Archive for category: Economy

Information and stories about economy.

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How Surf Tourism is Helping Fight Poverty in Bali

Poverty in baliBali, an island and province of Indonesia, is best known for its turquoise waves and world-class surf breaks, but behind the island’s booming tourism industry lies a more complex reality. While mass tourism has strained local livelihoods and the environment, surf tourism in Bali is quietly creating economic opportunities that help local communities escape poverty.

Tourism and Inequality in Bali

Over the past two decades, tourism has driven extraordinary economic growth in Bali. Before the pandemic, the island welcomed more than six million international visitors a year, generating jobs, foreign investment and global visibility. But this growth has not been evenly shared.

As tourism expands, wealth tends to concentrate in already-popular areas, widening the gap between those who benefit from the industry and those who are left behind. Developers have increasingly converted agricultural land, including Bali’s iconic rice terraces, into hotels, beach clubs and shops aimed at foreign tourists. For many rural and working-class communities, this shift has meant higher living costs, fewer traditional livelihoods and mounting pressure to adapt or relocate.

Surf Tourism in Bali

What surf tourism in Bali occasionally reveals is not a solution to poverty, but a different way tourism value can circulate at the margins. At Kima Surf, the surf camp embeds charitable work into its everyday operations. Kima Surf instructors bring children from the Bali Orphan Day Center into the water for surf sessions, while guests and staff take part in beach clean-ups that address the environmental pressures tourism generates.

Beyond the beach, Kima Surf supports initiatives such as the NF Kinder Foundation. The foundation funds health care, research and aftercare for families facing the high and ongoing costs of Neurofibromatosis, helping them avoid financial strain that could push them deeper into poverty. Similarly, Bali Green Surf School supports educational access by providing food, clothing, toys and essential school supplies to local orphanages, helping reduce material barriers to learning for children from low-income backgrounds.

Fundraising for SurfAid’s Make a Wave Challenge and awareness campaigns promoting disability inclusion in Bali also support groups that are often excluded from tourism jobs and social services. These interventions remain limited in scale and cannot offset the structural inequalities that tourism development produces; however, they illustrate how surf tourism can contribute, albeit incrementally and unevenly, to poverty alleviation. It eases access to care, skills and resources where state support is often insufficient.

What This Means for Poverty Reduction in Bali

Examples like Kima Surf and Bali Green Surf School show how surf tourism in Bali can intersect with poverty in ways that are often overlooked. Rather than transforming the economy or reversing gentrification, surf tourism can create smaller, more immediate forms of support. These include reducing financial vulnerability by improving access to health care and educational resources that might otherwise push families further into poverty.

These impacts are limited and uneven, but they matter in a place where tourism dominates everyday life. Surf tourism in Bali does not solve poverty. However, when its benefits reach local people, it can make everyday life more affordable for some families.

– Iona Gethin

Iona is based in Exeter, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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Women’s Cooperatives in Guatemala

Women’s Cooperatives in GuatemalaIn the highlands of Guatemala, women’s cooperatives are writing a tale of defiance against poverty. Historically marginalized groups of women have united through cooperatives to become the lifeblood of their local economies. The benefits are cascading in metamorphic ripples, transforming entire communities in their wake.

Economic Independence

The most immediate impact is a dramatic rise in household income. Cooperatives like the Cojolya Association guarantee members more than twice the local market rate, shattering legacies of exploitation and establishing women as primary economic actors. This empowerment was a product of necessity, born from the ravages of a civil war that left countless women widowed.

Survivors, now solely responsible for the welfare of their families and the rehabilitation of their communities, founded cooperatives like Trama Textiles, which has grown into a network of more than 400 weavers. Cooperatives like Ixoq Ajkeem demonstrate the power of a collectivist approach with their strategy of pooling resources, leveraging bulk orders and constructing common storefronts. In this way, women’s cooperatives in Guatemala integrate vulnerable and disparate artisans.

They unite them under a single, resilient organizational model. This structure protects families from economic volatility. It also shields individual producers from the unpredictability of the market.

Investing in Health and Nutrition

This economic power creates a direct second ripple: improved family health and nutrition. As primary earners, women consistently reinvest in their families’ well-being, marking a critical shift in a country where a severe poverty crisis drives chronic malnutrition. Through cooperatives, this care becomes institutionalized.

UPAVIM, for instance, has channeled its collective resources into a medical and dental clinic while also initiating targeted campaigns, like a soymilk program, to combat child malnutrition. The women of rural Guatemala continue to teach a lesson in ingenuity by using the cooperative model to transform earnings directly into community health care, ensuring the windfalls of their work are felt throughout their entire locality.

Keeping Children in School

The third ripple and perhaps the most foundationally transformative, manifests in education. Protection from poverty enables children to return to the classroom instead of toiling away in the workforce of manual labor. This commitment is structurally embedded in cooperatives like UPAVIM, which operates its own school.

It also provides members’ children with scholarships for school supplies and meals. These efforts significantly reduce costs and make education accessible to many more families. The result is both tangible and visible. Children in school uniforms are now a common sight.

This change reflects their mothers’ success in securing a right to education denied to earlier generations by poverty. It also signals systemic transformations capable of breaking long-standing cycles of deprivation.

Building Skills and Confidence

The impact of women’s cooperatives in Guatemala transcends material gain, mounting to a fourth ripple of personal empowerment. Beyond the loom, women receive vital training in financial literacy, business management and leadership, highlighting cooperatives as institutions for holistic human development and collective self-sufficiency. This newfound expertise fuels a powerful shift in communal identity. As one weaver from the Aj To’ooneel cooperative asserted, “Women today are entrepreneurs.”

This transformed identity is reproduced at home, reshaping the perceptions of forthcoming generations. “The children of the artisans are seeing that women also have an important role or they occupy the same position as men in the family,” observed Lidia Garcia of Mercado Global. This cycle of empowerment, once begun, becomes self-perpetuating.

Strengthening the Entire Community

These individual ripples converge into a fifth: community fortification, transforming cooperatives into vital civic institutions. Aside from its school, UPAVIM established a health clinic and bakery, establishing a grassroots community support system. This role as a community pillar becomes most evident and most critical during crises.

Throughout the COVID-19 pandemic, cooperatives like Multicolores, Kakaw Designs and Mercado Global leveraged their networks to facilitate emergency food baskets, hygiene supplies and public health information when state aid was insufficient. Ultimately, these women’s textile cooperatives in Guatemala amount to something far greater than the sum of their parts; they weave a stronger, more resilient social fabric for the future.

Final Remarks

The story of Guatemala’s cooperatives is a testament to how women’s empowerment creates a cascade of change. From individual economic independence to healthier families, educated children and resilient communities, the ripple effect is lifting rural communities in Guatemala out of poverty. These cooperatives demonstrate that the most sustainable path to development is not through top-down aid alone, but by empowering those at the heart of communities to become the architects of their own futures.

– Georgio Moussa

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

Photo: Wikimedia Commons

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Rwanda’s Zamukana Ubuziranenge: Boosting Small Businesses

Rwanda’s Zamukana UbuziranengeIn October 2025, Rwanda hosted the International Organization for Standardization (ISO) Annual Meeting in Kigali, spotlighting the nation’s emergence as a continental leader in “quality infrastructure.” Central to this economic success is Rwanda’s Zamukana Ubuziranenge program, a strategic initiative translated as “Grow With Standards.” By providing technical assistance to small businesses, the program bridges the gap between local production and international safety requirements, fostering a new era of inclusive industrial growth.

The Standards Maturity Model

The implementation of Rwanda’s Zamukana Ubuziranenge utilizes what experts refer to as a “maturity model.” Rather than imposing unreachable global mandates on small entrepreneurs, the Rwanda Standards Board (RSB) provides a tiered trajectory for micro, small and medium enterprises (MSMEs) to progress incrementally. This approach first adapts international standards to suit local realities.

Then it aligns them with global markets as the institutions mature. The program begins with a gap assessment to benchmark current business practices against applicable standards. Following this, the RSB offers customized training and “handholding” support to help staff implement systems that promote consistent quality.

This hands-on guidance prepares businesses for a final assessment and the eventual initiation of the formal certification process. Through this supportive framework, the government ensures that small producers can match their technical ambition with their actual capacity.

Removing Financial Barriers To Growth

A significant political development occurred in January 2025, when the government announced that all quality services under Rwanda’s Zamukana Ubuziranenge would be provided free of charge to MSMEs. These services include technical assistance, testing, calibration and certification. By removing these costs, the state eliminated a significant financial barrier for low-income entrepreneurs, particularly those without access to funding from external development partners or nongovernmental organizations.

Quantifiable Impact on Local Industries

The measurable success of Rwanda’s Zamukana Ubuziranenge is evident in the diverse range of businesses it has supported. By June 2025, the program reached approximately 988 MSMEs and cooperatives. This group comprises 368 enterprises operating in food value chains and 226 businesses in the chemical industry, producing essential items such as soaps and detergents.

The program also supported 94 businesses in the textile and leather sectors and trained 33 cooperatives in transparent grant management practices. Sector-specific results highlight the practical outcomes of these certifications. For instance, the RSB has successfully certified 14 honey products from 12 different companies against international food safety management systems.

These certifications allow Rwandan honey to access wider regional and global markets, increasing the income of rural beekeepers. Similarly, the certification of locally made machinery and mechanical tools reduces field failure rates. It provides a powerful marketing tool for exports.

Fostering an Inclusive Quality Culture

The long-term impact of Rwanda’s Zamukana Ubuziranenge extends beyond technical compliance to social empowerment. The program specifically focuses on MSMEs established by women, young people and individuals with disabilities. By equipping these marginalized groups with the skills to produce high-quality goods, the initiative fosters a culture of self-sufficiency.

Residents in areas like Cyanika have noted that the availability of affordable, quality local products reduces the need for community members to seek supplies across borders.

A Regional Leadership Strategy

Rwanda’s hosting of the ISO Annual Meeting 2025, themed “United for Impact,” reflects its position as a regional hub for innovation and trade. The country has developed and adopted more than 2,250 international standards to date, which support socioeconomic activities and open doors for Rwandan products in global markets. The global community recognizes this commitment to quality infrastructure as a “hidden foundation of prosperity” that helps developing nations escape the cycle of low-quality production.

The future of Rwanda’s Zamukana Ubuziranenge appears promising as it continues to integrate local businesses into the formal economy. Indeed, by prioritizing standards as a tool of industrial policy, Rwanda is demonstrating how technical excellence can drive sustainable development and poverty reduction. As more MSMEs achieve certification, the nation moves closer to its goal of achieving self-reliance and global competitiveness, proving that standards serve as a springboard for inclusive growth.

– Elena Cárdenas

Elena Cárdenas is based in Monterrey, México and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Poverty Amid Currency Discrepancies and Inflation in Egypt

Inflation in Egypt

Egypt is starting to recover from what was, in 2023, a widening gap between its official currency exchange rates and black-market rates. With a record high inflation rate of 38% documented in September 2023, Egypt’s economy remains caught between the two exchange rates. To facilitate an understanding of the timeline, these figures reflect the peak of the crisis in 2023, followed by developments in 2024 and 2025 as reforms continued to unfold. Although the peak of inflation in Egypt has passed, recorded as 13.6% in March 2025, food prices continue to surge and remain an area of difficulty for the population. Meanwhile, the Central Agency for Public Mobilization and Statistics (CAPMAS) continues to withhold poverty data, feeding fears that although there is an apparent phase of stabilization, worsening hardship and poverty may be masked.

Currency Dynamics and Discrepancies

Egypt has long held the problem of what can be known as a dual-rate system. While the Central Bank of Egypt sets an official currency rate against the U.S. dollar, the black-market rate continues to fluctuate based on supply and demand. As Egypt is heavily dependent on imports, many businesses and individuals need access to dollars to purchase goods and services. However, when the dollar supply becomes insufficient through official channels, many have to turn to the black market, where the exchange rate is significantly higher.

This reveals a widening gap between those who have access to foreign currency and those forced to rely on depreciating and unstable Egyptian pounds. Although this gap has narrowed in 2025, businesses still struggle to access dollars, driving up both import and consumer prices. These developments reflect gradual adjustments since 2023 instead of focusing solely on a single moment of change.

Inflation in Egypt and Purchasing Power

Although a recent decline in inflation in Egypt has been observed, pressure remains. In January, inflation in Egypt increased by 1.6% after having been stable in December. Despite this, the cost of health care services continues to rise by 4.6% monthly, with sustenance costs increasing by 2.1%. This continues to drive poverty and decrease the purchasing power of individuals, as the prices of goods erode real wages.

Egypt’s reliance on Russia for wheat, and the impacts of the war in Ukraine, have doubled bread costs. The government has tried to reduce these increases through subsidies and price restrictions, and many protests have occurred over the years regarding the price of bread. Even with slower inflation and subsidies, purchasing power remains weakened, with many still below the poverty line, although this is beginning to decrease.

There are also concerns regarding how CAPMAS defines poverty. The latest report classifies extreme poverty as 550 pounds per month per person, and poverty as 857 pounds per month. These definitions are not in line with global poverty standards. Therefore, what appears to be a decrease in poverty may partly reflect shifts in definitions.

Disproportionate Impacts on Business and Living Standards

Various groups of people are being affected in different ways by the economic crisis. One example is young people giving up on education and resorting to any available work to sustain themselves and their families. This includes redefining what a decent life means, as many are no longer able to uphold previous standards. This has also led to a decrease in confidence regarding the future, with concerns about stability. Many Egyptians have moved back in with family, delayed marriage or given up on private further education.

Businesses are also struggling, as many rely on higher unofficial exchange rates to operate. This leaves them with higher running costs and makes it difficult to stay afloat. With fluctuating inflation, instability and record import prices, many businesses operate at a loss or at reduced capacity. As individuals lose purchasing power, they are less able to afford goods and services that once fit within their budgets.

Policy Response and Recommendations

In recent years, Egypt has been heavily reliant on loans from the International Monetary Fund (IMF) and its Gulf allies. In 2024, the IMF approved a $3 billion loan for Egypt with the condition of “a permanent shift to a flexible exchange rate regime.” With effective implementation, Egypt may be able to improve economic stability and build resilience. This would require measures that boost investor confidence, increase transparency and reduce incentives for black-market activity. Investor confidence could be strengthened through clearer public communication of monetary policy, more frequent publication of economic data and improvements in financial governance that make procedures easier for businesses and households to navigate.

To do this, Egypt needs to strengthen its foreign currency reserves by increasing and diversifying foreign investment and exports. Foreign currency reserves could also receive support through the encouragement of investment in infrastructure that improves transport and shipping efficiency, which would lower import costs and encourage export competitiveness. A focus on greater flexibility of the official exchange rate would go a long way toward this stable future, in which market forces play a more influential role, keeping in mind that adjustments need to be gradual to inhibit shocks and destabilization. Gradual adjustments paired with targeted fiscal measures would support small and medium-sized businesses during periods of volatility, which would also support employment and production.

Looking Ahead

In clarifying the progression from 2023 through 2025 and devising practical steps for reform we can see how stabilization may eventually translate into improvements, namely the alleviation of poverty, felt across society. While current data indicate a decline in poverty and unemployment, many Egyptians have not yet felt improvements in daily life. The country could benefit from intentional efforts toward a more stable and transparent economic landscape for a future where the positive impacts reach every household.

– Maryam Qutbuddin

Maryam is based in Reading, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Unsplash

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Uganda Vision 2040: Foreign Direct Investment

Uganda Vision 2040Four decades after the implementation of the Bretton Woods Institutions’ controversial financial liberalization policies on the African continent, Uganda is retaking control of its economic future. This means cutting dependency on aid and focusing on sustainable economic growth. As stated in Uganda Vision 2040, the Ugandan government envisages “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 years.” Key to fulfilling this aspirational vision is foreign investment, the encouragement of which forms a principal role of the country’s diplomatic service.

Moving Beyond Aid

The Ugandan government’s vision for the nation’s future is one of economic independence and prosperity, a vision that a high dependence on aid renders impossible. Recent years have also seen a sharp decline in the global aid budget, with many wealthier nations slashing the amount spent on overseas assistance in favor of internal spending.

This comes at a time when poverty is still a persistent challenge in Uganda. Using the World Bank’s international poverty line of $3 a day, 59.78% of Uganda’s 50 million inhabitants live in poverty. It is important to note, however, that this figure was more than 80% before the turn of the century, showing remarkable progress. Using Uganda’s national poverty line, the percentage of people in poverty has dropped to 16.1%, though this figure stands at 74.2% in the arid northeastern region of Karamoja.

The Borgen Project spoke with H.E. Philip Rukikaire, Uganda Deputy High Commissioner to the U.K. He said, “Whereas Uganda has relied heavily on multilateral and bilateral aid since the late 1980s to support the recovery of the economy and also to transform into a middle-class economy, the government acknowledges that Aid is not sustainable.”

Set Targets

Recognizing the unsuitability of an aid-dependent economy to Uganda’s specific context, prompted the Ugandan government to implement Vision 2040, a 2013-launched document outlining the steps required to increase per capita income to $9,500, with a focus on driving investment.

Ten years later, Uganda Vision 2040 was supplemented with the Tenfold Growth Strategy. “The Tenfold Growth Strategy is the specific economic blueprint designed to achieve the quantitative leap required to meet the Vision 2040 goal,” said Ambassador Rukikaire. The strategy is anchored on four high-potential sectors: agro-industrial, tourism, mineral development (including oil and gas) and science, technology and innovation (ATMS). Many see these sectors as key to growing the economy tenfold from $50 billion to $500 billion by 2040.

Potential for Investment in Uganda

Uganda’s potential for foreign investment is vast. In 2024, the inward flow of Foreign Direct Investment (FDI) totaled $3.3 billion, an almost 200% increase from 2019. With a young, rapidly growing population, fertile soils, a substantial market size and regional integration through the East African Federation — and more recently the African Continental Free Trade Agreement — there are many advantages to potential investors.

As part of its broader strategy, the Government of Uganda has taken major steps to increase investment in the country. These include a 75% reduction in tariffs on machinery for factory use and a 100% tax deduction on costs related to training, research and mining. Additionally, the government has also offered additional benefits to incentivize investment in ATMS.

The Role of Foreign Service

A large role in stimulating investment in Uganda is played by the country’s diplomats. Indeed, in a recent meeting of Uganda’s Heads of Mission, the integral role of the foreign service in national development was restated. In the United Kingdom (U.K.), the Uganda High Commission works to encourage investment in each ATMS sector. This includes promoting Uganda Coffee, facilitating partnerships between NHS trusts in the U.K. and medical institutions in Uganda, and partnering with the Uganda Tourism Board to bring attention to Uganda’s unique tourist offerings.

U.K. Investments in Uganda

Many agreements have already been made, with the total U.K. Export Finance (UKEF) portfolio with Uganda set to surpass $1 billion in the coming year.

  • Kabalega International Airport. To support Uganda’s oil exploration, construction began in April 2018 on a second international airport in the country. Located in western Uganda, the project was funded by a €264 million loan from the U.K.’s Standard Chartered Bank and UKEF and carried out by U.K.-based infrastructure company COLAS. At the time, it represented the largest ever UKEF loan to an African government. Ambassador Rukikaire stated, “The airport is near the Albertine Graben area where oil wells at Kingfisher and Tilenga projects are in advanced stages of producing ‘first oil’ for sale (2026). It will facilitate cargo transportation but also improve connectivity around the country and region for tourism and trade, creating many jobs in the area in different sectors.”
  • Kampala City Roads and Bridges Upgrading Project (KCRBUP). In a project fully funded by UKEF, the Kampala Capital City Authority will upgrade and rehabilitate more than 118 roads across the capital, directly employing up to 300 Ugandans. The €250 million agreement was signed with COLAS and will overhaul the road network.
  • Kitgum-Kidepo Road. In Uganda’s northeast, UKEF facilitated a loan of up to €110.5 million from Standard Chartered Bank to upgrade the 116 km Kitgum-Kidepo Road. Ambassador Rukikaire noted, “For local communities, the project aids in developing the Karamoja sub-region, one of the poorest in Uganda, by improving market access for agricultural products and facilitating trade with South Sudan and Kenya. For the tourism sector, it transforms the currently difficult, dusty or muddy access road to the Kidepo Valley National Park into a reliable route, significantly boosting visitor numbers and unlocking the region’s vast tourism potential.”

Current Challenges

Despite progress, challenges remain in actualizing the aims of Uganda Vision 2040. Corruption is a persistent barrier to investment, as is insecurity in the country’s border regions with South Sudan and the Democratic Republic of the Congo. Though there have been infrastructural improvements, investors remain disincentivized by poor connectivity.

Speaking on the U.K.’s relationship with Uganda, Ambassador Rukikaire stated, “The Labour government has signaled in its new ‘Africa Approach’ strategy its intention to prioritize Uganda in terms of investment that ultimately increases youth employment.” Through its international relationships, Uganda continues to make positive strides toward achieving the goals of Uganda Vision 2040 and the Tenfold Growth Strategy. Though challenges persist, the country demonstrates how to reduce poverty without overreliance on aid.

– Henry Weiser

Henry is based in Cornwall, UK and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

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How Democracy in Ghana is the Recipe for Economic Growth

Democracy in GhanaGhana is demonstrating that stable democratic institutions provide the foundation for sustained economic expansion. The West African nation achieved 7.2% GDP growth in the third quarter of 2024, the highest quarterly expansion in five years, while maintaining its status as one of Africa’s most enduring democracies with over 30 years of uninterrupted democratic governance since 1992.

Democratic Stability Attracts Investment

Ghana’s consistent democratic transitions have created an environment where businesses can plan long-term investments with confidence. The country maintained its 6.30 point democracy score in 2023, ranking sixth regionally and 65th worldwide on the Economist Intelligence Unit’s Democracy Index, significantly outperforming the regional average. This political stability enabled Ghana to attract $331 million in tech sector investment in 2023, with the industry now valued at $2.6 billion.

Freedom House continues to rate Ghana as “Free” with one of the highest scores in sub-Saharan Africa. This strong governance framework has proven crucial for economic recovery, as Ghana successfully completed a $13 billion Eurobond exchange in 2024 and secured an IMF-supported program that helped stabilize the economy after a 2022 crisis.

Agriculture Sector Powers Job Creation

Transparent governance enabled the effective implementation of agricultural programs that are transforming rural economies. The Planting for Food and Jobs Phase Two program, launched in August 2023, represents a comprehensive approach to agricultural modernization across 11 commodity value chains including grains, starchy staples and vegetables.

The agriculture sector expanded by 5.0% in the first half of 2024, employing roughly 75% of the rural population and accounting for 21% of GDP. The Ministry of Food and Agriculture’s 2024 budget exceeded 3.3 billion Ghana cedis, with the government contributing 82% of total budgetary allocation. Between 2017 and 2022, fertilizer application rates increased from eight kilograms per hectare to 25 kilograms per hectare, while certified seed distribution rose from 2,000 metric tons to 36,000 metric tons.

The Ghana Economic Transformation Project has generated 2,438 direct jobs, more than double its 1,000 job target, with 1,071 jobs created for women. Firms supported by this World Bank initiative reported an average 18% increase in gross sales, while women-owned businesses achieved a 12.68% increase.

Technology Sector Drives Innovation

Democratic freedoms and independent judiciary systems have fostered a thriving technology ecosystem. Ghana ranks 15th out of 47 African countries for ICT use in the 2024 ICT Development Index. The digital economy is currently valued at approximately $1 billion and could reach $5 billion by 2030.

The Information and Communication subsector grew 17.9% in the first quarter of 2024, demonstrating the rapid expansion of digital services. Furthermore, Ghana’s tech ecosystem raised an estimated $66 million by the third quarter of 2024, with Fido securing a $30 million Series B funding round. The recently concluded eTransform project established operational infrastructure for the Cyber Security Authority, contributing to Ghana ranking second in Africa in the 2024 Global Cybersecurity Index.

Energy Sector Embraces Renewable Transition

Good governance structures enabled the government to address energy sector challenges while advancing renewable energy goals. In 2024, the Rural Electrification Program connected 276 rural communities to the National Grid, increasing the access rate from 88.95% to 89.03%. Ghana targets reaching 90% electrification by the end of 2025.

The government’s Renewable Energy Master Plan sets a target of 1,363.63 MW of grid connected renewable energy by 2030. Renewable energy capacity stood at close to 1,700 megawatts in 2022, following an increasing trend since 2012. The Energy Transition and Investment Plan announced in September 2023 estimates that Ghana will need more than $550 billion in capital investment to achieve net zero by 2060, with the majority of spending directed to the transport and power sectors.

Democracy and Economic Growth in Ghana

The situation in Ghana illustrates how democracy and democratic institutions create conditions for sustainable economic development. Despite facing a severe macroeconomic crisis in 2022, with debt reaching 92.6% of GDP, Ghana’s democratic framework enabled peaceful implementation of necessary reforms. Indeed, by 2024, growth rebounded to 5.7%, and second quarter 2025 real GDP increased 6.3% year on year, led by services and agriculture sectors.

The December 2024 elections demonstrated democratic resilience, with former President John Dramani Mahama winning 56.4% of the vote in a peaceful transition. This political stability continues to position Ghana as a model for how democracy serves as a recipe for economic growth across West Africa.

– Jawad Noori

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

Photo: Flickr

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The Sprawling Indian Slum Economy: Dharavi

The Sprawling Indian Slum Economy: Dharavi Dharavi, Asia’s largest slum, is located in the heart of Mumbai. It is a symbol of urban poverty. Beneath the visual chaos and tightly packed lanes lies a highly functional Indian slum economy. This informal economy includes thousands of micro-enterprises such as leather workshops, recycling businesses and garment units, among many others. Offering employment to tens of thousands, this remarkable local economy generates an estimated $1 billion annually.

The Invisible Engine

Dharavi has thousands of small workshops and micro-enterprises. Many homes function as production units, producing goods such as leather products, textiles and jewelry, as well as niche items like plastic weaving, with some reportedly being exported. Although these claims cannot be fully verified through official documentation, word-of-mouth accounts suggest widespread trade activity. Some sources cite that there are upwards of 20,000 mini-manufacturing units with cumulative annual outputs close to $1 billion.

Margins of the Marketplace

While the Indian slum economy is flourishing, it also harbors limitations. Informality contributes to a lack of protection, precarious working conditions and exploitation. Most workers lack formal contracts and statutory benefits. Many face unsafe factory and construction conditions that can result in illness or even death, as safety measures are rarely enforced.

These problems have become part of a broader debate around redevelopment. Some advocates, such as Adani Group and its supporters, have cited poor working conditions as justification for redevelopment plans that could dismantle the existing economy and lifestyle.

Risks of Redevelopment

Redevelopment could, in theory, benefit the informal economy through formalization, safety measures and improved infrastructure. However, current plans—particularly the Adani Group’s redevelopment project—have raised significant concerns. According to the opposition government of India, the project appears to prioritize private gain over community welfare, with the potential to displace up to 700,000 people. Some alternative residential sites proposed by the government are located far from the existing economy and income sources of current residents.

Rahul Gandhi stated, “This government handed over Dharavi to Adani,” accusing it of “enriching cronies.” For many Dharavi vendors, the plan “has raised significant fears amongst residents over their livelihood, education and opportunities,” according to Land Conflict Watch. The industries that thrive here cannot be confined to traditional business models based on standardized land parcels or enclosed units without open yards or foot traffic access.

What Dharavi Needs

Dharavi does not need to be replaced—it has the potential to be part of India’s urban future. While redevelopment is often framed as a way to bring safety, order and opportunity, the current plans, particularly those led by private players like Adani, risk doing the opposite. The Dharavi Bachao Andolan (Save Dharavi Movement) fears that redevelopment could prioritize land acquisition over community welfare.

The informal economy here is not accidental but rather a functional system with a “thriving micro-economy” built on proximity, shared space and dense networks, according to a report by the Toda Peace Institute. For redevelopment to genuinely benefit this community, it must consider how residents already live and work. As Land Conflict Watch notes, the government’s decisions “indicate that the government is prioritising profits for [the] developer over the interests of Dharavi residents.”

If implemented inclusively, redevelopment could bring safer conditions, better infrastructure and stronger worker protections. However, that would require ensuring that residents are active participants in planning processes, as noted by Slum Dwellers International. This case highlights the importance of approaching informal economies through inclusion and collaboration rather than replacement.

Looking Ahead

Dharavi’s resilience shows that progress and preservation can coexist. With inclusive planning that safeguards jobs, strengthens safety and involves residents in decision-making, redevelopment can improve living conditions while protecting livelihoods. If done responsibly, Dharavi can stand as a model for community-driven urban renewal in India.

– Maryam Qutbuddin

Maryam is based in Reading, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Senegal’s Film Industry: Source of Economic Opportunity

Senegal’s Film Industry: A Cultural Voice and Source of Economic OpportunitySenegal’s independent film industry has become a vital force in shaping the country’s cultural identity and creating economic opportunities for creative workers. Once silenced by colonial influence, Senegal’s filmmakers have reclaimed the screen to share local stories that reflect their people’s experiences, struggles and resilience. Currently, the industry not only preserves Senegal’s cultural heritage but also generates income, creates jobs and reduces poverty through the growth of the creative economy.

Post-Colonization Spark

After gaining independence from France in 1960, Senegalese artists began challenging colonial narratives that had long dominated the nation’s media. During this period, many Senegalese citizens were still influenced by European ideals. Even the country’s president preferred speaking French over native languages because it was viewed as more “professional.” This tension between colonial legacy and national identity became a central theme in early Senegalese cinema.

Ousmane Sembène, often called the father of African cinema, was one of the first filmmakers to use film as a tool for cultural liberation. His groundbreaking works, such as Xala and Ceddo, exposed the lingering effects of colonialism, class inequality and political corruption. Despite facing censorship from President Léopold Sédar Senghor, Sembène’s films gave Senegal a voice and paved the way for future generations of filmmakers. His legacy established cinema as a medium for self-expression, education and national pride.

Filmmaker Recognition

In recent years, Senegal’s film industry has experienced a creative and financial revival. Filmmakers such as Alain Gomis and Mati Diop have gained international recognition at major festivals, including the Pan-African Film Festival (FESPACO). These events not only celebrate African talent but also help globalize Senegalese cinema, generating exposure and financial opportunities for local artists. However, many award-winning Senegalese films are still co-produced with Western partners, which can sometimes limit creative control and authenticity.

To strengthen its domestic industry, Senegal has taken steps to invest in its creative infrastructure. In 2022, filmmaker Toumani Sangaré opened a film school in Dakar to train young professionals and reinvest in local communities. This initiative helps keep revenue within the country and promotes job creation for writers, directors, technicians and actors.

Cinematic Beauty and Funding Restraints

Senegal’s coastal beauty and cultural richness have also attracted major international productions. Platforms like Netflix have begun filming in Senegal because of its scenic landscapes and favorable climate, further boosting local employment and technical training opportunities. Regional television production has expanded rapidly, with content now available on YouTube, Amazon Prime and other streaming services. This digital accessibility has widened the audience for Senegalese films, helping creative workers reach global markets and generate sustainable income.

The economic impact of creative growth is significant. As film production increases, so do opportunities for small businesses in catering, transportation, costume design and tourism. Each new production stimulates local economies, providing a ripple effect that benefits entire communities. Additionally, international co-productions and streaming partnerships introduce new revenue streams that support long-term economic stability.

However, challenges remain. Senegal’s film industry still faces limited infrastructure, restricted access to funding and a shortage of domestic theaters. Many filmmakers rely on international grants or co-productions to finance their projects, which can limit their creative independence. Expanding government support through funds such as FOPICA (Le Fonds de Promotion de l’Industrie Cinématographique et Audiovisuelle) and encouraging private investment could help the industry become more self-sustaining.

Looking Ahead

Despite these barriers, the momentum of Senegal’s creative sector shows how culture and economy are deeply connected. By amplifying authentic Senegalese voices and stories, the film industry strengthens national identity while generating new paths out of poverty. Each project filmed in Dakar or Saint-Louis represents not just art but also economic empowerment, creating jobs, inspiring education and fostering community development.

– Miranda Yacynych

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

Photo: Flickr

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Poverty, Digital Recruiters and Sex Trafficking in South Korea

Sex Trafficking in South KoreaSouth Korea glitters as a high-tech, high-income society. Yet beneath the sheen, a less visible crisis persists. Sex trafficking in South Korea is rooted in economic vulnerability, gender inequality and the misuse of migration and entertainment visa systems. Safety from sex trafficking traps is not only a societal struggle, but a struggle for anyone online, as many perpetrators dwell in chat rooms and live streams. The cases of the “runaway teen,” the migrant entertainer and the mother struggling to survive intersect here, not in spite of wealth, but because inequality persists.

Vulnerability in the Land of Affluence

Despite being classified as a high-income country, South Korea’s economic growth has not ended deep vulnerability for certain populations. According to the RAND Corporation, South Korea continues to have one of the largest gender pay gaps among the Organization for Economic Cooperation and Development economies (OECD), placing many women, especially single mothers, in precarious positions both financially and socially. Unfortunately, with that trend set, much of the evidence points to traffickers seeking the most impoverished, socially isolated and digitally disconnected people when preying on potential victims.

Online Exploitation

The U.S. State Department’s 2024 Trafficking in Persons (TIP) Report finds that many victims in South Korea are South Korean nationals, such as teenage girls, runaway youth and women in marginalized employment. Traffickers exploit victims online using debt traps, deceptive modeling opportunities or entertainment jobs. Children and adolescents in South Korea face sexual exploitation through chat apps and live-streaming, as they aren’t monitored by parents as much as other social media sites.

Human Rights Watch reported, “The overwhelming majority of the people targeted in digital sex crimes are women—80% in spy-cam cases.” Many victims are persuaded to interact with fake images, as well as false assurances of safety, to be vulnerable and open with the perpetrator. Once lured in, individuals are manipulated into exposing themselves, fearing that their reputation, relationships and personal safety are at risk.

Migration, Entertainment and Tourist Visas

Foreign women from Eastern Europe, Southeast Asia and the former Commonwealth of Independent States (CIS) enter South Korea under entertainment visas, tourist visas or other categories. A Korean academic study reveals that many women from Russia and Uzbekistan entered the country under tourism or spousal visas. However, a lot of those women transitioned into bar or club work and found themselves unable to exit due to debt or coercion.

A 2023 report by the Korean Women’s Development Institute (KWDI) states that victim identification remains weak; many migrant women do not recognize they are victims or fear deportation, hindering access to services.

Digital Frontlines and Hidden Coercion

The sex trafficking network in South Korea takes advantage of the country’s highly connected society. Chat apps, encrypted platforms and live-streaming are used to groom and traffic youth and adults alike. The infamous “Nth Room” case targeted young people through Telegram, demanding sexual content for cryptocurrency payments. This is not unique, as online platforms are common for recruiting people into sex trafficking.

Won Eun-ji, a university student who researched Nth Room, said, “They treated women, children and adolescents like products, not human beings.” Eun-ji clicked into a chatroom, thoroughly investigated it and came to realize the horrors associated with online predators. The lengths abusers went to satisfy themselves were overwhelming, causing him to tell his experiences to media outlets to help the public understand South Korea’s hidden sex slavery market.

Why Addressing Poverty and Inequality Matters in South Korea

Trafficking isn’t only a “developing-world” phenomenon. Poverty, limited social support and gendered economic oppression exist in advanced societies and they create ripe conditions for exploitation. In South Korea, youth who run away due to family conflict or educational pressures find themselves with nowhere to turn, making them susceptible to exploiters and sex trafficking.

A 2021 ECPAT study found that exploited male and female youth alike cited social isolation, stigma and lack of safe options as key vulnerability factors. Prevention must not only target “traffickers” but also the structural conditions, such as housing instability, youth outreach, migrant worker protections and a stronger social safety net.

Government Response

South Korea was upgraded to Tier 1 in the 2024 TIP Report, signaling progress in law enforcement, victim services and policy. However, significant gaps remain as victims still sometimes face investigation or deportation rather than protection. In a KWDI research report, experts say identifying victims when they do not self-identify, are undocumented or manipulated through various debts remains the most difficult area of investigation.

Victim identification among youth, migrants and men remains weak, as well as poverty-related vulnerabilities being rarely front and center in anti-trafficking strategies. Survivor-centered reforms are essential, incorporating safe return paths, debt relief, affordable housing and migrant legal aid.

What Can Be Done?

Much effort is focused on enforcement matters, but those alone isn’t enough. Expanding youth outreach and safe shelters for runaway or at-risk adolescents is essential, as well as increasing affordable housing and childcare supports for women with low income, reducing their vulnerability to coercion. Other measures that could help include strengthening protections and contract transparency for migrant entertainers and workers, such as cancelling passport seizure and providing legal recourse without fear of deportation.

Efforts to collaborate with tech platforms to detect grooming, enforce KYC and monitor financial flows linked to trafficking are essential. These measures must be complemented by policies that integrate poverty-reduction strategies into anti-trafficking frameworks, recognizing that economic justice is a fundamental aspect of human rights protection.

It’s Not Over

South Korea’s economic success should not overshadow the fact that pockets of vulnerability remain where traffickers operate, especially online. Poverty, gender inequality, digital recruitment and migration precarity form a potent risk matrix. Ultimately, the measure of a country’s prosperity is how it protects its most vulnerable, not just how many skyscrapers it builds.

– Nicole Fernandez

Nicole is based in Reno, NV, USA and focuses on Global Health for The Borgen Project.

Photo: Pexels

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The Hidden Power of Food Tourism in Latin America

Food Tourism in Latin AmericaLatin America is rapidly emerging as one of the world’s most vibrant culinary destinations, attracting tourists from across the globe to experience regional dishes and rich flavours. While tourism is widely recognized as vital to the economic stability of many countries, food tourism in Latin America is astonishing in its financial impact. In 2023 alone, this market generated an impressive $927.9 million and is expected to grow by nearly 20% by 2030.

The undeniable influence of tourism has prompted Latin American countries to leverage visitor spending for domestic growth and development strategically.

Indigenous Groups

Latin America preserves its centuries-old heritage through its food practices. Travelers eager to experience authentic Latin American cuisine, rooted in rituals, customs and traditions that date back more than 2,500 years, help Indigenous communities flourish. For instance, the Oaxaca restaurant in Mexico, located in a state that is home to 15 Indigenous groups, immerses tourists in food preparation and sharing rituals.

It also celebrates the natural cycles of food growth and teaches visitors about the spirituality behind harvests and produce grown on sacred land. Marketing this as an attractive venture for tourists reinforces Indigenous influence within the social fabric. It sustains livelihoods by creating higher demand for their unique products and farmland, often their primary source of income.

Through tourism, these communities can strengthen their position in society and preserve a sense of continuity that might otherwise fade away.

Local Sourcing

Latin American restaurants prioritize sourcing local ingredients and supplies, which play a crucial role in revitalizing their communities. For example, Restaurante Manu in Brazil exclusively sources from independent distributors within a 300-kilometer radius, crafting unique dishes inspired by the harvests of local farmers, fishers and dairy producers. Its use of regional ingredients, such as purple potatoes, quinoa and maize and partnerships with independent, often family-run distributors, strengthen community ties.

It also celebrates the region’s rich biodiversity and culinary traditions through a contemporary lens. This approach makes food tourism in Latin America a key driver of economic prosperity. It supports sustainable livelihoods for small-scale producers, attracts new contributors, strengthens domestic markets and fosters a fairer food chain.

As a result, this distributed profit breathes new life into local communities, reviving shuttered restaurants and stimulating agricultural production. By dining at authentic restaurants, tourists help ensure that the money, time and effort communities invest in putting food on their plates are reinvested into improving local residents’ and businesses’ quality of life.

Social Change

Latin America weaves culinary art with social change. Revenue generated from food tourism in Latin America is funneled into development programs, creating meaningful improvements for the local communities of high-traffic tourist destinations. The community-owned Parwa Restaurant in the Peruvian capital capitalizes on the steady stream of 1,500 travelers that pass through the valley.

It reinvests its profits into collective initiatives such as an internet-connected computer center and the installation of water tanks across 45 family homes. In partnership with the Planterra Project, Parwa Restaurant launched a scholarship program for youth in underprivileged areas, training them in culinary arts and business strategy to help shape brighter futures. The restaurant also uses tourism revenue to expand employment opportunities within the community, offering monthly salaries, health insurance and professional development for local residents. The security and comfort resulting from the benefits of food tourism are amplified tenfold.

In Summary

Eating locally while on holiday allows tourism revenue to support meaningful community projects and outcomes. Showcasing Latin American cuisine on the global stage sparks a chain reaction, renewing national pride in ancestral culinary traditions, stimulating rural markets and enabling long-term social improvements to thrive. In this way, food tourism in Latin America not only preserves the spirit of its heritage but also flourishes because of it, creating a cycle of cultural and economic vitality.

– Emily Wooster

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

Photo: Flickr