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Using Bikes To Fight Poverty in Mexico City

Poverty in Mexico CityMany people associate bikes with an expensive international sport that is growing in popularity. With professional cyclists gaining attention on social media and brands using aggressive marketing, cycling is often seen as an exclusive activity for those who can afford it. In major cities around the world, it has become a strong attraction for sports enthusiasts.

In the United States, for example, a record 112 million Americans rode a bike at least once in 2024. Bikes and cycling can positively impact millions of people worldwide, especially in densely populated urban areas. One key example is Mexico City, the capital of Mexico. 

In recent weeks, it officially became the largest metropolitan area in North America, with an estimated population of 25.6 million. That status brings major challenges, including urban poverty, inequality and rising pollution. Bicycles, however, have the potential to help address these issues. Through bike-share programs across the city, Mexico is using bikes to fight poverty, inequality and climate challenges.

Shared Mobility Services

Bikes can help address pollution and transportation affordability in urban areas. As more people migrate to cities, carbon emissions have continued to rise. Emissions from transportation, especially in cities, account for 22% of global fuel emissions. In response, many cities are turning to shared mobility services that reduce emissions by lowering the number of vehicles on the road. 

These services not only cut pollution in densely populated areas, but also give people more ways to reach their destinations without relying on a single mode of transport. These programs allow low-income households and individuals to move faster and more cheaply across the city, freeing some of their income to spend on other priorities. Bike-share programs are one form of shared mobility service being implemented worldwide to fight poverty. 

Major cities in Colombia, Mexico and Brazil have introduced bike-share programs for their populations. American cities like New York City and more than 150 European cities have also implemented similar programs. Although these initiatives continue to face regulatory and other challenges, there is a clear global shift toward supporting their success. 

Mexico City is leading such efforts in Latin America. It has the largest program in the region, “with [more than] 6,000 bikes and a competitive ride-hailing market with an estimated 200,000-plus drivers.”

Poverty in Mexico City

Although the government has worked over the last two decades to fight poverty across the country, poverty and inequality continue to plague Mexico City. The biggest challenge within the capital is inequality, with the “richest 1% of the population [owning] 40% of the country’s wealth, while nearly 19 million people struggle to put food on the table.” This is not new for residents, but it has worsened in recent years. 

For instance, “Mexico’s 22 billionaires have seen their fortunes double in the last five years,” while the average Mexican citizen has not seen proportional growth in economic status. Inequality within the city is evident in its real estate and housing environment. Those who are wealthy “have been very effective at isolating themselves from the rest of the country,” living in luxury apartments in the heart of Mexico City, where more economic opportunities are available. 

On the contrary, those with lower incomes are “relegated to sprawling cinder-block slums” located far from those opportunities. As a result, commuting to and from work is often costly and inefficient for low-income families. During an interview with Lucia Margarita Vazquez Alcantara, a resident of Mexico City for the last 40 years, she expressed frustration with the cost of gasoline for her car and taxis. 

“It is impossible to afford gas if you want to go anywhere in the city,” she stated. The distance and cost of transportation place a heavy burden on lower-income families in Mexico City, making it harder to escape cycles of poverty or afford basic necessities.

Bike-Share Programs in Mexico City

Bike-share programs offer an effective and environmentally friendly solution to reduce transportation costs in Mexico City and help lower-income families travel to their places of work. Ecobici is the city’s official bike-share program, allowing users to “take a bicycle from any cycle station and return it to the nearest one to their destinations in unlimited 45-minute rides.” If users wish to use it longer, they can pay for an affordable $32 subscription. 

This program shows how Mexico is actively using bikes to fight poverty. Women in particular are benefiting greatly from the Ecobici program in Mexico City. In urban areas, women often have “less access to quick and reliable transportation” and tend to make trips with multiple purposes.

The bike-share program improves mobility across the city and women have “gained a cheap, efficient and flexible mode of transportation.” Since its implementation, Ecobici has increased women’s bicycle use in the city from 10% to 38%. “I am too old to be riding bicycles, but now some of my friends’ daughters use them to get to work or go to ‘la tienda’ (grocery store) when needed,” said Alcantara. 

She added that although she does not ride bikes, she has seen tangible changes in Mexico City. The sky is clearer, pollution is lower and she sees more people smiling instead of yelling at each other behind the wheel.

Beyond their economic benefits, biking is growing in popularity among Mexico’s population. Monica Castilla, a hotel cook in the Zona Rosa area of Mexico City, expressed her preference for riding her bike over driving a car or taking the bus. “You get the stress out. You [get] exercise. And it’s faster,” she said. Mexico has 250 miles of bike lanes and “closes major avenues in the city center every Sunday” so cyclists can use them recreationally.

Conclusion

Bike-share programs are proving that simple transportation solutions can create real social change. In Mexico City, initiatives like Ecobici are reducing travel costs, expanding mobility for low-income families, supporting women’s independence and helping cut urban pollution. As the city continues to grow, Mexico is showing how two wheels can help move people closer to economic opportunity and a better quality of life.

– Rodrigo Salgado

Rodrigois based in Boulder, CO, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Unsplash

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Poverty in Mexico and SDG Progress

Poverty in MexicoIn 2015, United Nations member states adopted the Sustainable Development Goals (SDGs), a global effort to end poverty, protect the planet and promote peace and prosperity by 2030. Mexico, a country of about 128 million in North America, has seen progress in reducing poverty through federal policies, but key challenges remain. Poverty in Mexico has been on the decline in recent years. As of 2025, the number of Mexicans living below the $2.15 per day poverty threshold fell from 3.9 million, or 3%, in 2018 to 2.5 million, or 2%.

Despite this progress, structural and institutional inequality still threatens Mexico’s ability to meet the SDGs. This article will review Mexico’s evaluation based on the United Nations SDG objectives for the country.

Progress on Poverty

Poverty reduction has been significant nationwide. Over the past five years, the poverty headcount ratio at $2.15 per day has decreased from 5.06 in 2020 to 1.82 in 2025. In the same time frame, poverty rates after taxes and transfers have been reduced from 16.6% to 15%.

In the 2024 Voluntary National Review (VNR), Mexico emphasized the role of policy in these reductions. For example, from 2018 to 2024 minimum wage increased by 110% and the unemployment rate reduced to 2.6%. The main financiers for these poverty in Mexico reduction programs have been the federal government and foreign investors. Social spending increased by 38%, and by 2023, foreign direct investment increased by 27%. 

Although inequality has been improving nationally, regional disparities persist. The 2024 VNR report states that between 2018 and 2022, the contrast between the richest and poorest decile earning ratios has declined from 22 times to 15 times.

Despite these improvements, inequality persists in rural regions of Mexico. As of 2025, 88% of the rural population lives below the $2.15 poverty threshold. This percentage has remained stagnant since 2018.

What’s Driving Change?

The Mexican government has been deliberate about addressing social injustices and structural inequality by means of redistribution programs. For example, from 2018 to 2022, 10 million additional Mexicans became food secure.

Households and NPISHs Final consumption expenditure per capita growth (annual %) increased from 0.5% in 2018 to 1.9% in 2024, with a volatile period in between, ranging from a minimum of -10.6% in 2020 and a maximum 7.7% in 2021.

In spite of efforts, issues in health care, social protection, gender inequality and structural informality persist. In the VNR report, the Mexican government claimed it had aimed to address some of these issues by focusing on SDGs which were interdependent on each other, such as how addressing SDG 1 (no poverty) invariably affects SGD 10 (reduced inequalities) as well.

Is Mexico on Track for 2030? 

The United Nations uses the SDG index rank, SDG index score and spillover score to quantify a nation’s progress towards achieving its Sustainable Development Goals (SDGs) as well as to measure a nation’s ability to help other nations develop their own SDGs. Currently, Mexico ranks 72nd in the SDG index rank. Additionally, it has an index score of 70.80 and a spillover score of 90.23, ranking it at 85 out of the 167 UN member states that qualify for the index. These rankings demonstrate that, despite the progress on poverty in Mexico and inequality that has been made, there is room for improvement with regard to other SDGs.

In 2024, Mexico announced its policy initiative through the Plan Nacional de Desarrollo (PND). PND aims at stating the objectives and priorities of the government for the 2025 to 2030 period. PND contains four main areas of focus and three cross-cutting issues to direct public policy. Among the main areas of focus is “moral economy and work,” which states the priority of increasing minimum wages, expanding formal jobs and promoting social security. Among the cross-cutting issues, sometimes referred to as the transverse axis, the “substantive equality and women’s rights” objective aims at improving health policies and eliminating structural violence for women through reforms and the SEMUJERES agency.

The PND initiatives are part of the Movimiento Regeneracion Nacional (MORENA) attempt to consolidate the second stage of the transformation. The transformation is in reference to the general project of the party titled La Cuarta Transformacion, a political project which aims at transforming the political, economic and social structures of Mexico.

The Future of Mexico

The experience of Mexico shows that poverty reduction is possible, but sustaining it requires deeper structural reform. Issues related to health care, social protection, gender inequality, structural informality and regional inequality persist in the country. However, with the help of the PND strategic framework and policy initiatives, Mexico could be on track to achieve a majority of its SDGs by 2030.  

– Arturo Gonzalez 

Arturo is based in Miami, FL, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Updates on SDG 10 in Brazil

SDG 10 in BrazilBrazil’s hosting of the soccer World Cup and Olympic Games in the mid-2010s symbolized its arrival as a confident middle-class power. Rapid economic growth and large-scale social reform had lifted millions out of poverty and gradually reversed some of the country’s extreme income disparities. But, that progress has stalled over the past decade. This article provides updates on SDG 10 in Brazil, examining the country’s performance against a core UN target – tackling inequality.

Decade of Stagnation

When the Olympics came to Rio de Janeiro, Brazil’s Gini Index score, which measures income inequality, had been steadily falling for decades — from more than 60 in 1990 to around 52 in 2015 —  prompting experts to celebrate the country as a beacon for social progress.

But its Gini score actually increased in subsequent years, before returning to 52 again in 2023, the most recent year of available data. That’s almost double the SDG 10 goal, of 27.5, and represents a decade of stagnation.

‘World’s Most Socially Regressive Austerity’

The economic crisis that hit in 2014 largely explains that lack of progress, after a slump in prices for Brazilian commodities such as iron ore, a major corruption scandal at the national oil producer and a raft of fiscal and monetary policies that undermined confidence in the government’s ability to manage the country’s finances.

Increased borrowing costs followed, along with legislation freezing social spending for 20 years, which one UN official described as the “most socially regressive austerity package in the world.” Millions slipped back into poverty in the aftermath of the pandemic and there has been a surge in homelessness across major cities.

Highly Regressive Tax System

Brazil’s regressive tax system is another major cause of inequality. Several millions live in poverty, but there is also more than 400,000 millionaires (in U.S. dollar terms), with the richest 1% of Brazilians earning 27% of the nation’s income.

The country’s income concentration is significantly higher than previously thought, according to a recent report by a group of Brazilian and international economists, with ultra-wealthy individuals paying relatively little tax compared to other nations.

Using a new method of calculating wealth, officials from the Brazilian tax agency and researchers from the EU Tax Observatory found those earning at least $1 million per year have far lower effective tax rates (20.6% on average) than the average citizen (42.5%).

Many other countries reverse this pattern, including the U.S., where the effective tax for million-dollar earners is 36%, compared to 29% for the average American.

Brazil’s tax system is therefore highly regressive, as the tax burden for middle-class households is significantly higher than for the very rich, which hampers efforts to reduce inequality.

New Leadership and Legislation Brings Some Relief

Luiz Inácio Lula da Silva’s return to the presidency in 2023, replacing the right-wing Jair Bolsonaro, has provided greater hope and funding support to social programs, including the flagship Bolsa Família program, which offers direct cash transfers to low-income families. Lula’s government has also passed legislation reducing the tax burden on low and middle-income households, with a minimum rate established for higher earners. In particular, the new laws ensured new levies on dividends and company profits that were previously exempt.

Observers debate the extent to which this can be celebrated, however, as some warn the highest earners are able to shield their income due to flaws in the legislation, while the changes are only expected to produce modest improvements to the Gini coefficient, of just 0.3%.

Tathiane Piscitelli, a professor of financial law at the Rio-based think tank, Fundação Getulio Vargas, has acknowledged the limited impact of the changes, but said: “It is an improvement to our system, something that has been needed for a long time… Income tax is supposed to be progressive. We had the opposite situation, where those who earned more paid less. So even if this is not the ideal reform, overall it is a major relief.”

Updates on SDG 10 in Brazil

Ultimately, tax reforms can only go so far, and Brazil will need to find ways to strengthen its economic performance to place itself in a fiscal position to dramatically increase social spending. With the government’s debt levels standing at more than 80% of GDP, up from 58% in 2016, and spending is still severely constrained, Brazil is unlikely to achieve the SDG 10 target in anything but the very long term.

Oxfam estimates it would take more than 75 years to match the income inequality levels of the United Kingdom, at the current rate of progress, which would still fall short of the targeted Gini index score of 27.5.

Reasons for Optimism

There are reasons for optimism, however, with analysts at Boston Consulting Group suggesting Brazil’s economy is “impressively resilient” and well placed to navigate the shift in global power structures. Political neutrality on the world stage helps Brazil continue to enjoy warm relations with most Western countries, while its membership of the BRICS+ group of nations provides a key leadership role among the world’s fastest growing economies.

The huge domestic market and vast natural resources should also help shield Brazil from sharp trade barrier changes, said BCG, while a vast clean energy sector and robust digital infrastructure provide solid foundations for sustainable economic growth. If growth can return and the government can respond with increased social spending and continuing improvements to the tax system, inequalities should again start to fall.

International and Non-Government Support

Brazil’s international connections should also bring foreign and non-governmental investment. Last year, for example, the World Bank agreed to fund a major project to re-introduce the Bolsa Verde Program, which offers cash assistance to rural families that commit to environmental conservation, and should benefit 55,000 families in the Amazon by December 2026. Meanwhile, organizations such as the Lemann Foundation are working to draw attention to Brazil’s challenges within influential academic circles, with major investments to establish research centers within some of the world’s leading universities.

Momentum Can Return

The fight to achieve SDG 10 in Brazil may have stalled after earlier gains, but recent policy reforms and global shifts that should favor its economy suggest momentum can return. If growth strengthens and reforms continue, Brazil should again make significant progress in narrowing its deep inequalities.

– Lawrence Dunhill

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

Photo: Unsplash

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Floating Micro-Clinics for Riverine Communities in Guyana

Floating Micro-Clinics

Across the dense river networks of Guyana’s interior, many Indigenous and hinterland communities face challenges accessing basic health care due to geographic isolation, limited transportation and poor road infrastructure. Residents often travel days by boat or on foot to reach the nearest clinic for vaccinations, prenatal care, emergency treatment or chronic disease management. Floating micro-clinics for riverine communities in Guyana offer a culturally sensitive, practical solution by delivering essential health services directly along rivers, which serve as the main transportation routes for these communities.

The Government of Guyana has expanded river transportation for health access by providing purpose-built boats and engines to remote villages. This has enabled patients and medical staff to reach health facilities more efficiently.

What Are Floating Micro-Clinics?

Floating micro-clinics are rapid-response medical units, often boats outfitted with consultation space and solar-powered equipment, that travel on regular circuits between riverine villages. By ferrying nurses, health educators and medical supplies directly to residents, these services reduce travel time, lower costs and improve preventative health care.

The Guyanese Ministry of Health has invested in river transport infrastructure to improve access to health care for residents of Regions One, Three and Five. It has delivered boats equipped to support patient care and outreach. In addition to government investment, UNICEF-supported programs have helped expand maternal health outreach.

They do this by providing boats equipped with solar-powered vaccine refrigerators and cots to serve communities in Regions One and Eight. These vessels enhance access to immunization and maternal care in villages such as Kamwatta, Sandhill and Orinduik.

Bringing Health Services Closer to Communities

Floating micro-clinics for riverine communities in Guyana enable nurses, community health workers and other providers to offer vaccinations, prenatal checkups and treatment for common illnesses on the spot. By reducing the distance families must travel for routine care, these mobile units help prevent illness and support early detection of health issues. Telemedicine has also expanded across remote regions, complementing floating clinic outreach by allowing health workers to consult specialists and manage patient care more effectively.

Many of the communities served through these initiatives are Indigenous and deeply rooted along river systems. Floating micro-clinics serving riverine communities in Guyana align medical outreach with traditional travel routes and cultural practices, ensuring services are delivered in ways that respect community life. Families no longer need to undertake long and costly journeys through difficult terrain to reach basic health services.

River transport investments and floating clinic models demonstrate how integrated health and transportation strategies can reduce geographic disparities. These programs coordinate regular river routes and supply essential health equipment directly to remote villages. This strengthens health surveillance, expands vaccination coverage and supports maternal and child health across Guyana’s hinterland.

Conclusion

Floating micro-clinics serving riverine communities in Guyana bring essential health care to populations that traditional infrastructure has historically underserved. By leveraging river transport and mobile medical units, these programs improve access to vaccinations, maternal and child care, diagnostics and routine treatment. With continued investment and community involvement, floating micro-clinics can significantly strengthen rural health outcomes and reduce inequality across Guyana’s vast river systems.

– Shahzeb Khan

Shahzeb is based in San Ramon, CA, USA and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Higher Education in Malta and Its Role in Reducing Poverty

Higher education in MaltaHigher education in Malta has expanded significantly over the past decade, placing the country above the European Union average for tertiary attainment, according to the European Commission’s Education and Training Monitor. However, unequal access to education continues to limit who benefits from this growth, directly affecting poverty outcomes.

These disparities matter because education remains one of the strongest predictors of long-term economic security. In small, service-based economies such as Malta’s, higher education often determines access to stable employment, higher wages and upward social mobility.

Public institutions such as the University of Malta and the Malta College of Arts, Science and Technology have driven much of the growth in higher education in Malta, supported by a growing private higher education sector. Despite broader access, participation and outcomes remain uneven across socio-economic groups.

Education Attainment and Poverty Risk

Data from Eurostat shows a clear relationship between education level and poverty risk in Malta. Individuals with tertiary education face a significantly lower risk of poverty than those with only secondary or post-secondary, non-tertiary qualifications.

This gap illustrates the protective role higher education plays against poverty. University graduates are more likely to secure stable employment and higher wages, particularly in sectors such as finance, health care, education and information technology. Workers without tertiary credentials often face low wages, job insecurity and limited career mobility. 

Despite high public investment, outcomes remain polarized. Roughly 40% of adults in Malta still have less than upper secondary education, which limits access to higher education in Malta and reinforces intergenerational inequality.

Barriers To Higher Education Access

Early educational attainment plays a decisive role in determining who reaches university. Students from disadvantaged backgrounds in Malta underperform in literacy and numeracy, reducing their likelihood of completing secondary education and progressing to tertiary studies.

Socio-economic background further shapes educational trajectories. While public universities charge no tuition for Maltese and EU citizens, indirect costs such as housing, transportation, study materials and foregone income discourage students from low-income households from pursuing higher education.

Adult learning participation reflects similar inequality. Lifelong learning programs in Malta primarily attract individuals who already hold higher qualifications, while adults with lower education levels participate far less, limiting reskilling opportunities and increasing long-term poverty risk.

Labor Market Mismatches and Inequality

Even among graduates, outcomes remain uneven. Malta faces shortages in science, technology, engineering and mathematics fields, while some graduates experience underemployment due to skills mismatches. Weak alignment between education outcomes and labor market needs can undermine the poverty-reducing potential of higher education in Malta.

 To address these gaps, policymakers emphasize closer coordination between tertiary institutions and labor market demand. Strengthening vocational and technical pathways alongside traditional university degrees can broaden access to stable, well-paid employment.

Higher Education as an Anti-Poverty Strategy

The Maltese government introduced initiatives to improve access to higher education. The Get Qualified Scheme provides tax credits to individuals pursuing higher education or vocational training, reducing financial barriers and encouraging workforce upskilling.

The government also provides monthly student stipends to help cover living costs, which supports retention and reduces dropout rates among full-time students from lower-income households.

International research consistently identifies education as one of the most effective long-term strategies for reducing poverty. Tertiary education increases lifetime earnings, improves health outcomes and strengthens civic participation.

Conclusion

Higher education in Malta reduces poverty risk by improving employment stability and income potential. However, unequal access, early educational disparities and labor market mismatches continue to limit its full impact.

Expanding financial support, strengthening adult learning opportunities and aligning education with workforce needs would allow higher education in Malta to function as a true engine of social mobility and long-term poverty reduction.

– Sean Leung

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

Photo: Flickr

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Commitment to SDG10: Reducing Inequality in South Africa

Reducing Inequality in South AfricaRace remains the largest driver of inequality in South Africa, shaped by a legacy that has remained largely unchanged. The effects of apartheid continue to undermine progress toward equality. For decades, the World Bank has ranked South Africa as the most unequal country in the world.

This inequality continues to limit social mobility, reinforcing a cycle of wealth and poverty. Many individuals are effectively assigned a future of either “rags or riches” at birth. While Sustainable Development Goal 10 aims to reduce inequality, high income and opportunity gaps persist due to long-standing structural injustices.

Inequality in South Africa can largely be traced to three key factors: pre-income distribution, unequal access to education and wage disparities.

Pre-Income Distribution

Pre-income distribution refers to factors that influence wealth and opportunity before income is earned. These include land ownership, inheritance and race, all of which are “born into” factors that cannot be changed, giving individuals a natural advantage or disadvantage from birth.

In South Africa, the Gini coefficient remains at 0.63, with the top 20% of the population accounting for nearly 70% of income. In comparison, the bottom 20% is left with less than 5%. Race remains the most dominant determining factor in pre-income distribution. Fifty years after apartheid, its impact is still evident, leaving lasting reminders of the grip it once had on the country.

Some progress has been made toward transparency in income inequality. Recent Companies Act amendments now require firms to disclose CEO-to-worker pay ratios. The Labor Research Service reports that the current average across the JSE Top 40 companies is approximately 1,270:1. This aspect of inequality has been addressed most effectively through social grants.

With one of the largest social grant systems in the world, South Africa has reached millions of vulnerable citizens. These grants have been widely commended. By 2011, the number of grant recipients had increased by 13.6 million since 1998. Although the Gini coefficient still indicates significant inequality, social grants have helped stabilize the incomes of some of the country’s most impoverished households, preventing inequality levels from rising even further.

Wage Inequality

Even after overcoming barriers to employment, many South Africans continue to face inequality. On average, women in South Africa earn 12% less than their male counterparts. Almost half of this gap (45%) is attributed to women’s disproportionate employment in lower-paying firms.

Structural unemployment is another significant contributor to wage inequality. With the economy in a state of stagnation, the job market is suffering. With jobs themselves hard to come by and few in number, this is a significant driver of inequality.

In recent years, youth unemployment has risen to more than 46%, contributing to poverty and reinforcing the country’s slow economic growth. This has created another major barrier to reducing inequality in South Africa.

Access to Education

Schools in South Africa face significant resource constraints, resulting in wide gaps in students’ fundamental skills. This was highlighted in 2021, when it was found that approximately 80% of Grade 4 learners could not read for meaning, unable to comprehend or extract information from text. This outcome stems from a broader lack of resources.

Infrastructure and qualified teachers remain in short supply, particularly in poorer, rural communities. Still grappling with the consequences of its past, spatial inequality continues to limit access to education. “The legacy of colonialism and apartheid, rooted in racial and spatial segregation, continues to reinforce inequality,” United Nations Human Rights Office.

Spatial inequality was influenced greatly by the Group Areas Act of 1950. The initiative removed black families from urban areas, relocating them to underdeveloped, rural towns. As families were forced to settle in these new designated areas, generations later, spatial segregation persisted.

Lacking infrastructure, these areas were burdened with numerous encumbrances, allowing families living there to fall behind their thriving suburban peers. This stark contrast remains, most notably in the suburbs and townships of Johannesburg.

Conclusion

Pervasive structural injustices left over from apartheid still linger, despite staggering progress in reducing inequality in South Africa. The nation has nonetheless made impressive strides toward achieving SDG 10. These include social grants and legislative amendments that demand transparency on wage disparities, thereby perpetuating pressure and accountability.

– Maya Hollick

Maya Hollick is based in the United Kingdom and focuses on Politics for The Borgen Project.

Photo: Flickr

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Reducing Poverty in Latin America

poverty in Latin America

Across Latin America, governments are quietly reshaping their approach to poverty. After decades of high inequality, fragile growth and political instability, several countries are moving away from short-term welfare fixes and toward broader models of inclusive development. Colombia, Chile and Mexico are among the leaders in this transition, combining income support, labor market reform and long-term social investment to narrow social and economic gaps.

Now, while these policies slowly come into effect, the direction is clear: poverty reduction is increasingly being seen as a structural issue rather than a temporary emergency.

Social Protection Programs

At the center of this shift are new generations of social protection programs, many of which are largely based on conditional cash transfers (CCTs). These programs promise cash in exchange for meeting specific goals. Latin America has been reducing poverty by pioneering these schemes since the early 2000s, with 60 programs in operation across the region.

The region continues to play a central role in national anti-poverty strategies. In Colombia, Familias en Acción provides cash payments to low-income households in exchange for tasks like school attendance and regular health check-ups for children being completed. Originally designed as a temporary measure, the program has expanded significantly, particularly in rural and conflict-affected areas.

With recipients receiving about $972 annually, it can be linked to improved school participation, child nutrition and household stability. For instance, there was a 6-percentage-point decline in children’s chronic malnutrition following an increase in the chances of completing secondary school. Similarly, Chile has combined cash transfers with personalized social support.

Under Chile Solidario and later Ingreso Ético Familiar, families receive not only financial assistance but also guidance from social workers to help them access public services, employment programs and health care. These frameworks help vulnerable citizens receive the care they need, with cash installments and support offered for up to two years. The aim is to address social inequalities alongside income poverty.

Mexico’s Prospera program, formerly known as Progresa, is a widely studied CCT. Its emphasis on education, maternal health and nutrition has produced long-term benefits, including higher school completion rates and better health outcomes. While political reforms have reshaped the program in recent years, its core principles continue to influence social policy and it has been replicated in more than 50 countries worldwide.

These programs rely heavily on effective public services and stable funding, both of which are unevenly available across the region. However, with significant funding from the World Bank, they were able to support more than 22 million households across Latin America. Still, they reflect a broader shift: social welfare is increasingly popular, not as a safety net, but as an investment in future generations.

Closing the Rural Divide

Geography deeply shapes poverty in Latin America. Rural areas and Indigenous communities consistently experience higher deprivation, weaker infrastructure and limited access to state institutions. However, governments are increasingly paying closer attention to these territorial inequalities.

In Colombia, rural development has become closely linked to the country’s post-conflict agenda. Investment in rural roads, agricultural support and access to credit is aimed at reducing poverty while stabilising regions long affected by violence. Land restitution efforts, though slow and politically charged, form part of this post-conflict strategy.

In 2023, the Special Assetholding Agency (SAE) of the Colombian government successfully redistributed 40,000 hectares to cooperatives under the “Land for Peace” policy. This government initiative shows promise in reducing poverty in Latin America. On the other hand, Chile has pursued a more technocratic model.

Through agencies such as INDAP, the government supports small farmers with credit, training and irrigation projects, while investing in rural connectivity. For instance, in January 2024, the Chilean government implemented a $50 million investment project to strengthen food security and modernise the technology available to farmers. These efforts have helped narrow, though not eliminate, the gap between urban and rural living standards.

Tackling Pensions and In-Work Poverty

With informal employment being widely prevalent across Latin America, pension policies have begun to shift, as traditional contributory pension systems previously excluded millions of adults from coverage. However, in response, several countries have started to expand their pension schemes. For instance, one way Latin America is reducing poverty is with Chile’s 2008 pension reform, which introduced a Solidarity Pillar, guaranteeing a basic pension to low-income and informal workers, significantly expanding coverage among older women and rural populations.

Mexico has followed a similar path, introducing universal or near-universal pensions for older adults without formal work histories. Additionally, Mexico’s AFORE pensions will provide a top-up payment to beneficiaries whose monthly pension falls below their final salary rate. This shows a commitment to citizens who were potentially vulnerable to state neglect.

Similarly, even as employment has grown, in-work poverty remains a persistent problem. In response, countries such as Chile and Mexico have turned to minimum wage increases to boost incomes at the bottom of the labor market, proving how Latin America is reducing poverty. Chile has implemented gradual, predictable wage increases linked to inflation, helping low-income workers remain above the poverty line.

Increasing the monthly minimum wage to approximately $582 and promising a future increase for January 2026, helps ensure that Chile’s citizens can survive despite rising inflation. Mexico has taken a more aggressive approach, raising the minimum wage by 18% (on average) annually since 2018, after years of stagnation. Evidence suggests these increases have reduced workplace poverty without causing widespread job losses, as critics feared.

Now, while a minimum wage increase alone cannot solve inequality, it reflects a broader recognition that a fairer income distribution must keep pace with inflation.

A Measured Transformation

Latin America’s fight against poverty is far from over. Fiscal constraints, political volatility and deep-rooted inequality continue to limit progress. Yet, the policies emerging in Colombia, Chile and Mexico indicate a significant shift in direction. Rather than relying on short-term relief, governments are investing in education, health, rural development and social inclusion.

The approach is slow and imperfect, but it has demonstrated real-world success in transforming people’s lives. These policies effectively demonstrate changing attitudes across the region, exemplifying how Latin America is reducing poverty.

– Megan Burrows

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

Photo: Unsplash

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Inequality in Isan: Building Economic and Social Equity

Inequality in IsanLocated in northeastern Thailand, Isan is the country’s largest and most populous region, home to roughly 22 million people. Despite national declines in poverty, research from The Asia Foundation in 2019, based on surveys and in-depth interviews with 1,400 residents, shows that Isan continues to face the highest poverty rate and the lowest average income in Thailand. In 2018, the average monthly income in the central region reached 12,818 baht (about $407), nearly double the 6,790 baht ($216) reported in the Isan region.

The study also found that although 87% of households in Isan own land, land ownership alone has not guaranteed stable or sufficient livelihoods.

Budget and Health Care Inequality and Intra-Regional Disparity

Inequality persists in Thailand, particularly in the Isan region, when compared to more affluent areas such as Bangkok. In 2024, the Thai government allocated only 5.54% of its 3.48-trillion-baht (roughly $111 billion) national budget to Isan. In contrast, it allocated almost 10 times that amount, 1.85 trillion baht ($59.2 billion), to Bangkok, despite the capital having less than half of Isan’s population (around 11 million people).

Health care distribution also reflects this inequality. In 2023, Thailand had 37,559 doctors nationwide, but only 8,447 worked in Isan. Inequalities also exist within the region itself. Khon Kaen, one of Isan’s major cities, has a significantly lower doctor-to-patient ratio, with one doctor serving approximately 1,080 people, compared to Bueng Kan, where one doctor serves 5,003 people.

Discrimination

According to Manushya, urban populations in wealthier regions have long perpetuated negative stereotypes about Isan people, mocking them as poor, backward or as “mia farang” (meaning a white foreigner’s wife). The Asia Foundation also notes that some believe “there is no future in Isan,” leading to the assumption that people must migrate to Bangkok for “good prospects.” However, the study shows major shifts in migration patterns.

Young people in Isan are increasingly choosing to enroll in local institutions, such as Khon Kaen University, rather than moving to Bangkok. As a result, students are becoming more interested in pursuing entrepreneurship in Isan rather than seeking work in the capital. These findings show that the negative stereotypes stem from outdated or poorly informed assumptions.

Universal Health Coverage

Thailand introduced the Universal Health Coverage (UHC) Scheme, often referred to as the “30-baht Scheme,” in 2001 to provide health care access for residents not covered by other public health schemes. The Asia Foundation identifies UHC as the most widely used social safety net in Isan, with 97% of surveyed respondents expressing high satisfaction. Before the scheme began, around 80% of the population lacked adequate health care coverage or faced prohibitive medical costs.

UHC has reduced this burden significantly. By 2015, household health care expenditure in Thailand had decreased by 11.8%, easing financial pressure on low-income households and contributing to a reduction in poverty.

Manushya and Advocacy Efforts

Founded in 2017 by Emilie Palamy Paradichit, Manushya is an intersectional feminist organization dedicated to promoting equality and human rights. Manushya worked with several Thai civil society organizations to prepare the Isan UPR factsheet for Thailand’s third Universal Periodic Review (UPR) in 2021. These partners included the Thai CSOs Coalition for the UPR, the Human Rights Violations in Isaan Monitoring Group, the Sai Thong Rak Pah Network, the Amnat Charoen Friend of Women Center and the Isaan Gender Diversity Network (IGDN).

The factsheet highlighted discrimination against Isan residents, such as unequal budget allocation, employment in low-paying jobs and negative stereotypes describing people as “poor,” “backward,” or “lower-class.” Manushya also included these concerns in its shadow civil society report for Thailand’s Convention on the Elimination of Racial Discrimination (CERD) review and participated in two sessions with CERD committee members to ensure that issues affecting Isan were addressed.

Progress and Opportunities in Isan

Efforts to reduce inequality in Isan demonstrate how targeted policies and strong community engagement can lead to meaningful change. Programs such as the UHC have expanded access to essential services, while organizations like Manushya continue to advocate for fair resource distribution and human rights protections. Growing interest in local education and entrepreneurship also reflects a generation investing in the region’s future.

With continued cooperation among government agencies, civil society groups and local communities, progress toward addressing inequality in Isan can accelerate, supporting more secure and sustainable livelihoods.

– Sammi Li

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

Photo: Pexels

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ONE Campaign: Tackling Inequality in Africa

Tackling Inequality in AfricaAfrica is the most impoverished continent in the world, with economic insecurity, political instability and disease worsening the hardships and exacerbating the inequality faced by its population. However, while these economic and social challenges can paint a bleak picture, many organizations and campaigns are dedicated to tackling inequality in Africa. For example, the organization ONE is dedicated to improving the lives of those living in the region using a combination of resources to drive policies that create essential and lasting change.

ONE

ONE is a global, strictly nonpartisan organization that uses activism, expert data and analysis and public campaigning to pressure lawmakers to support essential policies for Africa. Bono, lead singer of U2, co-founded ONE and its sister organization RED in 2004. Since then, ONE has secured $1 trillion in investments and taken 25 million actions to create more economic opportunities and improve the lives and health of those living in Africa.

ONE’s recent work focused on the reauthorisation of the African Growth and Opportunity Act and the Development Finance Corporation.

Economic Insecurity

Africa is the second-fastest-growing region in the world in 2025, with the African Development Bank predicting a 4.3% growth rate in the economy. However, there are still 464 million people living in poverty on the continent. Furthermore, there has been a slight decrease in the number of people living in extreme poverty (less than $3 a day) in the last few years in some regions.

For example, in sub-Saharan Africa, 46% of the population faced extreme poverty last year, a slight decrease from 46.4% in 2022. However, these persistently high rates can be partly attributed to widespread economic insecurity. According to the U.N. Trade and Development, the “high debt, trade imbalances and inflation” experienced by some countries in Africa lead to more vulnerable economies and, therefore, higher poverty rates.

Economic insecurity is, of course, an extremely concerning and pressing issue and has been exacerbated by the recent reduction in foreign aid. A spokesperson from ONE states that “U.S. foreign aid cuts have been devastating to the African continent.” They explain that “when donor countries step back, domestic governments pay more to borrow, forcing painful trade-offs in national budgets.”

This ultimately results in reduced workforce capacity, slower economic growth and continued inequality. However, the ONE Campaign is tackling inequality in Africa by supporting “economic development policies that empower partnership, trade, power access and entrepreneurship between Africa and the global economy.” These efforts offer hope for a more economically stable future for the continent.

Health

Health care infrastructure across Africa often fails to meet population needs because of chronic underfunding. High disease rates place even greater strain on these systems, causing the most vulnerable to suffer disproportionately, deepening poverty and slowing economic growth as the workforce weakens. While many diseases remain pressing issues in Africa, the rising rates of HIV/AIDS are among the most alarming.

According to UNAIDS, 5.2 million people in Central and Western Africa and 240,000 people in the Middle East and North Africa were living with HIV in 2024. ONE’s spokesperson says the recent foreign aid cuts have placed additional strain on Africa’s health care systems, particularly amid the resurgence of the HIV/AIDS epidemic. According to them, the cuts have led to reduced disease testing and tracing, long delays in accessing medications and support and limited communication to rural and other vulnerable communities.

They also report a rise in babies born with HIV and an increase in HIV-related deaths. However, according to ONE, while Africa urgently needs stronger health care infrastructure, hope lies in the continent’s growing innovation. One major breakthrough, according to ONE’s spokesperson, is a game-changing HIV drug, lenacapavir, which has shown nearly 100% effectiveness in preventing transmission.

They add that with sustained global investment, this drug has the potential to help end the epidemic. To continue tackling inequality in Africa, it is clear that while the continent is not short on health innovations, it urgently needs consistent funding to sustain progress and improve lives.

The Future

Speaking regarding the future, ONE’s spokesperson states, “Africa is an incredibly diverse continent. Every country and every region within each country faces its own unique challenges, which must be addressed through political, cultural and socially relevant lenses,” rather than grouping all countries under a single “challenge set.” ONE is working to move perception away from a generalist view and challenge “prevailing negative stereotypes…that suggest Africa is ‘bad for investment,'” instead highlighting the promise and opportunities that investment in Africa can bring.

By supporting organizations like ONE in addressing inequality, there is hope for stronger public health systems, greater economic opportunities and reduced poverty across the continent.

– Victoria Adrados

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

Photo: Flickr

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Rising Inequality: Montenegro’s Poverty Crisis

Montenegro’s Poverty CrisisMontenegro’s Adriatic Coast is riddled with luxury resorts and an increasing number of tourists, enabling a booming holiday industry to emerge. However, poverty largely persists in rural and inland communities due to the strain that tourism places on these areas. The tourism industry contributes 25–30% to Montenegro’s GDP and total employment.

Although concerns over Montenegro becoming too dependent on tourism persist, the European Union (EU) accession ambitions have prompted Montenegro to align its growth with social development. Similarly, International donors and NGOs are beginning to push for support of inclusive tourism and the promotion of rural development projects.

Montenegro’s Growing Wealth Gap Crisis

A major issue in Montenegro remains the growing wealth gap, with most wealth concentrated among the elites and foreign investors. In early 2025, the Ministry of Tourism began promoting small-scale entrepreneurship and rural tourism to distribute economic benefits more evenly across the country. Additionally, the seasonal nature of tourism in Montenegro makes tourism-related jobs insecure and low-paid, exacerbating the wealth divide, as a secure income is a rarity.

However, EU-funded initiatives are helping workers gain skills for year-round employment and supporting the economy through infrastructure development. Similarly, the government aims to introduce a new law, the “Permanent Seasonal Worker,” which will provide more stable employment for seasonal workers. This will enable a more secure economy and alleviate Montenegro’s poverty crisis.

Another prevailing issue in Montenegro is the regional inequality between the coast and the inland, largely driven by differing lifestyles and economic opportunities. Despite these challenges, infrastructure projects, such as roads and digital connectivity, are being expanded to rural areas to attract investment. For example, the EU is providing Montenegro with more than $88 million to reconstruct a 167 km railway, which will modernize the country’s transport network and promote a more sustainable transportation system.

These changes aim to create easy access across Montenegro and help reduce the nation’s poverty levels.

Balancing Tourism and Equality

Tourism in Montenegro affects more than just poverty; it also has significant environmental and social impacts. While women make up a large percentage of the tourism workforce, they are often excluded from higher-paying roles due to industry instability and prejudice. To address this, NGOs and EU programs fund and organize women’s job training and mentoring initiatives designed to promote independence and entrepreneurship in a difficult job market.

Tourism growth in Montenegro largely strains natural resources and risks exacerbating environmental degradation. However, the government is committed to promoting sustainable tourism standards and eco-certifications. By encouraging practices such as energy and water conservation in accommodations, Montenegro is reducing the environmental impact of tourism.

The country is also advancing a sustainable tourism strategy through participation in programs such as the international EU Ecolabel. Pushing for these limitations and using official certifications provides a surefire way to not only protect the environment but also continue the fight against Montenegro’s poverty crisis.

Final Remarks

Overall, Montenegro is working toward a more sustainable future in an effort to reduce its poverty rate. Its promotion of eco-tourism and cultural heritage projects aims to diversify tourism beyond just the coast, while also strengthening policy links between tourism revenue and social welfare to reprioritize Montenegrins. Nonetheless, poverty remains rife alongside booming tourism across the Adriatic Coast, with Montenegro beginning to promote initiatives aimed at inclusive tourism.

Montenegro also serves as a strong case study of how a small state can balance economic growth with poverty reduction through increased investment and policy alignment, promoting the well-being of its people and its tourism sector.

– Megan Burrows

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

Photo: Pexels