers pursuing growth. As the company scales, it is extending its logistics and distribution expertise to support informal retail ecosystems across Africa.

Market Potential for Global Brands

Africa’s young and rapidly growing population presents major opportunities for global brands. Rising incomes and urbanization are driving demand for quality consumer goods. Yet, fragmented logistics continue to constrain efficient trade and prevent profits from staying within local economies.

TradeDepot’s model reframes poverty reduction through a business lens, shifting power within supply chains toward small retailers. Rather than charity, it provides entrepreneurs with the tools, data and market access required to drive sustainable business growth.

Improved Quality of Life for Small Retailers in Nigeria

TradeDepot’s platform is transforming daily business operations, giving small retailers in Nigeria greater autonomy, predictability and control. As many informal shops are home-based and women-led, these efficiencies have a powerful impact on female entrepreneurs. Women account for 85% of TradeDepot’s retail users and 65% of its distributor network.

Access to tools such as digital wallets and credit lines strengthens financial inclusion, increasing women’s purchasing power and business agency. In a survey of more than 200 customers, 90% reported improved quality of life after adopting TradeDepot’s platform. Retailers no longer need to close shops or travel long distances to source stock.

Instead, they can access consistent inventory at fair prices through nearby depots, improving product availability for communities while boosting retailer profits.

Final Thoughts

By connecting global brands with informal retailers, TradeDepot is driving growth for small retailers in Nigeria, unlocking Africa’s consumer market while navigating the continent’s complex distribution networks. The result is stronger small businesses, more resilient local economies and a scalable, market-driven approach to poverty reduction.

– Hope Jowharian

Hope is based in Paris, France and focuses on Business and New Markets for The Borgen Project.

Photo: Pexels

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Does the Belt and Road Initiative Reduce Poverty?

The Belt and Road InitiativeAcross the hilly Burera District of northern Rwanda, travel between towns and distant regions is a challenge. For many, including businessman Seth Havugimana, reaching a larger city such as Musanze takes four hours. However, one day, men in bright neon construction vests and the smell of newly laid asphalt began to permeate the countryside.

A new road is slowly taking shape, funded by the China Road and Bridge Corporation and Rwanda’s NPD Ltd. This new road will connect once-distant towns and provide economic opportunities to countless individuals. Havugimana recounts how, after the construction of the Base-Butaro-Kidaho road, “business can move and people can go from here to another place easily,” transforming lives in the district.

The Belt and Road Initiative

The Belt and Road Initiative (BRI), a Chinese program aimed at international cooperation and development, funds projects like these globally. Chinese President Xi Jinping announced the BRI in October 2013 and as of December 2023, the program works with around 146-151 countries. Although lacking a clear governance framework, institutions such as the Asian Infrastructure and Investment Bank, the Commercial Bank of China and the Silk Road Fund have contributed to foreign projects through grants and loans.

In addition to the newly constructed road in Rwanda, other recent BRI plans include road and bridge construction in Lesotho’s Qacha’s Nek District and a 2.2-kilometer coastal road in Tanzania near Zanzibar.

How These Projects Can Reduce Poverty

The creation of infrastructure, such as roads, bridges and energy facilities, plays an undeniably important role in fighting poverty worldwide. According to a 2025 report by the World Bank Group, prevailing evidence points to infrastructural development being a “main driver of poverty reduction” and leading directly to an “impact of growth.” The creation of transportation infrastructure, for example, has decreased poverty in Ethiopia and increased earning opportunities for isolated households in Cameroon.

Back to the construction of the Base-Butaro-Kidaho road in Rwanda, the new ease of transportation allows individuals to more easily access schools, hospitals and markets than ever before. In turn, more people in the Burera District have better access to health care and higher levels of education, displaying how the BRI reduces poverty through its projects. Although the answer is not always straightforward, infrastructure spending usually leads to a “positive multiplier” on a country’s GDP.

However, in some cases, there is no benefit due to factors such as delays or a lack of maintenance.

Does the Belt and Road Initiative Reduce Poverty?

While research on the overall effectiveness of the BRI in combating poverty is limited, many sources point to a positive impact. According to the World Bank Group, the BRI covers about one-third of the world’s impoverished population. To this end, there is already an unbelievable amount of scope that the BRI has identified and invested billions of dollars in.

Critics of the program argue that, contrary to the rapid capital accumulation typically associated with new infrastructure, China’s contributions do not lead to improved industries or increased exports. However, a World Bank Group report estimates that 76 million people could escape poverty by 2030 due to the BRI’s efforts. While it may be true that China has seen a rise in exports and some participating countries have experienced losses in their local economies, the BRI’s overall impact on poverty reduction appears positive.

Final Thoughts

Research indicates that expanded international trade and capital growth significantly promote economic growth. Through its many projects and strengthened economic ties with BRI countries, China is contributing to economic growth and, in turn, poverty reduction for innumerable individuals. Like the ancient Silk Road, which facilitated the flow of goods across Afro-Eurasia, the BRI is opening new markets for global trade today.

Although the program is relatively new, its impacts are already being felt and its continued implementation is expected to significantly transform poverty outcomes in the coming years.

– Benjamin Anderson

Benjamin is based in Madrid, Spain and focuses on Business and Politics for The Borgen Project.

Photo: Unsplash

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Why Elderly Poverty in Mozambique Is Rising

Elderly Poverty in MozambiqueWidespread poverty continues to erode living conditions across Mozambique, leaving older adults among the country’s most vulnerable populations as economic crises and weak social protection systems drive financial insecurity. Here is some information about elderly poverty in Mozambique and information about what is occurring to address it.

Economic Crisis Deepens Elderly Hardship

Economic shocks deepen elderly poverty in Mozambique, as rising food and fuel prices undermine economic stability, strain household budgets and push vulnerable older adults further into financial insecurity. COVID-19, natural disasters, inflation and social instability have compounded elderly poverty in Mozambique. Many older Mozambicans rely on small-scale agriculture, livestock and informal income sources for survival, yet still fall below the poverty line. The loss of job opportunities and the increase in essential goods and social services reduce older adults’ purchasing power, forcing them to cut back on nutritious foods, health care and other basic needs.

In 2015, nearly half of Mozambique’s population– approximately 46.1%–lived below the poverty line. By 2022, this figure had surged to 65%, and recent estimates suggest that by 2025 nearly 75% of Mozambicans live in poverty, with approximately 1.35 million adults aged 60 and older facing severe economic hardship, highlighting the growing scale of elderly poverty in Mozambique.

Weak Social Protection Aggravates Elderly Poverty

Limited economic capacity, along with weaknesses and inefficiencies in Mozambique’s domestic social protection and administrative systems, drives vulnerability among the elderly population.

Although the Basic Social Subsidy Programme for older adults (PSSB-Elderly) in Mozambique improves food security following economic shock, structural and systemic weaknesses in program implementation cause these gains to diminish over time. Uneven distribution of PSSB payments has led to significant regional disparities among older adults across Mozambique. In Gaza, approximately 73% of poor older adults benefit from the program, while coverage remains far lower in poorer provinces such as Nampula and Zambezia, where the program reaches only 39% of elderly individuals.

Despite existing health inequities, inconsistencies in PSSB payments also reduce the program’s effectiveness, leaving many older Mozambicans vulnerable to food insecurity and health problems.

Irregular PSSB payments and program design that incentivizes households to declare additional members can increase instability and uncertainty, potentially worsening living conditions for beneficiaries.

Addressing Poverty and the Health Crisis in Mozambique

In 2021, GiveDirectly began delivering unconditional monthly cash transfers to rural households in Sofala Province to reduce extreme poverty and strengthen household resilience. The program provides direct cash assistance to individuals and families, allowing recipients to decide how best to meet their own needs.

GiveDirectly also aims to improve food security, expand financial inclusion and support long-term recovery. Since 2021, GiveDirectly has expanded its program across multiple districts, including Mogovolas, Nhamatanda and Memba, and launched initiatives focused on climate-smart agriculture and conflict-resilient livelihood in 2024 and 2025.

By 2025, GiveDirectly had implemented five cash transfer programs, delivering more than $20 million in cash transfers and reaching more than 32,000 people across Mozambique. Individuals and households used the cash to secure food, access health care and economic investment.

At the same time, the World Institute for Development Economic Research of the United Nations University recommends strengthening administrative systems, ensuring more equitable PSSB payment coverage among older adults and improving payment consistency to support elderly well-being in Mozambique.

Looking Ahead

Reducing elderly poverty in Mozambique requires sustained investment and financial support to address long-standing economic hardship due to recurrent natural disasters and domestic conflict, along with strengthening the country’s social protection systems to ensure reliable financial security for older adults.

– Yuhan Rong

Yuhan is based in San Diego, CA, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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How Tourism Is Reducing Poverty in Albania

Poverty in albaniaTourism in Albania has grown rapidly in recent years and is becoming a powerful tool for reducing poverty and creating economic opportunity. Once seen as a hidden destination, the country is now attracting millions of visitors each year, bringing new income to communities that previously had limited employment options. Through investment in infrastructure, support for small businesses and community-based tourism projects, the industry is helping households earn a stable income and build more secure futures.

Rapid Growth in Visitor Numbers

Albania has shifted from being a hidden destination to becoming one of the Mediterranean’s fastest-growing tourism markets. In 2019, the country welcomed 6.4 million foreign visitors, which was considered a record year at the time. Since then, tourism in Albania has continued to grow rapidly.

By 2024, Albania attracted nearly 12 million international visitors, an 82% increase from 2019. Tourism in Albania also showed strong resilience after the COVID-19 pandemic. By 2022, tourist arrivals were already 5% higher than pre-pandemic levels, allowing the sector to recover faster than many competing destinations in the region.

This quick recovery helped protect jobs and restore income in tourism-dependent communities. The country has also expanded its tourism markets beyond a single source. Albania has established direct air connections and attracted visitors from the U.K., Germany, Italy, France, the U.S. and the Middle East. To meet growing demand, the number of hotels, rooms and beds increased more than tenfold between 2000 and 2019, while international seat capacity continued to rise after 2019.

While national statistics show a massive surge in arrivals, local hosts see this growth through their seasonal calendars. In an interview with The Borgen Project, Akeron, who runs a local Airbnb, explained that the season typically “starts in April and ends in the end of October.” During the peak months of July and August, his accommodations are usually “fully booked,” while June and September maintain high occupancy rates of “70-80%”.

Tourism Revenue and Economic Impact

Tourism has become a major financial pillar of Albania’s economy. In 2023, the sector’s contribution to GDP reached 565 billion Lek ($6.78) billion, a 37% increase from the previous peak in 2019. Estimates show that travel and tourism now contribute roughly one in every four Lek to the national economy.

Tourism has also strengthened Albania’s export earnings. Over the past two decades, tourism generated 38% of the country’s total exports. International visitor spending reached 464 billion Lek ($5.57 billion) in 2023, more than 45% higher than in 2019, bringing money directly into local communities.

This economic shift is felt directly at the household level. For Akeron’s family, the ability to host international visitors has provided a new level of financial security. “For my family, it has made a difference in the amount of money we can save and has helped us think about things we want to do for the future,” Akeron stated.

Job Creation and Social Inclusion

Tourism is one of Albania’s largest sources of employment. In 2023, the sector supported almost 269,000 jobs, representing around one in five jobs nationwide. These jobs range from hospitality and transport to food services and cultural tourism, offering work in areas where few alternatives exist.

Tourism growth has also supported inclusive employment. In southern Albania, more than half of the jobs created through heritage tourism projects are held by women and young people. Some initiatives have also created opportunities for people with disabilities, including maintenance roles at Gjirokastra Castle, helping improve household income, social inclusion and reduce poverty in Albania.

Additionally, tourism has encouraged return migration. Former residents are returning to historic cities such as Gjirokastra and Saranda to invest savings in guesthouses and hospitality businesses. In project-supported areas, the number of tourism-related businesses has more than doubled since 2019, showing how public investment can stimulate local entrepreneurship.

These roles often rely on a collaborative family structure to be successful. Akeron and his parents all maintain other full-time jobs, but they “work together” to manage the guesthouse. He explained the division of labor: “me with the online part and my mom with the cleaning and welcoming guests to make it work.” He also noted that for families where members lack regular employment, this business provides “a very good income.”

Tourism in Rural and Coastal Communities

Tourism has turned family homes into sources of income in many rural and historic areas. In cities such as Gjirokastra, Berat and Përmet, public investment in restoring castle sites and cobblestone streets has encouraged families to convert historic homes into bed-and-breakfasts, restaurants and guesthouses. In these areas, the number of tourism-associated businesses has more than doubled since 2019.

Rural tourism also supports artisanal and cultural income. Around 78% of people employed in the artisan sector are women and nearly half of handicraft businesses are women-owned. Small family-run homestays rely heavily on women’s labor and provide independent income, strengthening household stability.

Infrastructure improvements have helped extend the tourism season beyond the summer months. Projects such as the Saranda promenade have enabled year-round economic activity, stabilizing income for local workers and businesses.

Local hosts often act as a bridge to the wider community by encouraging guests to spend money at nearby businesses. Akeron noted that he frequently recommends “restaurants in the city and by the beach” to his guests. He specifically highlights a restaurant in his village “which serves only Albanian food,” illustrating how tourism income supports traditional culinary businesses.

Community-Based Tourism and Infrastructure Investment

Community-based tourism initiatives have helped ensure that tourism benefits stay within local communities. The Integrated Urban and Tourism Development Project, supported by the World Bank and the Albanian government, focuses on cities including Berat, Gjirokastra, Përmet and Saranda. The project aims to regenerate local economies by restoring heritage sites and upgrading public infrastructure.

This model encourages residents to become active tourism entrepreneurs by converting private properties into guesthouses, cafés and tourism services. Additional EU-funded programs have adopted bottom-up approaches that enable communities to shape tourism growth in line with local needs. Investment in transport and accessibility has supported this growth.

Albania has expanded air connections through low-cost carriers and the construction of new airports. Road networks, walking routes and heritage trails have also improved access to inland regions.

Remaining Challenges

Despite strong progress, challenges remain. Informal employment continues to leave many tourism workers without contracts or social protection, increasing vulnerability during economic shocks. Regional inequality is also visible, as northern areas such as Kukës continue to face high poverty and limited tourism development.

Beyond employment concerns, a significant hurdle is the “infrastructure missing from the government.” Akeron identified the “lack of water” as a primary issue, explaining that families often have only “1-2 hours a day” to fill storage tanks for basic needs like showering and washing dishes. He recalled a specific instance where the water supply failed while a guest “had just put on the shower gel.” While a neighbor was able to provide water to help, Akeron noted that these daily shortages create constant uncertainty for local hosts.

Tourism in Albania is proving that well-planned growth can do more than attract visitors; it can reduce poverty, create jobs and strengthen communities. By supporting family-run businesses, expanding infrastructure and promoting community-based tourism, Albania has allowed its residents to benefit directly from rising visitor numbers. While challenges remain, continued investment and inclusive planning offer a hopeful path forward, showing how tourism can be a powerful force for shared prosperity and poverty reduction in Albania.

– Aila Alsakka

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

Photo: Unsplash

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How Clean Energy in Kenya Is Powering Poverty Reduction

Clean Energy in KenyaWhen the sun sets over rural Kenya, darkness no longer marks the end of the day for many families. Clean energy increasingly influences daily life in communities that formerly relied on expensive fuel and smoky kerosene lamps. Children study after dusk, homes are brightened by solar lights and small businesses remain open later.

Renewable energy benefits the nation’s well-being and economy more than simply endorsing positive environmental pursuits. It actively supports poverty reduction in Kenya by expanding opportunities at the household level.

Expanding Clean Energy Access in Kenya

Millions of Kenyan families suffered from low productivity and bad health for decades due to energy poverty. Families spent a significant amount of their earnings on charcoal, firewood and kerosene. These fuels depleted cash and harmed people’s health.

Respiratory ailments were caused by indoor air pollution and opportunities for education and employment were limited by sporadic lighting. However, recent findings show how the nation has rewritten its past. Kenya has made great strides in expanding access to clean cooking and power through strong regulations and targeted infrastructure investments, according to a recent IEA assessment.

Kenya is positioned as a regional leader in economic and energy growth, thanks to its ambitious implementation plans. Its push for electrification using clean energy technology has put the country on track to achieve universal access to electricity by 2030. “Kenya is showing how the strategic deployment of clean energy technologies and electrification in end-use sectors can significantly improve the lives of millions of the most vulnerable people in the world,” stated IEA Deputy Executive Director Mary Burce Warlick.

A key contributing factor to this remarkable turnaround is the transition to clean energy. The nation is currently among the world leaders in clean power, producing more than 90% of its electricity from renewable sources. Large-scale initiatives like Lake Turkana Wind Power improved the country’s national grid and showed Kenya’s dedication to sustainable development.

Solar Power’s Impact in Kenya

This shift links clean power directly to long-term poverty reduction in Kenya by supporting inclusive economic development. Rural residents who would have had to wait years for grid connections can now get electricity immediately thanks to off-grid solar installations. Businesses like M-KOPA use pay-as-you-go methods to enable families to purchase solar systems with modest daily payments made with mobile money.

Millions of people now have dependable energy for the first time thanks to M-KOPA’s solar power connections to more than two million homes. Solar electricity facilitates exciting opportunities for people in Kenya. Parents may operate small home-run businesses, charge neighbors’ phones and extend store hours after dark with dependable electricity.

Reduced energy expenses provide free money for food, medical care and school tuition. Clean energy enhances pathways to poverty reduction in Kenya, enabling households to transition from a bare minimum existence to a more sustainable future, with potential for future investments. Additionally, clean energy enhances health outcomes, particularly for women and children.

Solar illumination reduces indoor air pollution and replaces kerosene lamps. Families are less likely to have fire hazards and respiratory issues. Furthermore, solar energy helps hospitals by supplying consistent illumination and refrigeration for vaccinations in isolated locations.

Final Remarks

The United Nations (U.N.) lists its Sustainable Development Goals, a notable aim being to ensure access to clean, affordable energy. Kenya’s journey toward sustainable energy is a story of possibility. The nation demonstrates that climate action and economic advancement can coexist by increasing access to reasonably priced renewable energy.

Clean energy today provides security, dignity and a practical way out of poverty for many Kenyan households.

– Prubleen Bhogal

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

Photo: Flickr