Archive for category: Employment

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Argentina’s Return to Work Program

Argentina's Return to WorkVery recently in Argentina’s political sphere, libertarian candidate Javier Milei won the country’s premiership, inheriting a struggling economy and a staggering number of impoverished people. Milei campaigned on a promise to lift Argentina out of its economic crisis and help its people get back on their feet. So far, he has made good on that promise. In the first half of 2024, the poverty rate had surged to 52.9%, but by the latter half of the year, after Milei took office, it dropped sharply to 36.8%.

The Return to Work Program

Milei has become known for figuratively and literally taking a chainsaw to the Argentine government, cutting away bloated or ineffective programs. One such program, Enhance Work, was dismantled and replaced with a new initiative called Return to Work. The program aims to develop and sustain sociolaboral skills for participants transferred from its predecessor. The initiative combines vocational training, certified skill-building and workplace internships with career orientation and job placement support.

Participants receive a fixed monthly non‑remunerative stipend of about $61 for up to 24 months, disbursed directly each month. The program works alongside educational initiatives, promoting completion of basic schooling and literacy where needed. Through partnerships with employment offices, civil society, universities and municipalities, Return to Work offers individualized job search assistance, labour intermediation services and support for both formal employment and independent or cooperative entrepreneurship.

Built on simple tools and community engagement, the scheme fosters employability while cushioning vulnerable households. With clear funding and a defined 24‑month duration, Return to Work delivers structured training, economic support and practical experience in the formal labor market.

The Impact

When people return to work, a nation’s economy begins to recover and Argentina is no exception. In March 2025, the country’s inflation rate stood at 3.7%, but by June, it had dropped to 1.5%. Lower inflation creates more opportunities for impoverished people to improve their circumstances.

Argentina’s Return to Work program has been critical in this turnaround. By connecting thousands of unemployed citizens with stable jobs and offering support services like job matching, the program has helped reduce dependency on government aid.

It also encourages formal employment, which expands the tax base and strengthens public services. As more people find work, consumer spending increases, businesses grow and the cycle of poverty begins to break.

Final Remarks

The most effective way to lift people out of poverty is by providing stable employment and job security. When individuals can work and earn a reliable income, they can rise above their circumstances and live healthier, more dignified lives. If programs like these receive sustained funding, global poverty could one day become a thing of the past. Until then, Argentina’s Return to Work program and others like it, are paving the way for a brighter, more equitable future..

– John Menechino

John is based in Marietta, GA, USA and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

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Renewable Energy in Vanuatu

Renewable Energy in VanuatuRenewable energy in Vanuatu is becoming an important pathway towards the reduction of poverty, influx in energy access and the creation of local opportunities. The Pacific Island nation faces energy poverty with more than 70% of its population lacking reliable grid electricity, along with 80% of rural residents remaining off grid. Implementing renewable energy solutions is transforming, improving and empowering communities. 

1. Community Owned Mini Grids

Hybrid solar-hydro mini grids are bringing electricity to dozens of villages in Vanuatu. In Loltong, Pentecost Island, a system now powers hundreds of households, schools, clinics and shops. That mini grid alone is offering more than 300 people stable electricity that lowers household costs and improves quality of life. This is creating a strong example of how renewable energy in Vanuatu is linked to the broadening of energy and economic opportunity for rural communities in need.

2. Pico-Hydro for Remote Villages

Three pico-hydro stations are being installed in Pentecost Island under the Japan-funded Pacific Green Transformation Project. These will directly benefit more than 2,366 residents and create green sector job opportunities for the community. These small hydro-powered units will not only expand energy access but also create employment opportunities, helping to reduce poverty through sustainable, community based infrastructure.

3. Solar Kits for Households and Schools

The National Green Energy Fund has funded dozens of solar-powered energy kits for schools, co-ops and local governments, resulting in lighting classrooms, providing refrigeration and allowing for more communication. With half of Vanuatu’s households off grid, affordable solar kits allow for kids’ success in schooling and financial gain through replacing kerosene lamps, actively alleviating poverty.

4. Energy Access Through Rural Electrification Programs 

Projects supported by the World Bank have subsidized home solar systems for nearly 9,000 homes and 37 public buildings, granting renewable energy access to 45,000 people. These programs are significantly raising energy accessibility for lower income communities, leading to a reduction in poverty through enabling refrigeration, powering lighting and allowing cell phone usage.

5. Empowering Youth and Women

Renewable energy in Vanuatu is also contributing to social change. Youth, especially women, are receiving green skills training and leadership roles in energy planning through a regional program with UNDP. Aditionally, cooperatives led by women manage energy systems, earn income and increase community well being, boosting both gender equity and local prosperity.

6. Increased Support from Private Sectors

Donor support has allowed for a lot of progress in Vanuatu. Although the future growth will succeed with focus on private sector investment. The government backed the National Green Energy Fund ,which provides support for things like mini power grids, battery storage and energy-saving appliances. Additionally, with the government and support from World Bank, they are working with private firms to set up systems through its Rural Electrification Project (VREP I & II). These partnerships will help bring clean energy faster and support local jobs and the green economy.

Looking Ahead

Vanuatu ranks high in Pacific nations in regard to rural energy poverty and climate vulnerability. Indeed, through the increase in renewable energy in Vanuatu the country is improving in electricity access. Additionally, health standards, education, and economic opportunities also benefit. These smaller scale renewable energy initiatives are poverty alleviating and inspiring a pathway for other small developing communities. Vanuatu’s clean energy future is looking bright. By focusing on community needs, supporting youth leadership, and expanding access to new technologies, the country is setting an example for others to follow. Small island nations have the power to lead the way in sustainable development.

– Kyra Cribbs

Kyra is based in Charleston, SC, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Renewable Energy in Andorra

Renewable Energy in AndorraSettled in the Pyrenees, Andorra is embracing renewable energy, cutting its reliance on imports and decreasing energy poverty. Using solar, hydropower and biomass, the nation is balancing sustainable growth, lowering costs and improving access.

Energy Poverty in Andorra

In Andorra, energy poverty disproportionately affects low-income households, struggling with high energy costs that limit essential needs, including heating and cooking. If Andorra follows similar European patterns, high energy costs affect roughly 7-10% of households. However, due to Andorra’s investment in renewable resources, these struggles are becoming less prevalent, ensuring long-term affordability and stability.

By transitioning to renewable energy, Andorra is able to lower costs with increased local energy production. This reduces dependence on imports, making electricity more affordable. Currently, renewable energy accounts for 23% of the country’s total supply.

Types of Renewable Energy

Andorra’s mountainous landscape makes it well suited for hydropower, supplying 15% of its energy needs through small hydroplants and run-of-river projects. At the same time, its abundant sunlight supports solar farms and rooftop panels with incentives like improved storage and solar-powered EV charging growth of clean energy. These incentives and projects help improve access and ensure more households have reliable energy.

Even with limited development in Andorra’s wind power, it is still another reliable renewable resource. Wind power helps address energy poverty in many ways. By generating electricity locally, wind power helps stabilize prices, provides more reliable electricity in remote areas and reduces dependence on fossil fuels, lowering environmental impact and long-term energy costs.

Even though less advanced than solar power, hydropower, wind power and biomass is becoming increasingly recognized as a viable renewable resource. Biomass helps alleviate energy poverty in many ways. Furthermore, it improves energy access, such as wood crop residues and animal waste, for cooking and heating. It also reduces costs, because biomass can be locally sourced, which reduces dependence on expensive imported fuels. It also creates jobs in agriculture, forestry and energy production.

Employment in Renewable Energy

Andorra has a low unemployment rate of 2.4% in 2025, which is significantly below the EU average. The shift to renewable resources will expand employment opportunities. For instance, to install solar panels, wind turbines and hydropower engines, installation and maintenance work will be needed. For innovations in energy storage and grid optimization, workers will be needed for research and development. Lastly, for helping businesses transition to greener energy solutions, people will be needed for consulting.

Andorra’s Efforts Towards Renewable Energy

Andorra has also put in efforts to encourage sustainable energy adoption by implementing energy efficiency subsidies, helping households and businesses transition to cleaner power sources. These grants cover up to 30-40% of the cost for upgrades like solar panels, biomass systems and arethermal technologies, making renewable energy more accessible and affordable.

Andorra is leveraging renewable energy, ensuring equitable access to clean and affordable power. By expanding investments in solar, hydro, and wind energy, the country is reducing reliance on costly imports while making sustainable electricity more accessible to lower-income communities.

These initiatives not only promote environmental resilience but also enhance economic stability, proving that small nations can drive meaningful change in global energy equity. Andorra’s approach highlights how renewable resources can be harnessed to address affordability challenges and improve the quality of life for those in poverty.

– Karisma Polly

Karisma is based in Sunrise, FL, USA and focuses on Global Health and Celebs for The Borgen Project.

Photo: Wikipedia Commons

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Vocational Education Training Centers in The Bahamas

Vocational Education Training Centers in the BahamasThe One Eleuthera Foundation is a nonprofit organization that funds vocational education training centers in The Bahamas, in both Eleuthera and Harbour Island. Its technical programs provide hands-on training for a number of different careers, in order to promote “sustainable social and economic empowerment and development” within its community.

Poverty and Food Insecurity in The Bahamas

The Bahamas is a fairly wealthy country, with a GDP of $13.2 billion USD. However, this outward facing wealth masks “important structural, social, and economic challenges” that require attention. Issues like poor infrastructure, marked income inequality and vulnerability to natural disasters deeply affect the population of The Bahamas and contribute to the relatively high rate of poverty.

The percentage of people living below the poverty line rose from 9.3% in 2001 to 12.8% in 2013, the last time the Household Expenditure Survey was conducted. In addition, the rate of poverty is almost double the average in households where the head does not possess any sort of formal schooling, sitting at 25%.

Many families in The Bahamas are also dealing with issues of food insecurity. The lack of infrastructure makes it difficult to monitor this issue. However, it is apparent through the fact that many people, especially children in school, have considerable difficulty accessing nutritious food. Because The Bahamas has a small landmass and does not possess an ideal geography for agriculture, they are heavily dependent on food that is imported from other countries. This makes healthy, high quality food more expensive and less accessible for the population. 

Providing Sustainable Solutions

Combatting both issues of poverty and food insecurity is the One Eleuthera Foundation, which is focused on sustainable community improvement. Its two Centers for Training and Innovation (CTI) provide education for a wide variety of careers, including courses in carpentry, culinary arts, sewing, housekeeping, electrical installation, plumbing, nail technology and many others. Its mission is to provide quality education to Bahamians, in order to allow them more and better employment opportunities to provide for themselves and their families. In June 2024, they had 63 students graduate from both of its vocational education training centers in The Bahamas, in Harbour Island and South Eleuthera.

However, what makes the CTI stand out from other vocational education training centers in The Bahamas (such as the Bahamas Technical and Vocational Institute) is its Training Farm. The goal of this farm is to educate farmers on sustainable and advanced growing techniques, and increase the amount of food grown locally. The facilities of the solar powered farm include a one acre greenhouse, a hydroponic pond, raised soil beds and a honey processing facility for local beekeepers to name a few. It also offers a variety of classes and workshops for local farmers year-round, either free of charge or at a very low cost.

Another element of its Training Farm is the Farmer’s Fresh Market, where residents can come and purchase fresh produce from the farm, as well as other local goods and specialty items. This is an incredible initiative that makes local, high quality fruits and vegetables more easily accessible to the population.

Looking Ahead

Poverty and food insecurity are still issues that impact the quality of life of Bahamians. However, through its CTI, the One Eleuthera Foundation is helping to build a community of people who are able to produce more food, as well as support both themselves and its economy. It is making a tangible positive impact, one student at a time.

– Delaney Gouveia

Delaney is based in Newport, RI, USA and focuses on Good News for The Borgen Project.

Photo: Unsplash

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SPOONS Cambodian Restaurant: Transforming Young Lives

Cambodian RestaurantCambodia has seen rapid economic improvement in the past decade, with around 16% of Cambodians living in poverty in 2023, less than half the percentage in 2016, around 37%. However, many in rural areas and provincial regions still experience destitute conditions. One Cambodian restaurant in Siem Reap, however, is giving young individuals a chance to escape these conditions, giving them a sustainable career path and a better life.

SPOONS, operating a cafe and restaurant out of Cambodia’s popular tourist city, Siem Reap, serves traditional and fusion Cambodian dishes alongside coffee and pastries. This would be impressive enough, but SPOONS is not only a Cambodian restaurant. Doubling as a locally-run charity training young people in culinary, hospitality and barista skills, SPOONS specifically recruits from disadvantaged communities across Cambodia.

The Program

Students are chosen from a pool of more than 350, spanning 10 different provinces. Last year, the 12-month program took on 75 students, 23 of whom had not even completed high school. Most come from rural towns and villages, with the SPOONS organization completing in-person interviews and home visits, to get to know the candidates and their conditions. After selection, they go from the remote jungles to Siem Reap’s budding restaurant scene in no time, transforming their lives.

Living in dorms only a few kilometers away from the restaurant, the students pick specializations and begin their hands-on experience, working with customers from across Cambodia and the world. Not only do they learn to cook, serve customers or bake, they practice vital English language skills alongside this. Last year, the program had no drop-outs – all 75 students graduated, according to the 2024 SPOONS report.

The Vision

This process furthers the SPOONS vision: to engage with the community and allow these young people a chance to escape their disadvantaged lives and make a living. Giving back to the Cambodian people remains the key focus, however. Originally U.S.-based Everything is Going to be Okay (EGBOK) organization shut down during the pandemic due to multiple difficulties, but current president Mao Sophany saw an opportunity to take the project back to Cambodia and start from scratch.

Beginning with just 10 students, the organization trained them up and began to involve the project with local community organizations. With this grassroots focus, by 2024, SPOONS gave back to Siem Reap by offering short courses in hospitality for hotels and Community-based ecotourism projects. The SPOONS organization is quickly expanding from a simple Cambodian restaurant to an influential community charity.

All 75 students found employment within just two weeks of graduation last year. Soon, SPOONS plans on continuing the main program whilst expanding community outreach alongside this, promoting local products and sustainability through its partnerships with other local and international nonprofits, according to the 2024 report.

The Focus

For many young Cambodians, education transforms their lives. Many, however, sacrifice this education for work or struggle to find proper infrastructure in rural communities. Struggling to provide for their families, young people drop out of high school and begin earning, rather than getting an education. SPOONS recognises this. After 12 months, graduates have a year’s experience in their chosen field and an education to support this career path.

The focus in the coming years is to prioritize these high school drop-outs who left education for work. Sophany affirms that, as a local charity it keeps focusing on “empowering Cambodia’s youth and creating a more inclusive society,” according to the 2024 report.

Even after these students start their careers, the SPOONS alumni network slowly builds. The program fosters a desire to give back, helping the next generation’s poor. 150 alumni pledge $2 a month, generating an additional $3,600 annually, which the charity puts towards supporting current students, according to the 2024 report. Graduates, through these donations, directly support the next generation of SPOONS alumni in their goals, creating a connection across generations. Through just one Cambodian restaurant, hundreds of lives are affected.

The Impact

Rachana, one of last year’s graduates, went from feeling hopeless and lost in her rural province of Banteay Meanchey to working at a five-star luxury hotel on Song Saa Private Island. She hopes “that the next generation will try their best to complete their study and create a better life for themselves,” SPOONS repots.

Many in Cambodia never complete high school or, like Rachana, feel this lack of opportunity to escape poverty after graduation. SPOONS is more than just a Cambodian Restaurant; it gives these young people security from uncertainty, and hope from their poverty.

– Lee Stonehouse

Lee is based in Newcastle upon Tyne, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Higher Education in Venezuela

Higher Education in VenezuelaThe pursuit of a college degree in Venezuela has become a powerful testament to the resilience of its students. Amid a complex humanitarian crisis, these students bravely confront power outages, food shortages, unreliable transport and the breakdown of public institutions. Here is information about higher education in Venezuela and efforts to improve it.

Higher Education in Venezuela Under Pressure

Public universities operate with minimal budgets. Autonomous institutions struggle to maintain operations. Most professors earn $8 a month, making them the lowest-paid in Latin America.

These challenging conditions have led to a brain drain, delayed graduation timelines and a decline in academic quality. Yet, many universities continue to function, fueled by the unwavering commitment and resilience of students and professors.

Endurance

In interviews with The Borgen Project, students shared how endurance, not just academic effort, has helped them carry on.

Take Víctor Solórzano, for instance, who recently earned a degree in social communication from Universidad Católica Andrés Bello (UCAB). His college years were a mix of trauma, fun and enrichment. Balancing part-time jobs and scholarships, he navigated frequent blackouts and inflation. His motivation was the thought of his mother’s pride on his graduation day.

Meanwhile, Jeremy Mata, a computer science student at Universidad Nacional Experimental de Guayana (UNEG), is completing his thesis despite a shortage of faculty and materials. “Many professors left because their salaries couldn’t support them,” he said. He credited study groups with helping him stay focused. “For me, finishing this thesis proves I didn’t give up.”

Poverty, Inflation and Brain Drain

In Venezuela, university costs reflect the hardship students endure rather than traditional tuition rates. Hyperinflation has a severe impact on daily life and the education sector, with the government allocating only 2.6% of its budget to universities in 2024.

Electricity, water and internet access are far from reliable. According to the Venezuelan Universities Observatory (OBU), 95% of universities lack stable internet, and more than 80% experience frequent power and water outages. These issues interrupt classes regularly and limit access to digital learning tools.

On top of this, most professors earn under $10 per month, nowhere near enough to cover basic expenses. In 2024, a single household needed more than $530 a month to afford a basic food basket.

This situation is why more than 40% of professors have left their positions in the last three years. Those who stay often juggle multiple classes, skip meals or rely on outside jobs to make ends meet.

Professor Lilia (a pseudonym), who teaches at UNEG in the southern part of the country, said some of her students arrive at class without eating or miss lectures due to transportation issues. “Sometimes they don’t choose a career based on interest, but based on what’s available nearby or what they can afford,” she said. To keep classes going during outages, they often use WhatsApp voice notes or meet in person when possible.

According to the NGO Aula Abierta, between 40% and 70% of students have dropped out of their studies since 2023, mainly due to migration or a lack of financial means to continue.

Ramón Rivera Verde, a former university professor, witnessed this collapse up close. “My salary didn’t cover the basics. I resisted as long as I could,” he said. He now lives abroad but still follows the state of education in his country. “The resilience of the institutions that continue to serve students under impossible circumstances.”

Innovation as a Lifeline

Despite adversity, local organizations and universities have developed creative ways to support students. Fundación Andrés Bello, which is affiliated with the Universidad Católica Andrés Bello, offers scholarships, school supplies and community support to low-income students.

Meanwhile, the now-closed Alimenta la Solidaridad operated more than 300 community kitchens across Venezuela, providing daily meals to families and students. It ended activities in May 2025 due to a lack of government protection.

Cáritas de Venezuela is an organization that addresses malnutrition by distributing food and monitoring the health of children. Its work improves cognitive performance and helps students stay in school.

To respond to new challenges, UCAB launched shorter, job-oriented programs, such as associate degrees (TSU) in software design and occupational safety and insurance.

Students can also pursue technical certifications in areas such as cooking and pastry arts at CIAP-UCAB. These programs offer quick paths to employment. The UCAB Fashion Academy links design skills with income opportunities.

Looking Ahead

The higher education system in Venezuela faces significant challenges, but students and educators are addressing these issues through grassroots initiatives. Education becomes a form of resistance, providing hope for a brighter future.

– Su Ying Lee Yang

Su is based in Chicago, IL, USA and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Understanding the Gender Wage Gap in Bulgaria

Gender Wage Gap in BulgariaBulgaria has made notable progress in improving conditions for women, including higher employment and workforce participation rates. However, gender inequality remains a widespread issue. The 2023 Gender Equality Index indicates that Bulgaria still ranks below the EU average, despite an increase by 4.4 points since 2020.

The gender wage gap in Bulgaria serves as a key indicator of progress in economic and social gender equality. For every euro men make per hour, women earn 86 cents. By closing the gap, the risk of poverty amongst women and vulnerable groups can be significantly reduced.

The Gender Wage Gap in Bulgaria 

The gender wage gap reflects the difference between the average hourly earnings of men and women. According to the European Commission, the gender wage gap in Bulgaria currently ranks 2% below the EU average of 16.2%, placing the gap at 14%.

A study that the Zangador Research Institute conducted reveals that the health care, finance and insurance sectors have the largest pay disparities. Women were found to earn more than men in just two fields: construction and support and administrative services.

Understanding the Gap

There are many underlying reasons that explain the gender wage gap in Bulgaria. Understanding the factors behind pay disparities helps highlight the specific challenges women face in the workplace. 

  • A Divisive Labor Market: Men and women tend to cluster in different trades, creating pay disparities, sectoral segregation and career barriers. Fields like teaching and sales, which employ a larger share of women, typically offer lower wages. Comparable sectors that require similar levels of experience and education often pay more.
  • Men Typically Dominate Leadership Roles: Men more frequently receive promotions, leading to faster career advancement and higher earnings. However, more women have entered managerial roles in Bulgaria. In 2014, women led one inf four firms; by 2019, that figure rose to one in three. Despite this growth, a 2022 World Values Survey found that one-third of Bulgarians still believe men make better executives than women.
  • The “Dual Burden”: Women carry out more unpaid labor, including childcare, housework and caregiving. These responsibilities often reduce their working hours. In Bulgaria, nearly three-quarters of women perform household duties daily, compared to just one-tenth of men.

Poverty Amongst Women in Bulgaria

Financial improvements in Bulgaria across 2006 to 2014 doubled the standard monthly wage for men and women. However, data from the Gender Equality Index in 2019 indicates 24% of women and 20% of men are still at risk of poverty. Single women faced the highest risk at 52%, followed by disabled women at 39%.

Reducing the gender wage gap in Bulgaria lowers the risk of poverty amongst women and helps create greater equality in the workforce. To secure economic empowerment for women in Bulgaria, policymakers must address the gender wage gap by establishing equality in the labor market.

What the Future Holds

Since joining the EU, Bulgaria has seen improved living standards, though income disparities persist. The 2021-2030 National Strategy for Promoting Gender Equality outlines concrete legal and policy measures to support disadvantaged groups. The Bulgarian government approved this strategy in 2020 and continues to lead efforts to eliminate gender inequality and social exclusion.

The program aims to establish equality between men and women in the workplace, reduce the gender wage gap and promote women’s economic independence. In 2021, the government upgraded the employment policy framework to strengthen women’s economic empowerment and increase their participation in the workforce.

The Ministry of Labor and Social Policy aims to implement key objectives of the Employment Priority Strategy. Policymakers will encourage employers to create jobs for disadvantaged groups, thereby increasing the participation of women from vulnerable communities. These measures directly support the core aims of Bulgaria’s National Development Program, specifically Objective 1: Eradication of poverty and Objective 5: Achieving Gender Equality and Empowerment of All Women and Girls.

Additionally, the EU Pay Transparency Directive will require employers to monitor and report gender pay statistics. Starting in June 2027, companies with 150 or more employees must submit annual reports using the prior year’s data. Businesses with 150-249 employees will report every three years, while those with more than 250 will report annually.

Looking Ahead

Ongoing policy initiatives signal a promising path towards narrowing the gender wage gap and advancing economic equality for women in Bulgaria. By actively addressing pay disparities, policymakers can reduce the risk of poverty amongst women and create more equitable economic opportunities across Bulgarian society.

– Beatrice Punt

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

Photo: Wikimedia Commons

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Being Poor in Panama: Challenges and Pathways To Progress

Being Poor in PanamaBeing poor in Panama reveals a troubling paradox. The country has enjoyed rapid economic growth and ranks among Central America’s wealthiest nations, buoyed by revenue from the Panama Canal and foreign investment. Yet, stark inequality persists, with poverty visible even in the capital’s skyscraper-dominated urban core.

Panama’s GDP grew by 7.4% in 2023, and its poverty rate declined from around 50% in the late 1980s to 13.6% in 2024. However, these gains remain unevenly distributed. An economic slowdown in 2024—driven by mining shutdowns and droughts affecting the Panama Canal—coincided with a one-point increase in poverty, underscoring the country’s ongoing challenge: entrenched inequalities that disproportionately affect rural communities, Indigenous populations and urban peripheries. The disparities are especially stark between urban areas (4.8% poverty rate) and Indigenous comarcas (76%), highlighting how geography and ethnicity continue to shape opportunity. 

Contributing Factors to Poverty in Panama

Three primary factors contribute to being poor in Panama:

  • Income Inequality: According to the World Bank, Panama has one of the highest levels of income inequality globally, ranking third in Latin America behind Colombia and Brazil. Contributing issues include:
  • Limited Access to Basic Services: Nearly half of households in Indigenous comarcas lack electricity, potable water or sanitation. Educational outcomes in these regions also fall significantly below national averages. While infrastructure projects have laid some groundwork, targeted support remains essential to bridge persistent service gaps.
  • Education Gaps: Panama’s education system struggles to promote economic mobility. Data from the World Bank shows only 16% of middle school students meet minimum standards in mathematics, and just 20% of youth complete higher education—often with degrees that fail to match labor market demands. Indigenous students face even greater systemic barriers, further limiting long-term income potential and reinforcing intergenerational poverty.

How Poverty Shapes Everyday Life in Panama

Being poor in Panama affects every aspect of daily life. Here are some ways poverty affects people in Panama:

  • Health: According to the nonprofit Food for the Poor, 15% of children below the age of 5 experience stunting due to chronic malnutrition—a condition that impairs cognitive development and long-term earnings potential. These early setbacks create lasting disadvantages across generations.
  • Employment: Panama’s 8.2% unemployment rate masks deeper labor inequities. Most impoverished workers are in the informal sector, earning less than half of formal wages and lacking job protections. Workers without degrees earn up to 74% less than those with tertiary education, and Indigenous workers face an additional 36% wage gap. Despite 2.2% annual labor income growth since 2001, job quality has declined sharply, especially since the COVID-19 pandemic.
  • Climate Risk: Changing weather patterns compound economic challenges. The World Bank reports that nearly 19% of poor households experience weather-related shocks—such as floods and droughts—compared with 8% of middle-class families. Events like the recent Panama Canal water shortages have disrupted livelihoods and food security, particularly in Indigenous and rural communities.

Initiatives Driving Progress Against Poverty

While Panama’s challenges remain substantial, coordinated efforts across sectors demonstrate measurable progress in poverty reduction.

  • Red de Oportunidades: Launched in 2006 by Panama’s Ministry of Social Development, Red de Oportunidades provides monthly transfers of PAB 50 (about $50 USD) to low-income households—especially women, children and Indigenous communities—in exchange for school attendance, health checkups and skills training. Payments are delivered through fixed and mobile methods, including post offices and biometric kiosks. By 2008, it had reached 95% of targeted areas and continues to operate under a national beneficiary registry with regular eligibility reviews to ensure transparency.
  • Plan Colmena: Ratified in 2022, Plan Colmena is Panama’s main intersectoral strategy to reduce poverty. It targets vulnerable districts through localized projects in health, education, infrastructure and employment. Key initiatives include expanding health coverage, building training centers to support income generation and improving access to clean water and electricity through rural electrification. Local governors lead implementation with citizen participation. The plan aims to lift more than 777,000 people out of poverty while advancing SDGs such as nutrition, education and environmental protection.
  • Disaster Resilience: Panama joined the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) in 2019, holding policies for excess rainfall and earthquakes as part of its national disaster risk strategy. In November 2024, CCRIF issued a $26.7 million payout—Panama’s largest—after floods and landslides affected 1,500 people and claimed 11 lives. In 2020, the country also received $2.7 million following Hurricane Eta. These funds enabled rapid emergency response, road and bridge repairs, and support for farmers. CCRIF’s parametric model helps Panama protect its economy and vulnerable communities by providing fast, flexible relief during disasters.
  • Civil Society & International Partnerships: TECHO Panamá has built more than 1,000 transitional homes, benefiting more than 4,000 people through dignified housing and access to water and sanitation. Meanwhile, the World Bank supports systemic reforms through policy loans targeting job training, climate adaptation and better links between education and employment.

A Path Forward

Being poor in Panama results from overlapping geographic, economic and institutional inequalities, but progress is possible. With sustained investment in education, inclusive job creation and climate-resilient infrastructure, Panama can convert growth into shared prosperity. By scaling proven programs and strengthening cross-sector collaboration, no community must be left behind.

– Jacobo L. Esteban

Jacobo is based in Cali, Colombia and focuses on Technology and Politics for The Borgen Project.

Photo: Pixabay

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How Employment in Bangladesh Is Empowering the Poor

Employment in BangladeshAn older woman, Sheela, lived in poverty in Dhaka, Bangladesh, when the nonprofit Payra offered her a chance to start a business selling saris (clothes). “She was really scared. But we got her a place so she was safe, we got her the products and after two months, we got her a new supply of products. After that, she was able to roll her money and get the products to run the business herself,” says Risalat Karim, who, as a student, helped found Payra.

Unemployment and Poverty in Bangladesh

Employment opportunities remain scarce in Bangladesh, even for university graduates preparing to enter the workforce. According to the World Bank, Bangladesh’s unemployment rate stood at approximately 4.7% in 2024. Each year, more than two million young people join the workforce. However, formal job creation lags, pushing many into low-paying, informal sectors. This persistent shortage underscores the critical role of job creation in tackling the country’s widespread poverty.

In 2016, nearly 90% of Bangladesh’s population survived on just $6.85 per day or less. This figure reflects the country’s deep-rooted income inequality and underscores the urgent need for sustainable economic development.

Barriers to Employment in Bangladesh

Many people living in poverty in Bangladesh are willing to work but face a severe shortage of employment opportunities or are systematically excluded from the labor force. With few options available, some beg on the streets to survive. “They’re hurt, they’re homeless. Some are blind, some are missing limbs,” said Karim. “We spoke with one man who didn’t have legs. He was interested [in working], but he was afraid he wouldn’t be able to do certain things.”

Beyond the natural challenges of finding work, some individuals in Bangladesh are trapped in street begging by dangerous criminal syndicates. These groups often prey on those already vulnerable, such as the homeless and unemployed, coercing them into continued begging through threats and, in some cases, physical violence. Disturbingly, there have been reports of syndicates mutilating individuals, including the deliberate removal of limbs, to increase sympathy from passersby.

According to Karim, this made security a major concern when approaching beggars and those who considered leaving the streets feared for their safety.

Employment as a Tool of Empowerment

Despite significant barriers to employment, conditions in Bangladesh have gradually improved alongside the country’s development. Data indicates a positive correlation between rising employment rates and GDP growth, with poverty levels steadily declining in recent years. As more people gain access to stable work, many have been able to break free from the cycle of poverty—and, in some cases, escape the control of exploitative street syndicates.

While Payra lacked the resources to drive large-scale societal change, the organization demonstrated that meaningful impact at the individual level is still possible. With just 20,000 BDT—roughly $164 per person—it helped several individuals escape poverty by supporting them in launching small businesses, including tea stalls, clothing shops and food vendors.

Women in the Workforce

There is a clear correlation between increased female workforce participation and the declining poverty rate in Bangladesh. “Before, there was a very low percentage of women working. Now, there are more working in industries like garments and food and that’s a leading reason why poverty data has decreased. Women being able to enter the market has helped families,” says Karim.

This trend aligns with broader economic logic: as more of the population gains access to employment, living conditions improve over time. Historically excluded from the workforce, women have played a critical role in this shift. Between 1974, shortly after Bangladesh’s founding and 2019, female labor force participation rose from just 4% to more than 36% and the upward trend continues. At the same time, the national poverty rate has steadily declined, highlighting the transformative impact of inclusive employment.

– Jesse Correll

Jesse is based in Boston, MA, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Banana Fiber in Uganda: A Sustainable Solution

Banana FiberThe East African Highland banana, a staple food crop, is cultivated by roughly 75% of Ugandan farmers, making it a cornerstone of both agriculture and daily life. ​​Uganda is also the top banana consumer per capita globally and Africa’s largest producer of the crop. However, this agricultural abundance has a downside: every banana harvest leaves behind heaps of pseudostems, an organic waste that typically rots in the field.

Now, innovators are reimagining that waste as the basis of a growing industry that produces biodegradable textiles, boosts rural employment and positions Uganda to meet global demand for sustainable materials.

What Is Banana Fiber and Why Now?

Banana fiber is a strong, biodegradable material extracted from the pseudostem of the banana plant. Previously discarded after harvest, these stems are now being repurposed into textiles, rope, hair extensions and even vegan leather. Compared to cotton, banana fiber requires less water and fewer chemicals and decomposes naturally. This makes it a timely alternative in the global push for sustainable materials.

This transformation was initially spearheaded by the Banana Textiles in East Africa (Banatex-EA) project at Busitema University, with support from partners like TEXFAD, a local startup. The project’s goal is to commercialize banana fibers as an alternative to cotton. According to project lead Edwin Kamalha, banana fibers share several desirable properties with cotton but with a lighter environmental footprint.

Yet regulatory and technological barriers remain. Uganda has yet to pass a biotechnology bill that would allow for genetic improvements to banana varieties better suited for fiber production. Production costs are high and large-scale mechanization is still limited, which has so far restricted the market’s ability to scale.

An Industry Takes Root: Rural Jobs and Local Impact

Banana cultivation has expanded steadily in Uganda, especially in the southwest, boosting regional incomes. Despite these gains, several smallholder farmers live below the poverty line. In response to this economic disparity, attention is now turning to banana fiber in Uganda. Its value chain is labor-intensive by nature, involving cultivation, stem harvesting, fiber extraction, spinning, weaving and final product design. This structure creates a spectrum of skilled and semi-skilled jobs, particularly in rural areas where unemployment can reach nearly 10%.

TEXFAD is currently employing both full-time and part-time workers across the fiber-to-product pipeline. The Small and Medium-sized Enterprise (SME) sources stem from local farmers, train artisans in fiber processing and produce items like rugs, table runners and biodegradable hair extensions. More than 50% of TEXFAD’s hires are women, many of whom previously worked informally or were unemployed.

Similarly, the Banatex-EA initiative has created at least 30 full-time jobs, with more anticipated as the project scales. Three recent graduates from Busitema University have been recruited into technical roles, helping bridge academia and industry.

A Sustainable Market on the Rise

Globally, the demand for sustainable and circular materials is surging. From fashion brands seeking biodegradable textiles to eco-packaging solutions and plant-based alternatives to leather, banana fiber aligns well with these market trends. With its abundant raw materials and growing technical know-how, Uganda is well-positioned to be a leader in this space.

Still, structural challenges such as regulatory gaps and a lack of industrial-scale fiber processors must be addressed to reach export viability. As innovation continues and pilot programs like Banatex-EA demonstrate success, Uganda could unlock new export revenues while reducing rural poverty.

– Sriya Regulapati

Sriya is based in Vancouver, Canada and focuses on Business and Good News for The Borgen Project.

Photo: Pexels