Archive for category: Foreign Aid

Foreign aid coverage and information.

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How a Drought Lead to International Aid to Zambia 

International Aid to ZambiaOn December 18th, 2024, the World Bank approved assisting the Republic of Zambia. Called the Climate and Economic Resilience Development Policy Financing (DPF), this grant provided financial assistance combating the severe and deadly droughts Zambia was facing. Here is more information about international aid to Zambia.

Poverty in Zambia

Zambia is a landlocked country in Africa. The poverty rate within the country is estimated to be around 64.3%. The rural areas largely make up the high poverty rate. It is estimated that 78.8% of people living in rural areas are in poverty, compared to 31.9% of people living in urban areas. The ramifications for people living under the poverty line has led to a severe restriction of accessing food and clean water, it limits the ability of getting an education and has created one of the largest orphan populations in Africa. A contributing factor for the high poverty rate is the weather and how it causes extreme droughts to the country in recent years.

Causes and Severity of the Droughts

In 2024, Zambia had one of the deadliest droughts in its history. The severity of this drought negatively affected 84 out of 116 districts, leading the President of Zambia to declare a national emergency. Zambia’s long history of droughts occurring is due to the weather climate of El Nino. 

The results from the 2024 drought led to rising groceries prices, leading to roughly 2 million Zambians lacking adequate access to food and water. This severe drought also led to power shortages repeatedly occurring and water sources having a high risk of containing harmful diseases like malaria. The repercussions do not end there. The lack of water has led Zambia to be one of the most malnourished countries in the Sub-Sahara, a higher risk for violence towards women and young girls and a higher chance of a girl being married at a young age. All of these challenges indicate a necessity for international aid to Zambia.

The World Bank’s Solution

After the severe drought in 2024, the World Bank agreed to provide international aid to Zambia. The World Bank agreed to financially support the African country by approving a $100 million grant. This money was split into two categories. The $25 million went towards Developing Policy Financing (DPF). The DPF could assist with a country’s budget and debt and could create policy reforms. The DPF also comes with conditions on how to utilize the funds. Regarding this finance support for Zambia, the World Bank outlined the $25 million must be used to:

  • Enhance fiscal management
  • Promote investments from the private sector
  • Toughen disaster risk management

Meanwhile, the $75 million came in the form of a Catastrophe Deferred Drawdown Option (Cat-DDO) to address natural disasters.

The Results

In 2025, Zambia showed several signs of improvement. The country’s GDP per capita rose from 1% to 2.4%. Inflation decreased from 14.8% to 14%. The public debt also decreased from 101% to 87.6%. Zambia’s banking system became stronger during 2025 and the government focused on providing funding to different sectors to combat inequality. These sectors include education, health and agriculture. Lastly, in 2025, Zambia saw an increase in rainfall, resulting in a better harvest in the agriculture sector.

Yet, Zambia still faces several issues, climate conditions still pose a threat to the country and the energy, water and transportation sectors have huge deficits. In March 2026, the World Bank agreed to continue financially assisting Zambia. This year, the World Bank granted Zambia an additional $25 million to fight areas that have a higher chance of poverty and climate readiness.

Looking Ahead

Through the assistance of the World Bank, Zambia has improved since the 2024 severe drought. Zambia’s economy is gradually recovering, the climate provided more rain for the country and the country looked into eliminating inequality. Although poverty and climate concerns still linger, the relationship between Zambia and the World Bank shows a dedication to ending these issues and bettering the country and improving the citizens’ living conditions.

– Dorothea A Pudwill

Dorothea is based in West Springfield, MA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

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How Modernization Promotes Higher Education in Turkmenistan

Higher Education in TurkmenistanIn the 2025-2026 cycle, 13 universities in Turkmenistan as opposed to the zero from the prior year reported data to the Times Higher Education World Rankings. While none of the mentioned universities achieved rankings, the choice to report data signals increased dedication towards developing higher education in Turkmenistan, a development that prompts intrigue due to Turkmenistan’s long history of government funded and controlled nationalistic education. This stronger emphasis on higher education in Turkmenistan will lead to better learning outcomes, a learning system that better fulfills global standards and creates graduates who will go on to better paying jobs. These benefits of promoting higher education in Turkmenistan also pose a potential solution to widespread poverty in Turkmenistan. 

The Relationship Between Poverty and Education

Government censorship makes knowing the exact statistics on poverty in Turkmenistan difficult but experts at the World Food Bank predict that 35.08% of the population lives on less than $3 a day. Additionally, the International Labor Organization (ILO) predicts that 47% of Turkmen live in poverty. Education, however, can help alleviate some of these numbers. People who receive substantial education are more likely to find high paying jobs and to escape poverty. Thus, the prioritization of education is essential to ending global poverty, particularly in a nation where 20% of the population is ages 15-24. However, the call for education in the face of poverty becomes complicated in the complex political climate of Turkmenistan, making an examination of the nation’s history essential to understanding poverty and education in combination.

Niyazou and Education’s De-funding

Inequality, censorship and state control have profoundly impacted the development of higher education in Turkmenistan. Following Turkmenistan’s emancipation from the Soviet Union in 1991, the first president, Saparmurat Niyazou instated an authoritarian cult of personality. To maintain this cult, Niyazou implemented strict controls on education, going so far as to impose his semi-autobiographical novel, “Ruhnama” as a cornerstone of the curriculum. Additionally, Niyazou cut funding to many institutions in retaliation against his opponents and the lingering influence of the Soviet Union, leaving the younger generations poorly uneducated, with high illiteracy, and torn between two languages. As a result, higher education in Turkmenistan became a privilege for wealthy individuals who supported the authoritarian regime. The wealthy achieved entrance to institutions of higher education with the assistance of private tutors, and the impoverished were cut off from educational opportunities, trapping them in the cycle of poverty.

The Expansion of Education

However, despite these historical hurdles to achieving higher education in Turkmenistan, the nation now reports a 99% literacy rate. In 2006, Gurbanguly Berdymukhammedov won the presidency and began implementing large policy changes from his successor. While Berdymukhammedov was also an authoritarian dictator and had maintained a cult of personality, he also believed in education, if only for his pride. The president strove to modernize Turkmenistan for global recognition, and improving the state of education was essential to this plan. In 2009, his successor, Serdar Berdimuhamedow continued this trend in pursuit of global recognition by reinstating funding to primary and secondary education. This emphasis on education by the new regime offered more citizens the opportunities to attend institutions of higher education in Turkmenistan and has influenced the development of new universities.

Now, Turkmenistan has 19 publicly recognized higher education institutions. They offer programs in engineering, oil and gas, agriculture, humanities, economics and information technologies. Of these, three received international recognition last year. These three include the Oguz Han Engineering and Technology University of Turkmenistan, the State Energy Institute of Turkmenistan and Yagshygeldi Kakayev International University of Oil and Gas. Considering that prior to 1991 only nine universities existed in Turkmenistan, the introduction of at least ten new higher educational institutions demonstrates the steady improvement of the state of higher education in Turkmenistan.

A Commitment to Modernization

While modernization in Turkmenistan began as an ego project for two autocrats, the nation now has higher freedom to develop their higher education, global connections and technologies. For example, in recent years Turkmenistan has attended the 2026 Educational World Forum where AI potential was widely discussed in addition to being appointed to the United Nations Commission on Science and Technology in 2017. The nation has a long history of authoritarian regimes and policies to combat, but the turn to modernization, which centers on education, offers hope that higher education in Turkmenistan will continue to develop and the nation’s citizens will continue making more connections with the global world. These changes will bolster the economy and help more Turkmen to live on reasonable wages.

A combination of the government and outside funding are funding these changes. While the government has reinstated substantial funding to education, aid from international governments and organizations is essential to maintaining the development of higher education in Turkmenistan. For example, the U.S. contributes $600,000 USD toward youth development and $450,000 USD toward higher education. Additionally, Turkmenistan cooperates and receives aid from United Nations humanitarian organizations for the expansion of educational and scientific centers.

Looking Ahead

In brief, the combination of aid programs dedicated to improving education in Turkmenistan and government efforts to promote higher education and modernization, should the data be believed, has drastically lowered the entry barriers to higher education. This develops a future for the nation built on progress and which utilizes its people and resources to improve the general quality of life and which develops future industrial and professional success. These contributions to improving education prove a potentially pivotal tool in decreasing poverty and hardship amongst the citizens of Turkmenistan by offering future generations more opportunities to achieve higher salaries and escape poverty. 

– Aubrey Wallen

Aubrey is based in Alexandria, VA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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The Impact of UK Foreign Aid Cuts on Poverty Reduction

A woman in a rural village carries water, highlighting poverty challenges. U.K. foreign aid cutsIn February 2025, Sir Keir Starmer, former Prime Minister of the United Kingdom (U.K), announced reductions to Britain’s foreign aid budget, which will decrease from 0.5% of gross national income (GNI) to 0.3%. These cuts to U.K. foreign aid will fund defense spending, with the aim of increasing the government’s budget from 2.5% of gross domestic product (GDP) to 3% by the next parliament. This development represents a further drop from the U.K.’s self-imposed commitment to spend 0.7% of GNI on foreign aid. Previous reductions have already affected the U.K.’s aid response to international crises; the Independent Commission for Aid Impact found that British relief for the 2022 floods in Pakistan and the rising drought in the Horn of Africa was smaller and came later than for similar crises in previous years.

In real terms, these cuts to U.K. foreign aid mean that the budget, projected to be approximately £15.4 billion in 2027, will instead reduce to £9.2 billion. Anneliese Dodds, the international development minister, resigned following the announcement, saying a reduction in aid spending would mean less support for vulnerable groups in Africa and the Caribbean and would affect the U.K.’s international reputation.

In March 2026, a year after Starmer’s announcement, the Foreign, Commonwealth and Development Office (FCDO) published its spending plan for the Official Development Assistance (ODA) budget, clarifying the potential impact of the cuts on poverty reduction programs.

Multilateral Programs

One immediate impact of the cuts will be a decrease in funds allocated for multilateral programs, such as the World Bank and Education Cannot Wait, which implement support and relief on a global scale. While the government has pledged to maintain contributions to those specific organizations, other grants are set to fall or cease altogether. On average, multilateral programs will see reductions of around 22%, and affected institutions will include global health organizations, humanitarian groups and United Nations development agencies.

Groups working to treat deadly diseases and provide lifesaving health care to impoverished communities will be affected by these cuts. Previous support to Gavi, the Vaccine Alliance, contributed to the immunization of more than 1.2 billion children worldwide, preventing an estimated 20.6 million deaths. British foreign aid also helped the Global Fund achieve a 63% reduction in the death rate of AIDS, tuberculosis and malaria. The U.K. has confirmed that future contributions to both organizations will be cut. Meanwhile, assistance to the Global Polio Eradication Initiative, whose work has helped bring about a 99.9% decrease in polio occurrence worldwide, will cease altogether, with the U.K. saying it would continue to support the cause through other programs.

Bilateral Programs

Direct U.K. aid efforts will also be affected by cuts to bilateral programs, which will see an overall 37% reduction in allocation. The reduction will be especially pronounced in Africa, with British funding set to fall from £818 million to £688 million. What this will mean for specific nations is less clear, as the government has not yet announced its country-by-country allocations, but preliminary assessments indicate that Sierra Leone and Malawi will cease to receive health care support and that social programs in Ethiopia, Mozambique, Rwanda, Tanzania and Zambia will shrink. These seven countries alone are home to more than 15% of the global population living in extreme poverty.

When the question arose in the House of Commons, Baroness Jennifer Chapman, the minister of state for international development and Africa, said support for conflict-affected areas such as Ukraine and Sudan would remain level, while funding for fragile states would be reallocated from 54% to 71%. It remains unclear how these figures will manifest in real terms or what the implications will be for bilateral programs in developing nations not considered fragile or conflict-affected states. Access to health care, education and welfare for vulnerable people in these countries could be affected, though the scale of that impact is not yet known.

Private Finance

To offset the impact of the cuts, Foreign Secretary Yvette Cooper said she intends to work with the private sector to secure needed investment. She proposed restructuring the ODA budget to prioritize initiatives that support “financial leverage and private capital mobilization.”

However, research from groups such as the International Development Committee has identified drawbacks to relying on private finance for poverty reduction. While such initiatives can potentially facilitate employment creation and economic growth, they can also be poorly targeted, concentrating in regions and sectors prioritized by investors rather than the poorest places or most marginalized groups that need the greatest assistance.

Looking Ahead

The government has stated that the foreign aid budget will be restored to 0.7% when fiscal circumstances allow, though a strategy to achieve this target has yet to be announced. At the Global Partnerships Conference held in London in May, there was little discussion of how the U.K. foreign aid cuts might be reversed beyond relying on private finance. Estimates by the National Institute of Economic and Social Research indicate that the U.K. could lose more financially from reduced exports than it would gain in savings from lower aid spending.

The full impact of the cuts on poverty reduction will become clearer once the government announces its country-specific allocations

– Aled Warren

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

Photo: Flickr

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Foreign Aid in Vietnam: Decades of Progress, a Year of Uncertainty

Foreign Aid in VietnamVietnam is one of the developing world’s clearest success stories. Vietnam launched sweeping economic reforms in 1986 and opened itself to deep international engagement, transforming the country from one of the poorest into a dynamic middle-income economy in a single generation. GDP per capita climbed from under $700 in 1986 to nearly $4,500 in 2023, and the extreme poverty rate fell from 14% to under 4% between 2010 and 2023, according to the World Bank. The economy grew roughly 8% in 2025. Much of that progress unfolded alongside foreign aid in Vietnam — and in 2025, a sudden freeze on U.S. assistance showed how fragile those gains can be when they hinge on a single donor.

A Partnership Built Out of War

Foreign aid in Vietnam has touched everything from public health to the unfinished business of the war itself. The United States has been Vietnam’s most prominent aid partner, and its most meaningful contributions addressed the legacy of the war. Since the 1990s, Washington has helped clear unexploded ordnance, clean up Agent Orange contamination and account for missing soldiers.

The American military sprayed vast areas of southern Vietnam with Agent Orange and other herbicides between 1962 and 1971. As many as 4.8 million Vietnamese may have been exposed to the dioxin those chemicals contained, and at least 1 million still live with related health and disability effects, according to the U.S. Institute of Peace. The Vietnam Red Cross estimates that about 150,000 children have been born with birth defects tied to that exposure — including limb deformities, spina bifida, developmental disabilities and other conditions that can leave people unable to walk or live independently, sometimes across two or three generations.

According to the U.S. State Department, the U.S. provided more than $250 million for unexploded ordnance clearance and more than $155 million for disability support in affected provinces between the early 1990s and 2025. The two countries completed a major dioxin cleanup at Da Nang Airbase in 2018 and began remediation at the larger contaminated site at Bien Hoa.

These programs did more than remove poison from the soil. They turned a painful history into a foundation for cooperation, helping the former adversaries normalize relations and, in 2023, establish a Comprehensive Strategic Partnership — Vietnam’s highest diplomatic designation.

Addressing HIV/AIDS

U.S. aid also propped up public health. About 250,000 Vietnamese live with HIV, and the epidemic has long been concentrated among marginalized groups — including people who inject drugs and men who have sex with men — who often face stigma that keeps them from seeking care. Through the President’s Emergency Plan for AIDS Relief (PEPFAR), American funding sustained HIV prevention and treatment for tens of thousands of Vietnamese. Vietnam became the first and only country in Asia to receive focused PEPFAR support after the program launched in 2003, and within a decade the U.S. was the largest single donor to the national HIV response. That investment helped Vietnam reach a 99% viral-suppression rate in PEPFAR’s focus provinces and shift most patients onto antiretroviral treatment paid for through domestic health insurance. Most of the country’s pre-exposure prophylaxis clients still rely on PEPFAR support, UNAIDS reported.

The 2025 Freeze

In January 2025, President Donald J. Trump issued an executive order pausing nearly all foreign aid, and his administration moved to dismantle the U.S. Agency for International Development (USAID). By March, the State Department had announced that most USAID programs would be terminated and the rest folded into the department; the agency effectively ceased operating by mid-2025.

The effects in Vietnam were immediate. Writing in the Georgetown Journal of International Affairs, two Vietnam specialists documented how the freeze idled more than a thousand deminers, cut off rehabilitation services for tens of thousands of people affected by Agent Orange, and reduced the world’s largest dioxin remediation project to a skeleton crew. In Quang Tri Province, Vietnam’s most contaminated region, over a thousand local demining workers lost their jobs. At Bien Hoa, U.S. diplomats warned of an environmental and public-health catastrophe as dioxin-laced soil sat exposed, ProPublica reported. UNAIDS found that the cuts suspended or terminated HIV and tuberculosis programs, leaving some patients to pay out of pocket.

A Partial Recovery — And a Lasting Lesson

After lobbying from Vietnamese officials and American advocates, funding for most war-legacy projects resumed by late March 2025, and in October the two governments signed a memorandum reaffirming cooperation. But the disruption left a mark. The Georgetown analysts argue that even a brief suspension in the “safest” area of cooperation signaled that any U.S. commitment could fall victim to domestic politics — prompting Vietnam to diversify its partners and giving China fresh evidence to portray Washington as unreliable. Just weeks after the freeze, Reuters reported, Xi Jinping visited Hanoi and signed roughly 45 cooperation agreements.

Foreign aid makes up about 1% of the U.S. federal budget, yet its impact in Vietnam has been enormous. Foreign aid in Vietnam shows both what outside assistance can build and how quickly it can stall: the events of 2025 underscored a simple truth — the gains aid produces are real, but they are not self-sustaining.

– Jen Phan

Jen Phan is based in Hanoi, Vietnam and focuses on Business and Politics for The Borgen Project.

Photo: Wikimedia Commons

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The U.S. Economy and Reducing Global Poverty

Reducing Global PovertyAt the start of his second term, President Donald Trump redefined the role of the federal government and significantly reduced international aid. Executive orders led to major changes in foreign assistance, including the dissolution of the United States Agency for International Development (USAID). These programs are subject to strict waivers that can be difficult to obtain.

The closure of USAID is perhaps the most significant consequence of these cuts, as its funding has historically been vital for poverty reduction in developing countries. Alongside the international consequences of these changes, thousands of federal employees and contractors associated with foreign assistance programs lost their jobs. Nonetheless, these actions have drawn strong criticism from development professionals and humanitarian organizations.

Foreign assistance has also historically supported American exports and strengthened diplomatic relationships with strategic partners. According to the House Budget Committee, international affairs funding supports economic assistance programs, promotes U.S. exports and contributes to global peacekeeping efforts, all of which can create long-term economic benefits for the United States.

The Legacy of USAID

Established in 1961, USAID has been central to U.S. international aid efforts. The agency has provided lifesaving medicine, food assistance, clean water infrastructure, agricultural support and protections for vulnerable populations. USAID programs have supported countries across Africa, Asia, Eastern Europe and Latin America.

One of USAID’s most successful investments has been maternal and child health programming. According to USAID archives, global under-five mortality has fallen by more than half since 1990, with U.S.-supported health initiatives contributing to improved vaccination rates, nutrition programs and access to medical care.

USAID also played a significant role in global HIV/AIDS prevention through the President’s Emergency Plan for AIDS Relief (PEPFAR), which has saved more than 26 million lives since its launch in 2003.

The decision to dismantle an organization that has significantly contributed to global poverty reduction raises serious concerns. Researchers from Boston University estimated that disruptions to foreign assistance programs could contribute to hundreds of thousands of preventable deaths worldwide if essential health services remain interrupted.

According to the House Committee on the Budget, Function 150 (International Affairs) covers U.S. international activities, including operations of embassies and consulates, providing military assistance to allies, supporting developing nations, promoting U.S. exports abroad, funding international organizations and contributing to peacekeeping efforts. Agencies within this category have historically included the Department of State, USAID, the Peace Corps and the Millennium Corporation. The agency’s work has long been viewed as a cornerstone of American humanitarian leadership and international engagement. Through innovative funding mechanisms and partnerships, USAID helped countries strengthen health systems, improve agricultural productivity and expand economic opportunities for millions of people.

Organizations Reducing Global Poverty

Despite reductions in U.S. foreign assistance, several organizations continue reducing global poverty and improving the quality of life around the world. The Global Fund to fight AIDS, Tuberculosis and Malaria has helped save approximately 65 million lives since 2002 by supporting disease prevention and treatment programs in more than 100 countries.

Similarly, the World Food Programme assisted more than 150 million people across more than 120 countries in 2024 through emergency food aid and resilience-building initiatives.

The Millennium Challenge Corporation, another U.S.-funded development organization, has invested more than $17 billion in grants benefiting nearly 300 million people worldwide through infrastructure, education and economic development projects.

These organizations demonstrate that international partnerships remain effective tools for reducing poverty, promoting economic growth and strengthening stability.

Humanitarian Concerns Following Aid Reductions

Function 150 highlights how U.S. taxpayer funds are allocated to foreign affairs and international aid. International aid and development represent a relatively small portion of the overall federal budget, yet this spending is essential for strengthening American diplomacy. Reductions in these funds not only affect developing countries but can also weaken the U.S.’s position globally. In 2025, approximately 3% of federal spending was dedicated to international affairs.

International development and humanitarian assistance help reduce global health risks by supporting programs that address HIV/AIDS, tuberculosis and malaria while mitigating the effects of refugee crises. International Security Assistance funds advance U.S. national security through diplomatic, consular and border security initiatives. International spending also plays a key role in combating global terrorism.

International affairs spending increased following major global events, including the Sept. 11 terrorist attacks, the 2013 Ebola outbreak and Russia’s 2022 invasion of Ukraine. These increases reflected recognition that global crises can directly affect U.S. national security and economic interests.

The decline in U.S. soft power is often linked to reduced international engagement. The U.S. has long been recognized as a global leader through both military strength and humanitarian assistance. Recent aid reductions and strained relationships with some allies have raised concerns among foreign policy experts about America’s influence abroad. According to economic analysts, tariffs and trade disputes have also contributed to uncertainty in global markets, encouraging some countries to seek alternative trading partnerships. These developments may affect supply chains, investment opportunities and long-term economic growth.

Looking Ahead

The future of U.S. foreign assistance remains uncertain. However, organizations such as the Global Fund, the World Food Programme and the Millennium Challenge Corporation demonstrate that international partnerships continue to generate measurable results in the fight against poverty. Their work shows that strategic investments in health, food security and economic development can improve millions of lives while advancing global stability.

The debate over USAID and international affairs funding raises broader questions about America’s global responsibilities, national interests and long-term strategic priorities. While policymakers continue to debate the future of foreign assistance, the evidence suggests that international aid remains an important tool for promoting economic opportunity, reducing poverty and strengthening diplomatic relationships around the world.

– Rayonna M Sanders

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

Photo: Flickr

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Poverty Reduction in Kiribati

Fisherman casting net in Kiribati waters, showcasing local poverty reduction efforts. poverty reduction in KiribatiKiribati is an archipelagic country in Micronesia, where 5.5% of the population lives below the national poverty line. Despite economic challenges, Kiribati has shown improvement over the years, with its GDP increasing from 2.65% in 2023 to 5.27% in 2024. By exploring social protection programs, infrastructure developments and climate resilience efforts, this article highlights how Kiribati is reducing poverty in 2026.

Poverty in Kiribati

While Kiribati has experienced economic improvement, challenges continue to affect vulnerable communities. Within Kiribati, fisheries are essential to its economy. Since 2013, Kiribati has seen growth in its fishing license revenue. In 2025, the total fishing revenue exceeded government projections by AUD 18.9 million (approximately $13.3 million). However, fishing revenue can fluctuate due to climate conditions and global market changes, making long-term economic stability a challenge.

As a geographically isolated country, Kiribati’s economy also depends on foreign support for food and fuel, leaving it vulnerable to global price increases. Kiribati also faces climate-related risks, including rising adaptation costs and environmental challenges such as cyclones that threaten economic stability. These factors can make it more difficult for vulnerable households to access opportunities and maintain financial security.

Social Protection

Social protection is important for reducing poverty. From 2019 to 2023, the implementation of social protection programs contributed to a 75% decrease in poverty. These programs target those who are vulnerable. For example, Kiribati introduced old-age pensions, helping provide financial stability later in life and reducing overall poverty. These old-age pensions can also reduce the effects of gender inequality, as women often face unequal access to employment and have caregiving responsibilities.

Kiribati has also implemented tax reforms aimed at supporting women and girls. Tax reforms will ensure Value-Added Tax (VAT) is applied fairly to imports and remove VAT from essential menstrual health products to reduce costs for women and girls.

Through these efforts, social protection programs have lifted more than 19,000 citizens out of poverty, showing their positive effects on overall economic security and poverty reduction.

Infrastructure Development

Infrastructure development is another part of poverty reduction strategies in Kiribati. The government has invested in outer-island transportation, port and airport improvements and connectivity projects to better connect remote communities. Improved infrastructure can help residents access jobs, markets, health care and other important services.

Kiribati is also pursuing renewable energy and climate-resilient infrastructure projects. Since the country is highly vulnerable to climate-related events, these investments can help protect communities from economic disruptions while supporting long-term development.

Foreign Aid

Foreign aid plays an important role in poverty reduction in Kiribati. While the country does have local resources, its economy also heavily relies on foreign aid and remittances. In December 2025, the World Bank provided a $15 million grant toward financial reforms, such as increasing tax revenue and strengthening state-owned enterprises. These reforms also target environmental obstacles by supporting pollution and waste collection on beaches and increasing the number of elevated, cyclone-resistant homes. These improvements also open job opportunities for local citizens, contributing to economic opportunity. Overall, foreign aid remains an important part of how Kiribati is reducing poverty, helping fund development projects, creating jobs and addressing long-term economic challenges.

Although Kiribati continues to face challenges due to geographic isolation, climate instability and economic vulnerability, the country has made progress in improving economic security for its citizens. Through social protection programs, infrastructure development and support from international organizations, these efforts show how Kiribati is reducing poverty. Kiribati’s efforts highlight the importance of sustainable development and resilience in the global fight against poverty.

– Michelle Kurniali

Michelle is based in Dallas, TX and focuses on Good News and Technology for The Borgen Project.

Photo: Wikimedia Commons

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Pakistan and Mozambique Hit Hardest by UK Cuts to Foreign Aid

U.K. Cuts to Foreign AidPakistan and Mozambique will suffer the steepest cuts to U.K. foreign aid. Ministers have set out where the deepest reductions will fall after the government confirmed cuts of more than $6 billion, taking development spending from 0.5% of GNI to 0.3% by 2027. Before the COVID-19 pandemic, the share of foreign aid spending stood at 0.7%. Yvette Cooper, the foreign secretary, told parliament that “hard choices and unavoidable trade-offs” were necessary to shift funding toward defense budgets following the war in Ukraine and other global threats.

UK Shifts Focus to Defense and Investment Partnerships 

Bilateral aid arrangements will face the largest reductions, Cooper said, with Pakistan and Mozambique hit hardest by U.K. foreign aid cuts. The two countries will see their direct grant funding reduced significantly, while Yemen, Somalia and Afghanistan will also face cuts. At the same time, she said the government plans to expand “partnerships for investment” to help raise private funds or bring in expertise to help countries raise funds themselves.

In response to concerns about combating infectious diseases such as polio, Cooper said organizations such as Gavi, the Vaccine Alliance, a multilateral vaccine program partly funded by the U.K., would need to take on more of this work. She added in a statement in March, “National security is the first duty of government and this country faces the most serious security situation for a generation. For too long under previous governments, our defense investment was cut back, so last year this government took the necessary decision to deliver the biggest increase in defense spending since the Cold War.”

“Allocating a reduced [aid] budget inevitably leads to hard choices and unavoidable trade-offs, so we are focusing aid on the people and places that need it most and we will still be a major player. We expect to be the fifth-biggest funder in the world. We will still use international leadership, such as our 2027 G20 Summit presidency, to shape the global agenda for development,” she added.

The cuts, alongside reductions by the U.S. and other wealthy nations, could threaten multiple aid programs and leave developing countries increasingly reliant on other sources of funding.

Remittances Fill Some of the Aid Gaps in Pakistan

In Pakistan, the share of aid funding generated by remittances from more than eight million Pakistanis living abroad has risen significantly, now reaching around $30 billion. Naseer Memon, an Islamabad-based social sector expert, said last year this funding helped charities and NGOs absorb some of the earlier aid reductions and sustain much of their work.

He added, “Pakistan’s decades-old development sector, particularly the big NGOs, is deeply rooted and increasingly pursuing a multi-sectoral, multi-donor approach to avoid dependence on one or a few donors.” However, that resilience will be tested further over the next year as U.K. cuts take effect.

Mozambique Relies on UN Agencies

Mozambique has far less capacity to raise donations from its diaspora, so it will rely more heavily on multilateral organizations, including the U.N. The country suffered devastating floods in January that displaced hundreds of thousands of people, particularly in Gaza Province.

The International Organization for Migration (IOM) has provided emergency assistance, including health care, water and sanitation, accommodation centers and coordination support. However, tens of millions of dollars are still needed to restore livelihoods.

– Lawrence Dunhill

Lawrence is based in London, UK and focuses on Politics for The Borgen Project. 

Photo: Wikimedia Commons

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Poverty Reduction in China and Beyond

Poverty Reduction in ChinaOver the past four decades, global poverty has reduced significantly and one country has played a central role: China. Through quick economic growth, large scale development programs and targeted policy interventions, China has not only lifted hundreds of its own citizens out of poverty but also contributed meaningfully to poverty reduction worldwide. China’s achievement of eliminating extreme poverty by 2020 valuably met the United Nations’ 2030 ‘No Poverty’ target a decade early, signifying an historic milestone.

Domestic Poverty Reduction Success in China

China’s poverty reduction is generally regarded as the largest in human history. According to the World Bank, the country lifted more than 800 million people out of poverty over several decades, largely driven by economic growth and structural reforms. From 1978 to 2020, China reduced its rural poverty rate from 97.5% to nearly zero, successfully declaring the eradication of extreme nationwide rural poverty.

This success had several key strategies:

  • Targeted poverty alleviation, which identified and supported specific households.
  • Investment in healthcare and education, improving long-term living standards
  • Infrastructure development, mainly in rural areas.

By 2020, China had completed a major national campaign to lift tens of millions out of poverty within only five years.

Meeting the UN 2030 Target Early

The U.N.’s first Sustainable Development Goal aims to end extreme poverty globally by 2030. China reached this benchmark around 2020, making it the first country to do so at such a scale.

U.N. officials have applauded China’s progress, noting that it demonstrates the ‘No Poverty’ goal is achievable, even in a country with a population exceeding 1 billion.

Because China accounted for a large population of the world’s poor population in earlier decades, its success crucially accelerated global poverty reduction overall.

China’s Contribution to Global Poverty Reduction

Beyond its domestic achievements, China has increasingly contributed to global poverty reduction. Through trade, investment and infrastructure development, China has supported growth in many developing economies.

The Belt and Road Initiative (BRI) has been a notably successful example of China’s global poverty reduction. The BRI is a massive global infrastructure development strategy led by China aiming to connect other regions to China to enhance regional trade and economic integration. Research shows that Chinese-funded projects have helped reduce global poverty by creating jobs, improving connectivity and lowering trade costs. A 2023 study found that the BRI investments are associated with measurable declines in poverty levels in participating countries, especially lower income regions.

Similarly, cross-country analysis reveals that countries that are a part of the BRI tend to experience long-term reductions in poverty, largely due to infrastructure improvements and increased economic activity.

In locations such as Africa, Chinese investment in transport and energy has supported broader economic growth by improving access to markets and enabling industrial growth. While the impact varies depending on local conditions, evidence suggests that China’s growing role in global development has become a principal contributor to poverty reduction in many developing economies.

Other initiatives, such as infrastructure investment in South-South cooperation, have helped improve industrial capacity and employment opportunities in partner countries. China has also provided financial assistance and debt relief measures for developing nations during times of crisis.

Regions That Have Benefited Most

Sub-Saharan Africa has remained home to a large share of the world’s poor, and China has become a significant development partner in the region. According to the World Economic Forum, “China has become sub-Saharan Africa’s largest bilateral trading partner.”

Countries in Southeast Asia have benefited from increased trade and manufacturing investment linked to China’s economic expansion.

Chinese investments in Latin America’s natural resources have expanded its economic opportunities and strengthened trade ties across the region.

Lessons for Other Countries

China’s experience offers important lessons for global poverty reduction to countries striving to meet the U.N.’s goals:

  • Targeted interventions are effective: identifying and assisting specific poverty-stricken populations ensures resources reach those most in need.
  • Economic growth is important: this enables large-scale poverty reduction.
  • Infrastructure development creates opportunity.
  • Continuous commitment and long-term planning lead to successful global poverty reduction.

China’s success in eliminating extreme poverty ahead of the UN’s 2030 target proves a landmark achievement. By combining strong economic growth with targeted policies, it has transformed the lives of millions and reshaped global poverty trends.

– Leah Denning

Leah is based in Bristol, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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How EU Accession Reduced Poverty in Croatia

Poverty in CroatiaAs one of the European Union’s recent success stories, Croatia has followed a remarkable path toward economic recovery and integration, only three decades after the devastation of the Yugoslav wars. Like many countries in the Balkans, Croatia emerged from the 1990s conflict with a shattered economy: the war of independence from 1990 to 1995 claimed around 20,000 lives and caused damage equivalent to 160% of its GDP.

In 1991 alone, GDP contracted by 21.1%, and between 1991 and 1993, real output fell cumulatively by nearly 30%.

Despite gradual stabilization in the mid-1990s, Croatia faced another major setback during the global financial crisis. Between 2009 and 2015, the country endured a prolonged recession that stalled growth and deepened social hardship. Against this backdrop, Croatia undertook significant political and economic reforms to meet EU standards, ultimately joining the European Union in 2013, less than two decades after the war. Since then, it has deepened its integration by entering the Eurozone and the Schengen Area, positioning itself ahead of many of its regional neighbors.

In many ways, EU accession reduced poverty in Croatia by providing financial resources, institutional frameworks and market access that played a decisive role in fostering economic growth.

Rebuilding Croatia’s Economy After the War

In the aftermath of the war, Croatia transitioned from a socialist economy to a market-based system under difficult conditions. Inflation surged, infrastructure lay in ruins and regional instability discouraged investment. Although tourism and trade helped spark a modest recovery in the mid-1990s, structural weaknesses persisted for years.

Croatia’s path to EU membership began with the Stabilisation and Association Process in 1999. It gained candidate status in 2004 and spent years aligning its legislation with EU law across 35 negotiation chapters. This process required reforms in governance, judiciary independence, market regulation and regional cooperation. While politically demanding, these reforms laid the groundwork for a more stable and transparent economic environment, an essential precondition for poverty reduction.

EU Membership as a Driver for Growth

Since joining the EU in 2013, Croatia has significantly improved its key socioeconomic indicators, showing how EU accession reduced poverty in the country. Unemployment dropped sharply from 17.25% in 2013 to 6.1% in 2023.

This drop reflects not only favorable economic conditions but also structural transformations supported by EU integration. Croatia received approximately 8 billion euros in structural and investment funds between 2014 and 2020, targeting competitiveness, employment and regional development.

These funds supported infrastructure projects, education and training programs and initiatives aimed at improving labor market participation. Large-scale investments such as the Pelješac Bridge, railway modernization and rural development programs stimulated economic activity and created jobs across multiple sectors.

Expanding industries such as manufacturing, retail and tourism employed many lower-income workers. Economic growth increased wages and improved living standards for vulnerable populations. Croatia also strengthened its social policies by expanding family benefits, child support and welfare programs, many co-financed by the EU. Rising labor income and better employment outcomes drove more than half of the reduction in poverty between 2013 and 2016. Overall employment grew by 17% between 2013 and 2024.

Currently, Croatia’s GDP per capita exceeds 70% of the EU average, up from around 59% a decade ago. The country has also received more than it contributed to the EU budget, with a net benefit exceeding 10 billion euros in its first 10 years of membership.

Sustaining Growth Beyond EU Support

Despite these achievements, Croatia now faces the challenge of sustaining this momentum beyond EU-driven support. Structural problems such as low productivity, bureaucratic inefficiencies and a challenging business environment continue to limit the full impact of EU-driven reforms. Small and medium-sized enterprises struggle to access financing, while public administration inefficiencies reduce the effective use of EU funds.

EU integration has also accelerated emigration. Since 2013, more than 300,000 Croatians have left the country in search of better opportunities elsewhere in the EU, shrinking the domestic workforce and deepening demographic decline, particularly in less developed regions. These trends highlight that, although EU accession reduced poverty in Croatia, it has not resolved all underlying structural challenges.

To sustain its progress, Croatia must strengthen its economic fundamentals, improve governance and enhance its domestic attractiveness. By addressing these structural barriers, the country can maintain growth, retain its population and remain competitive for future EU investment.

Looking Ahead

Croatia’s experience demonstrates how EU accession can serve as an engine for poverty reduction and economic recovery, especially in post-conflict contexts. Through financial support, institutional reforms and access to a larger market, EU membership has transformed the country’s economy, reduced unemployment and improved living standards. At the same time, Croatia’s trajectory highlights the importance of sustained domestic reforms to fully unlock the benefits of integration.

The reduction of poverty in Croatia offers a model for other Western Balkan states. With strong political commitment to reform and effective use of EU support, these countries could work toward replicating similar gains and building more resilient economies.

– Inès Maudire

Inès is based in Paris, France and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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3 MPs Against ODA Cuts

MPs Against ODA CutsFollowing the U.K.’s decision in 2025 to cut the Official Development Assistance (ODA) budget from 0.5% to 0.3% of gross national income, debates around U.K. overseas aid have intensified. Many Members of Parliament (MPs) against ODA cuts argue that this decision will harm the world’s most impoverished communities and undermine long-term poverty reduction. Here are three prominent voices challenging the ODA budget cuts and emphasizing the critical role of aid. 

Sarah Champion

Sarah Champion has emerged as one of the strongest voices among MPs opposing ODA cuts. Champion is using her role as chair of the International Development Committee (IDC) to push back against reductions and show development as the first line of defense. Champion argues that cutting aid weakens global stability and increases poverty. 

She has consistently framed development as a preventative tool, not a luxury. Champion warned that reducing aid to fund defense represents a “false economy” that will make the world less safe. She also highlighted the direct human cost of the ODA budget cuts. 

In parliamentary discussions, she pointed out that millions of children risk losing access to education, especially in low-income countries where U.K. support has historically played a major role. Champion has revealed that certain health-focused ODA programs in countries such as Sierra Leone and Malawi are at risk of being cut altogether. The expected result is that 250,000 people will lose access to modern health services.

Champion’s position centers on a clear principle: investment in education, health and stability reduces poverty at its roots. Without sustaining the ODA, fragile communities face worsening inequality, which ultimately fuels conflict and displacement. Beyond her public statements, Champion has shaped the broader parliamentary critique of aid cuts. 

Reports from the IDC have warned that reducing funding risks worsening outcomes for the world’s most vulnerable and shifting focus away from poverty reduction. Champion has explained that value for money has driven the ODA to lose sight of poverty reduction as its foremost concern, placing millions of lives at risk of losing aid. She has also challenged the government’s definition of value for money, arguing that aid should prioritize improving lives rather than focusing on domestic returns. 

Through her work, Champion reinforces a central message shared by many MPs against ODA cuts: effective aid directly reduces poverty, strengthens institutions and prevents crises before they escalate.

Harriet Baldwin

Harriet Baldwin is among the MPs against ODA cuts. She has also spoken out strongly against the reductions, particularly highlighting their impact on education. Baldwin and others within the Parliamentary Network for Education have called for the government to reverse cuts, arguing that they disproportionately affect schooling in impoverished countries. 

She has drawn attention to several alarming global realities. Hundreds of millions of children remain out of school, while literacy rates in low-income countries remain critically low. Furthermore, drawing on her experience as a former development minister, Baldwin has highlighted U.K.-funded programs that support education and health care in fragile states. 

She argues that these interventions play a vital role in helping communities out of poverty. Baldwin’s arguments focus on long-term poverty reduction through education, helping pave the way for a better life for future generations. She emphasizes education’s role in driving economic growth. Like other MPs opposing the ODA cuts, she warns that these reductions risk trapping future generations in poverty.

Monica Harding

Monica Harding has positioned herself among MPs opposing ODA cuts, arguing that aid cuts threaten both poverty reduction and global stability. She has spoken out against the reductions, calling the government’s approach “strategically illiterate” and an opportunity for other developed countries to step up and replace the U.K. as an aid supplier. 

In parliament, Harding has criticized the scale of the cuts, describing them as a “moral catastrophe.” Furthermore, she warned that they would damage the U.K.’s ability to influence global development and support vulnerable countries. She has consistently linked aid spending to poverty prevention. 

Harding argues that development funding plays a crucial role in preventing conflict and instability. Cutting aid weakens security and creates greater long-term risks. Harding’s contributions to committee discussions have also highlighted the real-world consequences of reducing the ODA budget. 

She has raised concerns that a falling aid budget will limit programs that keep vulnerable countries stable and livable and increase the likelihood of displacement and deepening poverty. Indeed, Harding’s argument has remained clear: sustained investment in development helps communities build resilience and avoid crises. Without that support from the ODA, poverty intensifies and instability spreads, making recovery far more difficult. 

Final Remarks

These three MPs represent a growing and prominent group opposing ODA cuts, arguing that overseas aid remains essential. They do not see the ODA as a charity but as a strategic investment in global stability and poverty reduction. Their message remains that cutting aid may deliver short-term fiscal savings. However, it risks long-term human and economic costs that the U.K. and the world cannot afford. 

– Leah Denning

Leah is based in Bristol, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Pixabay