Archive for category: Economy

Information and stories about economy.

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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

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Behind the Beautiful Forevers: Books Redefining Poverty

Behind the Beautiful ForeversIn the current age characterized by rapid globalization and unprecedented wealth, extreme poverty remains one of humanity’s most pressing moral and economic challenges. Though statistics and policy papers offer one lens into the issue, books have an all-consuming power that can transcend the bounds of the cold measures of bureaucracy.

Alongside influencing readers and raising awareness, these books have also prompted policy executives to cite these works in designing aid strategies; NGOs have adopted their approaches; and readers have been moved to volunteer, donate and advocate.

Three landmark works in the world of literature, among the millions of others that this article is going to discuss, have played an enormous role in transforming how the world thinks about poverty, catalyzing public awareness and lacing it with public policy influence.

The End of Poverty

When economist Jeffrey D. Sachs published “The End of Poverty,” it was written with the primary purpose and goal of being a rally cry as well as a detailed blueprint for eradicating extreme poverty by 2025. Drawing on his experience advising governments and the United Nations (U.N.), Sachs argued that targeted investments in health, education and infrastructure could break the “poverty trap” for the world’s most impoverished nations.

The book popularized the Millennium Development Goals to audiences beyond policy circles, bringing them into mainstream discourse. By weaving the threads of real-life case studies from sub-Saharan Africa, South Asia and Latin America with the needle of economic theory, Sachs portrayed the fight against poverty.

This fight has plagued our world since time immemorial, with a raging urgency. He also portrayed it as a fight that is plausible and winnable. Its influence extended to advocacy campaigns like the ONE Campaign. It encouraged donor nations to re-examine their foreign aid commitments.

Poor Economics

Whereas on one hand, Sachs envisioned large-scale macroeconomic interventions, on the other, “Poor Economics” brought the conversation down to the micro level, to the average person’s household. Drawing on more than 15 years of field experiments in developing countries, Abhijit Banerjee and Esther Duflo, a duo who would go on to win the Nobel Prize in 2019, challenged conventional wisdom about people with low incomes.

They poignantly display that people living in poverty make rational choices within the constraints they face and that well-intentioned policies can fail if they ignore behavioral realities and societal factors. Their research pushed governments and NGOs to incorporate approaches rooted in evidence, such as small-scale randomized controlled trials, into program design. In doing so, the book shifted development economics toward a more empirical, human-centered methodology, one that prizes adaptation over a ubiquitous solution.

Behind the Beautiful Forevers

While Sachs and Banerjee and Duflo wrote from the perspective of economists, Pulitzer Prize-winning journalist Katherine Boo brought the indescribable power of narrative nonfiction to the issue. “Behind the Beautiful Forevers” follows the lives of residents in Annawadi, a makeshift settlement near Mumbai’s airport. Over three years, Boo documented the daily struggles and moral dilemmas of families navigating corruption, caste prejudice and economic precarity.

The book stripped away the ubiquitous and abstract notions of “the poor.” It replaced them with deeply personal stories of people, stories of ambition, betrayal, resilience, injustice and most of all, humanity.  The success of “Behind the Beautiful Forevers”, including a National Book Award, brought slum realities into the consciousness of readers who might never, without it, have considered the human cost of urban inequality. The work spurred into motion discussions in classrooms, book clubs and policy panels about the lived experience of poverty and the invisible barriers to upward mobility.

Conclusion

Individually, “Behind the Beautiful Forevers”, “Poor Economics” and “The End of Poverty” speak in different realms of writing: macro solutions, micro interventions and human narratives. Together, they form a powerful triad that has altered the global poverty discourse.

The books remind us that awareness is the first step toward change and that stories, whether told in any manner, can transform not just how we think, but how we act in the grand scheme of the world.

– Ruhani Rahul

Ruhani is based in Leander, TX, USA and focuses on Good News for The Borgen Project.

Photo: Pxhere

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Solutions to Rapid Urbanization in Wetlands

Rapid Urbanization in WetlandsRapid urbanization in wetlands is an increasing problem for multiple cities throughout sub-Saharan Africa and is often driven by population growth, economic development, infrastructure development and migration. Rapid urbanization in wetlands affects biodiversity loss, flooding and altered hydrology, water quality degradation and loss of livelihood. Some patterns identified with rapid urbanization affecting wetlands are informal settlements, fragmented urbanization and densification.

Lagos, Nigeria and Kinshasa in the Democratic Republic of Congo (DRC) experience some of these issues. However, they’ve developed sustainable solutions that help control and maintain livelihoods and infrastructures.

Lagos

Lagos, Nigeria, is a wetland area heavily affected by rapid urbanization. Housing and informal settlements, transportation infrastructures, solid waste management, environmental pollution and unemployment are all problems throughout the city.

Nigeria’s Federal Ministry of Housing and Urban Development has previously stated that it is committed to constructing more than 10,000 housing units nationwide, including Lagos, with the Renewed Hope Cities and Estates Program. This opportunity also created 252,800 jobs for Nigerians, contributing to the country’s economic landscape. The workers also received wages significantly above the national minimum wage.

Waste-to-energy plants offer sustainable solutions to water disposal and energy generation, many of which can be seen in Lagos. Harvest Waste Consortium has formalized a partnership with Lagos to construct a waste-to-energy plant using advanced technology to create clean energy from the state’s solid, commercial and industrial waste. Around 40,000 homes will be taken off the national electricity grid due to clean energy.

Kinshasa

Kinshasa, Democratic Republic of the Congo, is another wetland area that is impacted by rapid urbanization. Increased risk of flooding continues throughout the city due to population growth and improper drainage systems. Informal settlements also affect the quality of life in Kinshasa, making strategic urban planning essential to manage the city’s growth and transformation.

A Participatory Slum Upgrading Program works in Kinshasa to improve slum conditions while preventing the possibility of creating new slums. The program aims to ensure access to safe, adequate, affordable housing and basic services to upgrade the slums.

As rapid urbanization in wetlands continues, Kinshasa has developed nature-based solutions. These solutions help to build urban climate resilience, lower carbon emissions and provide socioeconomic benefits. Proper drainage systems that can handle channel runoff from heavy rains were developed and restoring soil fertility, creating jobs and providing food for locals are also possible because of these solutions.

Conclusion

Rapid urbanization in wetlands presents serious challenges for cities like Lagos and Kinshasa. Yet, both cities demonstrate that these impacts can be managed with strategic planning and sustainable solutions, such as housing initiatives, waste-to-energy projects and nature-based approaches.

Addressing rapid wetland urbanization requires long-term investment, innovative policies and community participation to balance urban growth with environmental protection and improved quality of life.

– Eva Wakelin

Eva is based in Atlanta, Georgia, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Unsplash

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Beyond the Blueprint: The Uzbekistan 2030 Strategy

The Uzbekistan 2030Over the past decade, Uzbekistan has demonstrated a strong commitment to reducing poverty rates and improving living standards for its citizens. Through strategic initiatives and reforms, the Uzbek government’s ambitious goal of becoming an upper-middle-income country by 2030 is becoming increasingly likely, according to the World Bank.

Between 2022 and 2024, Uzbekistan reduced its poverty rate from 17% to 8.9%, based on the upper-middle income poverty line of $6.85 per day per person, according to the World Bank and Human Progress. These improvements bring Uzbekistan within one percentage point of the 8% average poverty rate among upper-middle-income countries in Europe and Asia as of 2022. Although the Uzbek government has facilitated consistent economic growth, poverty reduction and overall improvements in personal wellbeing, it remains committed to furthering this progress. One way it has demonstrated this commitment is through the implementation of the Uzbekistan 2030 strategy in 2023. 

The Uzbekistan 2030 strategy includes comprehensive reforms and goals aimed at strengthening education and health care systems, increasing economic opportunity and enhancing existing social services, while continuing to reduce poverty rates. Together, these measures aim to create an environment where all Uzbeks can reach their individual potential, according to The Asia Today.

Improving Higher Education

As part of the groundwork for the Uzbekistan 2030 strategy, the government has placed an emphasis on improving the country’s higher education system. In 2023, more than $5 billion was invested to improve higher education services and expand access across the nation. At the collegiate level, these investments have led to an increase in specialized course offerings, creating more opportunities for Uzbek citizens in fields such as artificial intelligence and data science, while also boosting scholarship opportunities—particularly for women, according to Euronews.

Uzbekistan is well-positioned to reach its goal of a 50% higher education enrollment rate by 2030, with the current rate sitting above 40% and continuing to increase. These efforts highlight the country’s commitment to long-term educational development and desire to be a well-educated nation, according to Euronews.

Strengthening Social Protection Systems

Under the Uzbekistan 2030 strategy, the Uzbek government has committed to bettering its social assistance programs. A key tool in this effort has been the Social Protection Single Registry (SPSR), which has helped improve the accuracy and transparency of the circulation of social services and assistance among those in need. Because of the implementation of the SPSR, the number of families receiving social assistance jumped from 595,000 in 2019 to 2.2 million in 2022. 

The Uzbek government plans to continue increasing the capacity of its social services and protection systems, with a focus on supporting vulnerable populations. As part of the Uzbekistan 2030 strategy, the aim is to ensure eventually meeting the needs of all citizens through an inclusive and holistic social protection design. Key initiatives include subsidized childcare, enhanced disaster relief, improved access to inclusive education and increased investment in community engagement. The strategy also offers support services for women who are survivors of violence.

Prioritizing Economic Advancement and Innovation

Another key pillar of the Uzbekistan 2030 strategy is to increase the country’s Gross Domestic Product (GDP) to $160 billion and raise per capita income to $4,000 by 2030. To foster this economic growth, the government has focused on diversifying employment opportunities by prioritizing innovation and entrepreneurship. Along with creating an economic environment that empowers start-ups, innovations and business acceleration, the Uzbekistan 2030 strategy emphasizes empowering women-led and youth-owned business pursuits. To achieve this, the Uzbekistan government has been working alongside the United Nations (U.N.) to offer financing, mentorship and capacity building programs, helping to support young and female entrepreneurs.

Looking Ahead

The comprehensive Uzbekistan 2030 strategy has been paramount in sustaining the country’s economic and social development. Although some of the strategy’s goals seemed ambitious at the time of its incorporation in 2023, Uzbekistan is on track to achieve most of them. As governments in other low- and middle-income countries strive for national development, the Uzbekistan 2030 strategy serves as a tested blueprint, illustrating how strategically implemented reforms and initiatives can significantly improve citizens’ quality of life. 

– Jordan Venell

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

Photo: Flickr

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How Tourism Alleviates Poverty in Croatia

Poverty in CroatiaFrom Split, to Hvar to Dubrovnik, whether it be for the beaches or the nightclubs, tourists are flocking to the small European nation on the Adriatic Sea in record numbers. In 2024, the Croatian National Tourist Board recorded nearly 21.3 million visitors, which was 4% more than the previous year. The rise in tourism also boosted transportation industries, with more than 4 million air passengers and about 76.5 million rented cars.

According to the Croatian National Bank, tourism generated about €13.19 billion in revenue in just the first nine months of 2024. Croatia’s Minister of Tourism Tonči Glavina said, “Particularly gratifying is the notable growth during the pre-season and post-season, confirming Croatia as a year-round destination.”

Tourism’s Role in the Economy

This increase in tourism in Croatia has made the industry an increasingly significant part of the Croatian economy. Overall, tourism represents about 26% of Croatia’s GDP, which is more than any other country in the European Union (EU). This coincides with a high number of jobs that tourism generates. Croatia’s Central Bureau of Statistics (CBS) estimated the industry, when it’s analyzed as a whole, has created around 150,000 jobs.

In 2024, the accommodation and food preparation and serving industry created about 115,000 jobs. The jobs created by tourism are important in Croatia, as poverty is a major issue in the country. In 2023, the CBS nearly 21% of the population is at risk of poverty. Additionally, women in Croatia face a poverty risk rate 10% higher than men.

Benefits for Small Businesses and Infrastructure

Small businesses in Croatia have also benefited from visitors. According to research, small businesses, whether they be sport, food preparation or boating-related, make up about 90% of Croatia’s tourism industry. As tourism in Croatia continues to grow in the country, small businesses prove to be both resource-efficient and innovative. Furthermore, research has found that there is a correlation between small businesses and the reduction of seasonal success in the tourism industry; this is significant since one of the biggest challenges with tourism anywhere is the fact that it can attract many visitors at one time of the year and few at other times.

Additionally, tourism in Croatia has led to new infrastructure in order to accommodate the increased number of guests. These include investments in renewable energy, such as wind and solar and in transportation, such as airports and roads. For example, under the National Recovery and Resilience Plan, around €106 million was awarded in grants to multiple cities. The aim of the grants is to improve health and wellness facilities and clean energy. Since 2020, Croatia has invested around €200 million in improvements to marinas, airports and roads. In 2021, the Pelješac Bridge connected the city of Komarna with Brijesta after years of construction and €526 billion in investment, facilitating travel for both citizens and tourists.

Looking Ahead

Tourism in Croatia is fueling job creation, empowering small businesses and prompting infrastructure improvements that benefit citizens and visitors alike. As the industry continues to expand, tourism offers Croatia a pathway to reduce poverty, strengthen its economy and build long-term resilience, ensuring that growth is shared across communities.

– Seth Pintar

Seth is based in La Jolla, CA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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How Debt Restructuring in Ghana Creates Room for Development

Debt Restructuring in GhanaGhana has dealt with a debt crisis since the early 2000s, originating from a long history of colonialism. Although it was one of the first African countries to gain independence in 1957, Ghana continues to depend on the export of raw materials such as gold, oil and cocoa. When global commodity prices declined in the ’80s and ’90s, countries in the Global South relied on the International Monetary Fund (IMF) and the World Bank’s advice to expand production to pay debts. As a result, the price of commodities remained low for 20 years.

The HIPC Initiative and Debt Relief Successes

In 2002, the Ghanaian government granted the central bank autonomy to use monetary policy as a tool to promote economic growth and deal with inflation. Falling from 30% to 10% by 2007, fiscal policy enacted under the joint IMF-World Bank debt relief program, the Heavily Indebted Poor Countries Initiative (HIPC), was key in taming the country’s economic problems.

After part of the country’s debt was cancelled during the program’s implementation, Ghana’s external debt fell by $4.3 billion between 2006 and 2003, from $6.6 billion to $2.3 billion. Debt relief proved to be a successful means of fighting poverty and increasing the potential for development. Improvements in health care and education followed, with money being invested in social services for Ghanaian citizens.

One of the most important features of the government’s budgetary operations under the HIPC Initiative was its positive impact on poverty reduction. The Ghana poverty reduction strategy document emphasized integrated rural development, economic growth, expanded employment opportunities and improved access to public services. To achieve these goals, the government would have to implement sound monetary and fiscal policies made possible through debt relief.

New Debt Restructuring Framework in Ghana

However, the country’s continued reliance on the export of commodities has led it into another debt crisis. When the price of raw materials rose in the 2010s, more countries became willing to lend to Ghana. However, after another fall in the cost of commodities in 2013, the African country became unable to repay loans and started accumulating debt. Debt now places a new, significant burden on Ghana’s economy and society, which could lead to stagnation and higher poverty rates.

Recently, Ghana’s parliament approved a $2.8 billion debt restructuring framework for 25 creditor countries. Although the deal is not yet final, debt relief would again allow the country to invest in social services instead of using its revenues to pay off lender countries. In the 2000s, debt restructuring was critical in restoring macroeconomic stability; by rescheduling debt payments due between 2022 and 2026 to 2039 – 2043, there is hope that the country can break its cycle of debt.

The newly created Agenda for Jobs II (2022–2025) aims to develop further Ghanaian life’s economic, social and environmental dimensions. It focuses on expanding education and health care initiatives. The agenda also seeks to broaden the coverage of the Livelihood Empowerment Against Poverty (LEAP) Program.

Conclusion

In collaboration with international partners, new debt restructuring efforts in Ghana have opened a new chapter in the country’s economic development. The potential ratification of these new agreements will free up significant public funds that can be invested in public sectors such as health care, education and infrastructure, contributing to the country’s fight against poverty. Debt restructuring allows for future economic growth, catalyzing social progress.

– Rafaela Paquet

Rafaela is based in Montreal, Canada and focuses on Politics for The Borgen Project.

Photo: Wikimedia Commons

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Poverty Reduction in Serbia: Supporting Marginalized Groups

Poverty Reduction in SerbiaNestled in the heart of the Balkans in Southeastern Europe, Serbia was formerly part of the Yugoslav Republic. After a period of economic uncertainty and fluctuating living standards in the late 1990s and early 2000s, Serbia is making strides in improving the quality of life of its citizens.

Despite a growing economy, shrinking unemployment and existing social initiatives, women and marginalized groups such as Roma are still more likely to experience poverty and face significant challenges to receiving social assistance and entering the labor force. To continue working towards economic growth and poverty reduction in Serbia, it must focus on uplifting these groups.

Economic Growth

In its attempts to expand the job market and fight unemployment, Serbia grew its economy 3.9% in 2024, bolstering its construction industry and services sector as the country takes on foreign projects, according to World Bank statistics. Growth is projected to continue throughout 2025, with expansion in the energy sector projected as well.

Thanks to this, the incidence of poverty fell to 7.7%, however, that number largely includes women and other vulnerable groups, and does not take into account the borderline at-risk-of-poverty rate, which was 19.7% for 2024, according to Serbia’s own survey statistics. These numbers highlight the need for more targeted social assistance to continue making economic gains and raising people out of poverty.

About the Gender Wage Gap in Serbia

In 2023, the employment disparity between men and women in Serbia was 13.3%, with even larger disparities for the Roma people as a whole, but especially Roma women, whose education and employment numbers lag far behind other demographics. These numbers represent untapped potential that could benefit industry enhancement, growth and poverty reduction in Serbia.

These groups are facing cultural barriers more than economic ones. Long-standing prejudices and traditionalist value systems are holding them back from accessing the Serbian labor market. When polled directly, 40% of women, both Roma and non-Roma, articulated their willingness to join the workforce and participate in training initiatives to improve their skills and gain experience.

Social Protection

For its impoverished population, Serbia’s social protection systems include social insurance, social assistance and social services. These cover entitlements like pension and disability insurance, health insurance and low-income household assistance. Of these systems, only two programs are specifically targeted towards its impoverished populations: A financial social assistance program and a child allowance program.

These programs do not adequately support the most at-risk and marginalized groups, however. Limited budgets and a lack of policy focus mean these entitlements do little in the way of poverty reduction in Serbia. A single mother with two children receives about 18,000 dinars (€153) a month, three times less than the cost of basic monthly necessities.

As of 2022, Serbia spends 19.5% of its GDP on social protection programs. While this is a relatively high number in line with the spending of new EU member nations, 71% of social protection spending is absorbed by social insurance (pensions, disability, healthcare), leaving little left over for targeted social assistance. In reality, Serbia spends only 5% of social protection expenditures on poverty-targeted programs, significantly less than EU countries.

Solutions

Recognizing the necessity for uplifting marginalized groups in the fight for poverty reduction in Serbia, the World Bank, in conjunction with the Serbian Institute of Ethnography and the Entrepreneurship Training Institute, launched a series of personal initiative training programs specifically aimed at supporting Roma women. These programs, begun in 2024, focus on resume/CV-writing, job interview roleplays and starting a business, with the overall aim of creating a more socially and economically equal society.

The programs are already yielding results. To date, nine participants in the PI trainings have become certified trainers themselves, mentoring more than 100 women in their local communities. Others have come through the program and used their knowledge to start their own businesses, like one woman who was able to open her own hair salon in Novi Sad.

The resultant economic independence these programs are facilitating will assist in overcoming the cultural biases that keep an untapped reserve of the population from contributing to the betterment of the country. The success of the PI trainings provides a roadmap to poverty reduction in Serbia targeting its most vulnerable and marginalized groups, and with that a more inclusive labor market and continued economic growth.

– Nikola Stojkovic

Nikola is based in Villa Park, IL, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr