Information and stories about poverty reduction.

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Poverty Reduction in Romania

Poverty Reduction in RomaniaWhen talking about Romania, many people still associate the country with its communist past and its significant economic struggle, which lasted for 24 years under the rule of Nicolae Ceausescu. There are different perspectives regarding decades ago and current poverty in Romania. The communist regime fell in 1989, and Romania has changed considerably since. According to the World Bank Group, poverty reduction in Romania reached 6.9% in 2024. 

Minimum Wage in Romania and Most Affected Regions

As an European country since 2007, Romania is doing better than it did decades ago. Yet, the minimum wage of 795 euros per month may lead some to question the extent of its economic growth. This positions Romania at 43rd place among the 124 countries that have the lowest minimum wage, out of the 195 countries in the world.

Rural regions in Romania are the most affected, with rates three times higher than those in urban areas, where children never attend school, or they are forced to drop out of school at an early age so they can work various jobs in agriculture or construction, helping their family to stay afloat. People living in these poor rural regions endure hunger, malnutrition, limited access to health care and often live in homes without running water, sanitation or electricity. 

Projects Designed To Reduce Poverty in Romania

Given all of the above, there is hope on the horizon with promising news ahead. After decades of economic struggles, new developments and projects may signal a meaningful shift towards inclusion and opportunity, contributing to poverty reduction in Romania.

As a global development organization, The World Bank Group seeks to lower poverty levels below 3% of the global population by 2030 and Romania is one of the countries that benefits from its generosity. Elisabetta Capannelli, World Bank Country Manager for Romania, declares that the organization goal is “to reduce poverty and boost shared prosperity for the bottom 40 percent of the population.” The World Bank has contributed in Romania over the past two decades addressing policy and institutional constraints on poverty reduction. By promoting social inclusion and economic growth, this approach offers promise that vulnerable communities, especially in rural areas, will see real improvements.

In February 2016, the Government passed a comprehensive anti-poverty package of 47 measures to combat poverty in the country through 2020. Several key measures, including boosting employment and reducing early school leaving rates, are expected to play a crucial role in narrowing the urban-rural poverty gap.

Empowering Citizens

Another hopeful project comes from Real News for Romania’s Media Desert Regions, where “the funding helped the media to reach Romania’s three poorest regions (Moldova Southern Muntenia and Oltenia) to inform and raise awareness about corruption, misuse of public and EU funds.” This project demonstrates that addressing poverty is not just about money or jobs, but also involves informing and empowering citizens to hold authorities accountable. By reaching Romania’s three poorest regions, the project is helping people understand how public and EU funds are being used. The project used social media, guided by experts, to reach more people and set up a weekly newsletter. After doing so, those involved in the project now hope that audiences are more informed, more aware of their rights, and more engaged in improving public services for their communities.

Looking Ahead

Looking ahead, these initiatives and others yet to come, could bring lasting change by helping more families rise above poverty and improve their quality of life, ultimately contributing to poverty reduction in Romania.

Future generations of rural children may have access to education instead of working from a young age, and while challenges remain, both existing and new projects offer hope for poverty reduction.

– Elena Ghimis

Elena is based in Bournemouth, UK and focuses on Good News and Celebs for The Borgen Project.

Photo: Unsplash

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Legal Reforms in Nigeria’s Financial Sector

Legal reforms in Nigeria's financial sectorNigeria’s economy has faced persistent challenges in reducing poverty, in part because weak legal and financial systems have hindered growth, financial inclusion and investor confidence. In recent years, however, legal reforms in the financial sector and supportive fiscal policy frameworks have helped strengthen Nigeria’s economic stability. These reforms have also expanded access to financial services for individuals and small businesses, a vital step in the fight against poverty.

Modernizing Financial Law

One of the most significant legal reforms in Nigeria’s financial sector is the Banks and Other Financial Institutions Act (BOFIA) 2020. It replaced a 1991 law that had become outdated amid technological advancements and the rapid growth of non-bank financial players. BOFIA 2020 modernizes the legal framework governing banks and other financial institutions. 

The Act clarified regulatory functions, expanding the Central Bank of Nigeria’s (CBN) regulatory reach and introducing stronger enforcement and credit recovery mechanisms. Experts note that the updated law also explicitly brings fintech companies within the CBN’s regulatory purview, requiring them to be licensed and regulated by the CBN. This reduces legal uncertainty and supports stable, legal expansion of digital financial services.

Financial Inclusion Gains Through Legal Frameworks

Legal backing for financial sector reform has coincided with measurable progress in financial inclusion, a key indicator of poverty reduction. The CBN’s National Financial Inclusion Strategy and related regulatory frameworks aim to expand access to formal financial services for all citizens. These efforts target financial exclusion, which once affected more than half of the adult population.

Progress on this front helps households save securely, access credit, make digital payments and protect assets. Improving access to finance is especially critical in a country where access to formal financial services was historically low. Nigeria’s strategy supports agent banking, mobile and digital financial services and initiatives targeting rural and underserved communities. All these are backed by legal and institutional reforms that make financial services safer and more predictable for consumers.

Strengthening Governance and Transparency

Nigeria’s broader legal reform agenda includes efforts to improve fiscal transparency and accountability at the state level through programs such as the World Bank-supported Fiscal Governance Reform and the State Fiscal Transparency, Accountability and Sustainability Program (SFTAS). This initiative uses legal and policy frameworks to improve public financial management across states, strengthening domestic revenue mobilization and sustainable financing for public services.

Fiscal transparency and accountable governance reduce leakage, corruption and inefficiencies. These problems disproportionately affect low-income households and limit funds for education, health and economic support programs that help lift people out of poverty.

Capitalization and Risk Management

Legal reforms have also supported initiatives such as bank recapitalization exercises, spearheaded by the CBN, to strengthen the stability and resilience of financial institutions. Higher capital requirements improve risk management capacities and reduce systemic vulnerabilities, fostering a safer environment for depositors and stakeholders alike. These moves help reduce the risk of bank failures, which can erode public confidence and destabilize local economies.

Reducing exclusion and strengthening the legal framework helps tackle financial instability. This, in turn, encourages domestic and foreign investment, a potential driver of economic growth and job creation in a country where millions still face multidimensional poverty.

Challenges and Continued Reform Needs

Despite improvements, substantial challenges remain. According to the World Bank’s latest development analysis, a majority of Nigerians continue to live in poverty even after macroeconomic reforms and legal changes, as household purchasing power remains weak and inequality persists. This highlights that legal reform is necessary but not sufficient in itself. 

Effective enforcement, expanded digital inclusion and complementary social protections remain essential to ensure that financial sector progress translates into meaningful poverty-reduction outcomes for the most vulnerable.

Conclusion

Legal reforms in Nigeria’s financial sector have modernized regulation, expanded financial inclusion strategies and strengthened fiscal governance. Indeed, from BOFIA 2020 to broader governance reforms, these changes highlight the rule of law’s role in economic stability and anti-poverty efforts. By improving the predictability and transparency of financial systems, these reforms help unlock access to services, encourage investment and create a more inclusive economic environment.

Sustained focus on implementation and enforcement is essential. Targeted programs that expand access to finance for women, rural residents and microenterprises will help ensure Nigeria’s legal reforms deliver broad improvements in living standards and long-term poverty reduction.

– Sean Leung

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

Photo: Flickr

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From Opium to Opportunity: Reducing Poverty in Northern Thailand

Poverty in Northern ThailandDuring the 20th century, the Golden Triangle, the region where Thailand, Myanmar and Laos meet, became infamous for its opium production. Northern Thailand’s farmers relied heavily on the opium poppy as the foundation of their livelihoods. Unfortunately, this dependence on opium also entrenched poverty in these rural communities.

To address this, the Thai government has worked to reduce poverty in the region and promote alternative livelihoods through agriculture, coffee cultivation and tourism. The Royal Project Foundation, launched as the Royal Hill Tribe Assistance Project in 1969, has fundamentally transformed the way of life for the hill tribes and villages. Today, visitors can explore villages in provinces such as Chiang Mai and Chiang Rai to see how indigenous communities and migrant ethnic groups have embraced the government’s initiative. 

Poverty in Northern Thailand 

In recent years, Thailand has made notable progress in reducing poverty. Measured against the $8.30-per-day upper middle-income poverty line, the country’s poverty rate was 9.9% in 2023. However, high income inequality and regional disparities remain persistent challenges.

Poverty disproportionately affects agricultural communities due to the country’s reliance on farming jobs. According to the World Bank’s “Rural Income Diagnostic,” 79% of Thailand’s impoverished population lives in rural areas. Northern Thailand, in particular, continues to face heightened poverty levels; in 2013, the rural poverty rate in the region was around 17.8%, compared to 6.7% in central Thailand. 

Within this context, the region’s hill tribes and villages continue to navigate economic challenges.

The King’s Vision: Peaches and Agriculture

In 1969, His Majesty King Bhumibol Adulyadej visited Doi Pui, a mountainous village in Chiang Mai and home to the Hmong tribe. Like many rural communities at the time, the Hmong were heavily involved in growing drug crops and participating in the opium trade, resulting in low incomes and poor living conditions. Recognizing these challenges, the King proposed a new agricultural model focused on fruit trees, specifically peaches. 

This shift aimed to address the legal issues surrounding opium production, reduce local poverty and curb deforestation. “One of the reasons underlying the creation of the project was humanitarianism,” stated the King. The visit to Doi-Pui gave the King a vision he could apply to northern Thailand as a whole. He promptly initiated the Royal Project to help alleviate poverty across the region.

Obstacles and the Royal Project Foundation Today

Nearly 60 years later, the Royal Project Foundation continues to operate across five northern provinces, benefiting as many as 37,561 farming families. Its progress was far from linear, as the project faced significant obstacles in its early years. The first attempts to grow fruit trees failed, requiring collaboration with experts from Taiwan and experiments to adapt to northern Thailand’s unique climate before successful cultivation could be achieved.

As the project has progressed, tourism has become an integral part of the initiative, with visitors coming to see the cultivation of tea, fruit and coffee, as well as reforestation projects. Today, the project has transformed the incomes of its people and has significantly reduced poverty in northern Thailand.

Conclusion

The King’s blueprint for a prosperous countryside in northern Thailand, one where the people could work in tandem with the earth to support themselves, is an exceptional example of vision yielding tangible change. The lives of those who once relied on opium production to survive have been fundamentally transformed by a targeted poverty reduction project centered on sustainable agriculture and economic opportunity. Northern Thailand stands as an exemplary global showcase of what effort and initiative can achieve. 

– Polly Laws

Polly is based in Cardiff, Wales and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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EU Anti-Poverty Strategy: Ending Structural Poverty in Cyprus

Poverty in CyprusRecent progress in reducing poverty in Cyprus reflects a broader shift in social policy across the European Union (EU). The EU is developing its first comprehensive Anti-Poverty Strategy. The European Commission and the European Parliament support the initiative as a framework to address structural poverty across member states, including Cyprus.

A New European Framework To Tackle Poverty

In 2025–26, the European Commission began drafting the EU’s first Anti-Poverty Strategy. It launched a public consultation to guide the policy. The initiative aims to “provide essential protection to people [who] need it the most and tackle the root causes” of poverty.

The strategy forms part of a wider social investment agenda based on the European Pillar of Social Rights. The EU has set a target to reduce the number of people at risk of poverty or social exclusion by at least 15 million by 2030, including five million children. Cyprus has supported this agenda at the EU level. 

The government has advocated coordinated policies on child poverty, access to services and social inclusion. These priorities align with domestic policies such as free school meals and education support for vulnerable children.

Has the EU Strategy Been Effective?

The EU has not yet finalized the Anti-Poverty Strategy. Implementation will begin after formal adoption. However, recent EU data shows gradual progress in reducing poverty risks. A European Parliament briefing reports that the number of people at risk of poverty or social exclusion declined slightly from 95.3 million in 2022 to 94.6 million in 2023. 

Despite this progress, poverty still affects about 21% of the EU’s population; children remain especially vulnerable. In 2024, about 24.2% of children in the EU were at risk of poverty or social exclusion. This trend highlights the need for targeted policies such as the EU Anti-Poverty Strategy and the European Child Guarantee.

Civil society groups support the strategy’s direction. Many organizations are urging EU institutions to secure strong funding and ensure clear, enforceable implementation. They also call for policies that address housing, education, health care and social exclusion alongside income support.

Advocates stress that poverty policy must tackle structural drivers, not just provide short-term relief. This approach aligns with The Borgen Project’s emphasis on long-term poverty reduction.

Poverty in Cyprus

For Cyprus, the EU Anti-Poverty Strategy provides policy coordination and financial support that strengthen national programs. Cyprus has already reduced child poverty rates, including a decline from 16.7% in 2023 to 14.8% in 2024. The country has also expanded school meal programs and education support initiatives.

These policies align with EU priorities that emphasize early intervention and access to essential services. The European Child Guarantee strengthens this approach by ensuring that children in need have access to health care, education and adequate nutrition. The EU strategy also reframes poverty as a structural challenge rather than only a lack of income. 

It promotes policies that support social protection, quality employment and access to essential services. Cyprus has increasingly adopted this approach through ongoing social policy reforms that prioritize long-term social investment.

Looking Forward

The EU has committed to eradicating poverty by 2050, placing long-term structural reform at the center of its social policy agenda. The strategy’s success will depend on sustained funding, effective implementation and strong coordination among member states. The initiative signals a clear shift in EU policy. 

European institutions are advancing poverty reduction through coordinated strategies that prioritize inclusion, dignity and structural change. Cyprus appears increasingly aligned with this direction as it continues to expand its social investment policies.

– Demetra Mykoniatis

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

Photo: Flickr

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Fighting Poverty Through Education in Latin America

Education in Latin AmericaWhen thinking about their childhood, most people remember their first day of school, learning their ABCs and basic math operations. For most, childhood and education go hand in hand as essential steps that help an individual learn, mature and transition into adulthood. However, many children in Latin America lack access to this experience. 

Before COVID-19, roughly 52% of children in Latin America were unable to read and understand simple text. The pandemic has made this situation even worse, with young generations being less educated and lacking the tools necessary to transition into adulthood. However, international organizations are fighting poverty through younger generations by increasing investments in education to create a brighter future for millions of children across Latin America.

Learning Crisis

Over the last two decades, many countries in Latin America have experienced a learning crisis related to their younger generations. This crisis can take different forms across countries, depending on their specific geographic and social characteristics. In Argentina, for example, the most affected children are those living in rural areas, far from cities and their services. 

As a result, many teachers are forced to teach children from multiple grades, ages and abilities in the same classroom, being unable to personalize the learning experience and focus on individual students. In other countries, such as Haiti, the learning crisis is related to the provision of educational opportunities to all members of the population. 

In Haiti specifically, nearly 80% of primary schools are non-public, thus limiting access to education to those who can pay, on average, $130 per year. Many families cannot afford education and other necessities, so they decide not to send their children to school.

What Is Being Done?

To address the education crisis plaguing Latin America, several international organizations have stepped up efforts to expand access to education across the region. In September 2025, the Development Bank of Latin America and the Caribbean (CAF) launched the LAC Future Bank. It is a five-year strategy designed to benefit 50 million children in Latin America through a $5 billion regional investment.

These funds will be used to develop projects that prioritize children and their needs, including education. Although this initiative addresses other issues related to childhood well-being, education is a main area of focus to “break cycles of poverty and inequality.” In Haiti, programs and organizations, such as the International Development Association (IDA) and its partners, have focused primarily on funding for millions of children. 

From 2013 to 2023, IDA and partner organizations provided roughly half a million tuition waivers to children who could not afford to attend school. In other countries, such as El Salvador, projects like the “Growing up and Learning Together: Comprehensive Early Childhood Development Project” are working to create safe, clean schools with essential services for children.

The Impacts

Although it is difficult to measure the effectiveness of these investments in the short term, there have been early signs of improvement. World Bank investments have enabled middle-income countries to reduce their dropout rates and boost learning outcomes. Slowly but surely, improvements in education quality and access in Latin America are key to a more productive, inclusive and sustainable development pattern in the future for many countries across the region.

– Rodrigo Salgado

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

Photo: Unsplash

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How Landmine Clearance and Food Security

How Landmine Clearance and Food Security Support Development in IndonesiaLandmines, cluster munitions and improvised explosive devices continue to threaten civilian lives and block economic progress long after conflicts end, making land unsafe for farming, travel or everyday life. These explosive remnants of war can lie hidden for decades and prevent people from safely accessing land for food production, shelter or infrastructure. They are one reason communities often cannot rebuild after conflict. At least 58 states and territories remain contaminated by these explosive hazards — 29 with cluster munition remnants and more than 60 with improvised explosive devices (IEDs) — endangering millions of people and limiting economic opportunities.

Because contaminated land is unsafe, farmers often cannot grow food where they once did, which reduces food production and household income and slows community recovery. This weakens food security and forces families to rely on outside support instead of producing their own food. Mine clearance makes land safe again so families can plant crops, raise animals and support their own food supplies — a key part of strengthening landmine clearance and food security and promoting long-term community well-being.

Clearing Land for Food and Growth

Mine action — the process of surveying, mapping, detecting and removing landmines and explosive remnants of war — does more than save lives. As teams clear contaminated land and certify it safe, farmers can return to productive use, reinforcing landmine clearance and food security. This work also supports broader improvements such as irrigation systems, water access points and improved roads, which help sustain agricultural productivity and support community development.

Clearing landmines also reopens roads and paths that were once too dangerous to use, allowing children to go to school, families to access health care and goods to be traded at markets. Safe infrastructure supports local economies and helps communities rebuild and connect with broader development opportunities.

Indonesia’s Role in Mine Action and Food Security

Indonesia frames mine action as both a humanitarian obligation and a development priority, particularly through its participation in international disarmament and peacebuilding frameworks. As a state party to the Ottawa Treaty, also known as the Anti-Personnel Mine Ban Convention, Indonesia links mine action to civilian protection, post-conflict recovery and long-term development, including food security.

While Indonesia is not among the most heavily contaminated countries, it plays a role in international mine action assistance through peacekeeping operations, South-South cooperation and regional leadership in Southeast Asia.

Indonesia has also expressed concern about the growing global threat posed by explosive remnants of war, particularly as climate change increases flooding and extreme weather, causing unexploded ordnance to move into previously cleared agricultural areas. These risks further undermine food production in climate-vulnerable regions and highlight the need for sustained international cooperation and innovation in mine action.

The Importance of Funding for Mine Action

Funding is essential for mine action because clearing landmines and supporting affected communities requires long-term investment. The United Nations Mine Action Service (UNMAS) receives support through assessed contributions when mine action is part of peacekeeping or other United Nations missions and through extra-budgetary resources provided by member states to the United Nations Voluntary Trust Fund for Assistance in Mine Action. The fund helps finance surveys, clearance, risk education and victim assistance.

Indonesia has repeatedly warned within the Fourth Committee of the United Nations General Assembly that declining voluntary funding threatens the sustainability of mine action programs worldwide, especially as global military expenditures continue to rise. Continued funding is needed to sustain clearance operations, support survivors, expand risk education and integrate mine action with broader humanitarian and development programming.

Indonesia and International Support

Indonesia supports international efforts to remove landmines and participates in global frameworks that encourage civilian protection and post-conflict recovery. Agreements such as the Mine Ban Treaty have led to widespread destruction of landmines and mobilized international cooperation to help countries and communities address contamination, including through risk education and assistance to survivors.

Mine action is not only about physical clearance. It also includes risk education, which teaches people how to recognize and avoid explosive hazards, and victim assistance, which helps those injured regain independence and participate in community life. These programs help communities rebuild confidence, participate in economic activity and focus on education and work rather than fear of unexploded weapons, though challenges remain as some regions recover more slowly.

Food Security and the Future

The relationship between landmine clearance and food security plays a critical role in helping communities rebuild after conflict and invest in long-term development. When land is cleared of explosive hazards, farmers can grow more food, households can invest in farming and other income-producing activities and communities can reduce poverty. Safe land also encourages investment in infrastructure such as irrigation, roads and local markets, strengthening resilience in agricultural communities and fostering economic growth.

Indonesia emphasizes that mine action directly supports global development goals such as ending hunger (SDG 2), promoting peace (SDG 16) and improving human security. Although progress can be uneven across regions, continued international support and cooperation help mine action reach more people, make communities safer and contribute to long-term development outcomes in Indonesia and around the world.

– Anaisha Kundu

Anaisha is based in Skillman, NJ, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Unsplash

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Bridges to Prosperity: Tackling Rural Isolation in East Africa

Rural Isolation in East AfricaFika, formerly known as Bridges to Prosperity, is an NGO that operates in East Africa to address rural isolation. What started as a small partnership with local communities to construct trail bridges now operates in 21 countries. It has built 480 trail bridges and has reached approximately 1.7 million people.

Despite being historically underestimated, rural isolation is a root cause of poverty. Approximately 1 billion people are considered rurally isolated, meaning they live more than two kilometers from an all-season road and 80% of people living in extreme poverty reside in rural areas. A significant proportion of these populations live in sub-Saharan Africa, underscoring that no long-term impact can be achieved without first addressing rural isolation in East Africa.

Fika’s Impact So Far

Over the past few years, Fika has had its greatest impact in Rwanda. Since partnering with the Rwanda Transport Development Agency in 2019 and building 200 bridges, the organization has reached more than 800,000 people nationwide. Fika estimates that each bridge results, on average, in a 75% increase in farm profits and a 30% increase in household income.

This impact benefits local communities and demonstrates a strong return on investment for a trail bridge. In fact, Fika calculated that each trail bridge returns 49% of its cost in increased economic activity annually, meaning each bridge essentially pays for itself within two years of operation. Even when considering nonmonetary factors, connecting communities to critical services has led to a 200% increase in school attendance among girls and improved access to health care in Rwanda.

These outcomes show a clear correlation between poverty and rural isolation in East Africa, meaning one cannot be addressed without the other. Furthermore, after years of research and testing, Fika designed a trail bridge model that is both cost-effective and sustainable. When the project began, the founders had limited access to heavy, durable materials.

As a result, it developed a system that uses repurposed and locally sourced materials to construct the trail bridges. These bridges are now simple to build and highly resilient, capable of withstanding the volatile climates of the countries in which they are built.

Vision for the Future

While many people have already benefited from the organization’s work, millions remain isolated from critical services. Fika aims to expand into other East African countries and broaden its reach into Central Africa; its newest program is launching in Zambia, with the goal of connecting 500,000 people by 2030. Most importantly, Fika is working to move away from philanthropy toward a more sustainable model in which governments or the private sector fund these projects.

The trail bridges built so far are owned by local governments, which makes them responsible for maintenance rather than Fika and helps ensure long-term upkeep without relying on the organization’s resources. Fika is still trialing partnerships with local governments, as each country requires a different cooperation model.

Final Thoughts

Although trail bridges are not the most traditional form of foreign aid or poverty alleviation, Fika represents a shift toward more permanent and sustainable solutions. Quick relief aid is essential and has helped millions in the past. However, organizations that address the root causes of poverty, such as rural isolation in East Africa, are more likely to achieve long-lasting impact and support future development without relying on continued foreign aid.

– Vittoria Cortese

Vittoria is based in Washington DC, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Unsplash

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Success of the China-Latam Youth Challenge To Alleviate Poverty

China-Latam Youth ChallengeIn response to the U.N.’s call to end global poverty in 2024, Chinese institution Tsinghua University announced the China-Latam Youth Challenge to Alleviate Poverty. This Challenge asked participating teams to propose and design projects addressing multidimensional poverty in disadvantaged communities across the globe.

The China-Latam Youth Challenge To Alleviate Poverty

The China-Latam Youth Challenge to Alleviate Poverty was launched in collaboration with partner Universities across Latin America. The challenge further aimed to encourage cross-cultural communication and collaboration between Chinese and Latin American students. The competition was a major success, with more than 120 Chilean University students teaming up with peers from Tsinghua University and other partner institutions.

More than 200 students participated in total. Organisers held the finals in August 2025 with teams presenting their ideas in both Brazil and Chile. Twelve out of the total 102 teams made it to the final round. Many exciting projects and ideas were presented, with more than 27 universities from Brazil, Chile, Peru and China in attendance.

The competition featured many talented individuals and innovative solutions. Ideas focused on solving a wide range of issues, including unemployment, infrastructure, education, health and well-being. Not only did this challenge help develop solutions to global poverty, but it also raised awareness and educated young minds about the issue of global poverty. The China-Latam Youth Challenge to Alleviate Poverty acts as a great example of how global poverty innovation is possible when institutions make resources available.

Fountain of Radiant Dreams

This project received the first-place Gold Award in China. The team proposed a three-pronged solution to address the needs of some of Chile’s most disadvantaged communities, focusing on community service, clean energy and financial support. The project included community initiatives, such as the installation of lighting systems powered by renewable energy in rural areas lacking electricity.

Sustainable Solar Lighting and Emergency Response for Brazilian Communities

This project received the Gold Award in Brazil. This team developed solutions to address infrastructure damage caused by extreme weather conditions in the most affected areas of Brazil. This includes the installation of solar-powered chargers to allow cellphone and technology use during severe blackouts, allowing rural communities to communicate during times of crisis.

Financial Loans for Small Enterprises

This team won the Silver Award in the finals in Chile. Their project focused on inclusive financial loan programs for small businesses in China. It also provided innovative financial solutions for small Chilean fishing enterprises. This project aims to support small businesses in growing, creating jobs, promoting sustainability and enhancing the role of women in the fishing industry.

Elquilabs

This team developed both a toolkit and a digital platform that works to transform rural areas into “Maker Spaces,” enabling learning and innovation. The project aims to bridge the gap in creativity and education between rural and urban areas. Diego Urzúa, a psychology graduate and team member, said the project focused on bringing together diverse perspectives—from countries such as Chile, China and Brazil—which added real value to the process.

Minova

The team received the Audience Choice Award. It was a collaboration between Tsinghua University, Universidad de Santiago de Chile and Pontificia Universidad Católica de Chile. The project aimed to repurpose mining waste into sustainable, affordable construction materials.

Looking Forward

The winning teams and award recipients will receive full funding for their projects and continue development at Tsinghua University in January 2026. The challenge’s success underscores the critical role of adequate funding and resource allocation in driving innovation to address global poverty. It also underscores the importance of educating young people about global poverty and sustainable development. Supporting these efforts is more urgent than ever.

Looking ahead, the China–LATAM Youth Challenge to Alleviate Poverty serves as a strong model for the future of global poverty innovation.

– Alys Gaze

Alys is based in Wales and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Food Aid Theft Solutions

Food Aid Theft SolutionsFood aid theft is an issue with significant implications. It directly affects people in need who do not receive essential goods during critical times, worsening economic conditions and food insecurity. It also undermines trust among humanitarian organizations and can affect their funding levels. Repeated diversion of aid has been shown to lead to suspension of support, as seen in 2019 in Yemen. At that time, in the Yemeni capital, at least 10% of the World Food Programme’s (WFP) deliveries were diverted from people in need.

In some cases, this renders food aid less effective. For instance, in Yemen, despite increased levels of support in 2019, hunger persisted and even increased in some areas. However, innovative grassroots, structural or community-based initiatives have shown potential to reduce the problem in deeply affected places such as Somalia, Ethiopia and Yemen.

Grassroots Initiatives

Action Against Hunger launched a grassroots campaign in Somalia by establishing community call centers to improve aid reporting measures. The approach helps track aid deliveries in areas affected by limited resources and conflict. Addressing these issues is essential because Action Against Hunger reports that limited road access and control of territory by non-state actors significantly contribute to aid diversion.

The organization hired and trained local volunteers in tracking and reporting aid deliveries. The team handles complaints and verification and also manages real-time crises. In 2023, the call center was alerted by community members about a cholera outbreak, allowing the organization to intervene immediately. In two years of operation, the call center has answered more than 30,000 calls regarding aid delivery verification, feedback on aid received and requests for emergency assistance. The calls are prepaid, meaning even people in remote regions can contact the center.

Structural Changes

A growing approach among humanitarian organizations is shifting from in-kind aid to direct financial assistance. According to the WFP, sending money is empowering because cash is often the most important asset during a disaster or crisis. It provides flexibility, allowing recipients to use it for food, medical bills, rent or school fees based on their needs. This has become an increasingly common practice. In 2023, the WFP sent about $2.8 billion to countries including Yemen, Somalia and Afghanistan, directly supporting 51.6 million people.

The Poverty Action Lab, a research center founded by Massachusetts Institute of Technology professors, evaluated cash assistance positively. The organization reported that in Niger, financial support helped families eat more frequently. Delivery costs are relatively low, making this solution cost-effective. Their findings suggest that cash can improve economic conditions and have positive effects on mental well-being. For example, Afghan women who received cash transfers reported feeling happier and more confident about their economic situation. While the Poverty Action Lab notes the need for more research, it concludes that cash has a tangible, positive impact on food security. Provided an area has functioning markets, the organization suggests this type of assistance can support long-term stability by helping families build more secure futures.

Community Approaches

Community-based strategies are another of the solutions addressing food aid theft. Humanitarian organizations engage local residents in various ways, including empowerment projects in Ethiopia’s Tigray region and feedback desks in Sudan.

Omna Tigray, a nonprofit in Ethiopia, addresses food aid theft by involving residents in planning, implementing and monitoring food aid programs. The organization states that local engagement cultivates responsibility among community members. According to Omna Tigray, empowering residents helps identify and report aid diversion and strengthens relationships between donors and beneficiaries, which can be strained by theft. Community engagement is particularly important in a region where 5.4 million residents depend on aid deliveries.

Similar approaches have been implemented elsewhere, including feedback desks in refugee camps in Sudan established by World Vision. A committee of camp residents and World Vision staff selects and trains local volunteers who assist with reports and inquiries from camp residents. These desks help quickly address distribution issues and are recognized positively by locals. During a discussion session with World Vision staff, an anonymous female refugee said the “community help desk system is the best for food distribution.”

Looking Ahead

These various food aid theft solutions demonstrate multiple ways to address the issue. Ranging from grassroots initiatives to structural and community-based approaches, they show potential for reducing the problem. These measures have contributed to more equitable aid distribution in some areas. Furthermore, they have been positively received by local communities and researchers focused on food aid programs.

– 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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Success Story: Ending Extreme Poverty in Cabo Verde

Poverty in Cabo VerdeCabo Verde, a small island nation located approximately 300 miles off the west coast of Africa, is on the verge of eradicating extreme poverty.

Poverty in Cabo Verde

The country of more than 520,000 people struggled economically for years after gaining independence from Portugal in 1975, but is now prospering. Between 2015 and 2022, the percentage of the population living in extreme poverty declined by more than 50%. Although Cabo Verde’s success story has not come without challenges, such as an economic setback during the COVID-19 pandemic, the nation continues to make steady progress toward its goal of ending extreme poverty by 2026.

The Strategies Behind Cabo Verde’s Success

Several factors have contributed to Cabo Verde’s progress. The initiatives below highlight how government and nongovernmental organizations have played key roles in helping the nation combat extreme poverty.

  • National Strategy for the Eradication of Extreme Poverty (ENEPE) 2022–2026. Launched in response to the economic downturn caused by the 2020 pandemic, this initiative focuses on reducing inequality through investments in infrastructure, education and direct support for vulnerable populations.
  • Transport Sector Reform Project. This project focuses on rehabilitating roads across the country, connecting once-isolated communities in Cabo Verde. Improved infrastructure has made it easier for people to access health care and education while ensuring safer transport of goods nationwide.
  • Access to Finance for Micro, Small and Medium-Sized Enterprises Project. This initiative has been especially valuable following the COVID-19 pandemic and the resulting economic slowdown. It provides financial support to small and medium-sized businesses, helping them recover and expand.
  • Education and Skills Development Enhancement Project. This initiative has awarded scholarships and grants to about 2,000 young people aged 18 to 30 across Cabo Verde, helping to expand opportunities and reduce youth unemployment.

A Model for Africa and Beyond

Cabo Verde’s journey shows that even small nations can achieve significant progress when policies prioritize people, education and equal opportunity. While challenges remain, the nation’s success demonstrates that extreme poverty can be overcome through inclusive growth, strategic investments and strong partnerships. As Cabo Verde continues to build on its achievements, it stands as a beacon of hope for its citizens and for nations across Africa and the world striving for a brighter, more equitable future.

– Fernanda Nilson

Fernanda is based in North Charleston, SC, US and focuses on Good News for The Borgen Project.

Photo: Flickr