Archive for category: Employment

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7 Things To Know About Being Poor in Puerto Rico

Being Poor in Puerto RicoBehind the vibrant culture, Caribbean architecture and the pristine, turquoise waters of the island of Puerto Rico, there lies the truth that more than one-third of its residents live in poverty, making it the poorest U.S. jurisdiction by a wide margin. While the causes are complex, poverty on the island is closely tied to economic, political and historical factors that continue to shape daily life. Here are seven things to know about being poor in Puerto Rico.

1. Poverty’s Roots in US Colonialism

Conditions of poverty have roots in U.S. colonialism. After the United States acquired the territory in the 1898 Spanish-American War, Puerto Rico’s economy transformed into a sugarcane monoculture, primarily through colonial restructuring. U.S. corporations like South Porto Rico Sugar Company and Central Aguirre Sugar Company capitalized on inexpensive Puerto Rican land and labor, consolidating localized, biodiverse farms into massive, industrial sugarcane plantations to satisfy U.S. market demand. This shift led to Puerto Rico’s reliance on mainland U.S. food imports, whose costs were artificially inflated by the Jones Act (officially the Merchant Marine Act of 1920), which required that all goods shipped between U.S. ports be carried on U.S.-built, owned, and operated vessels. Initial colonial exploitation of Puerto Rican resources by the United States set a precedent for ongoing and aggravated conditions of poverty in the territory.

2. Poverty and Unemployment in Puerto Rico

At 43%, Puerto Rico has one of the lowest labor force participation rates in the world, according to The World Bank’s report for 2025. This is significantly lower than the United States, which the World Bank reported at 62%, and the global average of roughly 60%. According to Liberty Street Economics, the decline is “the consequence of an aging population, accelerated by a falling birth rate and outmigration of a relatively young cohort.” These vulnerabilities place considerable strain on the island’s economy, effectively limiting economic growth and increasing the likelihood that families will experience being poor in Puerto Rico.

3. Puerto Rico is the Poorest Jurisdiction of the US

Under the U.S. government’s definition of a persistently poor county as one having maintained poverty rates of 20% or more for at least 30 years, all 78 municipios (county equivalents) of Puerto Rico have experienced persistent poverty, and as The Center for Puerto Rican Studies at Hunter College has stated, have done so “for more than half a century.” Additionally, the poverty rate in Puerto Rico at 37.2% is disproportionately higher than that of even the poorest U.S. states. Mississippi, the poorest U.S. state, has a poverty rate of 14.3%, while Louisiana, the second poorest, has a rate of 14.1%. In contrast, Puerto Rico’s poverty rate is more than twice as high, demonstrating a level of economic hardship unmatched anywhere in the 50 states.

4. Cost of Living Burdens in Puerto Rico

Cost of living burdens in Puerto Rico are higher or as high as they are in U.S. states. The median household income in the United States for 2024 was $83,730, compared to $26,297 in Puerto Rico. It is important to note that this disparity does not reflect lower costs of living in Puerto Rico. The Congressional Research Service reported that, on average in the United States, 49.4% of renter households were housing cost-burdened in 2024, while in Puerto Rico, nearly 72% of renters were housing cost burdened, highlighting the substantial affordability challenges faced by many residents despite significantly lower incomes. Taken together, these figures demonstrate that Puerto Ricans often face both lower earnings and greater housing insecurity, increasing their risk of poverty.

5. Gentrification and the Displacement of Indigenous Puerto Ricans

U.S. citizens relocating to Puerto Rico has led to gentrification and the displacement of indigenous Puerto Ricans. Puerto Rico’s Act 60 (also known as the Incentives Code), which the Puerto Rican government enacted on July 1, 2019, is a comprehensive tax incentive program designed to attract investors, entrepreneurs and businesses to the island. It established a 0% tax on capital gains accrued after becoming a bona fide resident (both for Puerto Rico and U.S. federal taxes), a 100% tax exemption on dividends and interest sourced from Puerto Rico, and 75% exemption on property taxes for a primary residence. Over the combined 2022 and 2023 period, Business Insider reported that 50,577 Americans relocated to the island. This has led to significant and ongoing gentrification in the territory, along with the displacement of local Boricuas due to increasingly unaffordable housing and diminishing purchasing power.

6. Economic Development Policies in PR

The exhausted state of economic development policies in Puerto Rico has critically affected conditions of poverty. Puerto Rico’s persistently high poverty rate has also been exacerbated by the failure of existing economic development policies to generate sufficient employment opportunities. For decades, the territory relied on an export-oriented economic model supported by federal tax incentives that encouraged U.S. corporations to invest and create jobs. However, the expiration of Section 936 of the Internal Revenue Code in 2006 removed many of these incentives, contributing to a prolonged economic decline from which Puerto Rico has yet to fully recover. Subsequent federal interventions, particularly the PROMESA fiscal oversight board established in 2016, imposed austerity measures that reduced public spending and disproportionately affected low-income residents. As economic growth stagnated and job creation lagged, poverty remained deeply entrenched across the island.

7. Federal Funding Parity and Political Self-Determination

Federal funding parity and political self-determination in the focus of active legislative efforts in the 119th Congress could incite positive change. Several initiatives in the 119th Congress seek to address both the structural causes and the urgent realities of being poor in Puerto Rico. The Puerto Rico Nutrition Assistance Fairness Act (H.R. 5168/S. 3958) would extend SNAP benefits to the territory, reducing disparities in federal nutrition assistance and strengthening support for low-income families.

The Puerto Rico Status Act would establish a binding process for Puerto Ricans to determine the island’s future political status, potentially giving residents a stronger voice in federal decision-making and greater influence over policies affecting economic development and public welfare. Additionally, ongoing efforts to reform PROMESA seek to restore greater fiscal authority to Puerto Rico’s elected government and reduce reliance on federally imposed austerity measures. These initiatives aim to provide both immediate economic relief and greater local control over the policies that shape conditions of life in Puerto Rico.

Looking Ahead

Poverty in Puerto Rico is not the result of a single issue, but rather a combination of historical, economic and political factors that have compounded over generations. As Congress considers measures such as the Puerto Rico Nutrition Assistance Fairness Act, reforms to PROMESA and the Puerto Rico Status Act, policymakers have an opportunity to address both the immediate needs of Puerto Rican families and the structural conditions that sustain poverty. Continued advocacy and legislative action will be essential to creating a more equitable future for the island.

– Nilani Mathur

Nilani is based in Longmeadow, MA, USA and focuses on Business and Global Health for The Borgen Project.

Photo: Pixabay

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Efforts To Close the Gender Wage Gap in Antigua and Barbuda

Gender Wage Gap in Antigua and BarbudaThe gender wage gap in Antigua and Barbuda affects economic opportunity for many women and families. Although the country has made significant progress in education and women’s participation in the workforce, challenges remain in ensuring equal access to higher-paying jobs and leadership positions. At the same time, government agencies and international organizations continue to invest in programs that strengthen women’s economic empowerment. These efforts help reduce poverty and create new pathways to financial independence across Antigua and Barbuda.

Limited data makes it difficult to measure the full extent of the gender wage gap in Antigua and Barbuda. According to UN Women, many gender-related labor indicators remain unavailable, highlighting the need for stronger data collection and analysis. As a result, researchers cannot calculate a comprehensive national gender wage gap figure. However, existing research suggests that women continue to face barriers in employment and income generation.

Unemployment and Poverty

A country gender assessment that the Caribbean Development Bank (CDB) conducted found that women often experience higher unemployment rates and remain unemployed for longer periods than men. The assessment also noted that women remain concentrated in certain sectors of the economy, which can limit earning potential and career advancement. These challenges can affect household income and increase financial vulnerability, particularly for women who serve as primary caregivers or heads of household. 

Economic inequality can contribute to poverty by reducing access to stable income, savings and business opportunities. When women earn less or face barriers to employment, families may have fewer resources for education and health care. Addressing these challenges can strengthen economic growth while improving living standards for communities throughout the country.

Promoting Gender Equality

The government addresses gender inequality through the Directorate of Gender Affairs. The agency promotes gender equality and the integration of gender considerations into national policies and programs.

The Directorate of Gender Affairs supports initiatives that encourage economic participation and leadership opportunities for women. Its work includes advocacy and partnerships with local and international organizations. By incorporating gender-responsive planning into development strategies, policymakers can help ensure that economic growth benefits women as well as men.

The government has strengthened institutional support for gender equality through collaboration with regional and international partners. These efforts create more inclusive opportunities in employment and entrepreneurship.

The Expansion of Entrepreneurship and Vocational Training

One promising solution to the gender wage gap in Antigua and Barbuda involves expanding entrepreneurship and vocational training opportunities for women. The Gilbert Agricultural and Rural Development Center (GARD Center) has played an important role in this effort through its Young Women’s Empowerment Project.

The European Union provided approximately $1.3 million to support the project, which targeted more than 200 vulnerable women ages 35 and younger. The initiative provided vocational training and business development support designed to increase participants’ earning potential.

The program produced measurable results. According to the GARD Center, 132 women completed vocational training while 88 women completed entrepreneurship training. Participants gained skills in information technology and other fields that can provide higher earning opportunities than traditional employment sectors for women.

The project also established a Business Development Unit (BDU) that helped participants develop business plans and connect with financing opportunities. By supporting entrepreneurship and workforce development, the initiative helped women build sustainable sources of income while strengthening local economic resilience.

Looking Ahead

The gender wage gap in Antigua and Barbuda remains an important development issue, but continued investment in women’s economic empowerment offers reasons for optimism. Government agencies and nonprofit organizations have expanded opportunities for education, workforce training and entrepreneurship. These initiatives help women strengthen their earning potential and contribute to economic growth.

As Antigua and Barbuda continues to improve gender data collection and strengthen economic inclusion programs, more women may gain access to higher-paying careers and business opportunities. These efforts can help reduce poverty and support long-term economic growth. By investing in women’s success, Antigua and Barbuda continues to build a more inclusive and prosperous future for all.

– Archie Monton-Black

Archie is based in Bedford, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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How the Boda-boda Industry in Kenya Creates Opportunity

More Than a Motorcycle: Local Perspectives on How Kenya’s Boda Boda Industry Creates Opportunity Across many developing economies, poverty is not always transformed by massive infrastructure projects or billion-dollar investments, but instead by simple, accessible solutions that change everyday life. In Kenya, one of those solutions has been the rise of the boda-boda industry. What began as a practical form of transport has evolved into a significant economic force. To explore this transformation, The Borgen Project spoke with Nairobi local Gurkiran Munde about the growing boda-boda industry in Kenya and how it is shaping daily life and economic opportunity.

According to a Viffa Consult report, a Kenyan-based management consultancy that supports micro, small and medium enterprises (MSMEs), boda-bodas now form a critical backbone of Kenya’s transport system, generating KES 660 billion annually.

Munde captured the industry’s everyday importance, telling The Borgen Project that boda-bodas deliver food, drinks, medicine, and almost everything one can think of. Beyond their practical advantages — such as enabling businesspeople to bypass traffic and reach meetings on time — these bikes have also created a series of opportunities for the social fabric of Kenya.

The Transport Shift

According to Munde, the boda-boda industry in Kenya has become essential to daily life because it provides an affordable and practical transportation option in a country where car ownership remains inaccessible for many. A 2023 Statista survey revealed the scale of Kenya’s car ownership gap, with only 7% of respondents reporting they owned a car.

Data from The Global Economy reported Kenya’s average 2021 vehicle price index at 82.99, compared to a global average of 100. While this figure may appear relatively low, vehicle ownership in Kenya remains expensive in the context of average incomes, helping to explain why boda-bodas have become such a popular alternative.

As a result, boda-bodas have emerged as a far more realistic financial option for many citizens. Unlike the small 7% of Kenyans who own cars, the country’s estimated 4 million boda riders ensure that mobility is not restricted to a wealthy minority. By providing cheaper transport, boda-bodas allow more people to reach essential services without being limited by the high costs associated with car ownership. In doing so, the industry has expanded everyday opportunities across many communities in Kenya.

The Employment Shift

Although boda-bodas have increased opportunities for many Kenyans, it is the country’s youth who appear to have benefited the most. Youth unemployment in Kenya has risen sharply in recent years, increasing from 7.3% in 2016 to 15.2% in 2025. This rise has left a significant portion of Kenya’s young labor force without stable employment. Young people make up more than 35% of the country’s population, making youth unemployment a major economic challenge.

Against this backdrop, the gradual expansion of the boda-boda industry in Kenya has created an important new route into employment. Munde told The Borgen Project that the industry’s low barriers to entry make it far more accessible than many forms of formal employment, with the main requirement being obtaining a driver’s license.

Research conducted by Too Zakayo Kibet, a student from the University of Nairobi, further highlights the industry’s economic potential. A study of 206 youth boda-boda drivers found that 94% of those surveyed were able to meet their basic needs through the work, while 88% reported that their financial status had improved as a direct result of employment in the industry. Furthermore, 63% of the youth riders were also able to build savings, demonstrating that the work can generate not only short-term income but also long-term financial security. An additional 67.7% reported an overall increase in their purchasing power after entering the boda-boda sector.

These findings demonstrate the strong relationship between the boda-boda industry and economic opportunity in Kenya. Increased income from motorbike employment can play a significant role in alleviating poverty by allowing individuals to move beyond day-to-day survival. When riders are able to consistently meet their basic needs and generate savings, they and their households gain greater financial stability and resilience.

Looking Ahead

As Munde told The Borgen Project, boda-bodas have created a whole new avenue for employment, especially for young people. By reducing reliance on cars and lowering barriers to entry into work, the boda-boda industry has opened economic doors for Kenyans, demonstrating that accessible, low-cost solutions can drive meaningful poverty reduction at scale.

– Sophia Lupo

Sophia is based in London, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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TRANSFORM Master Trainers in Western Africa

TRANSFORM Master TrainersAcross Western Africa, fragile safety nets leave hundreds of millions of people vulnerable to terrible conditions as a result of economic shock, climate disaster and displacement. Government coverage of these issues remains critically low, with social protections in Western Africa having the lowest protection rate on the continent, with only 9% of its citizens having access to one form of benefit. This figure falls incredibly lower than Africa’s average of 18% and the global average of 52%. Limited government spending, underdeveloped health systems and weak coordination have further deepened the issue, leaving communities exposed to crises they simply cannot combat alone.

Nigeria’s First TRANSFORM Master Trainers

Nigeria has certified its first group of 21 TRANSFORM Master Trainers through the International Labour Organization (ILO), European Union (EU) and UNICEF program to rebuild social protection systems across Western Africa.

The newly accredited TRANSFORM Master Trainers completed intensive courses on governance, financing and program and target delivery, allowing them to become well-versed in the skills required to create strong social protections in Western Africa. The training took place in April 2026, at the United Nations Building in Abuja. The initiative stands as part of the Supporting Sustainable Social Protection System (SUSI) project, which plans to expand the program across Abia, Benue, Oyo, and Sokoto throughout the next year. 

According to the ILO director for both Nigeria and the Economic Community of West African States (ECOWAS), Dr. Vanessa Phala, the TRANSFORM Master Trainers program has already been able to train over 5,000 people across about 30 African nations. Additionally, she states that the TRANSFORM program has ensured that these certifications are not merely participation trophies for the course, but instead an important distinction, recognizing the participants’ new skills and dedication to building a socially safer Western Africa.

The Impact

For Nigerians living in extreme poverty, this development promises a brighter future. This program could enable efficient aid distribution throughout the country, allowing impoverished Nigerians to receive their needed aid reliably while creating an economic base that is protected by government-backed safety nets. These social protections in Western Africa could make the region more resilient to crises like economic shocks, climate disasters and major displacements.

Specifically, the initiative targets Nigeria’s social protection management and information systems, with the groundwork laid for a seamless transition of information across departments, agencies and even countries. This integration could allow for enhanced coordination and overall efficiency of government programs, directly benefiting impoverished populations.

The Future of the Program

Over the next year, the TRANSFORM Master Trainers will undertake training initiatives across Nigeria, Ghana, Liberia and Sierra Leone, spreading the effect of the TRANSFORM program across borders and throughout the region. Two newly certified trainers, Ge Matthew Terver and Tor-Wombo Jacyntha Ngodoo, both note that because of their training, they now understand what makes up the backbone of efficient social protection and how people are directly affected by administrative decisions, according to the ILO.

– Luca Napolitano

Luca is based in Boston, MA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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How Vocational Training for Syrian Women Supports Empowerment

Vocational Training for Syrian WomenThe economic collapse following the Syrian conflict left more than 90% of Syrians living below the poverty line, with many women becoming heads of households in a society lacking the legal reforms needed to support their transition into this role. Of these households, 92% living in displacement camps were unable to meet their basic needs. As of 2025, women’s labor-force participation stands at 12.7%, compared to 61.4% for men. Vocational training helps to address this gap by providing women with specialized skills that support financial stability, self sufficiency and improved access to work opportunities. These findings explain why humanitarian organizations are prioritizing vocational training for Syrian women, expanding education access and supporting their path to economic independence. Here are the four key ways vocational training for Syrian women is supporting their empowerment.

Economic Independence

Vocational training centers in Syria give women “income-generating skills” that support long-term economic stability, according to the Aga Khan Development Network. DCA Syria developed its programs in response to the socio-economic instability women face, offering training that equips women with the skills and knowledge needed to generate their own income.

The U.K. Foreign, Commonwealth and Development Office’s Building Life Skills and Resilience (BLRS) program also provides specialized vocational training for Syrian women that strengthens their employability and confidence. Ashwaq, a 21-year-old woman, benefited from BLRS training in 2024. CARE reported that the program’s bakery training equipped her with practical, transferable skills that helped her earn a sustainable income and create stability for her family.

Women’s Roles in the Workforce

In 2017, the Tahrir Institute for Middle East Policy reported that the Syrian conflict had severely affected women’s lives but also opened new avenues for them in the workforce. The deaths and displacement of husbands, fathers and brothers created a significant labor gap that women are now filling. As a result, women have become the primary earners in almost one in three households.

In response to these changes, the UNDP developed workshops, vocational training and emergency employment opportunities to support women’s participation in the workforce. TIMEP noted the effectiveness of these initiatives, reporting that the UNDP provided career opportunities to 6,103 women heading households in 2016.

Vocational training has significantly reshaped Syrian women’s economic roles. Organizations continue to educate and support Syrian women “economically, professionally, socially and culturally.”

Education Access for Young Women

In 2025 UNICEF enabled 164,883 girls to return to learning and develop transferable competencies through non-formal education. These programs include self-learning, remedial education, early childhood education and life-skills training. UNICEF reported that this approach highlights the growing need to provide women and girls, including internationally displaced persons, returnees and vulnerable host communities, with opportunities to rebuild their confidence and strengthen their learning pathways.

UNICEF has also expanded programs aimed at “strengthening adolescents’ resilience, agency and social cohesion.” These programs teach life skills, employability training and civic engagement. By the end of 2025, these initiatives strengthened wider efforts to stabilize communities and reached 255,488 adolescent girls.

Rebuilding After Displacement

Vocational education gives women and displaced people practical training that supports reintegration into society, strengthens economic stability and contributes to recovery from conflict-related trauma. The Columbia University Journal of International Affairs emphasizes the importance of these programs, noting that two-thirds of Syrians displaced globally are women who are underrepresented in the “global narrative.”

Refugee camps also support women as they return to community life by offering training opportunities. In research on displacement in the Abu Khashab camp, Acted documented Heba, a woman who gained practical skills and new opportunities through participation in training centers. These skills helped her reintegrate into community life and build long-term stability.

Conclusion

Vocational training centers in Syria play a central role in supporting women’s empowerment through expanding access to job opportunities and practical life skills. These programs have emerged in response to the barriers that continue to limit women’s achievements. The experiences of women such as Ashwaq and Heba show how practical training can create pathways to employment and stability, even in a post-conflict society. As humanitarian organizations continue investing in vocational training for Syrian women, these initiatives remain essential to strengthening women’s roles within their communities and the labor market.

– Flora de Leeuw

Flora is based in Exeter, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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The Higher Education System in Equatorial Guinea

Higher Education System in Equatorial GuineaImproving the higher education system in Equatorial Guinea has become increasingly important as the country works to expand its economy. However, the system still faces challenges such as a shortage of resources and a lack of qualified teachers. According to a BTI Project report, only 12.8% of young people enroll in higher education, limiting long-term career opportunities and slowing workforce development. As demand for skilled workers grows, expanding access to higher education and vocational training remains a priority. 

Historical Development of Higher Education

The higher education system in Equatorial Guinea has undergone significant changes since the country gained independence in 1968. Portugal first colonized the territory between 1472 and 1778 before transferring control to Spain, which ruled the country until independence. 

After its independence, the education system suffered under the rule of Francisco Macías Nguema. Teachers and academics were arrested and some were executed. In comparison, neighboring country Cameroon established the University of Yaoundé shortly after its independence in 1962 and expanded its higher education system throughout the 1970s. Equatorial Guinea, however, did not establish a national university until 1995.

The government passed the General Education Law in 1995 to promote equal access to education. During the same period, the National University of Equatorial Guinea (UNGE) was established and introduced courses in engineering, medicine, social sciences and humanities. Despite these reforms, higher education enrollment remains low. According to the World Bank, in 2024, only 8,151 students were enrolled in higher education institutions.

Improvements and Current Reforms

  1. Digital Expansion: The launch of the Univ Connect Project in early 2026 aims to connect 17 universities and higher education institutions in Africa through a broadband network. This will provide a shared digital platform for teaching and research and is expected to benefit 80,000 students.
  2. Strengthening Regional Integration: As of 2026, regional organizations are promoting mutually recognized qualifications, credit transfers and free movement for higher education students and researchers to improve educational quality and align learning with labor market demands. The initiative includes six CEMAC member states: Gabon, Cameroon, the Central African Republic, Chad, the Republic of the Congo and Equatorial Guinea.
  3. Aligning With the Labor Market: The National Employment Strategy 2024 also intends to expand vocational training and strengthen ties between universities and industries such as agriculture and ecotourism in order to increase employment rates. The aim is for 80% of training to take place within companies to achieve this. In 2025, the prime minister set an objective of 100,000 new jobs in industries to decrease the unemployment rate among 15-to-24-year-olds.

Continuing Challenges in Higher Education

In Equatorial Guinea there is currently one university, UNGE, with campuses in Bata and Malabo. Additionally, there are currently five specialized vocational training institutions. In comparison, neighboring country Cameroon has 11 universities. Although Cameroon’s tertiary enrollment rate remains relatively low at 17%, it still exceeds Equatorial Guinea’s rate of 12.8%.  

Therefore, despite recent reforms, the higher education system in Equatorial Guinea still faces major challenges such as accessibility, funding and vocational preparation. According to a World Bank report, weaknesses in the sector continue to create employment barriers due to a lack of relevant vocational skills. The country has a very young population, 56% of which is under 25, making investment in higher education crucial for the country’s development.

Conclusion

The higher education system in Equatorial Guinea has faced many historical and structural challenges. However, recent reforms show progress in digital infrastructure and workforce preparation. Continued investment in higher education could expand employment opportunities, strengthen workforce development and encourage future generations to pursue higher education.

– Emma Wheeler

Emma is based in Valencia, Spain and focuses on Good News and Global Health for The Borgen Project.

Photo: Unsplash

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Cash-in-Hand in Honduras’ Informal Economy

Honduras’ Informal EconomyInformality is a growing phenomenon in the global South, specifically in countries of Latin America and the Caribbean (LAC). While almost everyone must work out of necessity, not all work is created equal. In Honduras, the informal economy is seeing notable change, with women entering the formal workforce and small businesses driving social and economic development.

The Informal Economy: What Is It?

While formal work involves a written contract between employer and employee and generally ensures workers’ protection, rights and stability, informal labor is a broad term with multi-faceted meanings. This might include a family-owned shop where an employee helps on the weekends, street vendors, gig workers, micro-businesses and domestic workers in cash-in-hand employment.

While this type of work occurs in every country, there are notable trends. In 2024, the OECD drew upon the survivalist aspects of informal work, noting how these jobs are often characterized by a lack of social benefits, poor working conditions, lower remuneration and poverty. Currently, 90% of the global workforce is made up of informal employees, largely from low-income countries.

While policy change is urgently needed, much informal work is also produced and performed within the household, making it difficult to categorize or track. Women are more likely to be part of the informal labor force, and four in 10 people in LAC countries currently depend solely on informal work. More than half the people in countries such as Colombia, El Salvador, Paraguay, Peru, Bolivia and Honduras are vulnerable to exploitation, with low earnings, excessive working hours and poor working conditions — conditions that may carry on into future generations.

A Case for Formalization

Employees working informally do not contribute to a country’s GDP, largely due to tax avoidance. Workers within the informal economy earn less than their formal counterparts, and their country’s economy is often weaker as a result.

J.P. Morgan notes that “informality thrives where entry is hardest” and is thus bound to disproportionately affect those without formal education or with low social standing. For these reasons, it is more likely to affect women and girls. The shift from informal to formal economies is not straightforward, but can be achieved through policy and business action, reducing the gender pay gap and the potential for violence and abuse facing women and girls.

Honduras: A Case Study

The OECD report shows Honduras’ informal economy to be the largest among the LAC countries examined, with nearly 80% of salaries coming from informal channels.

Despite this, organizations such as CAVEXSA, COCASAM and UPROCASUR have been aiding the transition from informal to formal work. These are small to medium enterprises in the agricultural sector, harvesting, packaging and transporting commodity goods such as sugar and coffee.

Backed by the ComRural II project and the World Bank Group, they are committed to providing technical training and job opportunities for rural communities. More than 3,200 Hondurans have attained job security, with numbers set to increase with every harvest. These are jobs in previously male-dominated sectors, signaling economic growth that also challenges gendered stereotypes.

Looking Ahead

Honduras’ informal economy remains essential for many, but procedures such as effective minimum wages, community-driven businesses, contributory schemes and social protection are among the ways the OECD suggests alleviating the burden of informal work.

Denis Calderón, a former okra producer and current board member of CAVEXSA, is a single mother of five. “I was a housewife — I’m not ashamed to say it,” she said, adding that “women are capable of anything,” in agriculture, domestic life and beyond. The leadership of women like Calderón in these businesses reflects a broader shift in how economic growth is taking shape in the global South.

– Grace Sandall

Grace is based in Madrid, Spain and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Renewable Energy in Grenada

Renewable Energy in GrenadaGrenada, like many other island nations in the Caribbean, faces a critical challenge: breaking its dependence on expensive, imported fossil fuels. Currently, a staggering 93% of Grenada’s energy supply relies on imported oil products. This costs that country an average of 105 million East Caribbean Dollars (ECD), draining resources that the country could better allocate locally and making the nation particularly vulnerable to global price shocks and supply disruptions. Additionally, imported oil’s monopoly on Grenada’s energy sector causes widespread energy poverty, which is the lack of energy needed to provide basic services, such as heating, cooling and cooking.

Yet, the Spice Island is planning an ambitious new course. According to the United Nations Development Program (UNDP), Grenada has pledged a 40% reduction in its 2010 emissions by 2030, with the ultimate goal of using 100% renewable energy in its transport and electricity sectors. Additionally, new renewable energy initiatives can combat energy poverty by allowing families to own solar panels and generate their own electricity off the national grid. This would lower household costs, keep money in the Grenadian economy, and improve the quality of life for many impoverished Grenadians.

Challenges

Issues riddle Grenada’s path forward. Grenada’s electrical grid currently relies on diesel generators, for which cooling alone accounts for one-third of the nation’s total greenhouse gas emissions. Meanwhile, poverty remains high, with 25% of Grenadians living below the poverty line. Additionally, while there has been progress to expand the renewable energy sectors, a vast majority of Grenada’s renewable energy output comes from small-scale projects rather than large-scale government investment.

Progress on the Ground

Despite these obstacles, renewable energy in Grenada has continued to expand. In November 2024, Grenada launched a tender for a major solar project at Maurice Bichop International Airport, and while a company has not won the tender, the project continues to develop, with officials choosing the sites for the solar panels. The winning developer will secure a 25-year power purchase agreement with the state utility, Grenlec, and planners expect the project to meet 40% of Grenada’s energy grid needs.

Grenlec has also announced that the construction of a new substation and upgraded grid infrastructure is underway on the island. Improving the efficiency of the grid and lessening overall waste. This project will also create a resilient microgrid at the airport, allowing for reliable power during prolonged grid outages.

International support also provides optimism for the Island’s future development. In December 2024, the United Kingdom pledged 10 million British pounds to support geothermal energy development in Grenada, aiming to reduce its former colonies’ reliance on expensive imported fossil fuels. Additional United Nations programs like the Building Effective Resilience for Human Security in the Caribbean Countries and the Harnessing Blue Economy Finance for SIDS Recovery and Sustainable Development initiatives work to develop the renewable energy grids of the region and help the impoverished in Grenada.

Tourism

Tourism remains both Grenada’s largest industry and a major contributor to overall emissions, but the sector is beginning to adopt new, climate-friendly policies. A pilot project at the True Blue Bay Resort has demonstrated that replacing conventional air-conditioning units with R290 units, which are both propane-fueled and very efficient, achieved an energy consumption reduction of around 26%. For a nation with a large number of hotels, in which cooling can account for a majority of its energy demand, improvements in cooling efficiency can reduce annual electricity consumption by hundreds of thousands of ECD.

Impacts on Poverty

The transition to renewable energy in Grenada carries large implications for poverty reduction, as about 25% of the population lives below the poverty line, and the unemployment rate stood at 11.1% in 2023.

Currently, high electricity costs burden low-income households, forcing many to spend large portions of their income on energy. Lowering these costs through renewable sources would free up household income for food, education, healthcare and many other expenses. To combat this, Grenada plans to launch its “Solar for All” Program, which will expand access to rooftop solar and accelerate nationwide adoption of solar energy, particularly for vulnerable households. 

Renewable energy also creates local jobs. The country cannot outsource the installation, maintenance and management of renewable energy sources, and will create many jobs for the country’s unemployed. Unlike fossil fuel imports, which send money overseas, investments in renewable energy will keep capital within the local economy.

The expansion of renewable energy in Grenada has the potential to transform the Grenadian economy and open doors for Grenada’s impoverished.

– Luca Napolitano

Luca is based in Boston, MA, USA and focuses on Politics and The Good News for The Borgen Project.

Photo: Unsplash

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Vocational Education Training Centers in Guatemala

Vocational Education Training Centers in GuatemalaThe journey to providing adequate education to the youth in Guatemala has been a tumultuous one. Vocational institutions especially lack the funding necessary to provide their students with a proper technical education. But, the salient jobs in this country, like agriculture and information technology, require solid technical foundations. So, it is clear that vocational education is becoming more prevalent than ever to its future generations. However, issues like nationwide poverty and internal political turmoil hinder the quality of these facilities. Here is more information about the state of vocational education training centers in Guatemala.

General Educational Barriers in Guatemala 

According to WorldData.Info, Guatemala has ranked 162nd out of 193 countries in the global education ranking. Only about half of students complete elementary school, and one-third finish secondary school. The issue of providing education to Guatemalan citizens stems from poverty across the country. Guatemala’s 36-year Civil War between 1960-1996 displaced hundreds of thousands of Indigenous people, which still negatively impacts their standard of living today. About 47.3% of Guatemalans live with a budget of around 64 quetzales, which in U.S. dollars, translates to about $8.30 a day.

As a result, many families in Guatemala are unable to afford sending their children to school. There is also a significant resource gap in classrooms; they are oftentimes overcrowded, or they lack teachers with the proper training necessary for instruction. These political and economic obstacles bleed into vocational schools, which prevent students from getting a good education.   

Vocational Education Training Centers in Guatemala 

Guatemalan technical institutions offer students high-demand skills learned in a wide range of subjects in culinary and pastry arts, agriculture, carpentry and computer science. The Ministry of Education stated many of them lacked proper equipment. Some schools, such as Junkabel and William Cornelius Training Center have excellent facilities. But the vast majority lack the budget, staff and infrastructure needed to run them.  

Luckily, there have been several efforts aimed at improving the quality of education at Guatemalan trade schools. Foreign aid organizations, like the Millennium Challenge Corporation (MCC), fundraised $20.6 million for Education toward the Guatemala Threshold Program, $4.2 million of which went to technical education alone. Also, the CEPA Foundation, a nonprofit organization, has partnered with another nonprofit, Fundación Corazones Libres, in order to provide vocational education to young children in Vuelta Grande. These funds are used to create new vocational high schools with modernized computers that increase accessibility.

Another nonprofit, Infinite Chance, has funded enough money to buy welding and industrial sewing machines necessary for instruction. Besides nonprofits, affluent vocational institutions in Guatemala like INTECAP have offered vocational certifications and training to secondary students to help them gain specialized skills. 

The Future of Vocational Education Centers in Guatemala 

Although there is much left to be done to improve vocational education training centers in Guatemala, such as updating curricula to fit the rapidly advancing job market, many charities and nonprofits have organized initiatives to help repair the education system. For instance, the Swisscontact Project teamed up with the Ministry of Education and Social Welfare in Guatemala in 2023 to provide students with technical courses relevant to the IT and food sectors.

The primary goals of these projects is to reduce the need for migration in the Guatemalan workforce. Guatemala wants to decrease the levels of unemployment among Guatemalan youth by providing sufficient Technical and Vocational Education and Training (TVET) to students who wish to pursue a career in the skilled trades.

More than 90% of Guatemala’s Gross Domestic Product (GDP) comes from industry, service and agriculture jobs. By promoting vocational education centers in Guatemala, future generations can hope to earn a living through these technical careers and boost their domestic economy.

– Stacie Hueter

Stacie is based in Denville, NJ, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash

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Bangladesh’s Textile Industry: Expanding Economic Opportunities

Bangladesh’s textile industryBangladesh was not always just a manufacturing hub–centuries ago. Bengal was actually one of the world’s leading textile producers, known for its fine muslin fabrics traded across continents. This changed during British colonial rule, when local production declined and the region lost its place in global trade. Today, Bangladesh has re-emerged as the world’s second-largest garment exporter, with the textile industry making up more than 80% of its exports and employing millions of people. In a country of more than 170 million people, this sector plays a key role in economic growth while also raising questions about sustainability and long-term impact.

The Engine Behind Bangladesh’s Economic Rise

Bangladesh’s garment industry didn’t just grow over time—it essentially became the backbone of the country’s economy. After gaining independence in 1971, Bangladesh was one of the poorest countries in the world, with very limited industrial capacity. Over the years, the ready-made garment (RMG) sector stepped in to fill that gap, replacing traditional exports like jute and turning into the country’s main driver of growth. Today, the industry employs around 4.5 million people and plays a central role in both economic stability and job creation.

Since taking off in the 1980s, the sector has expanded rapidly through export-led growth and strong integration into global supply chains. This model has helped Bangladesh maintain steady economic progress while creating opportunities for millions of people, particularly those from low-income backgrounds. At the same time, as global markets shift and Bangladesh prepares to move beyond its least-developed country status, there are growing questions about how sustainable this growth model will be in the long run.

Women, Work and the Cost of Opportunity

One of the most visible impacts of Bangladesh’s garment industry is on women. For many, factory work offers a first chance to earn an income, especially for those from rural and low-income backgrounds. This has contributed to greater financial independence and more say in family decisions, while also helping delay early marriage. At the same time, these opportunities have also reshaped education choices. While more girls are encouraged to go to school, some leave earlier to work and support their families, showing how economic opportunity can come with trade-offs.

However, working conditions remain challenging, with long hours and relatively low wages still common. The Rana Plaza collapse exposed serious safety issues and led to reforms, but concerns continue. At the same time, the industry’s environmental impact—especially water pollution from textile production—remains significant. Much of this production is driven by global brands such as Primark and H&M, linking local conditions to a wider global system.

The Future of Bangladesh’s Textile Industry

Bangladesh’s textile industry has clearly driven strong economic growth, but this success also comes with risks. One of the biggest challenges is the country’s heavy reliance on a single sector. As highlighted in recent analysis, an economy built so strongly around garments remains vulnerable to global shifts in demand and competition.

Looking ahead, Bangladesh’s upcoming graduation from Least Developed Country (LDC) status could be a major turning point. While it reflects economic progress, it also means the country may lose key trade advantages such as duty-free access to major markets, potentially affecting its competitiveness in the global apparel industry . At the same time, new global regulations—such as the EU’s Carbon Border Adjustment Mechanism—could place additional pressure on exporters to meet stricter environmental standards.

These changes suggest that the current growth model may not be enough in the long term. To stay competitive, Bangladesh will likely need to move beyond low-cost production and focus more on innovation, technology and diversification. Strengthening productivity and expanding into higher-value sectors could be key to sustaining growth in the years ahead.

Conclusion

In many ways, the story of Bangladesh’s textile industry is not just about growth—it’s about people. It’s about millions of lives shaped by the chance to earn, to move, to imagine something beyond survival. For many women in particular, the industry has opened doors that did not exist before.

But behind this progress is a more complicated reality. The same system that creates opportunity also carries pressure on workers, on communities and on the environment. As Bangladesh moves forward, the question is no longer whether the industry can grow, but what kind of growth it chooses to pursue.

If that growth is shaped with greater care—for people, for working conditions and for the environment—then the textile sector can remain not just an economic success, but a more balanced and human one.

– Elif Oktar

Elif is based in London, UK and focuses on Business and Good News for The Borgen Project.

Photo: Wikimedia Commons