Archive for category: Economy

Information and stories about economy.

, ,

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

, ,

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

, ,

Transforming Waste Into Opportunity: Recycling Startups in Africa

Recycling Startups in AfricaRecycling startups transforming waste into opportunity are not just a concept; it is a growing movement across Africa tackling plastic pollution while creating jobs and fostering economic resilience. Since 2019, innovative and locally led enterprises have proved that waste can become valuable resources. These startups transform discarded plastic into sustainable products, reducing environmental damage and creating livelihoods for underprivileged communities.

The United Nations Development Project (UNDP) reports that if circular economic models scale up, global employment could increase by 0.1% by 2030, potentially generating millions of new jobs worldwide. This work demonstrates that the fight against plastic pollution can go hand-in-hand with poverty reduction and community development.

EcoPost in Kenya

The circular economy comes to life through EcoPost in Kenya, where the company converts plastic waste into durable lumber. EcoPost replaces plastic waste with recycled fencing posts and paving blocks. Since 2019, EcoPost has recycled more than 13 million kilograms of plastic, creating 102 direct jobs and more than 10,000 indirect income opportunities for local waste collectors and suppliers.

These jobs targeted marginalized groups, especially women and youth, who face high unemployment. Using plastic waste as a resource, EcoPost has protected 4,300 acres of forest, supporting rural livelihoods that depend on forest ecosystems for food, water and climate stability. Thus, replacing timber has reduced deforestation while giving locals a stable income. Job creation reduces poverty as families are guaranteed stable incomes, while forest protection sustains rural livelihoods dependent on natural resources.

Gjenge Makers: Innovation Turning Waste Into Building Materials

Another stellar example of circular economy in action is Gjenge Makers, led by Kenyan engineer Nzambi Matee. Gjenge Makers turns plastic waste into strong, affordable paving blocks. This lowers infrastructure costs for small businesses and community projects. Since 2019, it has recycled 20 tonnes of plastic and produced blocks cheaper than regular bricks.

Cheaper, high-quality building materials help underserved communities afford improvements that attract investment, generate commerce and create ripple effects in local economies. Moreover, Gjenge Makers employs more than 110 people, mostly women and youth from marginalized backgrounds. This, in turn, strengthens local economies through jobs and economic resilience.

Innovative Recycling in Nigeria: Salubata

In Nigeria, Salubata, founded in 2018, repurposes plastic waste into customizable, modular shoes. This illustrates how the circular economy can spark social and environmental transformation. By transforming plastic pollution into stylish footwear, Salubata extends the concept of sustainable products from plastic beyond utility into everyday fashion. The brand also directs some of its profits to uplift vulnerable groups, combining entrepreneurial innovation with poverty reduction.

Since its founding, Salubata has developed unique, patented shoe designs from recycled plastic. The company donates 5% of profits from every sale to programs that feed children and empower women in underprivileged communities. Additionally, Salubata collaborates with about 50 waste collectors, many women, to source recycled plastic. By turning pollution into profit, Salubata creates job opportunities for women and youth, channels resources back to the community and fights poverty with style and purpose.

Conclusion

The circular economy demonstrates that environmental solutions and economic development can work together effectively. Recycling startups in Africa like EcoPost and Salubata show this by converting waste materials into valuable products while creating jobs for disadvantaged communities. These examples prove that addressing environmental problems and reducing poverty do not have to be separate efforts, but can be achieved simultaneously through well-designed initiatives.

We can accelerate progress toward environmental sustainability and economic opportunity by supporting and expanding these community-based enterprises. We can create a future where environmental responsibility and shared economic prosperity support each other.

– Anagha Rajithkumar

Anagha is based in Charlottetown, Prince Edward Island, Canada and focuses on Business and Technology for The Borgen Project.

Photo: Pexels

, ,

Reducing Poverty in Grenada: Social and Economic Reforms

Poverty in GrenadaNestled in the West Indies of the eastern Caribbean Sea, the small island of Grenada is home to approximately 117,300 people. Affectionately known as “Spice Island” for its nutmeg, cinnamon and mace export, Grenada is a popular tourist destination in the Caribbean. However, it is not widely recognized that Grenada has a staggering poverty rate of 25%, which has shown little reduction over the last 15 years. According to the World Bank, despite some progress, poverty levels have remained relatively unchanged since the early 2000s, with the most recent development indicators estimating that one in four Grenadians continues to live below the national poverty line.

Grenada’s Economy and the Face of Poverty

Grenada spans just 132.8 square miles, making it smaller than the United States’ tiniest state, Rhode Island. Its economy is primarily driven by the services sector, especially tourism, which accounts for most of its GDP and employment. Agriculture still plays a role, especially in rural areas, where spices, cocoa and bananas are key exports.

Yet, high unemployment and underemployment continue to drive poverty. Unemployment remains at 11.1% as of 2023, with informal work, seasonal jobs and low-wage employment common across the island. Many Grenadians engage in informal sectors such as tourism services, market vending, salons, agricultural labor and small-scale entrepreneurship. Agriculture employs 13.8% of the labor force, contributing only 2.75% of GDP.

Infrastructure, Social Protection and UN-Led Development

Grenada has partnered with international institutions on several large-scale development projects to address systemic poverty. Infrastructure development is a key pillar in the island’s poverty reduction strategy. In 2015, the World Bank approved a $15 million Development Policy Credit and Loan. It aimed to improve disaster resilience, upgrade public sector management and boost the economy through improved agricultural and tourism networks.

Social protections have also been expanded. During the COVID-19 pandemic, Grenada implemented an emergency stimulus package with unemployment benefits, tax relief and support for small businesses. These efforts were backed by more than $28 million in financing from the International Monetary Fund (IMF) and Caribbean Development Bank.

Rural Development and the SEED Program

In rural communities, targeted interventions have shown promising outcomes. One major initiative is the Market Access and Rural Enterprise Development Program (MAREP), co-funded by the International Fund for Agricultural Development (IFAD), the Caribbean Development Bank and the Government of Grenada. With a total budget of $7.5 million, this project helped train and fund small-scale rural entrepreneurs, especially among youth and women.

The Support for Education, Empowerment and Development (SEED) Program is critical to Grenada’s social safety net. This program provides conditional cash transfers to low-income families, especially those with school-aged children. SEED supports vulnerable populations by ensuring continued access to education and basic needs while incentivizing school attendance and health checkups. According to The Borgen Project, SEED has been central in reducing short-term poverty and fostering long-term social development in Grenada.

The United Nations Country Implementation Plan (CIP) 2024–2025 also recognizes the SEED program as a pillar of Grenada’s social protection network. The CIP supports Grenada in enhancing climate resilience, economic stability and social inclusion, with 38% of plan funding directed toward economic resilience and 10% toward social and justice systems.

Conclusion

Grenada’s efforts to combat poverty reflect a multi-pronged approach—addressing infrastructure gaps, improving social safety nets and supporting rural livelihoods. International aid and government programs have made measurable impacts, from the World Bank’s investment in the nation to the SEED program’s day-to-day support for families. Yet, challenges remain. Persistent unemployment, informal labor and climate vulnerabilities still threaten progress on the Spice Island.

– Jamaya Newton

Jamaya is Philadelphia, PA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

, , ,

Reasons For Venezuela’s Displacement Crisis

Venezuela’s Displacement CrisisSince 2014, Venezuela has faced a major displacement crisis. With limited access to basic rights, food, medicine and other essentials, many Venezuelans have turned to extreme survival strategies, the most common being to flee the country.

Around 8 million people have left Venezuela, making it the world’s second-largest displacement crisis. Of these, about 6.7 million migrants and refugees remain in Latin American and Caribbean countries, with Colombia hosting the largest share at 2.8 million. 

Economic Collapse

Venezuela’s displacement crisis is fundamentally rooted in a devastating economic collapse. Triggered by a perfect storm of plummeting oil prices, mismanaged state policies and weakening sanctions. With oil accounting for 95% of Venezuela’s export earnings, the 2014 collapse in global oil prices wiped out the country’s main revenue stream.

As inflation soared to hyperinflationary heights, with annual rates exceeding 344,510%, Venezuela lost access to essential services. Around 90% of the population cannot afford food, which has led to widespread breakdowns in health and nutrition.

Analysts have described Venezuela’s economy as “free fall,” with GDP shrinking by roughly one-third between 2013 and the mid-2010s. Adding to these pressures, U.S.-led sanctions, described by Tricontinental as “Unilateral Coercive Measures,” have deepened Venezuela’s economic collapse. Between 2017 and December 2024, they wiped out oil revenues equal to 213% of GDP, a staggering loss of more than $200 billion.

This economic failure has forced millions into poverty and desperation. Unable to meet basic needs at home, Venezuelans were compelled to flee in search of security and subsistence, which makes the country’s economic collapse one of the main drivers of its displacement crisis.

Political Instability

Political instability in Venezuela has become a powerful catalyst for Venezuela’s displacement crisis, propelled by authoritarian repression, democratic erosion and systematic violence. Since the July 2024 election, state forces and pro-government colectivos have carried out pervasive abuses and killings. They have enforced disappearances, arbitrary detentions and torture specifically targeting protesters, opposition members and innocent bystanders.

In 2025, Freedom House classified Venezuela as “not free,” citing the collapse of democratic structures and the elimination of dissent, while a recent U.N. Fact-Finding Mission confirmed ongoing crimes against humanity involving political persecution. This political violence has stripped Venezuelans of safety and legal recourse. When peaceful protest leads to detention or disappearance, families see exile as the only option.

The International Organization for Migration’s (IOM) 2025 crisis response cites political persecution alongside all the violence as core drivers of migration. Together, systematic repression and institutional collapse have made political instability a central force behind Venezuela’s displacement crisis.

Human Rights Violations

Human rights violations are another major force behind Venezuela’s displacement crisis, with thousands of people facing violence, mistreatment and fear for their safety. Reports from Amnesty International describe widespread arbitrary arrests, in which individuals are detained without explanation or access to legal support. Many detainees are held in overcrowded, unsanitary conditions, facing beatings, denial of medical care and psychological abuse.

The U.N. Fact-Finding Mission and other human rights groups have also documented enforced disappearances where individuals vanish, being taken away by security forces. This leaves families in a state of uncertainty for weeks or months. The U.K.’s June 2025 Statement to the U.N. Human Rights Council reports more than 900 individuals arbitrarily detained or forced to disappear. Legal safeguards have been gutted, with civil society stifled under “Anti-NGO” legislation.

Moreover, enforced disappearances have continued into mid-2025. Amnesty International reports at least 15 cases of forced disappearances, of which eight remain unsolved. Victims include children, Journalists and everyday citizens who have simply spoken out about shortages, poor services or safety concerns.

These abuses have caused deep emotional trauma, family disruption and a constant climate of fear. For many, the risk of being targeted is so high that leaving Venezuela becomes the only way to protect themselves and their loved ones.

What’s Being Done To Help?

A combination of international agencies, humanitarian organizations and regional governments is leading efforts to address Venezuela’s displacement crisis. Indeed, the U.N. Refugee Agency and IOM coordinate large-scale assistance through regional refugee and migrant response plans. These organizations deliver emergency shelter, food, health care and documentation support to Venezuelans across Latin America and the Caribbean.

Nongovernmental organizations like World Vision and Amnesty International are working to protect vulnerable groups, provide psychological support and ensure displaced children can continue their education. Additionally, the Quito Process, a regional initiative involving more than a dozen countries, is helping harmonize policies on temporary protection status, enabling migrants to work legally and access public services.

With sustained global attention, coordinated aid and fair treatment for those displaced, there is hope to ease the suffering and help millions rebuild their lives beyond the borders of Venezuela.

– Charlie Wood

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

Photo: Pixabay

, ,

Colombia’s Pension Reform is Fighting Poverty

Colombia’s Pension ReformDuring a person’s working years, a portion of their income is set aside and invested in a fund that grows over time. This money can only be accessed after retirement, providing a stable income when they are no longer working. Pensions are essential for helping elderly people avoid poverty after they retire.

Elderly Poverty in Colombia

The South American country of Colombia has a population of approximately 50 million people, of which more than 7 million (14%) are above the age of 60. According to a study conducted by the Institute of Aging at Colombia’s Javeriana University, 28.4% of this population (or 1.8 million) are living below the poverty line. The study also found that more than one million people in this age demographic are “victims of Colombia’s armed conflict,” which has been going on for decades

Inflation during and after the COVID-19 pandemic has significantly impacted many countries, including Colombia. Since 2021, the inflation rate has grown exponentially, peaking at 13.34% in March 2023. While the current rate is much lower, the effects of inflation are still widely present. These effects are especially difficult for elderly people, who often rely on fixed incomes and have limited opportunities to increase their earnings.

In 2023, Colombia’s pension plan only covered 25.5% of the elderly population, according to Bloomberg Linea. This situation leads many older Colombians to extend their working lives, often taking on informal and poorly paid jobs. This is an issue that is more noticeable in rural areas

This is an issue that will continue to become more palpable over time. In 2015, only 10.8% of Colombia’s population was over 60. By 2050, that number will increase to 27.5%

Passage of the Law

While Colombia’s pension reform was a significant issue for years, it became the forefront of Colombian politics in 2022 with the electoral success of Gustavo Petro to the presidency. During the campaign, he promised many social reforms, including pension reform.

His promise came to fruition when the Colombian Congress passed the pension reform bill in June 2024, which came into effect in July 2025. Specifically, this new law aims to strengthen the state pension fund, Colpensiones, by requiring individuals who earn less than $800 per month to contribute to the public fund. It also guarantees payments for older adults who have insufficient retirement savings or none at all. The government estimates that approximately 2.6 million older Colombians will benefit from these expanded payments, providing long-overdue financial security to a vulnerable segment of the population

New Pillar System

The reform also establishes a new “pillar system” that focuses on increasing coverage and efficiency. It divides pension contributions into different pillars based on income levels, thereby encouraging higher-income earners to contribute to private savings while ensuring lower-income workers receive support from the public system. This structure aims to make the overall pension system more inclusive and reduce inequality among retirees.

Additionally, one of the primary objectives of Colombia’s Pension Reform is to combat elderly poverty by offering a guaranteed minimum monthly payment to retirees who did not meet the required weeks of contributions under the old system. This helps ensure that aging citizens who worked informally or intermittently have support in their later years.

While implementation will require significant coordination and public education, the reform is a step toward creating a more equitable retirement system in Colombia.

– William Brentani

William is based in San Francisco, CA, USA and focuses on Politics for The Borgen Project.

Photo: Flickr

, ,

How Camel Milk in Somalia is Boosting the Economy

Camel milk in somaliaSomalia continues to experience civil unrest. Its economy is primarily linked to livestock in agriculture. Livestock contributes about 40% to GDP and more than 50% of export earnings. Somalia has what’s referred to as a “low-income African Horn economy.” The more than 30 years of war and environmental instability have made it hard for the country to get back on its feet financially. However, the more than seven million camels that Somalia has in its borders are starting to change that.

Camels have always been at the center of Somalia’s exports. Now, thanks to a growing industry of camel milk and its benefits to humans, the people of Somalia are using these camels to boost the economy and fight malnutrition.

Production

Before, only a fraction of the country’s seven million camels were used for urban grocery stores. Now, in the outskirts of Mogadishu, there’s been a shift in production thanks to Dr. Abdirisak Mire Hashi, a veterinarian and Beder Camel Farm’s manager. He has been at the center of this production, both preserving heritage and supporting the progress that the country has been experiencing.

Each camel at the farm now produces up to 10 liters of milk per day, two times more than what traditional farmers got. The increase is directly related to new investments in veterinary care, better feed and modern milking practices. On routine, the camels have a check-up and take their nutritional supplement, a very different practice than the free-roaming camels as seen a decade ago.

The biggest change is the yogurt factory, the first of its kind in Somalia. The factory has created hundreds of much-needed jobs for the country.

Camel Milk Benefits

There has consistently been an uptick in people demanding camel milk in Somalia. It has exploded in popularity for many reasons, but the main reason is its health benefits:

  • Rich in lactoferrin and immunoglobulins.
  • Contains properties similar to colostrum.
  • Provides protein, potassium and healthy fats.
  • Excellent source of calcium and vitamin B1.

Camel milk yogurt is just as nutritious as cow’s milk. It offers a low-lactose alternative that remains rich in vitamins and minerals. This product could provide Somalia with a much-needed public health boost that may help ease the country’s malnutrition crisis.

Modern camel milk production is transforming agriculture. It is changing the way that farmers go about their livestock.

The Future

The Somali government is hoping more people will invest in this growing industry. Camel milk offers countless benefits and rising productivity could transform Somalia’s future. With the introduction of a Dairy Act and a livestock sector development strategy, the country is laying the groundwork for lasting change.

The Beder Camel Farm holds 40% of Somalia’s camel milk market. It continues to lead the way toward a more camel milk-focused future. The people of Somalia see the potential of this investment and they are hopeful for where it takes the country.

– Avery Carl

Avery is based in Norfolk, NE, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

, ,

How Economic Growth in Albania Is Reducing Poverty

Turning the Tide: How Economic Growth in Albania Is Reducing Poverty In recent years, economic growth in Albania has brought measurable improvements to the lives of many citizens, especially in the wake of structural reforms and increasing European Union (EU) integration. Once among the poorest countries in Europe, Albania is now witnessing a steady reduction in poverty, driven by rising employment, wage growth and private sector investment. As Albania strengthens ties with the European Union, its progress in poverty reduction offers insights for small developing economies worldwide.

Economic Growth in Albania

In 2024, Albania’s economy grew by 3.3%, bolstered by private consumption, tourism and construction. Projections by the World Bank estimate a slight uptick in 2025, with growth expected to reach 3.4%. Inflation has eased significantly and employment has risen, particularly in the private sector, where wages have increased by an average of 12.7% across all industries. As a result, poverty rates are declining steadily, falling by 1.7 percentage points in 2024 alone. This economic growth in Albania is part of a broader regional trend, as Western Balkan economies benefit from increased domestic consumption and improved EU market access. Structural reforms have also played a crucial role, including efforts to enhance regional connectivity and diversify exports.

Addressing the Roots of Poverty

While Albania’s economic trajectory is positive, challenges remain. Rural communities continue to face disproportionately high poverty levels. A 2025 study by the Agricultural University of Tirana emphasizes the need to increase agricultural productivity and address the urban-rural divide through targeted policy reforms. Government initiatives have since focused on macroeconomic restructuring and prioritizing growth sectors like tourism, digitization and agriculture. In particular, improving food security through updated calorie-based consumption baskets and enhancing data collection methodologies has refined poverty measurement and intervention planning.

EU Integration and Long-Term Vision

Albania’s recent progress is also tied to its EU accession efforts. Since opening formal negotiations in late 2024, the government has launched policy overhauls across public procurement, financial management and human capital development. The World Bank’s Country Partnership Framework for Albania (2023–2027) underscores three core goals: creating more and better jobs, strengthening human capital and enhancing resilience to economic shocks. As part of this strategy, Albania signed new development loans and grants totaling more than $600 million, including $80 million for GovTech reforms in April 2025.

Solutions in Action

One critical component of Albania’s poverty reduction strategy is agricultural development. Since rural areas exhibit higher poverty levels, boosting agricultural productivity has direct poverty-alleviation effects. National programs now prioritize training for rural farmers, infrastructure investment and access to regional markets. One of the most visible examples of economic growth reducing poverty in Albania is the World Bank-supported Regional and Local Roads Connectivity Project, which is helping rural communities regain access to essential services and markets.

In the small village of Darëzezë e Re, farmers once spent hours waiting to cross a collapsed bridge. Road rehabilitation and bridge construction have cut travel times dramatically, boosting both safety and productivity.

Additionally, the World Bank emphasizes managing migration effectively as a development tool. Nearly one in four people from the Western Balkans lives abroad. According to the World Bank, migration, when harnessed correctly, can reduce poverty by increasing remittances, encouraging skill development and fostering “brain gain” through returning migrants. Policy recommendations include creating mobility training programs, bilateral social security agreements and diaspora investment channels.

Looking Ahead

While Albania’s economic growth faces risks — such as global trade tensions and domestic fiscal pressures — the current trajectory remains positive. Structural reforms, combined with continued EU integration and targeted poverty reduction policies, are improving lives across the country. With sustained effort, economic growth in Albania is on track to significantly reduce poverty and achieve long-term equitable development. Albania’s progress shows how targeted economic aid can reduce poverty and build sustainable futures.

– Robert Darke

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

Photo: Flickr

, , ,

What Does the Israel-Iran War Mean for Iranians

Israel and Rural Iran: What Does the Israel-Iran War Mean for Iranians Early in the morning on June 22, 2025, the world received the news that the United States (U.S.) military had bombed three Iranian nuclear sites. In the days after, there were reports about what Iranian retaliation could look like against the U.S. and Israel. In the heat of the situation, many Iranians living in poverty and removed from the fighting, face additional hardships. Reports indicate that these vulnerable citizens have received limited attention compared to the broader coverage of the Israel-Iran War.

Economy Pre-Conflict

Iran’s economy, like the majority of the Middle East, depends upon access to power sources: natural gas and oil. These resources are invaluable for Iran and have become its most powerful bargaining chip throughout the Israel-Iran War. 

Oil and gas power the Iranian economy and make it an area of interest for the Western world. As of 2024, Iran’s Gross Domestic Product (GDP) was roughly $434.24 billion. While the overall GDP is significant, different units of measurement paint a different picture for the common people living in Iran. When examining Iran’s GDP per capita, the country ranks 117th out of nearly 200. Trade sanctions have worn Iran’s economy down. As a result, it cannot hold the weight of an all-out war. While oil makes up 17% of Iran’s exports and its energy sources bring in a great deal of money, the sanctions greatly limit the economic growth of Iran. Every plan to recover the Iranian economy involves improving relations with the Western world to get the sanctions lifted. 

Iran Focus, a nonprofit news outlet that reports on Iran, Iraq and the Middle East as a whole, reported as recently as June 9, 2025, that “in Tehran, 55% of individuals’ income is spent on housing” as inflation batters and bruises civilians. Nearly 75% of Iranians live below the poverty line and as the Israel-Iran War progresses, the percentage could rise. 

Impact of the War

Already, the people of Iran are struggling to provide for themselves and their families. The ongoing conflict means even their lives are at risk. On June 15, 2025, the number of deceased Iranians was roughly 224. Civilians have fled from Tehran in droves and Iran’s retaliation could worsen financial hardship. According to The National, another news source that is also reporting on Iran, state collapse could be imminent for the nation. The rial, the currency of Iran, could lose more value. The Israel-Iran war has driven Iran to a tipping point. 

Humanitarian Aid in Iran

The most immediate danger to the Iranian people is the Israel-Iran War. In the days after the U.S. allied itself with Israel, global headlines focused on the potential for escalating violence. Thankfully, de-escalation has been orchestrated and the back-and-forth bombing has come to a rest. 

Nonprofit organizations are working hard to help the struggling people of Iran. The Center for Human Rights in Iran offers consistent coverage of the ongoing events while focusing on civilians and those who are directly in the line of fire. Its focus is on documenting all human rights issues in Iran and it has been in action since 2008. 

Another organization that has global reach but still operates within Iran is Relief International. Relief International targets the damage caused by natural disasters while also building schools and offering financial assistance to struggling citizens. Relief International has a collection of testimonies from people the organization has directly helped; such reminders of good news can serve as a resource for motivation.

Looking Ahead

The Israel-Iran ceasefire remains fragile and recent events show how quickly tensions can escalate. Yet, there is still reason for hope. Humanitarian organizations working in Iran continue to prioritize the needs of civilians, many of whom have little influence over the conflict but bear its heaviest burdens. Their efforts highlight the importance of international attention and support in creating a path toward stability.

– Peyton Worsham

Peyton is based in Jacksonville, FL, USA and focuses on Politics for The Borgen Project.

Photo: Flickr

, ,

Fighting Poverty in Georgia: The Role of Black Sea

Poverty in GeorgiaGeorgia’s policies aimed at reducing poverty have been successful, especially regarding efforts to modernize the labor market and increase access to assistance for large portions of the population. The country’s gross national income per capita rose from $3,000 in 2010 to $5,702 in 2023, along with reducing poverty in Georgia by roughly 35% in a timespan of over a decade. There is a continued sense of urgency to address and curb poverty.

Despite these efforts, in 2024, the Georgian government backtracked on European Union accession talks. This forced successful policies that reduced poverty to be abandoned, leaving only unproven strategies. The resulting suspension of some foreign aid in the form of investments will harm citizens by hindering national economic growth and slowing trade. Furthermore, some Georgians in rural regions and minority groups, consisting of Azerbaijanis and Armenians, still face high levels of poverty due to the government’s limited current legislation focused on their needs.

Ethnic tensions in Georgia are prevalent, stemming from the need to preserve the unique identity of Georgians, especially from outside invaders, including Russia. Georgia has two breakaway regions, Abkhazia and South Ossetia, both striving for independence. However, the Georgian government and people have been skeptical of foreign influence in the regions and the potential for disruption to the Georgian identity, according to the Carnegie Endowment for International Peace.

This fear, along with the hindrance of the government viewing minorities as lesser members of the nation, has restricted support and Georgia’s hope to curb poverty in predominantly minority regions.

Black Sea Importance and Access

The Black Sea is of great importance to Georgia, allowing access to beneficial trade resources and international partnerships. Partnerships between foreign nations can also enhance security, unify independent countries and provide protection in this dynamic region. Without the Black Sea, Georgia would be unable to utilize ports to facilitate trade and resource distribution.

Also, the Blue Economy or ocean resources used for economic growth, is vital to Georgia. A recent project from the European Climate, Infrastructure and Environment Executive Agency increases support for fisheries, coastal and maritime tourism and maritime transport, according to the European Commission.

Besides ports, oil and gas pipelines also flow through and around the Black Sea, creating a significant trade route from nations such as Russia and Turkey to nations in Europe. The ability for nations to tap into Western markets is key to maintaining national economic growth and potential job growth, ensuring that the nation thrives and that poverty can be reduced.

This is beneficial not only to individual nations in the region but also to the U.S., which has the goal of minimizing adversary movements in conflict zones and areas of high trade interest. Specifically, nations that can rely on Western nations for trade and an economic boost will become less dependent on Russian trade and influence. Additionally, their national independent movements will be protected, according to the Foreign Policy Research Institute.

Georgia’s Ports

Georgia’s unique location between the Black Sea and the Caspian Sea, along with neighboring Azerbaijan, allows the country to connect seven landlocked countries. It promotes trade between Europe and Asia. According to the National Library of Medicine, Georgia maintains aspirations of being a direct hub between Europe and Asia, with added economic growth, infrastructure and development. Trade agreements are vital in preserving and increasing Georgian dominance on the Black Sea to become a significant trade and support nation in a time when foreign influence downplays the nation.

The Batumi Sea Port, located near the southwest corner of the nation, is designed to deal with cereal cargo and petroleum goods. According to the Logistics Cluster, the port transfers goods from land-based transport to ships. It also handles trade vessels and military ships from the U.S. and NATO. These military vessels dock to support regional security through joint exercises and training. By maintaining a strong flow of trade and military ships through their ports, Georgia ensures a positive economic output and strong international cooperation while maintaining security against threats.

Ongoing Strife in the Black Sea

With Russia’s ongoing expanded war against Ukraine, originating in 2014, the Black Sea is still a threatened region, facing military threats, environmental risks and disruptions to vital shipping routes. Primarily at the start of the war, the Russian Navy increased warship presence in the Black Sea and since then, both the Russian Navy and the much smaller Ukrainian Navy have utilized sea mines to deter advances from both sides.

However, with the presence of warships and mines, coastal authorities continue to warn marine traffic of the dangers, ultimately creating uncertainty in trade routes and the potential for disasters, according to the NATO Shipping Center. Environmental risks are also occurring, with mines and oil spills from Russian oil tankers harming the Black Sea shipping lanes and wildlife. Aging tankers in Russia’s shadow fleet, used to evade oil price caps, are at higher risk of spills or navigation failures. Collisions involving these vessels also disrupt trade and daily life in regions like Crimea.

With Russian deals to implement new naval policies and create new bases to house warships, Georgia will be at a disadvantage. Continued disruptions to trade and Russian influence to bar additional Georgian efforts to secure new ports and infrastructure relating to trade will negatively impact the Georgian economy and reduce poverty in Georgia.

A Future for Georgia and the Black Sea

Georgia continues to find new ways to reduce poverty. A report supported by the United Nations Development Programme (UNDP) describes how investments in social security, health care and education will help reduce poverty. To create long-lasting economic growth, the Black Sea’s role must be at the forefront of future deals. Prioritizing investment, tourism and port development will boost jobs, raise incomes and improve regional trade efficiency, key steps toward reducing poverty in Georgia.

– Avery Kachmarsky

Avery is based in Los Angeles, CA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr