Archive for category: Foreign Relations

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Foreign Investment in Rwanda is Reshaping Kigali

Foreign Investment in RwandaKigali is becoming one of Africa’s leading locations for international investors, development organizations, nonprofits and foreign investment in Rwanda. Rwanda’s economy grew at 7.8% in the first half of 2025, and the country ranks among Africa’s four least corrupt nations. These numbers and the government-driven strategy show how Kigali is becoming not only a business hub but a model for development and growth across the country and internationally.

Why Foreign Investment in Rwanda Is on the Rise

Rwanda’s appeal to foreign investors has a lot to do with the stable environment. The Rwanda Development Board operates a One Stop Centre where businesses can register in a few hours, and the country allows 100% foreign ownership across the most important sectors. Rwanda is the only nation in East Africa to have concluded a Bilateral Investment Treaty with the United States, which entered into force in 2025. Meanwhile, the government’s Vision 2050 plan targets upper-middle-income status by 2035 and high-income status by 2050, goals that require sustained annual GDP growth.

Rwanda’s membership in the East African Community, the African Continental Free Trade Area and the Common Market for Eastern and Southern Africa (COMESA) gives businesses operating in Kigali access to a combined market of more than 1.4 billion consumers.

Development Organizations on the Ground

Kigali’s stability and infrastructure have drawn major international bodies beyond the private sector. The United Nations Development Programme’s (UNDP) current country program for Rwanda, running from 2025 to 2029, positions Kigali as a central node for innovation-driven development work. Key platforms and organizations include Timbuktoo, Youth Connekt and the Accelerator Lab, all of which focus on digital entrepreneurship, green jobs and youth economic empowerment.

The scale of ambition is significant. The UNDP’s program targets equipping 20,000 young Rwandans with employability skills by 2029. These programs operate against a backdrop of real need: youth unemployment stands at 20.5% for Rwandans aged 16 to 30, and approximately 78% of the population is under 35. The government’s National Strategy for Transformation 2025-2029 explicitly targets the creation of 1.25 million productive jobs with a focus on women, youth and climate-resilient sectors.

Growth That Must Reach the Poorest

The most important question surrounding Kigali’s rise is whether its economic momentum is reaching those who need it most. Rwanda’s Human Development Index grew by 119% between 1990 and 2018, the highest rate globally over that period. But as of 2017, 38.2% of Rwandans still lived below the poverty line, with 16% in extreme poverty, and 54.8% of the rural population experiencing multidimensional poverty.

The World Bank’s Country Economic Memorandum on Rwanda directly addresses this tension, emphasizing that pathways to sustainable growth must be inclusive, particularly for agriculture-dependent rural communities and women, who remain disproportionately excluded from the formal economy. Rwanda’s national frameworks acknowledge this gap: the National Strategy for Transformation 2025-2029 explicitly targets pro-poor growth, gender equality and equitable access to services as core pillars alongside economic transformation.

Looking Ahead

What makes Kigali distinctive is the combination of elements it has assembled: political stability, low corruption, investment reform and a government that has embedded poverty reduction targets directly into its long-term economic vision. Whether this model delivers for Rwanda’s poorest communities over the next decade will depend on execution, particularly whether programs like the UNDP’s youth employment initiatives translate into lasting livelihoods beyond Kigali’s city limits. As a framework for what development-oriented economic growth can look like, Kigali continues to draw international attention.

– Gia Sen

Gia is based in Mansfield, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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How Reducing Export Tariffs Will Alleviate Poverty In India

Poverty in IndiaNarendra Modi and Donald Trump have reached an agreement. India’s exports to the United States (U.S.) will be subject to a reduced tariff rate, from 50% to 18%, with immediate effect. Modi’s new deal is conditional. India must purchase $500 billion of U.S. goods over the next five years, although this includes current projects, and must transition to purchasing U.S. oil. Although the deal does constrain India to some degree, overall it is set to greatly benefit the Indian economy and is an important example of successful international cooperation in an increasingly volatile era.

Modi wrote on X: “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.” The tariff reduction will provide society-wide economic benefit, reducing poverty in India. The Indian aviation industry is set to capitalize on the deal. Air India Ltd and SpiceJet Ltd are forecast to purchase $100 billion in aircraft orders from U.S. firms over the next five years. However, those most impoverished in India are expected to benefit in particular.

Tariffs and Poverty in India

High export tariffs directly impact the trade opportunities of corporate entities and governments. However, they can also be particularly detrimental to the standards of living of low-income households. Tariffs reduce the purchasing power of low-income households, both through increasing the prices of goods and services and by decreasing nominal incomes.

According to the World Bank, 5.3% of India’s population lives below the extreme poverty threshold of $3 per day. Tariffs have a significant impact on the quality of life of this sector of the population. Higher food and water prices, increased unemployment and reduced incomes decrease opportunities to escape extreme poverty and can push more of the population below the poverty line.

International Cooperation and Its Benefits

The World Trade Organization (WTO) reports that reduced export tariffs have a positive impact on low-income households and small businesses that cannot compete under high trade restrictions. Through negotiating a new tariff of 18%, Modi has lessened the economic burdens on the most impoverished sector of his population. Millions of Indians may enjoy greater purchasing power with their incomes, easing access to basic necessities. Modi’s deal also contributes to a larger trend of U.S. export tariff reductions in the subcontinent.

The U.S. and Bangladesh have reached an agreement on a 19% reciprocal tariff rate, with a plan to establish a 0% reciprocal tariff rate for textiles and other apparel goods. The textile and apparel industry is the backbone of the Bangladesh economy. The sector accounts for roughly 80% of Bangladesh’s total export revenue and employs around 4 million workers. Many of these workers are part of the 18.7% of the Bangladeshi population that falls below the national poverty line.

A reduced export tariff on this sector will lessen economic pressures on individual firms, which is expected to lead to improved working conditions and potentially higher wages. The reduction may therefore benefit the quality of life of many who experience the daily challenges of poverty.

Looking Ahead

Overall, Modi’s deal demonstrates that large-scale international cooperation, while benefiting major economic players such as governments and corporations, can also provide advantages for alleviating poverty in India. Reduced export tariffs can contribute to poverty reduction on a broader scale.

– Arthur Horsey

Arthur is based in Hampshire, UK and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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UN Meets to Discuss the Doha Program of Action

UN Meets to Discuss the Doha Programme of Action A United Nations (U.N.) meeting on the Doha Program of Action has wrapped up. The Qatar Fund for Development (QFFD) and the United Nations Office of the High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing Countries (UN-OHRLLS) organized the meeting. It spanned three days. Ministers, senior officials, development partners and representatives of international organizations convened to discuss how to help least developed countries (LDCs) graduate successfully.

For a country to graduate, it must reach a threshold of income, education and resilience. The Doha Program of Action aims to help 15 more countries reach graduation by 2031. LDCs face disproportionate risks from climate disruptions, conflict, financial distress and trade disturbances. Rabab Fatima, a U.N. high representative for LDCs, said that participants at the meeting exhibited “a strong collective will to ensure that graduation becomes a gateway to resilience, opportunity and sustainable prosperity.”

Doha Program of Action

The Doha Program of Action functions as a framework and coordination mechanism that sets shared goals and standards for least developed countries and guides how governments, international organizations and development partners provide support. It outlines six main focus areas. The first focuses on supporting people in LDCs by reducing poverty and expanding access to basic services. For the second focus area, it emphasizes science, technology and innovation as tools to address multiple vulnerabilities and advance the Sustainable Development Goals (SDGs). Next is promoting productive transformation as a driver of economic growth. The fourth encourages international trade among LDCs and strengthens regional cooperation. The fifth addresses climate change, environmental degradation and post-pandemic recovery while strengthening resilience to future shocks through risk-informed sustainable development. Finally, the sixth mobilizes international solidarity, renewed global partnerships and innovative mechanisms to support sustainable graduation.

Transition Strategies

Countries that are at or near graduation, such as Bangladesh, the Lao People’s Democratic Republic and Nepal, provided advice on transitioning. The three countries explained that LDCs should prioritize a national transition plan. Representatives emphasized that this step is crucial to reaching the graduation threshold. A coherent strategy will reduce reliance on targeted aid. Representatives said these policies should be pragmatic and centered on supporting the future of LDCs. The conference also examined how developing countries can increase output by implementing digital technology and environmentally sustainable industries. To support developing economies, participants identified expanding trade opportunities as a priority.

The Role of iGRAD

The iGRAD facility plays a key role in implementing the plan. The facility will help guide LDCs through the transition period. Qatar has pledged $10 million to support it. Fahad Hamad Al-Sulaiti, director general of the Qatar Fund for Development, said the conference illustrated the necessity of supplying LDCs with “the tools, resources and partnerships with confidence.”

International Support

In previous years, countries and international partners have provided assistance to LDCs, demonstrating commitment to the Doha Program of Action. Qatar committed to donating $60 million. Qatar allocated $10 million to support implementation of the plan and $50 million to build foundational strength in LDCs. Germany pledged 200 million euros to finance LDCs. Canada pledged $15 million to provide vitamin supplements for 15 LDCs, as well as ecosystem support efforts in Burkina Faso. The United Nations lists 44 countries as LDCs.

Looking Ahead

Overall, the gathering shows the U.N.’s effort to assist least developed countries in their journey toward graduation. Guidance from countries that have graduated, innovative financial mechanisms and a history of international support signal a promising future for the Doha Program of Action. If countries follow through on these commitments, more LDCs will have the means to graduate. Continued coordination and support will play a key role in the plan’s success.

– Sasha Banaei

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

Photo: Flickr

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China’s Aid in Africa

China’s Aid in AfricaForeign Aid has historically underpinned American soft power on the global stage and has been instrumental in promoting democratic governance, human rights, and development. With the shuttering of most aid projects, China has begun expanding its aid programs. Since the shuttering of USAID, many developing states in Africa and beyond now look to China as a predictable partner in the vacuum left by the United States’ sudden retreat from its central role in global aid. The United States’ retreat from development aid in Africa has hurt the multilateral aid space in particular. Multilateral aid systems, while slow and cumbersome, bring together a constellation of actors delivering assistance on a more purely humanitarian basis.

Chinese Aid in Africa

In 2024, China committed an additional $50 billion to projects on the African continent, according to NPR. China’s investment has focused on critical infrastructure. China has invested heavily in transit infrastructure and energy projects involving nuclear energy. Such investment lays the groundwork for greater industrialization and economic growth, made ever more critical by Africa’s rapid urbanization.

China has been involved in building and renovating government buildings and offices for the African foreign affairs staff—bases for different parts of the security apparatus. Importantly, China has been responsible for fourteen key intergovernmental telecom networks on the African continent. This building surge in Africa has given considerable sway over states seeking partners for future projects.

Debt Trap

Credible accusations state that Chinese aid in Africa is part of a strategy of debt trap diplomacy. Indeed, some of its development and aid projects have put countries at risk of debt. Ethiopia borrowed billions from China, which helped build critical transit infrastructure. Now the Ethiopian debt outstrips GDP, according to LSE.  Such behavior is not unique to China. Western aid has been criticized for the same colonial behavior. Aid from the West frequently comes with conditionalities that hinder self-sustaining growth, producing a cycle of dependency. Parallels in exploitative behavior does not absolve China of scrutiny.

The results of China’s aid efforts have been heterogeneous. China has leveraged unfair loans to gain access to critical infrastructure. In other cases, China has been more forgiving than other lenders when providing relief to African countries.

The Future of Aid in Africa

While the United States stands to lose by not participating in development and aid in Africa, its withdrawal has implications far more pressing than the dominant realpolitik. Some have foreseen China filling the void left by the United States, but even with funding surges, there are huge gaps in health and infrastructure development, according to Bloomberg. This funding surge has yet to meet the needs of some of the poorest states in Africa. China’s projects have an uneven record, with some programs being extractive and others facilitating real economic growth.

China’s aid in Africa has adopted a bilateral approach. China’s loans are aimed at building critical infrastructure assets that can generate sustained growth and capacity. The United States’ most successful projects have been multilateral and partnered with a diverse range of actors from intergovernmental organizations, NGO’s, and businesses. The focused scope of Chinese aid in Africa means its effects tend to be localized. China’s assistance makes a difference, but it still lacks the scope and, most critically, the integration of the United States’ previous aid efforts in Africa. By conservative estimates, the closure of USAID has already caused more than half a million deaths globally. Africa and the world as a whole benefit from a diversity of foreign aid sources. When developing states can choose between aid sources, they can leverage more equitable and sustainable aid projects.

– Atticus Flanagan

Atticus is based in Cambridge, MA, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Managing Global Aid Cuts

How to Handle Global Aid CutsGlobal aid funding has recently undergone a significant reduction, catching many aid beneficiaries off guard. Major donors like the United Kingdom (U.K.) temporarily reduced overseas development assistance, and the United States (U.S.) paused and suspended many programs. However, human ingenuity knows no boundaries. Nongovernmental organizations (NGOs) have started shifting strategies and coming up with innovative approaches to manage the reductions. These include shifting toward impact investing, reorienting humanitarian responses for greater sustainability and empowering local organizations. All of the solutions exhibit great resilience in underdeveloped parts of the world and provide hope for the vulnerable.

Impact Investing

Disruption of financial flows from traditional sources has forced some NGOs to start thinking more about private investors. In other words, it is about redesigning international development to function as investments. While the social impact of new projects remains a priority, generating income arises as a new factor to consider. This way, aid organizations can diversify income sources, preventing overreliance.

It requires NGOs to adapt their work, though. Investor partners will not feel confident about impact investing unless there is greater transparency and accountability of actions. New projects must set clear measurable objectives and be able to effectively demonstrate success to attract funding.

This, however, is not a novel approach. Some international organizations like Mercy Corps have been involved in impact investing for around 10 years now. In 2015, they established the Social Venture Fund (SVF) to support innovative ventures with a positive social impact. Scott Onder, the managing director of the fund, said that “the organisation recognised that the traditional grant-based model of funding international development can be limiting and rarely promotes […] flexibility.” Money from SVF gathered from private investors was used in Kenya to set up Lynk, a platform connecting workers and businesses in need of services, or Arifu, a site offering learning tools to improve income and escape poverty.

By shifting focus from government grants to attracting individuals and private firms, NGOs can manage the reduction of aid budgets globally and aim to maintain a stable budget allowing continuous development work.

Reorientation of Humanitarian Response

Reduced aid budgets have forced beneficiaries to start thinking outside the box. While sustainability has usually been a central focus of many humanitarian projects, its importance becomes undeniable nowadays. Help can no longer assume constant flow of grants but has to reorient itself to design resilient and robust projects that can survive all kinds of crises and shocks.

For instance, the recent Kenyan law amendment represents such change. Since as early as the 1990s, the country has hosted almost a million refugees in designated camps across the country. These relied on funding from the U.S., which was mostly used to cover essential services like food and protection. To offset the impact of reductions, greater focus has been placed on integration of refugees. As Refugees International says, “the new policy would transition camps into settlements by granting refugees the right to work, freedom of movement, and property ownership.”

Another type of reorientation for sustainability is anticipatory action, a strategy already employed by some large international actors like the Food and Agriculture Organization (FAO). Anticipatory action is still primarily concerned with the social impact but also considers cost-efficiency. Addressing problems before they appear reduces repair and recovery costs while saving lives. For instance, Shaheda, a Bangladeshi woman, received support from FAO before the anticipated floods predicted to hit her region in July 2024. A silo donated to her helped protect fodder, seeds and other valuable belongings, allowing her to replant afterward.

Local Organizations Taking Over

The decreased international cooperation has forced local organizations to step up, forming another approach toward aid cuts. Local actors are becoming more4 engaged in helping their communities. Their extensive knowledge of the area, the people and the circumstances is often superior to international aid organizations.

In South Sudan and Kenya, it is the national actors that are leaders in delivery of life-saving help to isolated areas that are frequently out of reach for non-locals. The Catholic Agency for Overseas Development (CAFOD) urges a strengthened and more cohesive cooperation between international organizations and local ones.

A report into the impact of global aid cuts conducted by CAFOD frames the situation as an opportunity for local organizations to strengthen their role in humanitarian responses. Already, their contributions are valuable and sufficient to contribute substantively to food security reduction, based on their presence in South Sudan and Kenya.

Interview with The Borgen Project

An interview with The Borgen Project and Joy Ojinmah, the executive director of Unique Royal Sisters (URS), reveals firsthand experience of managing a grassroots NGO in times of global aid cuts. URS is a group helping female sex workers, the LGBT community and young girls in southeastern Nigeria. In the conversation, URS acknowledged the impact of the cuts and said that their partners and the community they work with felt it as well. Reduced funding makes it difficult to access some of the essential commodities needed for their work, including HIV test kits, PrEP and STI treatments.

“We are trying our best. Most of us started from scratch without having any donors of course. We started working for our community just for the passion that we have for the community,” she said. Despite not having enough funding, they keep their work going, looking for domestic financing or coming up with cost-efficient workarounds like promoting WhatsApp contact with their clients to save on transportation costs. Some operations were able to be restored by collaborating domestically with Caritas Nigeria or Abia State Action Control on AIDS.

Even with restricted funding, URS identified 22 new HIV-infected clients over just three months. However, Ojinmah stresses their impact could be much bigger with higher funding, considering they were only able to operate in 4 out of 17 local governments in the state of Abia. Despite challenges, she remains confident in the abilities of URS and hopes “to have the recognition and support we actually need to keep pushing.”

Looking Ahead

Overall, despite the obstacles posed by global aid cuts, NGOs and grassroots communities keep innovating and working toward their goals. Whether it is impact investing or redesigning current projects, the hopeful and determined people like Joy from Unique Royal Sisters keep fighting for the world to become a better place.

– Karol Hejduk

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

Photo: Flickr

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Africa’s Leadership in the High Seas Treaty: Securing Food Futures

HIGH SEAS TREATYIn September 2025, the High Seas Treaty, officially termed the Agreement on Biodiversity Beyond National Jurisdiction (BBNJ), achieved the threshold required for entry into force, a pivotal milestone in protecting the world’s oceans and strengthening Africa’s role in global ocean governance.

The treaty introduces the first global, legally binding framework to conserve marine biodiversity in areas beyond national jurisdiction. Although global attention centers on the treaty’s environmental impact, Africa highlights a human dimension safeguarding livelihoods, food and survival for millions of individuals who depend on the sea. This moment also cements Africa’s role in global ocean governance, showing how the continent aligns environmental governance with development goals.

Oceans and Africa’s Fight for Food Security

In many African nations, the ocean forms the backbone for daily survival, feeding families and supporting trade and employment. For Africa, protecting the oceans is directly linked to protecting people’s jobs and food sources. A World Bank report highlighted the key contribution of fisheries to food availability across the continent: “The sector presents a key social safety net… on average, fish and fish products account for 18% of animal protein intake by African consumers, and the sector provides employment to over 12 million people.” Greenpeace Africa noted that “Over 200 million Africans depend on fish as a primary source of protein.” However, years of unsustainable fishing practices and climate change have severely reduced fish populations and threatened food security across Africa.

According to the United Nations Educational, Scientific and Cultural Organization’s (UNESCO) Intergovernmental Oceanographic Commission, the High Seas Treaty seeks to tackle these challenges through a global framework aimed at conserving marine life, governing activities on the high seas and ensuring the fair sharing of ocean resources.

For coastal African states that rely heavily on the migration of fish species, stronger high-seas governance offers a pathway to improve food security and sustain employment for millions.
 Khan stated that “diets of fish and aquatic foods provide animal-source protein, omega-3 fatty acids and micronutrients, including both vitamins and minerals, necessary for both the ill and the healthy,” reinforcing the importance of aquatic foods as a cornerstone of nutrition in Africa.

Africa’s Ocean Diplomacy

Africa’s role in global ocean governance has expanded significantly in recent years, with the continent taking on a central role in shaping international marine policy. Throughout the High Seas Treaty negotiations, the African group pushed for fairer systems of benefit-sharing and greater technical support for developing nations. Their advocacy helped secure provisions linking ocean conservation with fairer access to the sustainable use of ocean life for developing states. The treaty establishes practical tools to safeguard marine ecosystems.

Blue Diplomacy

For Africa, the High Seas Treaty marks a pivotal shift in its participation within global frameworks for ocean protection and environmental cooperation. Ambassador Michael Kanu, Sierra Leone’s lead negotiator, explained that by acting collectively, African countries ensured their interests were built into the framework shaping how the world manages the high seas. Naidoo described this proactive diplomacy as demonstrating “the continent’s ability to shape global norms, rather than merely adapt to them,” reflecting an emerging form of blue diplomacy. By signing on to the treaty, South Africa reinforced the message that caring for shared oceans is essential not just for the planet’s health but for Africa’s future prosperity.

Oceans and Survival

Senegal’s story highlights that ocean policy in Africa is not only about making agreements but about protecting lives. The decline of local fish stocks has forced many to leave in search of work elsewhere. The Environmental Justice Foundation reported that over half of Senegal’s fisheries are now depleted, while almost half of the boats allowed to fish there belong to foreign companies. As a result, large vessels have emptied the seas and ruined habitats, reducing the incomes of small local fishers.

The decline in fish availability has pushed many coastal workers to migrate irregularly toward the Canary Islands, a journey known for its high death toll.

Each year, West African nations lose an estimated $9.4 billion to illegal fishing operations, which account for around a third of the total fish caught across West African waters, according to the Stimson Center. But the damage goes beyond money, as illegal fishing undermines local governance and destroys jobs, threatening millions across the region.

A Humanitarian Frontier

As the High Seas Treaty comes into force, African nations are emerging as central players in shaping how the world governs the oceans. Their engagement goes beyond diplomacy and reflects a matter of survival. Africa’s role in global ocean governance will be crucial in defining how shared marine resources are protected and managed. For countless African communities, this effort is not just about safeguarding the environment but about keeping the ocean as a reliable source of food on their tables.

– Ciara Moore

Ciarais based in Edinburgh, Scotland and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Evaluating the Success of UK Rail for Ukraine

U.K. Rail for UkraineBy 2022, Ukraine impressively boasted Europe’s fourth-largest network of railways. Ukrainian Railways (UZ), aligning with the national government, contributed a staggering 2.34% of the national GDP and employed around 270,000 citizens who worked along its expansive and well-connected routes. The socioeconomic success of UZ showcased by these figures, highlights the importance of infrastructure to a territorially large nation in need of interconnectedness.

When Russian forces invaded Ukraine in February 2022, the progress of UZ came to an abrupt halt. Russian attacks destroyed border railway crossings, forced thousands of staff to mobilize for war and damaged train tracks caught in the crossfire. International eyes were on Ukraine, with the United Kingdom (U.K.) playing a role in the humanitarian effort to rescue Ukraine’s railways.

U.K. Rail for Ukraine

Rebuilding infrastructure in times of military crisis became an essential way for humanitarian aid to enter Ukraine. With Ukrainian airspace closed to non-combatant aircraft, moving aid, resources and people relied on train networks throughout Europe. Established in 2023, U.K. Network Rail and partners created U.K. Rail for Ukraine, a cohesive partnership that supplied repair parts for UZ networks.

U.K. Rail for Ukraine supplied the Ukrainian front line with eight railway bridges and 30 bridge support towers later that year. The response was quick, direct and efficient in the wake of the devastating violence that intensified in 2022.

Covering the Distance: European Partnerships

For U.K. Rail for Ukraine to transport large infrastructural supports into Eastern Europe, the wider network of European railway systems played a major role in covering the distance. Deutsche Bahn (DB), the German national rail operator, transported the goods to Poland. The train carried the livery #WeStandWithUkraine, highlighting a collective European sense of solidarity with the Ukrainians suffering.

Poland also made a significant contribution to supporting its neighboring Ukraine. Polish (PKP) cargo trains carried humanitarian aid from across Europe, making up a large share of the 1,600 aid vehicles reported by Ukrainian Railways. U.K. donors sent 7,500 food parcels, which were packaged and later distributed among Ukrainian rail workers. The main partners behind this donation were the U.K.-based companies Arriva Trains and First Rail. Both recognized the importance of Ukrainian railroads in transporting lifesaving packages to those most in need. In addition, U.K. rail businesses raised £65,000 to fund protective armor for frontline drivers.

Driving Away from Danger and Toward Safety

Beginning in Poland, many Ukrainian refugees took the long journey into mainland Europe by train. By March 2022, more than 1,000 Polish State Railway services operated to transport refugees. Having already undergone an arduous journey, displaced migrants arriving in the U.K. received special privileges for rail travel across the country. The Rail Delivery Group introduced a scheme in 2022 that granted Ukrainian refugees free travel on British transport services, including National Rail and the London Underground.

Outlook for 2025

Transportation during the Russo-Ukrainian War has remained vital. U.K. Rail for Ukraine continues to provide infrastructural support from a humanitarian standpoint, with railways serving as the primary channel for aid packages reaching soldiers and civilians on the front line. Looking forward, the extensive repair work needed on UZ railways in a post-conflict world will require the same level of foreign support and commitment to rebuild a once very successful rail system.

By 2025, 223,000 Ukrainian people had arrived in the U.K. The well-connected structure of European railroads allowed the safe transfer of refugees across borders. Those who completed their journey to the U.K. continue to benefit from measures that preserve their right to free travel.

Looking Ahead

The partnerships forged between the U.K., Europe and Ukraine show that railways can do more than move people and goods; they can carry hope and resilience through the hardest of times.

– Ash Fowkes-Gajan

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

Photo: Flickr

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The Seville Commitment: Goals, Challenges and the Future

The 2025 Seville Commitment: Goals, Challenges and Future ConsiderationsThe Seville Commitment is the outcome document of the Fourth International Conference on Financing for Development, held on June 30, 2025, in Seville, Spain. This agreement aims to close the annual $4 trillion gap required to achieve the Sustainable Development Goals (SDGs) by 20230 by mobilizing sufficient financial resources through boosting investments, addressing debt challenges and creating a fairer financial system.

The Background

In 2000, leaders endorsed the Millennium Declaration, which focused on poverty reduction and development as major priorities. They highlighted the challenges developing countries faced in securing sufficient financial resources. In response, they called for a high-level conference to tackle this issue. In 2002, the First International Conference on Financing for Development took place in Monterrey, Mexico. Leaders adopted eight Millennium Development Goals, emphasizing the imperative need for mobilizing financial resources to eradicate poverty and improve living conditions.

In 2008, the second conference held in Doha, Qatar. Leaders adopted an expanded list that includes boosting foreign investment, increasing international cooperation and providing developing nations with debt relief. In 2015, the third conference took place in Addis Ababa, Ethiopia. Leaders produced the Addis Ababa Action Agenda, a new global roadmap for financing development. This new global framework includes protecting the environment, promoting peaceful societies, employment, public services, hunger, sustainable industrialization and infrastructure. In this event, leaders pointed out the gap in financing required to fulfill the development goals. After that, the United Nations (U.N.) substituted the eight Millennium Development Goals with a more demanding 17 SDGs. 

In 2025, the fourth conference was held in Seville, Spain. Leaders discussed the issues for financing development that emerge in a challenging time as countries face increasing debt levels, ongoing conflicts and a decelerating economy. In response, they adopted the Seville Commitment that focuses on solutions to bridge the annual $4 trillion gap in financing development and 130 initiatives were introduced by a coalition of countries, international organizations and other partners.

The Seville Commitment Goals

The Seville Commitment aims to bridge the annual $4 trillion gap required to achieve the SDGs through several actions, including:

  • Increasing the minimum tax revenues to at least 15% of Gross Domestic Product (GDP)
  • Tripling the lending capacity of the multilateral development banks. 
  • Overhauling corporate governance, which includes transparency in how corporations manage funds and measure impact.
  • Addressing the debt challenges by establishing a UN-led group to set guiding principles for lending and borrowing, promoting state-contingent clauses and creating a global debt data registry
  • Creating a fairer financial system by strengthening developing nations’ voices in international financial institutions, such as the International Monetary Fund

Ongoing Challenges

Despite the international cooperation in financing global development, challenges persist. The challenges are as follows: 

  • Cutting the official development assistance by many donors, including Germany, Italy and France, to pay for other priorities such as defense spending 
  • The absence of the U.S, a leader of international development throughout history, at the fourth conference and the termination of many of its foreign assistance programs.
  • Lack of monitoring and accountability systems in markets

Looking Ahead

Reductions in official foreign assistance remain a concern, as they widen the financing gap and slow progress on development efforts. Nonetheless, the Seville Commitment is a major milestone that illustrates the significance of global cooperation in fulfilling the global development goals.

– Eiman Elsawy

Eiman is based in Kirkland, WA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Spanish Foreign Aid Grows Amid European Budget Cuts

Spanish Foreign Aid Grows Amid European Budget CutsWhile top contributing Organization for Economic Co-operation and Development (OECD) member countries have been slashing funding, Spain is one of three countries committing to increasing foreign aid expenditures. After more than 20 years of international net growth, total Overseas Development Spending (ODA) by the OECD Assistance Committee (DAC) dropped by 9% in 2024 and could drop another 9% to 17% in 2025. Meanwhile, Spanish foreign aid funding increased by 12% in 2024; since 2021, the budget for the Spanish Agency for International Development Cooperation (AECID) has more than doubled.

Spanish Foreign Aid: Then and Now

Spain established its ODA fund in 1976.  As a leading donor, reaching the United Nations’ (U.N.) target for Sustainable Development Goals (SDGs) by 2015 was the expectation. To reach this goal, affluent countries must allocate 0.7% of their gross national income (GNI) to foreign aid spending, though few have done so. However, an economic crisis spanning from 2008 to 2011 saw cuts to ODA spending, with the contribution falling from 0.46% of GNI in 2010 to 0.12% in 2015. Besides a 2016 spike to 0.43%, Spain has since experienced slow and steady growth, currently contributing 0.24% of its GNI. As of 2024, Spain ranks as the 12th largest DAC donor out of 32 in terms of net financial contribution. 

While Spanish foreign aid is far from meeting the 0.7% target, the country has voiced intentions to continue increasing ODA funding with specific policy initiatives outlined in the 2024-2027 Spanish Cooperation Master Plan for Sustainable Development and Global Solidarity. The Master Plan addresses the need for cross-cultural dialogue to ensure contextually appropriate efforts, with primary focuses including water and sanitation, health accessibility and food security. 

Triangular Partnership

An avid promoter of multilateral cooperation, Spain’s plan advocates for Triangular Partnership. This involves an actor looking for support to address a development issue, an experienced partner to lend knowledge and an institution providing financial support. The concept offers that countries facing poverty have important stories to tell and no country is too rich to learn from them. Additionally, in 2023, Spain passed the Law on Cooperation for Sustainable Development and Global Solidarity, legally binding SDG commitments, including budgeting 0.7% of the national GNI toward foreign aid. Approved across all political bodies in the Congress of Deputies, it implements a statute improving conditions for aid workers and outlines the need for reform in the AECID, subsidy legislation and financial cooperation.

International Conference on Financing for Development

Besides monetary contributions, Spanish foreign aid takes an active role in international collaboration. A recent example is its hosting of the 2025 Financing for Development Conference in Seville. The fourth of its kind since 2002, the Financing for Development conference addresses the relationship between the movement of finances and societal priorities, ensuring fiscal policy coordination. The primary focus was on the importance of multilateral financial cooperation to reach the SDGs. Actionable areas outlined in the official document include international development cooperation and development effectiveness international financial architecture and systemic issues.

Moving Forward

In essence, Spanish foreign aid bodies are reaffirming their commitment to reaching the 0.7% GNI contributions to ODA efforts despite foreign aid budget cuts trending across Europe. Official reports include acknowledgements of the legally binding nature of previous and ongoing agreements and specifically promote the importance of multilateral cooperation for reaching these goals across all DAC countries. 

– Emily Galán

Emily is based in Edmonton, Alberta, Canada and focuses on Global Health, Politics for The Borgen Project.

Photo: Flickr

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10 Facts About Business with The Visegrad Four

10 Facts About Business with The Visegrad Four The Visegrad countries of Central Europe achieved a remarkable transition to democracy and a market economy. The Visegrad Group (V4) – Czechia, Slovakia, Poland and Hungary – declared a commitment to expand political and economic stability in East Europe. Below are 10 facts about business with the Visegrad Four. 

Top 10 Facts About Business with the Visegrad Four

  1. East-West Trade 1989-1993. The European Community normalized trade relations with Czechoslovakia, Hungary and Poland in 1988 and 1999. The Poland and Hungary – Aid to Reconstruct Economies (PHARE) program provided vocational training, food aid and investment promotion. PHARE also removed quantitative restrictions and granted some Visegrad products preferential trade status. The European Bank for Reconstruction and Development (EBRD) promoted private and entrepreneurial activity and encouraged investment in Eastern Europe. The Europe Agreements in 1991 lowered trade barriers and increased financial assistance to the V4. These arrangements laid the foundation for continued East-West trade. 
  2. European Integration. European Union (EU) membership in 2004 meant guaranteed access to the Cohesion Policy and Common Agricultural Policy (CAP). The V4 countries used EU transfers and subsidies to implement projects that promote enterprises, develop human capital and increase overall competitiveness. Accession to the EU also harmonized regulations, streamlined commerce and reduced business risk in the V4 countries. 
  3. The International Visegrad Fund (IVF): The V4 Prime Ministers agreed on an international donor organization at a summit in Bratislava in May, 1999. The Fund promotes projects in the area of culture, education and science. The budget (€11 million) comes from equal contributions from the V4 governments. The Fund provides support to students, nongovernmental organizations (NGOs) and private companies through Grants, Scholarships and Artist Residencies.
  4. Labor Force. The V4 countries recently underwent structural changes. Small and medium enterprises moved to the forefront of innovation and the number of self-employment and small businesses multiplied. The V4 developed intensive productive sectors (mining and agriculture) and increased research and development funding. The Visegrad countries now play an important role in the automotive industry, with an economy based on a blue-collar technical workforce. 
  5. Strong Industrial Base. The V4 built up manufacturing capabilities. The V4’s main exports are transportation and machines, accounting for around 38% in Poland and 60% in Czechia, Slovakia and Hungary. It increased annual car production from 1.4 million to 3.5 million since 2004, with the automotive sector employing around 1.5 million people. The car industry represents a trademark of the Visegrad economy, with many leading brands represented. 
  6. Foreign Direct Investment (FDI). The Visegrad countries dominate in Foreign Direct Investment (FDI) inflows to the region. Access to EU markets, low production costs and favorable conditions granted to multinational firms attract foreign investment. The automotive sector is almost fully foreign-owned – Germany is the primary buyer of imports of cars and car parts. While FDI stimulates technological progress and economic development, it leaves the V4 vulnerable to global business cycles.
  7. Export Orientation. The export orientation of the V4 contributes to economic development. COVID-19 impacted local businesses and created demand for regional support. The Council of Slovak Exporters (CSE) aims to help Slovak firms export and access foreign markets, by facilitating information, providing export related assistance and organizing professional networking events. 
  8. V4 Energy Sector. A number of internal and external factors shape the V4’s energy policy. The V4 faces environmental pressure and vulnerability associated with dependence on Russia’s gas and oil imports. The V4 increasingly supports diversification strategies aimed at changing the energy mix (increasing share of renewables and natural gas) and the supplier countries. Poland opened the LNG terminal in Świnoujście in 2016 and got Qatar as a contractor. The Polish Oil and Gas Company (PGNiG) signed a contract to extract hydrocarbons in the United Arab Emirates. 
  9. V4 Business Conference. The Conference is an annual and nongovernmental forum, where participants share insights and combine know-how to navigate pressing problems and find solutions. The 2025 conference covered trade with America, automotive industry crossroads, V4 and emerging markets and EU competitiveness. 
  10. V4 Network on Entrepreneurship. The V4 governments co-financed the V4 Network on Entrepreneurship project in 2019, which facilitated information sharing on small business. HEFTA Research Institute (HU) partnered with IDEA Development Foundation (PL), University of Economics (CZ) and Slovak Business Agency (SK). They set up an online database for researchers, experts, stakeholders and organizations focused on entrepreneurship. The partners also created a brochure with comprehensive policy recommendations in 2020.

Looking Ahead

The Visegrád Four represents an important forum for teamwork, with a strategic geographical location for business. Through regional cooperation and EU integration, the V4 built competitive economies rooted in industrial strength and foreign investment. While the V4 faces shared challenges in the energy sector and with global market fluctuations, they embrace proactive strategies, such as the V4 Business Conference, to find solutions. 

– Alessandra Lewis

Alessandra is based in CT, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr