Archive for category: Economy

Information and stories about economy.

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The African Union’s SSE Strategy

SSE StrategyIn recent years, foreign aid has become increasingly political and divisive among Western nations. During his presidency, Donald Trump significantly reduced funding to the United States Agency for International Development (USAID), arguing for a more “America First” approach to spending. Similarly, countries such as the United Kingdom, France and the Netherlands have also scaled back their foreign aid commitments, citing shifting domestic priorities, according to The Financial Times.

The reduction in foreign aid spending by many Western countries has put significant pressure on global health organizations and the United Nations (U.N.), influencing them to adapt to a world where foreign aid budgets are no longer top priorities for high-income countries. A senior U.N. official, quoted in The Financial Times, acknowledged the severity of this shift, stating, “Around a fifth of the total aid budget is gone and we have to accept that.” In response, international agencies like the Global Fund to Fight Aids and the Vaccine Alliance are forced to scale back programs and sometimes discontinue aid projects altogether.

The Impact of Foreign Aid Cuts on Africa

Reductions in foreign aid spending, specifically budget cuts to USAID, have disproportionately impacted Africa, where millions rely on foreign aid assistance for health care services. In 2024, under the Biden administration, USAID allocated 31% of its total budget—totaling $12.7 billion—to aid programs across the continent.

These funds supported critical health initiatives targeting HIV/AIDS, malaria, tuberculosis, maternal and child health and nutrition. According to African Practice, the African Center for Disease Control and Prevention estimates that aid reductions could push an additional 5.7 million Africans into extreme poverty.

In the wake of aid cuts, the African Union has implemented a plan to navigate away from aid reliance and toward continent-wide development. The plan is a 10-year Social and Solidarity Economy (SSE) strategy, which focuses on strengthening locally rooted businesses and providing community-led public services and health care. By reinvesting the profits from these programs, the goal is to stimulate growth and create new jobs, ultimately stabilizing the continent and reducing the need for foreign aid.

Impacts from the African Union’s SSE strategy are already being seen across the continent. Below are a few highlights.

Babban Gona

Babban Gona is a farmer-owned cooperative based in Nigeria that supports the development of smallholder farms. Since its founding in 2010, the organization has created more than 80,000 jobs, impacted above 35,000 individuals in local communities and invested tens of millions of dollars into rural economies. These efforts have significantly reduced poverty and regional violence. The African Union’s SSE strategy aims to build on successful models like Babban Gona to promote broader community-driven growth across the continent.

Broad Reach

South Africa’s BroadReach program utilizes AI-driven data platforms to improve HIV and tuberculosis treatment nationwide. With support from government partners, BroadReach has enhanced the efficiency and reach of public health care systems, positively impacting millions of people and raising the overall quality of care. The program serves as a blueprint for how other African countries can scale health care services locally, minimizing foreign aid reliance for health care initiatives.

Esoko

Esoko is a Ghana-based project that uses mobile technology to provide communities with the necessary information to support positive change in agricultural markets. With more than one million farmers already impacted, Esoko delivers real-time updates on market prices and climate data to smallholders, improving both sustainability and productivity, according to Esoko.

Esoko has already improved farmers’ livelihoods across Ghana by creating a more interconnected agricultural market chain. This success can be scaled to surrounding regions under the African Union’s SSE strategy, making agriculture more dependable and profitable for many of Africa’s most vulnerable communities.

Final Remarks

While foreign aid cuts from Western nations have created challenges across Africa, they’ve also forced a necessary shift toward self-reliance and continent-wide development. Indeed, the African Union’s SSE strategy offers a new path forward. Programs like Babban Gona, BroadReach and Esoko show that locally based solutions already positively impact Africa. With continued support from the African Union, Africa has the tools to stimulate growth without depending on foreign aid.

– Jordan Venell

Jordan is based in Edina, MN, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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The Portuguese Housing Crisis: Rising Rents and Solutions

The Portuguese Housing CrisisIn a 2025 survey, residents of Portugal were asked what they believed to be the country’s biggest issue. About 43.4% identified the housing crisis as the main problem, ranking it second to the health care system. The Portuguese housing crisis intensified in 2025. With soaring property prices and limited affordable housing, many residents find it increasingly difficult to feel secure in their current living situations.

In early 2025, property prices in Portugal experienced a record annual increase of 16.3%, exacerbating the housing crisis, particularly in urban centers like Lisbon and Porto. In addition, rent prices are projected to rise by 2.16%, impacting tenants across the country. However, recent government initiatives and policy reforms aim to alleviate these challenges and provide sustainable solutions for residents.

Government Measures To Expand Affordable Housing

The government launched a more than $2.2 billion package to address Portugal’s housing crisis and build around 33,000 new homes by 2030 for low-income families. Of these, 10,000 will have full non-refundable financing, with the remaining homes benefiting from public grants covering 60% of construction costs. Together with previous investments under the Recovery and Resilience Plan (RRP), the total committed public housing units are closer to 59,000 by 2030.

Parallel to this, the government signed an agreement with the European Investment Bank for a $1.5 billion credit line to build and renovate approximately 12,000 controlled-rent homes. These homes are meant to be affordable and are part of the housing policy, which is being treated as a core priority under the current administration.

The Construir Portugal strategy deploys more than 30 measures to address the housing crisis. These measures focus on increasing supply (public, private, cooperative), simplifying licensing, restoring confidence in the rental sector and ensuring legislation supports affordable housing.

These large-scale investments and policy reforms are central to tackling Portugal’s housing crisis. They aim not only to expand housing stock but also to improve terms of access and ensure affordability for vulnerable and middle-income households.

Policy Reforms To Stabilize the Market

Beyond construction, policy reform is also a critical part of addressing Portugal’s housing crisis. The government has introduced tax incentives for young buyers, such as exemptions from property transfer tax and stamp duty for people younger than 35 purchasing homes valued up to $369,800.

Portugal’s parliament has approved a major reform that has allowed rural land to be reclassified for urban use, with at least 70% being reserved for affordable public housing. The law has set the maximum sale prices below the market rates to curb speculation.

“The housing crisis in Portugal is serious and we need more cheap homes,” stated Territorial Cohesion Minister Castro Henriques in parliament. However, these reforms have been criticized by up to 21 different environmental NGOs. They warn that these reforms could trigger “uncontrolled urban expansion” despite existing urban land not being used and 720,000 homes still vacant.

Yet with Lisbon rents up 94% and house prices rising 186% since 2015, the government has argued that these reforms are essential to end Portugal’s housing crisis.

Private Sector Innovation and Modular Construction

Private sector innovation is becoming essential to solving Portugal’s housing crisis. Analysts stress that government efforts alone will not meet demand, meaning developers and construction companies must step in with scalable, cost-effective solutions.

A recent report by DWF highlights the need for regulatory reform and financial incentives to unlock new supply. Proposals include reducing or eliminating building fees, lowering VAT on housing projects to 6% and simplifying licensing procedures. These changes would reduce costs and delays, making it easier for private developers to respond to soaring demand.

At the same time, modular construction is gaining traction. Offsite building methods cut costs, shorten delivery times and improve sustainability. This has offered a practical way to increase housing stock a lot quicker. By delivering homes faster and at lower prices, modular housing can help offset supply shortages that have left many Portuguese families struggling.

Yet the urgency is clear, experts warn that Portugal still needs around 150,000 homes to balance the market, with banks cautioning that Portugal’s housing crisis is becoming “unsustainable.” The private sector can help ease Portugal’s housing crisis through innovation and public-private collaboration.

Long-Term Outlook

The Portuguese housing crisis remains one of the most urgent social and economic issues plaguing the country. With rent and property prices outpacing wages, thousands of families risk being priced out of their homes. While government investment packages, policy reforms and new regulatory frameworks signal a serious commitment to change, private sector contributions, from modular construction to cooperative developments, are vital in closing the ever-growing housing gap.

Yet, experts continue to warn that the shortfall of affordable homes remains severe. Environmental concerts of many NGOs over urban expansion also highlight the delicate balance between rapid development and sustainable planning.

Ultimately, solving the Portuguese housing crisis will require long-term collaboration between government, industry and local communities. If these measures are effectively implemented, they offer a chance to stabilize the market and restore hope to the many families who want an affordable, secure place to live.

– Charlie Wood

Charlie is based in West Yorkshire, UK and focuses on Business and Politics for The Borgen Project.

Photo: Pixabay

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5 Facts About Vietnam’s Economic Reforms

vietnam's economic reformsOver the past decade, Vietnam has steadily transformed itself from a low-income country into one of the most dynamic economies in Southeast Asia. What makes Vietnam’s rise remarkable is not just its rapid pace of growth, but the structural reforms that underpin it. These reforms are reshaping Vietnam’s economy, strengthening resilience and preparing the country for a bigger role on the global stage. Here are five key facts that highlight Vietnam’s ongoing economic reforms.

Vietnam’s Growth Is Outpacing the Region

In the first half of 2025, Vietnam recorded 7.5% GDP growth, one of the highest rates among Southeast Asian economies. While many countries have struggled with trade tensions and slowing global demand, Vietnam’s export-oriented economy has remained resilient. Manufacturing continues to be a major growth driver, with foreign investors flocking to Vietnam as an alternative hub to China for electronics, textiles and consumer goods. This fast-paced economic growth has positioned Vietnam as one of Asia’s leading economic success stories.

One of the clearest indicators of Vietnam’s progress is the sharp decline in poverty. In 2010, 13 million people lived under the international poverty line of $3.65 per day. By 2022, that figure had dropped to 4.2 million. This achievement reflects not only rising incomes but also the government’s investment in health, education, and rural development. Poverty reduction has been one of Vietnam’s greatest success stories and is often cited by the World Bank as a model for other developing countries for economic reforms.

Ambitious Infrastructure and Reform Projects

Vietnam is investing heavily in infrastructure and governance reforms to sustain long-term growth as reform. Major projects include a rail link connecting Vietnam to China, as well as plans to launch its first nuclear power plants to meet rising energy demand. At the same time, the government has approved an ambitious administrative reform program that involves merging provinces and reducing bureaucratic layers. These changes are designed to make governance more efficient, cut costs, and improve the business environment.

Despite global uncertainty, Vietnam has managed to keep both exports and foreign direct investment flowing steadily. Multinational corporations see Vietnam as an attractive destination because of its competitive labor costs, strategic location and trade agreements with major markets. Foreign investment is spread across manufacturing, energy and technology, reflecting Vietnam’s diversification beyond tradition. This ongoing flow of investment is a critical driver of growth for Vietnam’s economic reforms.

Vietnam Is Moving Toward Emerging Market Status

Perhaps the most symbolic sign of Vietnam’s progress is its effort to upgrade its classification from a frontier market to an emerging market. Vietnamese officials recently met with representatives from the London Stock Exchange and FTSE Russell to advance this goal. Such an upgrade could open the door to billions of dollars in new foreign investment, as global funds tracking emerging market indices would be able to include Vietnam. Achieving this milestone would not only boost Vietnam’s financial markets but also signal global recognition of its economic maturity.

– Nilay Ersoy

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

Photo: Flickr

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Uzbekistan’s Investment Opportunities

Uzbekistan's Investment OpportunitiesSince 2016, Uzbekistan has undertaken a remarkable transformation — from isolation to a path of reform-driven growth. As Central Asia’s most populous country, endowed with abundant natural resources and occupying a strategically pivotal location, Uzbekistan is now emerging as a hub for new investment opportunities.

Economic reforms across multiple sectors are opening up previously untapped markets, and among these, the renewable energy sector stands out. It not only offers strong financial returns for investors but also generates meaningful social and environmental benefits, making Uzbekistan a compelling case of how reform can drive inclusive and sustainable development.

Uzbekistan’s Economic Reform Journey

Uzbekistan’s reform agenda first began in 2017, under the leadership of President Shavkat Mirziyoev, marking a decisive shift from a centrally controlled, state-dominated economy toward an open, market-oriented system. The government’s strategy has focused on liberalizing key sectors, improving transparency, and creating a business-friendly environment not only for domestic investors, but foreign also.

One of the most significant reforms was the unification and liberalization of the Uzbek som. By allowing the currency to float freely, the government eliminated the black-market exchange rate, increased transparency and provided investors with a predictable and stable financial environment. This move has been instrumental in boosting the confidence of foreign investors.

Uzbekistan has also initiated a large-scale privatization program, opening up state-owned banks, utilities and manufacturing companies to private and foreign investment. This has unlocked new sectors for capital inflows, particularly in infrastructure and energy, while signalling a long-term commitment to a market economy.

Economic Growth and Investment Trends

Uzbekistan’s economic reforms have begun to yield tangible results. In 2023, the country experienced a 6% GDP growth and attracted over $7.2 billion in foreign direct investment (FDI), nearly doubling the amount from 2022. These investments are instrumental in modernizing infrastructure, expanding energy production, and diversifying the economy. The government’s commitment to liberalization reforms launched in 2017 continues to encourage private sector participation and foreign investment.

In 2024, FDI in Uzbekistan grew by more than 50%, with the investment volume in the fourth quarter reaching its highest level since 2021, totaling $3.87 billion. From January to December 2024, the total volume of FDI increased by 53.6%, reaching $11.9 billion, while the share of FDI in the country’s gross domestic product (GDP) rose by 2.4 percentage points, reaching 10.3%. The volume of cross-border money transfers also increased by 30%, reaching $14.8 billion. 

These inflows are helping to modernize infrastructure, expand energy production and stimulate economic diversification. The government’s commitment to liberalization reforms launched in 2017 continues to encourage private sector participation and foreign investment. The government aims to double the GDP to $200 billion by 2030, leveraging significant progress in green energy and energy sector reforms.

Emerging Investment Frontier: Renewable Energy

Uzbekistan’s electricity sector remains heavily dependent on natural gas. According to the International Energy Agency (IEA), in 2022, natural gas accounted for 82% of the country’s total electricity generation, significantly outweighing other sources like coal, oil, hydro or wind and solar.

This reliance on gas exposes Uzbekistan to risks–including price volatility, supply disruptions, and environmental impacts –   making diversification in this current climate essential. Recognizing this, the government has committed to a bold energy transition, aiming to have 25% of its electricity from renewable sources by as early as 2030.

This policy is backed by targeted legislation, including the Decree on Accelerated Measures to Improve Energy Efficiency and the Development of Renewable Energy Sources from 2019, which explicitly sets the target for renewable electricity by 2030. This marks a significant advancement in Uzbekistan’s shift toward sustainable electricity generation. These favourable conditions have created specific avenues for investment opportunities, from solar and wind projects to modernizing the electricity grid and leveraging public-private partnerships.

Renewable Sources

With more than 300 days of sunshine per year, Uzbekistan has one of the most favorable solar climates in Central Asia. This makes large-scale solar photovoltaic  (PV) projects highly viable. Several pilot and commercial-scale plants are already in operation, and the government is actively seeking foreign investment to expand capacity, particularly in the Navoi, Samarkand, and Khorezm regions.

Moreover, wind corridors in regions such as Karakalpakstan and Navoi offer significant potential for utility-scale wind farms. Major Gulf and European firms have begun investing in these projects, attracted by favorable government policies, guaranteed power purchase agreements, and financing support from multilateral institutions.

Uzbekistan’s electricity transmission and distribution infrastructure requires significant upgrades to integrate renewable energy efficiently. The World Bank has approved a $100 million credit and the Asian Development Bank (ADB) a $125 million loan to modernize the power grid, including upgrading transmission lines, substations, and distribution networks. These initiatives aim to improve energy efficiency, enhance reliability, and support the integration of renewable energy sources into the national grid

Public-Private Partnerships (PPPs)

The government has created legal and financial frameworks to encourage PPPs, offering security in Uzbekistan’s investment opportunities, long-term contracts, and partial risk mitigation. These mechanisms make Uzbekistan a more predictable and attractive destination for foreign investors seeking both profitability and involvement in the country’s energy transition.

By combining natural advantages, supportive policy, and growing demand, Uzbekistan’s renewable energy market could be emerging as one of the most promising investment frontiers in Central Asia, thus creating greater job opportunities and wider market growth for the country.

Uzbekistan’s Investment Opportunities: The Future

=”https://borgenproject.org/the-uzbekistan-2030-strategy/”>Uzbekistan’s reform-driven transformation has created a dynamic investment climate, with the renewable energy sector emerging as a prime example of how economic openness can deliver both financial returns and social impact. Abundant solar and wind resources, ambitious government targets, and support from multilateral institutions position the country as a regional hub for clean energy investment.

Combined with grid modernization and public-private partnerships, these reforms are fostering job creation, market growth, and long-term economic prosperity, making Uzbekistan a compelling model for sustainable development in Central Asia.

– Elizabeth Occleston

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

Photo: Flickr

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How Landlocked Developing Countries Become Global Players

Landlocked Developing CountriesOf nearly 200 countries, 32 tend to be overlooked in global discussions. Because landlocked developing countries (LLDCs) lack direct access to seaports, they must rely on more complex and costly routes to reach international markets. While they make up more than 7% of the world’s population, in 2024 they accounted for only 1.2% of global trade. Being landlocked slows their economic growth and widens the development gap with other developing countries.

As countries that are directly cut off from access to the sea, they must face many challenges. These include slow delivery times, high transport costs and border procedures directly impacting economic success and progress. Beyond economic and geographical barriers, the climate emergency worsens the problem. It damages roads and disrupts supply chains, threatening the fragile infrastructure with droughts, floods and other forms of extreme weather.

Despite these barriers, LLDCs are progressing toward becoming active global trade players, working to develop as they adopt goals that could successfully lift millions out of poverty.

Turning Point and Success

More recently, a United Nations (U.N.) conference in landlocked Turkmenistan has led to hope regarding LLDCs. The conference brought together Heads of State, development partners, private sector leaders and U.N. officials. Leaders highlighted the Awaza Program of Action for 2024 to 2034. The Program encompasses five priority areas:

  1. Trade and regional integration;
  2. Economic and structural transformation;
  3. A focus on the development of transport and infrastructure;
  4. Adaptation to climate change and the reduction of disasters;
  5. The mobilization of partnerships and financial assistance.

Seeking to accelerate progress, the Awaza Program sets a clear direction. Its focus spans trade facilitation, transport connectivity, climate resilience, the mobilization of international support, structural transformation and technology. It aims to align domestic and global nations within a shared framework for sustainable development.

A U.N. Economic and Social Commission for Asia and the Pacific (UNESCAP) report examined Asian LLDCs. It argued that to accelerate structural transformation, these countries must diversify their economies and reduce dependency on extractive industries. Regarding poverty alleviation and structural transformation, what matters most is a reallocation of production factors that leads to the growth of labor-intensive sectors. Since labor is the primary input of those experiencing poverty in production processes, expanding the labor sector is key to long-term poverty reduction.

What’s Next

Looking forward, LLDCs are working to turn these commitments into real progress. Several initiatives worldwide show that development is truly possible, stressing the need for smarter infrastructure, broader economic diversification and simplified customs procedures. In Africa, electronic cargo tracking and Central Asia’s use of electronic TIR carnets have reduced delays and encouraged private sector participation in cross-border trade.

Upcoming global forums, such as COP30 in Brazil in November 2025, the UNCTAD conference and the 2027 Global Mountain Summit, will give LLDCs opportunities to push their priorities higher on the international agenda. The international community must continue to foster cooperation among LLDCs so they can more easily access global markets. Stronger cooperation will drive regional integration and build an international framework of shared rules, standards and goals.

Conclusion

While the precarious geographical position of LLDCs presents many obstacles, recent developments show that their future does not need to be limited by borders. Through international cooperation, domestic policy development, structural transformation and the adoption of innovative trade systems, LLDCs are steadily moving from “landlocked” to “landlinked.”

This transformation goes beyond economic development, improving the lives of millions. Lower transport costs allow for the development of domestic industries and cheaper goods for families. Infrastructure projects create jobs, economic diversification raises wages and climate-resilient systems protect vulnerable communities. These projects contribute to the reduction of poverty and to narrowing the gap between LLDCs and other developing countries.

– Rafaela Paquet

Rafaela is based in Montreal, Quebec, Canada and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

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Mastercard and the MADE Alliance: Driving Digital Access in Africa

made allianceLaunched in May 2024 by the African Development Bank Group (AfDB) and Mastercard, the Mobilizing Access to the Digital Economy (MADE) Alliance in Africa focuses on providing more than 100 million individuals and businesses across Africa access to critical services by 2034.

Background

The initiative, announced at the U.S.-Africa Business Forum, will focus on the role of women and on the agricultural sector, starting a program that will support 3 million farmers in Tanzania, Kenya and Nigeria. While the African Development Bank Group will invest $300 million in the initiative, Mastercard’s plan is to register 15 million users on its platform. By leveraging public-private partnerships, the MADE Alliance represents a significant effort to foster economic growth, poverty reduction and digital inclusion throughout Africa.

Focusing on inclusive innovations meant to unlock economic potential and expand digital access, Mastercard plays a key role in the alliance. Using Community Pass, the company provides farmers across Nigeria, Kenya and Tanzania with digital identities and access to vital tools and services. Through collaborations with telecom and fintech companies, Mastercard provides millions of workers with access to real-time, inclusive and secure payment solutions.

The Impact

Since its launch, the MADE Alliance has made significant progress. In Kenya, Alliance members deployed affordable high-speed internet and provided digital skills training for approximately 10,000 farmers and their communities, according to the World Bank. The Kenya National Farmers’ Federation also received funding from the AfDB to help 250,000 farmers improve their bankability to financial institutions.

In Tanzania, the MADE Alliance is helping equip 50,000 sunflower farmers with digital payment solutions. In Nigeria, Mastercard has introduced solutions like Tap on Phone, Payment Links and QR Pay-by-Link; options that allow small businesses to easily accept payments while reducing cash reliance through e-commerce, according to The Guardian.

For consumers, the opportunity to use digital payments offers more security, convenience and financial access, allowing people to pay bills, shop online and make transactions with just a mobile device. This provides them with better access to banking services, particularly in areas where traditional banking infrastructure is limited or non-existent.

Women, Poverty and the Future of Inclusive Growth

The MADE Alliance also tackles gendered poverty by focusing on women’s economic empowerment. Women make up nearly 40% of Africa’s agricultural labor force but continue to face systemic barriers in access to land, credit and training, according to The Guardian. By equipping women farmers and entrepreneurs with digital identities, financial tools, and services, the Alliance not only supports equality but also addresses the structural poverty that limits entire households and communities.

Ultimately, the development of digital technologies in agriculture has the potential to serve as a powerful poverty-reduction tool. By boosting productivity, expanding market access and opening financial doors for millions, the MADE Alliance provides pathways out of subsistence-level farming and into more sustainable livelihoods.

Mastercard’s role in this process is to support growth, strengthen local innovation, and build on investments that accelerate inclusive, poverty-reducing development. By removing trade barriers, expanding financial access and empowering women and farmers, the Alliance demonstrates how digital infrastructure can be leveraged not just for economic growth, but for poverty alleviation at scale.

– Rafaela Paquet

Rafaela is based in Montreal, Quebec, Canada and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Leading the Stride: How Argentina is Tackling Child Poverty

Argentina Is Tackling Child PovertyIn just six months, Argentina has delivered hope, reducing its child poverty rate by nearly 15%. Argentina is tackling child poverty by lifting more than 1.7 million children out of harsh living conditions. This turnaround is not just a national victory but a blueprint for other nations that seek to build a better future for their youngest citizens.

Economic Reforms With Social Impact

Through bold reforms, Argentina is tackling child poverty by fixing its economy. In 2024, studies showed that 52.7% of children lived in households with incomes too low to cover basic needs. The government has made smart changes to control spending, money printing and prices. These steps help families afford more, have a more stable life and a more predictable environment.

In the second half of 2024, there was a 21% increase in real household income. This allowed families to afford necessities like food, clothing and education. The income boost directly contributed to the drop in child poverty, proving that economic growth can translate to social impact with the help of government-involved policies.

It also signaled a shift in how Argentina’s leadership viewed poverty—not just as an economic issue, but as a human one. By stabilizing the economy, the government created a foundation for social programs to thrive, making delivering aid and services to needy families easier.

Policies That Matter

Economic growth alone wasn’t enough; Argentina implemented social protection policies too. These policies were focused on children and included direct cash transfers, national support and expanded access to education and health care services. Direct cash transfers were given to families to help cover basic needs like food, clothing and school supplies.

These transfers were impactful to low-income households, helping to reduce their vulnerability. Expanded access to health care services ensured children received medical attention and healthy meals. The government also improved schools by increasing enrollment rates and bridging the gap between children from different socioeconomic backgrounds.

According to UNICEF, social protection policies were essential in translating macroeconomic gains into real-life improvements for children. These initiatives were designed not only to alleviate immediate hardship but also to create long-term opportunities. Argentina is tackling child poverty by ensuring families don’t just earn more but live better.

The focus on dignity, access and opportunity has made these policies more than just temporary relief—they are building blocks for a stronger future. New classrooms were built in many regions, teachers were hired and learning materials were distributed to underserved communities. Health care outreach programs also expanded into rural areas, ensuring children in remote locations were not left behind.

The Blueprint

Argentina’s approach offers valuable lessons for other nations grappling with child poverty. It demonstrates that economic reform can create meaningful change when paired with targeted social policies. The country’s success underscores the importance of investing in children—not just as a moral imperative, but as a strategic move to build a more resilient and equitable society.

Looking Ahead

As Argentina continues its journey, it will be challenging to continue moving forward with global economic pressure on it. Long-term success will depend on the continuous investment in education, job creation and growth. Monitoring and adapting policies to meet evolving needs will be key.

If Argentina can sustain its progress, it will become a model for how other countries and economies can tackle poverty through discipline and engagement. For now, the country stands as a powerful example of what’s possible when children’s well-being is at the center of national policy.

– Marissa Schoth

Marissa is based in Benton, LA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Everything You Need To Know About Poverty in Malaysia

Poverty in MalaysiaOver the past decades, the impressive economic strides have brought down the official poverty rate in Malaysia. Yet, significant challenges remain, especially across rural regions and within Indigenous communities.

Current Poverty Landscape

  • National Progress: By 2019, Malaysia’s national poverty rate had declined to 5.6%, a testament to decades of targeted policy and development.
  • Staying Above Global Benchmarks: Despite this progress, disparities persist compared to other countries. An October 2019 World Bank blog emphasizes the urgent need to update the country’s poverty line, which has not kept pace with cost-of-living changes.

Who Is Being Left Behind?

  • Indigenous Communities – The Orang Asli: The Indigenous Orang Asli remain among Malaysia’s most disadvantaged groups. A 2021 report by Malaysia’s Department of Orang Asli Development (JAKOA) highlights this community’s staggering poverty rate of 89.4%.
  • Historical Context: Earlier, in 1999, 50.9% of the Orang Asli population lived in poverty and 15.4% in hardcore poverty. This far exceeds the national averages of 7.5% (overall poverty) and 1.4% (hardcore poverty).
  • Income Disparities: Earlier studies (2013–2014) showed that 34% of Orang Asli lived below the national poverty line and nearly one in three earned less than RM1,000 (about $236) per month.

Root Causes of Persistent Inequality

  • Outdated Poverty Line: The outdated national poverty threshold fails to reflect rising living expenses, effectively underestimating the scale of deprivation.
  • Structural Marginalization: The Orang Asli’s high poverty levels stem from limited access to education, economic opportunities and essential services. These include electricity, clean water and health care, which are especially lacking in remote settlements.
  • Bureaucratic Hurdles: A 2024 Malay Mail assessment points to bureaucratic rigidity, inefficient service delivery and insufficient community participation as key barriers to progress.

Government Strategies and Frameworks

  • Shared Prosperity Vision 2030 (SPV 2030): Launched in 2019 and formalized in 2020, SPV 2030 pledges “sustainable growth along with fair and equitable distribution” across income groups, ethnicities and regions. It includes the Orang Asli, women, youth and senior citizens.
  • Policy Goals and Gaps: Analysis cautions that while SPV 2030 stresses equity, it sometimes remains too focused on income distribution and lacks clarity around enabling basic needs like health and education.
  • Implementation in Planning: Malaysia’s Twelfth Malaysia Plan (2021–2025) aligns with SPV 2030, highlighting economic empowerment, environmental sustainability and social equity. However, critics question whether marginalized groups like the Orang Asli are effectively prioritized.

How Global Advocates Can Help

  • Push for Poverty Line Revision: Advocate for Malaysia to revise its national poverty threshold to reflect current costs, making anti-poverty programs more impactful.
  • Target Indigenous Inclusion: Support NGO, U.N. and community-led initiatives that empower the Orang Asli through education, infrastructure and cultural preservation, amplifying JAKOA’s efforts.
  • Champion Equitable Implementation: Promote accountability in SPV 2030 and the 12th Malaysia Plan—ensuring that resources reach those most in need, not just top-down frameworks.
  • Lift Marginalized Voices: Advocate for participatory policymaking, where Orang Asli communities shape programs designed for their benefit, ensuring sustainability and local relevance.

Conclusion

Malaysia’s battle against poverty has made remarkable progress. Yet, systemic inequities continue to constrain its most vulnerable citizens, particularly within Indigenous communities. By advocating for updated poverty measurement, better policy implementation and inclusive participation, global partners such as nonprofit organizations can support Malaysia in translating its commitment to shared prosperity into real change. This also helps ensure that no one is left behind.

– Paige Javor

Paige is based in Boulder, CO, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Addressing Inequality: Tax Justice in Kenya

Tax Justice in KenyaProtests in Kenya erupted due to widespread discontent over the government’s proposed 2024 finance bill. Economic and social challenges continued over the year, reigniting anti-government demonstrations in June 2025. Despite Kenya’s broadly positive economic outlook, a large part of the population experiences wealth inequality and a lack of access to social services.

Globally, wealthy individuals and corporations enable Illicit Financial Flows (IFFs), resulting in a loss of $1 trillion in 2022 alone. Advocate groups challenge this disparity as it largely contributes to poverty and degrades social welfare. Taxes proposed in the 2024 finance bill were seen as unfavorable to impoverished and middle-class people, possibly widening this gap further and proving the need for tax justice in Kenya.

United Nations’ Convention on International Tax Cooperation

Wealth disparities and illegal wealth extraction in the Global South often enrich Western corporations. The Tax Justice Network researches these illicit financial outflows, which hamper economic development. The organization has also lobbied for stronger global tax policies to promote social development and tax justice in vulnerable countries.

One of its major global concerns is the United Nations (U.N.) Convention on International Tax Cooperation, which seeks to close gaps in the international tax system and help countries recover stolen revenue. The Convention also aims to address tax abuses in cross-border systems and resolve international tax disputes equitably.

Kenyan delegates and other leaders of the African Group were the first to push for the U.N. Convention. The African Group’s concerns in advancing the Convention stem from the unequal distribution of wealth between developing and Western nations and corporate-driven wealth disparities within the Global South.

Social and Wealth Inequality

Oxfam asserts that the number of millionaires in Kenya will grow by more than 80% in the next 10 years. If current rates of inequality continue, it could result in millions of people living in extreme poverty in a similar time frame. Poverty rates in Kenya are higher in rural areas and areas of lower economic growth.

The World Bank Group highlights this uneven distribution as a vulnerability. Indeed, its reports suggest evaluating tax spending and fiscal policy to support poverty reduction. Accountability organizations like the National Taxpayers Association (NTA) in Kenya also work toward this goal.

The NTA supports local endeavors to rebalance social service provisions. The organization supports researching, monitoring and evaluating tax issues and development programs, as well as analyzing policy and legislation. Locally taking charge in the fight for tax justice in Kenya, the independent organization hopes for accountability from the government against economic inequality.

The Challenges Ahead

From 2025 to 2027, the U.N. Tax Convention negotiations will deliberate on multilateral platforms to address global wealth inequalities. Having only completed the organizational phase, member states need to continue talks and vote to pass issues before consideration from the U.N. General Assembly.

Analysts at the Tax Justice Network assert that lower-income countries can be negatively impacted through bilateral tax treaties if equitable terms are not met. The U.N. Convention is one attempt to avoid this, making global trade equitable and reversing many years of richer economies unilaterally dictating global economic agendas.

– Aliyah Omar

Aliyah is based in Alberta, Canada and focuses on Global Health and Politics for The Borgen Project.

Photo: Wikimedia Commons

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What to Know About Poverty in Spain 

Poverty in Spain 

In spite of its position as one of the European Union’s biggest economies, poverty is still a significant issue in Spain. In 2023, there were 20.4% of people, according to data from the Spanish National Institute of Statistics (INE), who lived under the poverty line or were subject to social exclusion. Among these include low-income families; those with severe material deprivation or low work intensity, and so forth. This figure has fallen slightly in recent years but is still above the EU average. It shows that there is an unequal distribution of income and an undercurrent of economic vulnerability in this land.

The Impact of the 2008 Financial Crisis

The economic fallout from the 2008 financial crisis took its toll on Spain as well. As perforated holes with no dollar signs continued to emerge all over the country, her economy saw skyrocketing unemployment and an increase in poverty rates unparalleled in decades past. The economy has recovered steadily, but many of the cuts made during austerity measures—especially in social protection and public services—continue to affect vulnerable groups fiercely today. Although the unemployment rate in Spain soared to 26.1% in 2013 before finally passing, it has since dropped to around 12% (2024). Precarious employment and underemployment are still more common than full-time work among young people in particular.

Exposed Demographics

Women and children, immigrants and the elderly are particularly vulnerable groups in Spanish society who suffer frequently under poverty. The child poverty level, for instance, was nearly 28.9% in 2023. This makes it one of the highest child poverty levels among all EU member states. Single-parent families, often headed by women, face increased risks of poverty due to their lower income levels and restricted access to affordable childcare as well as housing. Moreover, Spain’s aging population has become difficult in the face of an inadequate pensions system, for many retired citizens find their pensions cannot keep up with inflation.

Regional Differences

In Spain, poverty levels vary widely from region to region. On average, the poverty rate in southern regions like Andalusia and Extremadura is higher than that of wealthier, more industrialized areas such as Madrid and the Basque Country. For example, in 2023, the AROPE rate (At Risk of Poverty or Social Exclusion) for Andalusia stood at 37.5%, while just across the border, an identical group was living on only 12.5% of what most others enjoyed as income.

Solutions and Efforts

In response to the high poverty levels in Spain, both government and non-governmental organizations introduced a variety of initiatives. One of the most important government projects is called ‘Ingreso Mínimo Vital’ or Minimum Livelihood Income, which was launched in June 2020. This national welfare program seeks to guarantee a minimum income for the most economically vulnerable households. With almost 700,000 households and more than 1.6 million people receiving support by February 2024, the project also built job-seeking services and social programs into one cohesive whole to promote sustainable social integration.

Another notable project is Cáritas Española, an NGO with a long history of battling poverty and marginalization in Spain. Direct humanitarian aid (such as food, housing and education services) is combined with pressure for structural policy change. In 2023, Cáritas helped more than 2.5 million people in Spain in a mixture of urgent assistance and social development schemes. At the same time as it makes these appeals for such reforms on behalf of marginalized groups, the organization also works politically to publicize and make public their plight.

Looking Ahead

Despite Spain’s economic achievements and social programs, poverty continues to be an issue. Among children, women, and the elderly, it is particularly problematic, and the level varies greatly by region. While unemployment has fallen (thanks to post-2008 recovery), the absence of rights-cabinet work and regional inequalities mean that the justice obstacle remains strong. Programs like Spain’s Ingreso Mínimo Vital or the activities of Cáritas Española indicate that if we fixate on supporting particular systems and making policies which embrace everyone, there will be progress. 

– Simone Sanchez

Simone is based in Huntington, NY, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Unsplash