Information and stories about poverty reduction.

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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

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Poverty in Guatemala: Hope in the Humble

Poverty in GuatemalaIn Guatemala, more than half the population lives in poverty. However, the statistics alone fail to capture the resilience and humanity of those affected. During spring break, The Borgen Project visited communities where survival is a daily endeavor and individuals like Bonita, a grandmother with a boundless work ethic, embodied strength in the face of adversity. Her story illustrated not just hardship, but a quiet dignity stitched together with grit and grace.

Poverty in Guatemala

As of 2024, 54.8% of the population of Guatemala was reported to be living in poverty. Nearly two-thirds of those individuals survive on less than $2 a day. These figures are staggering, yet they only hint at the lived realities behind them. Each number represents a person, a family and a community striving to endure and overcome systemic challenges.

A Firsthand Encounter

The Borgen Project interviewed Bonita, a Guatemalan grandmother raising her grandchildren alone after her husband’s passing. She operates a small store to support her family. Despite limited resources, Bonita welcomed visitors with warmth and generosity, offering food and soda without hesitation. According to a team member, “Bonita was the softest soul and worked for everything she had.”

In these communities, every member makes a contribution. Teenagers assist their families, older women assist with household chores and men labor in the fields. In places where missing work can mean missing a meal, rest is not a luxury—it’s a risk. Survival functions as a full-time occupation.

Clean Water, Clear Impact

Bonita received a water filter from the Filter of Hope organization. The moment marked a turning point, as access to clean water reduces illness, improves work attendance and offers a safer future for children. A team member recalled, “We gave her grandchildren cups of the clean water and they smiled so big it was something I will never forget.” The gesture underscored how basic resources can transform daily life.

Joy in Simplicity

Despite economic hardship, joy remains a constant presence in Guatemalan communities. Children played soccer in the streets using worn-out balls and improvised goals. One child used a plastic bottle as a toy, demonstrating that happiness often stems from connection and community rather than material possessions.

The visit highlighted the contrast between assumed necessities and actual privileges. Clean water, secure shelter and opportunity are not guaranteed for many. Yet dignity persists—not through wealth, but through perseverance and grace in the face of struggle.

The Illusion of Contentment

Gratitude is common among Guatemalans, but it often reflects limited exposure to broader possibilities. Poverty restricts more than material goods; it narrows perspective. Without access to clean water, its absence may not even be recognized as a deficit.

Approximately 70% of Guatemala’s employed population works in the informal sector, characterized by unstable income, limited benefits and slow long-term growth. Female labor force participation remains among the lowest in the region, at around 42%. These structural barriers hinder families like Bonita’s from reaching their full potential.

Why It Matters

Bonita’s story exemplifies the heart of Guatemala—marked by pride, love and resilience. Yet no one should have to endure such burdens alone. Organizations like Filter of Hope provide more than resources; they offer respect and recognition. Many communities have adapted to survive without assistance, but that should not be the expectation.

Poverty in Guatemala is not just a matter of numbers—it is a human issue. It affects mothers, grandmothers and children who deserve more than mere survival. They deserve the opportunity to thrive.

Resilience should not be mistaken for sufficiency. Strength does not negate the need for support and gratitude does not imply contentment. Bonita’s experience reflects millions of others. While she may never ask for help, her story calls for it because she deserves it. Because they all do.

– Marissa Schoth

Marissa is based in Benton, LA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Unsplash

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4 Charities Combating Period Poverty in Poland

4 Charities Combatting Period Poverty in Poland Poland has seen a significant rise in living standards in the last 20 years, with GDP per capita doubling since 2005. However, period poverty in Poland remains a significant issue.

Period poverty is when women lack adequate access to the quantity or quality of menstrual hygiene products. Many have criticized health care for women in Poland in recent years, not only for the abortion ban but also for poor levels of gynaecological care, a lack of funding from the national health fund and difficult access to contraception. Women’s health remains a taboo issue within Poland, with 41% of Polish women reporting that menstruation was never discussed in the family home.

The Kulczyk Foundation’s Period Study

In 2020, the Kulczyk Foundation conducted a large-scale survey on young girls and attitudes toward periods within Poland. This revealed shocking levels of menstrual shame and demonstrated high levels of period poverty. The study found that 21% of schoolgirls leave school due to a lack of access to menstrual products and that one-fifth of Polish women struggle to buy appropriate menstrual products. It also revealed that women and girls had misconceptions surrounding periods, with 25% of women thinking it was impossible to get pregnant during their period and 22% believing women should not go to the dentist during menstruation.

4 Charities Combating Period Poverty in Poland

Here are four organizations and charities that are doing the most to combat period poverty in Poland.

  1. The Różowa Skrzyneczka (Pink Box) Foundation. The Pink Box foundation aims to alleviate period poverty in Poland and reduce the stigma surrounding menstruation. This programme directly counteracts menstrual poverty through publicly available boxes containing free pads and tampons. Public spaces such as libraries, parks, transport hubs and schools are used to host these boxes. So far, major cities including Rzeszów, Sopot, Gdańsk and Łódź have implemented them.
  2. Menstruation Action. Menstruation Action aims to combat misconceptions about periods and provide access to period products for schoolgirls. Early efforts by Menstruation Action involve the purchasing and distribution of 1,000 menstrual cups for those most affected by period poverty in Poland, including single mothers, those in refugee centres and orphanages. In September 2020, the “Hey Girls” campaign launched, in which they provided boxes filled with essential sanitary products to schools and organized classes on menstruation for schoolgirls. More recent initiatives include the launch of “Padsharing.” Padsharing is a support network that connects women in need with donors. Through this programme, donors anonymously place and pay for orders according to the women in need’s instructions. Menstruation Action also introduced the “Heyday” initiative in July 2021 to create the first dedicated menstrual dispensers in Poland. The idea behind this project was so that companies and institutions that would like to introduce menstrual products into their toilets can do so despite lacking the resources to do so. They also provide “period help points” across Kraków, containing free sanitary products.
  3. Yestopads.com. Yestopads is a result of the Periodic Coalition, an association of charities, organizations and female experts who want to normalise and destigmatise female menstruation. The coalition consists of more than 40 partners and supporters, aiming to help the nearly 2 million girls aged 9–19 who are either menstruating or about to menstruate. They are currently attempting to introduce the first draft act on menstruation to ensure free access to menstrual products and provide girls with adequate education on menstruation.
  4. Gohealthygirl. Gohealthygirl operates a “pink clinic.” This is a safe space in which women and girls can see a doctor for any gynaecological reason without judgment. Studies performed by this organization have revealed that women experience unpleasant comments about appearance, knowledge and sexual orientation, and many often experience poor treatment from doctors. They also provide free health guides, podcasts and articles online on women’s health to provide women and girls with accessible education about their bodies.

Looking Ahead

Despite period poverty remaining a significant issue for women and girls in Poland, the work of these organizations suggests a positive direction for removing the stigma surrounding menstruation and the reduction of period poverty in Poland.

– Alys Gaze

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

Photo: Flickr

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Addressing Elderly Poverty in Guinea-Bissau

Elderly Poverty in Guinea-BissauIn the villages and rural communities of Guinea-Bissau, elderly citizens, who occupy about 3.1% of the population, struggle each day to survive on limited resources, resulting in poverty and neglect overshadowing their years of experience. Guinea-Bissau is a small country located in West Africa with a population of more than two million people. Its economy primarily depends on agriculture, with exports including fish, cotton, cashew nuts and groundnuts. However, deep-rooted challenges such as corruption, war damage, inflation and poverty prevent the nation from meeting the needs and hopes of its people. With more than two-thirds of the population living below the poverty line, the elderly, who make up 3.14% of the population, remain among the most vulnerable. Guinea-Bissau must address elderly poverty and strengthen social support to ensure dignity and well-being for older citizens. Here is more information about elderly poverty in Guinea-Bissau.

Challenges That the Elderly Population Face

Elderly poverty occurs when people of the older generation, typically 65 years and older, experience financial insecurity and limited access to basic resources. This issue creates serious concern in Guinea-Bissau, where economic instability and a weak social support system increase the vulnerability of the aging population.

The pension system in Guinea-Bissau plays a major role in causing elderly poverty in Guinea-Bissau. Guinea-Bissau operates two pension schemes: a public one for government employees and a private scheme that the National Social Security Institute (INSS) oversees. However, both systems face serious challenges. Most citizens work in the informal sector and therefore do not receive formal pension benefits. Irregular government funding and financial strain weaken the public scheme, while the private system suffers from administrative inefficiency and weak oversight.

These issues leave many elderly citizens without social protection and steady income, making Guinea Bissau’s case severe compared to other West African countries. Pensions cover only about 2.9% of the workforce in Guinea-Bissau, leaving 97% of working adults without a financial safety net after retirement. Most elderly citizens rely on support from family members or community networks to survive. Those without family assistance often face extreme poverty and food insecurity, and they often lack of access to health care.

Efforts Towards a Brighter Future

Despite these difficulties and challenges, several organizations support the elderly and work to reduce poverty in Guinea-Bissau. Organizations such as Caritas Guinea-Bissau provide health care, food security and community support for vulnerable groups. Since its establishment in 1982, Caritas Guinea-Bissau has built 41 parishes and missions. It leads programs in health, food security, training and emergency response, particularly in rural communities, to benefit people of the older generation.

Community and faith-based initiatives also address elderly poverty and social support in Guinea-Bissau. Ajuda Amiga’s program in Guinea-Bissau manages direct relief programs that distribute food, clothing and medicine to communities in need each year, focusing on elderly citizens who lack pensions or family support.

The Church of the Nazarene in Guinea-Bissau contributes through its mobile clinic initiative, relaunched in 2023. Teams of local and international medical volunteers operate mobile health units that travel to remote areas, offering primary care, vaccinations and health education. Together, these organizations bring humanitarian relief and long-term development by ensuring that elderly citizens receive both care and representation.

Looking Ahead

According to the World Bank, developing Guinea-Bissau’s human capital remains critical to breaking the cycle of poverty and achieving long-term sustainable growth. The country must improve access to health care and rural development while creating a national pension system that protects citizens of the older generation. Promoting public awareness about the value of elder care will help citizens recognize support for older generations as both a social and economic responsibility within the country.

– Emmanuel Fagbemide

Emmanuel is based in Winnipeg, Canada and focuses on Technology and Global Health for The Borgen Project.

Photo: Flickr

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Poverty Reduction in the Republic of Congo

Poverty Reduction in The Republic of CongoThe Republic of Congo, also referred to as Congo-Brazzaville, is a mineral-rich country in Central Africa. Despite its abundance in valuable natural resources, the country continues to face increasing rates of poverty. Petroleum and gas currently dominate exports in the region, however, the nation struggles to translate its economic gains into extensive social development. Extreme poverty throughout the country, especially in rural areas, has been an ongoing challenge. Fortunately, poverty reduction in the Republic of Congo has been underway.

About Poverty in the Republic of Congo

According to the World Food Programme (WFP), 46.5% of the Republic of Congo is living below international poverty lines, equating to $2 a day. In fact, poverty rates in the region have spiked to 52%. The nation’s high poverty rates have continued to threaten civilian health, education and overall wellbeing.

The Republic of Congo faces various constraints when it comes to addressing its global poverty status. Corruption and social inequalities have been ongoing barriers. Due to weak national governance, policies confronting poverty have not been effective and initiatives pertaining to social development programs have not undergone successful execution. Many civilians lack access to quality education, health services, quality food markets and overall job opportunities.

Poverty in the Republic of Congo is multidimensional. Populations in rural Congo are 3% more likely to experience multidimensional poverty, which is slightly higher than those in urban settings. On top of this, when comparing male-headed households with women-headed households, women-headed households are at risk of experiencing 2.5% more multidimensional poverty.

Access to education has also played a significant role in the poverty status of Congolese households. It is reported that households with no secondary school education are more susceptible to multidimensional poverty by approximately 24%, with household size also being a contributing factor.

Additionally, the country’s strong dependence on its oil production can pose an issue depending on international price fluctuations. The country’s high debt has also contributed to how much funds can be distributed to social development programs.

The Congo’s National Development Plan 2022-2026

To help combat poverty in the Republic of Congo, several initiatives have emerged. The Congo’s National Development Plan 2022-2026 (PND) has focused on redirecting the country’s reliance on oil and diversifying its revenue. The plan emphasized national poverty reduction, infrastructure and economic development. To support the implementation of the PND, in June 2025, the World Bank approved the final operation in its Fiscal Management and Inclusive Growth series.

The Telema Program

Telema, meaning “stand up” in Lingala, one of the nation’s local languages, is a national program with initiatives to support poverty reduction in the regions of Brazzaville, Point-Noir and Pool. The program mobilizes micro-entrepreneurs and those vulnerable to poverty to start micro-projects. The government provides participants with grants and skills training. The project launched in 2019 and has proved major recent developments. In 2025, the program received an additional 1,968,000,000 CFA from France to expand to other regions including Oyo, Niari and Lekoumou.

Looking Ahead

Although the Republic of Congo has displayed efforts in stabilizing its economy and expanding social development programs, long-term poverty reduction in the Republic of Congo is dependent on the administration providing realistic opportunities for civilians. Initiatives such as Telema and support from the World Bank give optimism for positive change focusing on inclusion and job opportunities. If effectively implemented, the Republic of Congo could transform its resource wealth into a foundation for a prosperous future.

– Gloria Bwenge

Gloria is based in New York, NY, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Pixabay

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Labor Reforms and Poverty Reduction in Mexico

Poverty Reduction in MexicoSince 2012, Mexico has enacted a series of major labor reforms that have created a sustained reduction in poverty. Subsequent labor reforms between 2018 and 2022 have lifted millions out of poverty. According to a World Bank report that cites figures from the National Council for the Evaluation of Social Development Policy (CONEVAL), from 2016 to 2022, poverty in Mexico declined from 43.2% to 36.3%. Over the same period, the share of people living in monetary poverty, based on the national poverty line, dropped from 50.8% to 43.5%. Extreme monetary poverty also decreased, falling from 14.9% to 12.1%.

These changes were largely due to labor reforms in Mexico such as raising the minimum wage, ending exploitative outsourcing practices and strengthening labor protections. This shows that strong and sustainable structural labor reforms can reduce poverty and ensure significant improvement in the incomes and social rights of the Mexican people.

Labor Reforms and Poverty Reduction in Mexico

The most significant labor reform in Mexico was raising the minimum wage. According to a paper in the Journal of Development Studies, which explores the effect of minimum wage on poverty levels in Mexico, the first real increase was in 2019. That year, it rose by 16% across the country, except in municipalities near the U.S.–Mexico border, where it jumped by 100%.

Between 2019 and 2022, Mexico substantially increased the national minimum wage by 65% in real terms. According to a recent study by Mexico’s National Minimum Wage Commission, these wage policies directly and indirectly impacted poverty reduction. The researchers found that for every 10% increase in the minimum wage, multidimensional poverty fell by approximately 3.6%. Overall, the study estimates that 4.1 million people—out of a total 5.1 million who exited poverty—did so specifically because of the minimum wage increases, accounting for a 23.7% reduction in national poverty during this period.

Outsourcing Employment

Crucially, the wage hikes boosted labor income without causing significant job losses, reinforcing the policy’s role as a key driver of poverty reduction rather than economic disruption. The second major labor reform was the ban on exploitative outsourcing practices, significantly reducing poverty and strengthening labor rights in Mexico. Enacted in 2021, the ban led to a 73% drop in outsourcing and a surge in direct hiring. Average annual wages rose by 10% in the first year, while the wage gap relative to productivity narrowed by 27%.

Insourced workers saw salaries jump by 87%, social security and benefits rise by 30% and profit sharing grew by 62%, directly improving living standards. Importantly, these gains occurred without reducing employment or output, showing that the reform strengthened worker rights while protecting jobs. Workers who had faced the most exploitation benefited the most, demonstrating the reform’s effectiveness in improving wages and livelihoods across Mexico’s labor force.

Governance and Implementation

The Mexican government enforced the outsourcing ban through a comprehensive regulatory framework. Companies providing specialized services had to register in a public registry, proving compliance with tax and social security obligations, sharing profits with workers and renewing their registration every three years. Enforcement grew stricter: employers and staffing agencies became responsible for payroll taxes and social security for subcontracted workers, inspections were mandatory and firms faced larger penalties for violations.

To close loopholes, the reform aligned multiple existing laws and fostered coordination between government departments. Previously, outsourced workers had to be transferred to direct employment within a three-month, government-monitored period, ensuring compliance and protecting labor rights. These measures ensured compliance with the law and helped sustain the new labor protections. They also led to a significant drop in exploitation and improved working conditions nationwide.

Conclusion

Mexico’s experience shows that structural labor reforms, combined with strong governance and effective implementation, can transform poverty and inequality. The government created a labor market that supports social and economic inclusion by prioritizing worker rights and enforcing compliance. These achievements confirm that ambitious, well-enforced reforms can produce tangible, lasting improvements in the lives of millions, setting an example for other countries seeking to reduce poverty through labor policy.

– Akash Ramaswamy

Akash is based in Ontario, Canada and focuses on Politics for The Borgen Project.

Photo: Flickr

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Maternal Mortality in the KP Region

Maternal Mortality in the KP RegionConditional cash transfers (CCTs) are a common tool used by governments to alleviate poverty. It involves direct cash transfers to individuals or households to help families manage expenses. In exchange for these grants, there are stipulations of required health check-ups or testing, educational enrollment or other factors that can broadly reduce poverty and improve standards of living.

Based on current evidence, CCTs are most effective in health care-related initiatives, often improving health outcomes and encouraging increased utilization of health care offerings. The studies that provide this evidence also note that despite the clear positive impact, the efficacy of these initiatives remains ill-defined. This is due to disparate health care systems and the quality of services offered between the countries and communities where CCTs have been implemented.

Maternal Mortality in the KP Region

In Pakistan and in South Asia generally, the maternal mortality rate is significantly high. Although there has been a significant drop in the maternal mortality rate of around 60% between 2000 and 2017, the region still accounts for around 20% of maternal deaths worldwide. The 2006-07 Pakistan Demographic and Health Survey was the first effort to collect information on maternal mortality in the country.

The survey revealed that during those years, there were 276 maternal deaths for every 100,000 live births in Pakistan. In 2007-08, in the Khyber Pakhtunkhwa (KP) region, the maternal mortality rate was 275 deaths for every 100,000 live births in the region. These numbers indicated severe deficiencies in the delivery of adequate health care to expectant mothers, which the local governments of Pakistan sought to address.

The Chief Minister’s Special Initiatives

In the KP region of Pakistan, the Chief Minister’s Special Initiatives are a set of poverty alleviation measures created by the local government. These initiatives aim to improve living standards by offering financial incentives to individuals who take advantage of local services focused on education, employment and health outcomes.

For example, grants were provided to female students above grade 5 to encourage them to continue their education. Stipends were also offered to young people enrolled in government-sponsored vocational training programs. These incentives were significant because they represented key examples of CCTs used as a poverty alleviation tool in Pakistan.

In 2014, recognizing the urgent need to address maternal mortality rates and in line with a national push to improve health care for mothers and children, the government of KP launched the Chief Minister’s Special Initiative for Mother and Child Health. This conditional cash transfer program provides fixed cash stipends to marginalized mothers for attending prenatal checkups, delivering safely and completing postnatal visits.

A 2024 study evaluating the program found a substantial increase in the total number of health-seeking hospital visits, indicating that the intervention successfully achieved its intended behavioral change. Additionally, the cash incentives improved household purchasing power and supported the incomes of vulnerable families. The findings provided strong evidence for expanding the use of other CCT programs in Pakistan.

Maternal Mortality Declines in KP

In the years that followed, the maternal mortality rate declined significantly. The 2019 Pakistan Maternal Mortality Survey collected updated national and regional data, showing trends since the 2007 survey. Nationally, maternal deaths fell from 276 to 186 per 100,000 live births.

In the KP region, the figure dropped from 275 to 165, representing a slightly higher percentage reduction than the national average. This suggests that local initiatives and conditions, including the CCT programs, may have contributed to reducing maternal mortality rates.

Final Remarks

The conditional cash transfers program in the KP region has already shown promising results for improving maternal health outcomes and alleviating poverty. It could be a model for the rest of Pakistan to follow and bring down its alarming maternal mortality rates.

– Nikhil N Kumar

Nikhil is based in Lexington, MA, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Progress: The Lives Behind Reduced Poverty in Jamaica

Poverty in jamaicaIn 2023, Jamaica experienced its sharpest reduction in poverty in more than three decades, a milestone that captured both national and international attention. According to the Planning Institute of Jamaica (PIOJ), the country’s national poverty rate fell from 16.7% in 2022 to 8.2% in 2023, a drop of nearly half and one of the steepest declines since record-keeping began in 1989. This change was driven by a combination of economic recovery, a rebound in tourism, remittances from citizens working abroad and targeted government interventions designed to support the most vulnerable populations.

For many Jamaican families, the data translates into tangible improvements: more reliable income, better access to food and health care and a greater sense of optimism about the future. The country’s ability to maintain economic stability and strengthen social protection systems has kept poverty in Jamaica on a downward slope, securing a more resilient future for all Jamaicans.

Economic Recovery and Structural Drivers

Jamaica’s dramatic reduction in poverty is closely linked to its broader economic recovery following the shocks of the COVID-19 pandemic. Tourism, which contributes nearly 10% of Jamaica’s GDP, saw a strong resurgence in 2023 as international travel reopened. The Jamaica Tourist Board reported that more than 4.1 million visitors arrived that year, surpassing pre-pandemic levels and bringing billions of U.S. dollars into the economy. Hotels, restaurants and entertainment venues once again provided thousands of jobs, particularly in urban centers and coastal regions.

Growth in agriculture and construction also contributed to this momentum. According to PIOJ’s Economic and Social Survey Jamaica 2023, agricultural output grew by 3.5%, while construction expanded by 5.9%, both sectors employing large numbers of low- to middle-income workers. Additionally, remittances from Jamaicans abroad reached $3.6 billion in 2023, representing one of the country’s most stable income sources. These inflows cushioned families from inflation and provided a safety net for many households living near the poverty line. Together, these structural drivers supported higher consumption levels and renewed confidence in Jamaica’s economic outlook.

The Human Dimension of Progress

Beyond statistics and reports, Jamaica’s poverty rate has deeply personal consequences. As the Jamaica Observer highlighted in its feature “From Hardship to Hope,” families across the country are beginning to feel a sense of relief. Parents can now purchase school supplies with less financial strain, small farmers are finding better markets for their crops and hospitality workers are enjoying greater job stability.

For example, a St. James hotel employee quoted in the article described how consistent work in 2023 allowed her to “finally save for her children’s education.” These stories reflect how national progress filters into everyday life, giving people a chance to plan for the future rather than focus solely on survival. Such experiences demonstrate why poverty reduction matters, not only as an economic indicator but also as a measure of opportunity and security.

Risks and the Path Forward

Although Jamaica’s poverty reduction is historic, experts caution that the gains are fragile. While global inflation averaged 4.2% in 2025, down from 6.6% in 2023, it still erodes purchasing power for many families. Climate change also threatens agriculture and rural livelihoods as severe droughts and floods become more frequent.

If these challenges are not addressed, there is a risk that poverty rates could rise again. To prevent backsliding, Jamaica must continue strengthening social protection systems such as the Programme of Advancement Through Health and Education (PATH), which supports more than 350,000 beneficiaries, including children and the elderly. The government is also encouraged to diversify the economy beyond tourism by promoting sectors such as renewable energy, technology and creative industries. Reliable and transparent data collection, an issue that has long challenged Caribbean nations, will be essential for monitoring progress and guiding Jamaica’s future strategies.

Looking Ahead

Jamaica’s record-breaking decline in its poverty rate marks an extraordinary achievement that shows what is possible when economic recovery and social policy align. The combination of industry growth and targeted welfare programs has lifted thousands of families above the poverty line, offering a glimpse of a more equitable future.

Still, the uneven nature of progress and the risks that remain highlight that poverty reduction is not a one-time success but an ongoing challenge. 

– Abigail Ariyo

Abigail is based in Ottawa, Ontario, Canada and focuses on Good News for The Borgen Project.

Photo: Flickr