Archive for category: Economy

Information and stories about economy.

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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

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Mozambique’s Gas Boom: Hidden Frontier for US & UK Businesses

Mozambique’s Gas BoomMozambique, long considered one of Africa’s most underserved nations, is rapidly transforming into a strategic frontier for foreign investment. At the heart of this shift is the country’s liquefied natural gas (LNG) sector. In Mozambique, multi-billion-dollar projects like Coral South and the newly approved Coral North are unlocking some of the world’s largest untapped gas reserves.

Once operational, these ventures are expected to propel Mozambique into the ranks of the top LNG exporters. They will create ripples across global energy markets and open the door to a new wave of commercial opportunities in support of Mozambique’s gas boom.

Opportunities Beyond Extraction

While the LNG projects themselves are monumental, the real story extends far beyond gas extraction. As production scales up, Mozambique faces immense demand for supporting infrastructure, from ports and pipelines to power grids and roads, much of which remains underdeveloped. This is where U.S. and U.K. companies can play a transformative role.

Firms specializing in construction, renewable-gas integration and smart-grid technologies are well-positioned to secure lucrative contracts and help build the backbone of Mozambique’s energy economy. The ripple effect also touches a range of secondary industries. With energy companies required to meet local content mandates, there is a growing need for partnerships with domestic suppliers and investments in workforce training.

This opens opportunities for foreign firms to provide technical expertise, vocational education and digital platforms that enhance supply chain transparency and efficiency. Services like environmental monitoring, data analytics and risk management are areas where Western firms have strong expertise and are increasing in demand.

Navigating Risks and Realities

Mozambique’s LNG potential comes with significant challenges. Political instability and insurgent violence in the northern Cabo Delgado Province, where much of the gas infrastructure is located, have disrupted projects in the past. TotalEnergies’ $25-30 billion LNG development, for example, was halted in 2021 due to security concerns and is only now preparing to resume.

These realities underscore the importance of risk-management solutions, from security services and insurance to governance consulting, all areas where foreign firms can contribute valuable capabilities. International institutions and export-credit agencies are also stepping in to mitigate risk. The U.S. Export-Import Bank, for example, has provided $4.7 billion in financing to support LNG development.

Multilateral banks are also exploring ways to stabilize the region and attract more investors. Such mechanisms lower entry barriers for private companies and signal growing confidence in Mozambique’s economic future through a gas boom.

Fueling Broader Development

The significance of Mozambique’s gas boom extends beyond energy exports. LNG revenues could finance major improvements in education, health care and public services, while expanded infrastructure will support agriculture, manufacturing and other non-energy sectors. As the economy diversifies and consumer spending grows, new markets for goods and services will emerge, creating a virtuous cycle of growth that benefits both local populations and international investors.

Profit and Purpose Aligned

For U.S. and U.K. businesses seeking strategic entry points into the Global South, Mozambique represents more than a commercial prospect; it is a chance to be part of a nation’s transformation. By investing not only in extraction but in the broader ecosystem surrounding LNG, companies can align profit with long-term development goals. Mozambique’s gas boom is about more than energy; it’s about building the foundations of a new economy.

For those willing to look beyond traditional markets, this hidden frontier offers both strategic advantage and lasting impact.

– Nilay Ersoy

Nilay is based in Cambridge, MA, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Cannabis Transforms Poverty in Saint Vincent and the Grenadines

Poverty in Saint Vincent and the GrenadinesIn 2018, Saint Vincent and the Grenadines decriminalized possessing up to two ounces of marijuana and Parliament passed laws to establish a medical cannabis industry. Vincentians use and appreciate the medicinal properties of cannabis, as well as the pivotal role it can play in reducing poverty in Saint Vincent and the Grenadines. In 2024, 18% of Vincentian adults were unemployed; youth were twice as likely as adults to be unemployed.

Additionally, the country’s volcano (La Soufrière) erupted in 2021. Coupled with the then-recent COVID-19 pandemic, the country faced huge economic setbacks. Whereas before the pandemic, only 4% of children in Saint Vincent were below the poverty line, this has now risen to 18%. Therefore, due to the industry’s up-and-coming market, utilizing cannabis in Saint Vincent is key to recovering the economy and securing jobs for unemployed young people.

Boosting the Economy

Ironically, it is the volcanic soil that makes cannabis in Saint Vincent high-grade and fast-producing. As a result, cannabis became an instrumental trading tool during the country’s recovery from the volcanic eruption. More recently, Saint Vincent has reported more than EC$60 million (slightly above $22 million) in private investment in its cannabis industry.

Beyond just trading, the small country is also now gaining an international reputation for its high-quality marijuana. In October 2025, Saint Vincent will host the annual CannaBliss festival for the second time. This is a four-day event that attracts customers from around the globe and dually acts as a chance for networking among the medicinal cannabis industry.

Not only does this boost Saint Vincent’s tourism industry, but it is also a chance for the country to share its culture with the world. The festival will feature reggae singers with international fame. However, it will also be a chance for local Vincentian singers to display their talent!

Medicinal Benefits

Due to cannabis’s unique medicinal uses, the drug is experiencing increasing demand worldwide, with the medicinal cannabis market expected to reach $58 billion in sales by 2028.

The United States Food and Drug Administration (USFDA) currently uses Epidiolex, which contains cannabidiol, to treat seizures. It also uses Marinol and Syndros, which contain Tetrahydrocannabinol (THC), for therapeutic purposes such as treating nausea associated with cancer chemotherapy and anorexia related to weight loss in AIDS patients. The USFDA continues to research additional medical applications of cannabinoids.

Meanwhile, the cannabis market is expanding globally. The U.K., Canada and several European countries have, for the first time, approved a plant-derived cannabinoid drug (Sativex) for medical use.

Supports Cultural Practices

Emerging in ’30s Jamaica, the religion Rastafari celebrates marijuana as a gift from God. Rastas believe in peace and living organically; they often adjust their language to avoid negative terms, oppose violence and oppressive systems such as capitalism and are typically vegetarian. Rastas use marijuana ritually to help enlighten their minds; before smoking the plant, they pray to Jah (God) or to Haile Selassie I.

Moreover, supporting Rastas means supporting local farmers. Since decriminalizing cannabis in Saint Vincent, farmers can now obtain a subsidized licence to grow marijuana and companies must buy 10% of their plants from traditional agriculturalists. Before this, it was difficult for Rastas to make a living.

Farmer Bobbis Matthews said to the Guardian, “It was hard! At least three times a year, U.S. helicopters would come and tear down the crop. In those days, it felt like you couldn’t even say the word marijuana because just to say marijuana, you could get arrested.” “We had a song called ‘Helicopter.’ It was about the panic and franticness whenever you hear the sound of the helicopter,” he continued.

Now, local farmers can live and celebrate their culture legally. The growing industry has created 2,500 more jobs for a country with low employment rates. Saint Vincent has also provided additional training in best cultivation practices to support the market and farmers further.

Final Comments

Overall, Saint Vincent and the Grenadines demonstrates how cannabis can be used ethically. The country is utilizing the plant for its medicinal benefits and its significance to the religious community. Marijuana’s rapidly growing market is also helping to reduce poverty in Saint Vincent and the Grenadines by increasing employment rates and expanding trading opportunities. This, in turn, is building a fast-growing industry that will play a pivotal role in the country’s future.

– Lysia Wright

Lysia is based in Derby, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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How Georgia’s Wine and Tourism Are Helping Communities

Georgia’s Wine and TourismGeorgia, the birthplace of wine, has rightfully earned its title as “wine country.” The investment in wine-making has boosted the economy and helped many communities find their way out of rural poverty. Winemaking is deeply rooted in the country’s history and evidence shows that viticulture dates back 8,000 years in Georgia. Vineyards cover most of the country’s rolling hills, making the wine extremely popular worldwide.

The Georgian Grape Subsidy Program

A subsidy is financial assistance provided by the government to help keep prices stable and encourage economic participation among vulnerable producers. Specifically in Georgia, subsidy programs were made to stabilize farmers’ incomes, guarantee smooth harvests and ensure that even lower-quality grapes could be sold, especially those used for wine production. Subsidies have played an integral role in sustaining Georgia’s agricultural sector.

Between 2014 and 2024, nearly 45% of government agricultural spending went toward subsidy programs. These funds support the production of key crops such as wheat, hazelnuts, tangerines, apples and, most importantly, grapes. The Georgian grape subsidy program began in 2008 and, except for 2018 and 2019, has been implemented every year since.

The government has used both direct and indirect subsidies to support farmers. Direct subsidies provide cash payments to grape growers for each kilogram harvested. In contrast, indirect subsidies operate through state-owned companies that purchase grapes directly from farmers, especially when private buyers leave surplus crops on the market.

Although direct financial support declined sharply after 2017, the government continued its grape purchasing program to protect growers from market fluctuations and ensure no farmer was left behind.

Challenges in the Vineyards

Despite the progress, Georgia’s small-scale grape producers remain among the country’s most economically vulnerable people. Many still rely on outdated production methods, lack access to quality inputs and agricultural services and face limited competition opportunities in international markets. After the land reforms of the ’90s, following the collapse of the Soviet Union, farmland in Georgia became scarce.

This left most vineyards too small to support efficient production. This has resulted in high costs and limited access to capital and markets. Because of these constraints, some wineries have started to grow their own grapes to secure consistent, high-quality supplies, leaving smallholders struggling to find buyers. These farmers face the added risk of unpredictable weather and fluctuating market prices, making planning or investing in new technology difficult.

Tourism

Georgia’s wine and tourism industry is helping communities by creating jobs for local community members. Georgia’s wine culture is especially unique and the production of wine in Georgia competes with other luxury brands in the market. Research has shown that tourists appreciate the experience of learning about the process of winegrowing as much as they enjoy tasting the wine. Wine-makers in Georgia hope this trend will continue.

A Path Forward

The story of how Georgia’s wine and tourism are helping communities remains one of resilience and renewal. The government’s sustained investment in agriculture and the international demand for Georgian wine have opened new economic opportunities in rural areas. As vineyards expand and production methods improve, Georgia’s winemaking tradition continues to do more than fill glasses; it helps fill livelihoods, turning an ancient craft into a modern tool for fighting poverty.

– Arielle Telfort

Arielle is based in Purchase, NY, USA and focuses on Global Health for The Borgen Project.

Photo: Unsplash

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Renewable Energy in Azerbaijan

Renewable Energy in AzerbaijanAzerbaijan, home to more than 10 million people, is a landlocked country located between Russia and Iran in Southeast Asia. In the past decade, the Azerbaijan government has implemented significant initiatives to increase their renewable energy resources with plans to have up to 38% of its electricity come from renewable sources by 2030. Renewable energy has become one of the nation’s top priorities in recent years, as President Ilham Aliyev issued a 2019 decree to reform and modernize the national energy sector. According to Aliyev, renewable energy in Azerbaijan has the potential to stimulate economies both nationally and around the world.

The poverty rate in Azerbaijan has considerably declined in the past 20 years, dropping from 68.1% in 1995 to only 5.5% in 2023; however, with almost half the population living in rural areas, many residents continue to experience unreliable access to affordable energy. Some rural residents have access to electricity for only five to six hours a day, and poor insulation in outdated buildings further limits their ability to retain energy. Expanding renewable energy in Azerbaijan could close this gap by making power more accessible, while also improving public health and creating jobs.

Azerbaijan’s Renewable Energy Transition

According to the International Energy Agency (IEA), oil and natural gas control Azerbaijan’s energy supply, which together account for more than 90% of electricity generation. Renewable energy in Azerbaijan contributes about 6% of total electricity generation, but that share is set to rise as the government invests heavily in renewables such as solar, wind, hydropower and bioenergy.

The Ministry of Energy estimates Azerbaijan’s technical renewable potential at more than 135 gigawatts (GW) onshore and 157 GW offshore, with 27 GW considered economically feasible. This includes 3,000 MW of wind, 23,000 MW of solar, 380 MW of bioenergy and 520 MW from small rivers. Azerbaijan currently operates 65 hydroelectric plants, five wind farms, nine solar plants and several hybrid projects that produce around 1,829 MW, which is more than 19% of the country’s total power capacity.

These investments align with Azerbaijan’s commitment to host COP29, the 2024 United Nations Climate Change Conference, underscoring the country’s growing role in advancing world sustainability.

How Renewable Energy in Azerbaijan Can Reduce Poverty

  1. Lower Costs and Greater Access: Renewable energy systems such as solar and wind operate more efficiently and cost less than fossil-fuel plants. Expanding renewables could lower electricity costs for households and businesses, particularly in rural communities that currently rely on costly or unreliable sources. Microhydropower systems also deliver power to isolated regions, allowing residents to easily access lighting, refrigeration and internet. These are key factors in stimulating education and economic growth.
  2. Better Health and Living Conditions: Burning fossil fuels releases major air pollutants that contribute to chronic respiratory and cardiovascular diseases. More than 880,000 Azerbaijanis live within five kilometers of gas flaring sites, heightening their risk of developing these chronic and often lethal conditions. Cleaner energy reduces these health risks and lowers medical expenses for low-income families. The new Garadagh Solar Power Plant will save 110 million cubic meters of natural gas and cut 200,000 tons of carbon emissions annually. These projects will benefit not only the planet but also improve the quality of life for Azerbaijani residents.
  3. Job Creation and Economic Growth: The shift to renewable energy has generated substantial job growth across Azerbaijan. Building and maintaining solar farms, wind turbines and grid systems creates thousands of jobs. The Shafag (Jabrayil) Solar Power Project is projected to generate more than 400 new jobs by the end of 2027. Moreover, many of these opportunities are located outside urban centers, such as the Khizi-Absheron 240 MW Wind Farm, helping to reduce rural poverty.
  4. Energy Security and Climate Resilience: Dependence on oil and gas exposes economies to price fluctuations and resource depletion. Renewable energy provides stability and self-sufficiency. By saving natural gas used in power generation, Azerbaijan can increase exports, leading to increased revenue for poverty reduction and infrastructure development. It also strengthens the country’s resilience to changing weather patterns, which also disproportionately affects poor and rural communities.

Challenges and the Road Ahead

While Azerbaijan’s renewable energy growth is promising, challenges remain. The country’s energy infrastructure continues to depend primarily on fossil fuels, and scaling up renewables requires additional investment in transmission lines and modernized regulations. The Ministry of Energy notes that although the technical potential exceeds 135 GW, only a fraction is economically feasible today due to costs, outdated technology and limited participation from the energy private-sector. 

Still, the government’s Law on the Use of Renewable Energy Sources in Electricity Production and the development of public-private partnerships represent crucial steps toward a more sustainable and inclusive future. If Azerbaijan continues its commitment to renewable energy expansion, it will foster not only a greener economy but also a more equitable one.

– Emily Salter

Emily is based in Birmingham, AL, USA and focuses on Technology and Global Health for The Borgen Project.

Photo: Pexels

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Progress: The Lives Behind Reduced Poverty in Jamaica

Poverty in jamaicaIn 2023, Jamaica experienced its sharpest reduction in poverty in more than three decades, a milestone that captured both national and international attention. According to the Planning Institute of Jamaica (PIOJ), the country’s national poverty rate fell from 16.7% in 2022 to 8.2% in 2023, a drop of nearly half and one of the steepest declines since record-keeping began in 1989. This change was driven by a combination of economic recovery, a rebound in tourism, remittances from citizens working abroad and targeted government interventions designed to support the most vulnerable populations.

For many Jamaican families, the data translates into tangible improvements: more reliable income, better access to food and health care and a greater sense of optimism about the future. The country’s ability to maintain economic stability and strengthen social protection systems has kept poverty in Jamaica on a downward slope, securing a more resilient future for all Jamaicans.

Economic Recovery and Structural Drivers

Jamaica’s dramatic reduction in poverty is closely linked to its broader economic recovery following the shocks of the COVID-19 pandemic. Tourism, which contributes nearly 10% of Jamaica’s GDP, saw a strong resurgence in 2023 as international travel reopened. The Jamaica Tourist Board reported that more than 4.1 million visitors arrived that year, surpassing pre-pandemic levels and bringing billions of U.S. dollars into the economy. Hotels, restaurants and entertainment venues once again provided thousands of jobs, particularly in urban centers and coastal regions.

Growth in agriculture and construction also contributed to this momentum. According to PIOJ’s Economic and Social Survey Jamaica 2023, agricultural output grew by 3.5%, while construction expanded by 5.9%, both sectors employing large numbers of low- to middle-income workers. Additionally, remittances from Jamaicans abroad reached $3.6 billion in 2023, representing one of the country’s most stable income sources. These inflows cushioned families from inflation and provided a safety net for many households living near the poverty line. Together, these structural drivers supported higher consumption levels and renewed confidence in Jamaica’s economic outlook.

The Human Dimension of Progress

Beyond statistics and reports, Jamaica’s poverty rate has deeply personal consequences. As the Jamaica Observer highlighted in its feature “From Hardship to Hope,” families across the country are beginning to feel a sense of relief. Parents can now purchase school supplies with less financial strain, small farmers are finding better markets for their crops and hospitality workers are enjoying greater job stability.

For example, a St. James hotel employee quoted in the article described how consistent work in 2023 allowed her to “finally save for her children’s education.” These stories reflect how national progress filters into everyday life, giving people a chance to plan for the future rather than focus solely on survival. Such experiences demonstrate why poverty reduction matters, not only as an economic indicator but also as a measure of opportunity and security.

Risks and the Path Forward

Although Jamaica’s poverty reduction is historic, experts caution that the gains are fragile. While global inflation averaged 4.2% in 2025, down from 6.6% in 2023, it still erodes purchasing power for many families. Climate change also threatens agriculture and rural livelihoods as severe droughts and floods become more frequent.

If these challenges are not addressed, there is a risk that poverty rates could rise again. To prevent backsliding, Jamaica must continue strengthening social protection systems such as the Programme of Advancement Through Health and Education (PATH), which supports more than 350,000 beneficiaries, including children and the elderly. The government is also encouraged to diversify the economy beyond tourism by promoting sectors such as renewable energy, technology and creative industries. Reliable and transparent data collection, an issue that has long challenged Caribbean nations, will be essential for monitoring progress and guiding Jamaica’s future strategies.

Looking Ahead

Jamaica’s record-breaking decline in its poverty rate marks an extraordinary achievement that shows what is possible when economic recovery and social policy align. The combination of industry growth and targeted welfare programs has lifted thousands of families above the poverty line, offering a glimpse of a more equitable future.

Still, the uneven nature of progress and the risks that remain highlight that poverty reduction is not a one-time success but an ongoing challenge. 

– Abigail Ariyo

Abigail is based in Ottawa, Ontario, Canada and focuses on Good News for The Borgen Project.

Photo: Flickr

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Mass Registration Drive for Foundational IDs in Somalia

foundational IDs in SomaliaOn August 18, 2025, Somalia’s National Identification and Registration Authority (NIRA) launched a pilot mass registration campaign for national IDs in two districts of Shangani and Boondheer. This campaign is part of a broader series of reforms by the Federal Government of Somalia (FGS) to support sustainable economic and social development nationwide. By increasing ID ownership, this initiative aims to help millions of Somalis gain access to critical services such as banking, education and government programs that were previously unavailable to them.

The Importance of IDs in Somalia

Somalia, officially the Federal Republic of Somalia, is a country located in the Horn of Africa. Like many countries in that region, Somalia has endured widespread poverty caused by years of drought, famine, conflict and institutional instability. In 2022, more than half of Somalia’s population lived below the national poverty line, while three-quarters experienced non-monetary poverty. Somalia’s nomadic population is especially affected, with approximately three-quarters of nomads living below the poverty line and nearly all experiencing non-monetary poverty.

Despite rapid urbanization, Somalia lags behind other countries with similar income levels in labor force participation and educational access. One major reason for this is Somalia’s low rate of citizen ID possession. According to the 2022 Somali Integrated Household Budget Survey, fewer than 16% of Somalis had some form of government-issued ID.

Foundational IDs are essential for accessing and facilitating multiple private and public services, including:

  • Opening bank accounts
  • Sending and receiving mobile money
  • Accessing government social protection and benefit programs
  • Applying for employment
  • Obtaining a driver’s license
  • Enrolling in school
  • Activating mobile phone or SIM services
  • Domestic and international travel

This same survey found that while most Somalis lack a foundational ID, the vast majority recognize their value and want one.

Challenges to ID Registration

Expanding ID coverage across Somalia presents multiple challenges. Despite recent rapid urbanization, Somalia’s population still remains widely dispersed. Many Somalis live in remote or rural areas, lead nomadic lifestyles or are refugees, returnees or internally displaced persons, which makes it challenging to reach unregistered individuals. Additionally, Somalia’s strong oral tradition and use of various minority languages and dialects create significant communication barriers during outreach and enrollment efforts.

Social norms also play a major role in limiting access to foundational IDs in Somalia. In particular, restrictive cultural practices often hinder women’s participation in public and economic life, which makes it more difficult for them to register or benefit from services that require IDs. Literacy levels in Somalia are also low, estimated at just 54% for people aged 15 and older, with women and youth disproportionately affected. Years of conflict and instability have disrupted education, especially for younger generations.

Security concerns further complicate registration efforts. Many Somalis express wariness toward privacy breaches or surveillance, particularly from hostile groups that may attempt to undermine the digital ID system. These risks create mistrust and cause many individuals to hesitate when seeking out a foundational ID in Somalia.

Current Steps Toward Mass Registration

To address these challenges, earlier this year, the NIRA opened multiple new registration centers in the districts of Shingani and Mogadishu. It aims to increase access to foundational IDs in Somalia. It has deployed several FGS representatives to every district to help with registration. Additionally, the NIRA created a “one-window operation” system, consolidating all necessary steps for obtaining an ID into a single and convenient service point, streamlining services and improving the citizen experience.

Inclusivity and data protection are also a core focus of the pilot program to encourage those without IDs to register. The Ministry of Finance’s Digital ID Inclusive Enrollment and Outreach Strategy instructs that at least 50% of the first one million registrants should be women. Additionally, the FGS has committed to following the United Nations’ Personal Data Protection and Privacy Principles to ensure that registrants’ rights, privacy and data remain secure.

Somalis will have the option to receive their ID in physical, digital or printed certificate formats, further increasing accessibility and adaptability. The NIRA has set the goal to register all 15 million citizens by the end of 2029.

IDs as a Way to Poverty Alleviation and Economic Growth

Expanding foundational IDs in Somalia will facilitate financial inclusion for many, particularly for women and offer a pathway toward economic independence. Mass ID possession will also strengthen national security systems by enabling more effective identity verification, helping to mitigate money laundering and terrorist financing risks and reducing fraud.

For service providers, widespread ID possession improves the ability to identify beneficiaries, eliminate duplication, reduce waste and both improve existing services and offer new ones. Moreover, the digital infrastructure supporting the ID system will enable innovation, drive private sector growth, create new industries and generate more and better jobs.

– Dylan Kretchmar

Dylan is based in Granville, OH, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr