Archive for category: Economy

Information and stories about economy.

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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 Many still rely on outdated production methods, lack access to quality inputs and agricultural services and face limited competition opportunities in international markets.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

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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