Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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Middle Corridor Poverty Reduction: Can Trade Help Central Asia?

Port of Aktau with cranes and cargo ships, highlighting Middle Corridor trade activities.
The Middle Corridor, a transport and trade route connecting China to European markets through Central Asia, the Caspian Sea, the South Caucasus and Türkiye, could create new economic opportunities across the region. By linking railways, ports and regional markets, the route could strengthen trade and diversify supply chains. A September 2026 World Bank report projects that strategic investments could more than triple trade volumes along the corridor and create 2 million additional jobs across nine countries by 2040. However, increased trade does not automatically reduce poverty. The question of middle corridor poverty reduction depends on whether improved connectivity translates into stable employment, higher incomes and opportunities for local communities.

What is the Middle Corridor?

Also known as the Trans-Caspian Transport Corridor, the Middle Corridor connects China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and Türkiye. Unlike a single railway line, it combines rail and maritime transport, requiring coordination among countries and transport operators. A 2024 analysis by the Türkiye Araştırmaları Vakfı describes an expected transit time of 14 to 18 days between China and Europe. This is an estimate rather than a guaranteed journey time, as actual transit depends on border procedures, port capacity and coordination between transport services. A 2023 World Bank study found that targeted investments and policy improvements could triple freight volumes and halve travel times by 2030 across Kazakhstan, Azerbaijan and Georgia. A separate World Bank report published in September 2026 examined nine countries and projected further gains by 2040.

How Can the Middle Corridor Create Jobs and Reduce Poverty?

The Middle Corridor could support poverty reduction through employment, business growth and improved market access. Expanding railways, ports and logistics facilities requires construction workers, technicians, transport operators and maintenance staff. Increased freight traffic could also generate demand for warehouses, food suppliers, repair services and other small businesses. The World Bank’s 2026 report projects that investments could boost GDP by 3.3% and create 2 million additional jobs across nine countries by 2040. These are projections, not guaranteed outcomes. For middle corridor poverty reduction to become a reality, new jobs must offer reliable incomes and local businesses must be able to participate in expanding supply chains. Vocational training, access to finance and support for small enterprises could help more households benefit from regional trade.

Central Asia: Who Benefits From Greater Connectivity?

Kazakhstan is central to the Middle Corridor because it connects Central Asian markets to Caspian Sea shipping routes. Better transport infrastructure could help agricultural producers and smaller companies reach customers beyond their domestic markets. However, the benefits may not reach all communities equally. A 2016 World Bank study, Voices of Europe and Central Asia: New Insights on Shared Prosperity and Jobs, drew on interviews and focus groups in 43 communities across nine countries, including Kazakhstan, Kyrgyzstan and Tajikistan. Although this research is regional background rather than a current assessment of communities along the Middle Corridor, it highlights concerns about unequal opportunities and barriers to good jobs. Governments can address these risks by helping local suppliers compete for contracts and expanding access to training and business finance. Success should be measured not only by freight volumes but also by job quality, household incomes and small-business participation.

Türkiye’s Role in Connecting Central Asia to Europe

Türkiye provides an important link between the South Caucasus and European markets. The corridor’s performance therefore depends on effective cross-border transport and investment along the entire route. In Kazakhstan, the European Bank for Reconstruction and Development (EBRD) announced a loan of up to €35 million, approximately $41.4 million, alongside a potential European Union investment grant of up to €10 million, approximately $11.8 million, for upgrades at the Port of Aktau. These approximate dollar equivalents use the European Central Bank’s reference exchange rate on Sept. 18, 2025, of €1 to $1.1818. The project aims to expand container-handling capacity and reduce delays at a key Caspian transport hub. Such improvements could strengthen trade links with Türkiye and other markets, although their poverty-reduction impact will depend on whether local businesses and workers share in the benefits.

The Challenges: Why Infrastructure Alone is Not Enough

Despite its potential, the Middle Corridor faces challenges that could limit its contribution to poverty reduction. Different transport systems, customs requirements and border procedures can delay shipments and increase costs. The World Bank’s 2023 and 2026 studies emphasize coordinated policies, more efficient logistics and investment in railways, ports and digital systems. Infrastructure alone, however, cannot guarantee inclusive growth. If new economic activity primarily benefits large logistics companies or major urban centers, poorer communities may see limited improvements in their living standards. Governments could combine transport investment with vocational training, financing for small businesses, transparent procurement and environmental safeguards. These measures could help broaden access to new opportunities and ensure that development benefits extend beyond freight operators and major investors.

Turning Connectivity into Opportunity

The Middle Corridor could strengthen regional trade, attract investment and expand employment opportunities across Central Asia and the South Caucasus. However, middle corridor poverty reduction will depend on effective infrastructure, cross-border cooperation and policies that enable local communities to participate in economic growth. Governments should assess progress not only by the volume of goods transported but also by the quality of jobs created and the opportunities available to small businesses and lower-income households. Ultimately, the corridor’s success should be measured by whether it connects people to better livelihoods as effectively as it connects markets.

– Ömer Valyozoğlu

Ömer is based in İstanbul/Türkiye and focuses on Business and New Markets for The Borgen Project.

Photo: Wikimedia Commons

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Burkina Faso’s First Gold Refinery Targets Economic Sovereignty

Burkina Faso's President Ibrahim Traore meets Russia's President Vladimir Putin at a formal meeting.
On Sept. 28, 2026, Burkina Faso’s first gold refinery opened as part of an initiative to control the nation’s natural resources. Ibrahim Traoré, who heads the military-led government, has severed ties with many traditional Western partners and expects this refinery to bring greater economic sovereignty.

At the inauguration of the refinery, President Traoré said, “From now on, gold from Burkina Faso must not only be extracted in Burkina Faso, it must be processed, controlled, valued and certified in Burkina Faso.”

Importance of Gold in Burkina Faso

Gold is highly important for Burkina Faso’s economy, as it is the nation’s leading export and responsible for close to 94% of its export earnings in the first seven months of 2026. It supports both industrial and artisanal mining sectors.

In 2025, Burkina Faso produced more than 94 metric tons of gold. The majority of this production was exported as doré to be refined into gold. By exporting the metal for refining, the nation loses some of the gold’s value. Raffinor-BF will allow the entire value chain to be domestic.

Regional Push Toward Natural Resource Control

In 2024, Traoré’s government established a state-owned mining company and required foreign mining firms to give the state a 15% stake in new mining projects and train local workers. According to the World Gold Council, output rose by 17% year-on-year in the second quarter of 2026.

Raffinor-BF reflects Burkina Faso’s participation in the regional push toward processing minerals domestically and controlling its natural resources. Guinea and Ghana both restricted gold exports, while Mali plans to build a gold refinery with Russia’s Yadran Group. Ivory Coast announced that its refinery will likely open in 2027.

Raffinor-BF

Burkina Faso’s first gold refinery, Raffinerie Nationale d’Or du Burkina Faso, or Raffinor-BF, is located on five hectares in the nation’s capital, Ouagadougou. It includes a foundry, a laboratory, secure storage and a jewelry workshop. The refinery cost more than 11 billion CFA francs ($19 million) and its development was funded by both the government, including through the National Precious Metals Company (SONASP), and private sector investments. Construction began in November 2023.

Raffinor-BF will process, assay, certify and store Burkinabe gold domestically. It could reduce dependence on exporting unrefined gold.

Officials expect that Raffinor-BF will create around 100 direct jobs and more than 5,000 indirect jobs. The refinery has an initial design capacity of 164 metric tons a year and has an expansion target of 515 metric tons a year. The disparity between refining capacity and current production numbers demonstrates Burkina Faso’s ambition for Raffinor-BF to become a regional refining hub.

Raffinor-BF has great potential to support poverty reduction. The refinery is expected to create direct and indirect jobs and could help keep the value chain of gold domestic, leading to economic growth. The refinery might also be used as a training source for young Burkinabè building advanced technical skills.

Potential Challenges for Raffinor-BF

In the past, regulation of the artisanal and small-scale mining industry has been difficult because of smuggling and informal trading. Jihadist violence has also impacted regulation of the informal sector.

Will the refinery change who captures the value of the gold?

Burkina Faso’s first gold refinery shifts where the metal is processed, but it does not necessarily mean the economic value will remain in the nation. Ensuring local value capture requires certain circumstances.

According to Time Africa, “Turning that capacity into a functioning domestic and regional business will depend on more than the refinery itself. It will depend on the mines that supply it, the roads and systems that move the gold, the security conditions around production and the policies that determine who participates in the chain.”

– Pritam Khalsa

Pritam is based in New Orleans, LA, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Renewable Energy in Saint Kitts and Nevis: 100% Transition by 2030

Renewable Energy in Saint Kitts and Nevis
Saint Kitts and Nevis aims to reach 100% renewable electricity generation by 2030. To support this initiative, the government has begun developing a Renewable Energy Transition Roadmap, launched with a consultative workshop on June 3, 2026. The roadmap is still developing and is expected to determine the electricity sector’s renewable potential, grid needs, financing and policy requirements. Currently, more than 90% of electricity generation relies on imported fossil fuels.

Existing Renewable Energy Programs

Several energy-related projects are already underway, including the Electric Vehicle Transition Policy and Action Plan, the Solar Integration for Sustainable Energy Program, geothermal development in Nevis, Advanced Metering Infrastructure and solar PV systems on government buildings.

The Minister of Public Infrastructure, Energy and Utilities, Domestic Transport, Information, Communication and Technology and Posts, Konris G. Maynard, spoke about these programs at the launch workshop, saying, “Every single one of these projects highlights the immediate need for the study we are launching today. We need this roadmap to harmonize these initiatives and to guarantee that our infrastructure can handle this green revolution.”

The country also aims to support local employment and energy-sector opportunities while reducing greenhouse gas emissions.

Poverty Reduction

The renewable energy initiative could support poverty reduction by reducing exposure to imported petroleum costs. The nation does not have any fossil fuel deposits and relies on imported diesel for over 90% of its electricity, resulting in civilian and government exposure to the cost of imported fuel and to price swings beyond the country’s control.

Because the country must import all of its petroleum, diesel for power generation and petrol for transportation, price swings in global fuel markets directly impact household electricity bills and the cost of local transportation. Electricity generation accounts for about 55% of oil imports and road transport roughly 30%.

Increasing domestic renewable electricity generation could reduce dependence on imported fuels and exposure to global price fluctuations. If electricity costs decline, households and businesses could benefit through more affordable energy and improved economic resilience.

Renewable energy could reduce some exposure to global fuel-price shocks and strengthen resilience, depending on system design and investment. The Inter-American Development Bank estimates that resilience benefits would be about ¾ of the benefits from lower energy costs.

The transition could support economic diversification by creating growth in energy-intensive industries. For example, selling power to cruise ships, powering desalination, electric ferries and short-haul electric aviation, data centers and electrifying transport to cut oil imports.

Euroclima Partnership

The European Union is partnering through the Euroclima program with the Greening The Islands Foundation to support Saint Kitts and Nevis in developing their roadmap for the transition. Euroclima is the EU’s collaboration program with Latin America and the Caribbean, working to “strengthen climate resilience, protect biodiversity and promote sustainable development across the region.” The United Nations Development Programme is also supporting the implementation of this transition.

Additionally, the EU has partnered with a number of Eastern Caribbean countries through the Global Gateway Investment Agenda. This initiative is an investment in high-quality, sustainable infrastructure in the region. Study visits have occurred throughout the Eastern Caribbean and European island territories such as the Azores and the Canary Islands, where similar transitions are underway.

Saint Kitts and Nevis’ roadmap is intended to identify the investments and policy changes needed to pursue its 2030 renewable electricity target. With support from Euroclima and other partners, the country is exploring ways to improve energy security, reduce its dependence on imported fuels and create future economic opportunities. The outcome will depend on the roadmap’s implementation and financing.

– Pritam Khalsa

Pritam is based in New Orleans, Louisiana, United States of America and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons

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Everything You Need to Know About Poverty in Zambia

Women drawing water from a well in rural Zambia.
Poverty in Zambia remains a serious challenge, affecting both rural and urban communities across the country. Although Zambia has long struggled with high levels of poverty, initiatives aimed at reducing poverty are offering a basis of hope for the future.

An Overview of Poverty in Zambia

Poverty remains one of the most significant challenges facing Zambia. In 2025, an estimated 70.4% of Zambia’s population lived below the international poverty line of $3 per person per day, measured in 2021 purchasing-power terms. For many, poverty is not simply a lack of income, but also the inability to access basic necessities such as clean water, adequate hygiene, quality education, health care and sustainable livelihoods. The scale of deprivation is evident by 63% of households lacking basic sanitation and 82% lacking basic hygiene facilities. The divide between rural and urban poverty is especially stark, with rural areas experiencing significantly higher poverty rates. Despite the severity of poverty in both rural and urban areas, grassroots efforts and measures that Zambia’s 2026 national budget sets out offer grounds for cautious optimism.

Rural Poverty in Zambia

In 2022, 78.8% of Zambia’s rural population lived below the national poverty line. Rural poverty persists as many small-scale farmers struggle to afford agricultural supplies and remain exposed to low-productivity agriculture and recurrent exposure to climate shocks. For example, the drought in 2024 that began as a climate event, destroying maize crops across 982,765 hectares, quickly escalated into a humanitarian crisis, revealing how deeply vulnerable Zambia’s rural communities are. With more than 80% of the rural population depending on rainfall rather than irrigation for their crops, the drought had far-reaching effects. As groundwater availability decreased, food shortages and rising food prices worsened, which heightened the risk of malnutrition and waterborne diseases. Rural communities in Zambia are particularly vulnerable to factors that deepen poverty, including poor harvests, climate disasters, limited access to basic services and fewer economic opportunities.

Urban Poverty in Zambia

Poverty in Zambia is not just a rural phenomenon. Although poverty rates are higher in rural areas, people living in towns also face hardship, with the national-poverty-line rate in urban communities rising to 31.9% in 2022. Many urban households rely on informal work or insecure employment, in conjunction with the cost of urban living, which makes it extremely difficult to achieve financial stability. In cities such as Lusaka, people face food insecurity, poor housing quality and difficulties accessing sufficient sanitation, health care and education. These problems reinforce each other, making poverty in urban areas also difficult to escape.

Bread and Water for Africa

Grassroots organizations play an important role in poverty reduction by advocating for sustainable, community-led development to help build a healthier future. In 2023, Bread and Water for Africa partnered with Village Water Zambia to fund nine boreholes in the Kalabo district that delivered clean and safe drinking water. This success triggered other villages to seek similar support. So in spring 2025, the partnership funded a further 11 boreholes across rural villages, reaching 5,640 people, including 1,521 children.

Bread and Water for Africa reports that the boreholes improved health, saved time spent collecting water, helped children attend school and allowed families to focus on their livelihoods and earning an income. While these projects cannot eradicate poverty or instantly solve Zambia’s water hygiene problems, they demonstrate how grassroots organizations can make gradual and lasting progress in the right direction, offering hope that sustained action can help lay the foundations for a brighter future.

Zambia’s National Budget

Alongside grassroots initiatives, the Zambian government has also introduced policies aimed at tackling poverty. Zambia’s 2026 national budget signals a push for stability and growth, providing the opportunity to protect economic stability, accelerate recovery from the drought and ensure social gains reach every household. The Social Cash Transfer program plans to extend regular financial assistance to 1.5 million households, helping families meet their basic needs and reduce extreme poverty.

The Zambian government is taking a greater degree of national ownership and contributing 88% of its funding. However, the budget analysis reports a 3% decline in overall social-protection allocations. The Permanent Secretary of Budget and Economic Affairs stated that the budget is the tool to deliver “the kind of development that they want to see in terms of improvements to their livelihoods.” However, the challenge is turning these commitments into lasting improvements. While these measures represent a positive step toward poverty reduction, their ultimate success depends on effective implementation, sufficient resources and ensuring that support reaches the most vulnerable households.

Hope for the Future

Government commitments and grassroots organizations present progress in both rural and urban communities. Although financial support alone cannot address the deeper causes of poverty, consistent investment together with community-led efforts create a promising foundation, represent a step in the right direction and offer hope for a future with less poverty and greater opportunity for all.

– Lauren Dickson

Lauren is based in Beverley, East Yorkshire, England and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons

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Being Poor in Malta

Being Poor in Malta
The Mediterranean island of Malta is a holidaymakers’ paradise. Increasingly popular since the pandemic, the Malta National Statistics Office estimated that tourism generated €3,904.4 million (about $4.6 billion) in 2025. However, behind the increasing number of hotels, resorts and attractions are many who remain poor. This country is on a path to building a sustainable and prosperous future both for its tourism industry and its most vulnerable residents. Here is information about being poor in Malta.

The Stats – an Enigma

● According to the Central Bank of Malta, Malta’s GDP (Gross Domestic Product) has doubled over a decade and employment has risen from the second lowest in Europe to the second highest.
● Eurostat states that in 2025, the percentage of people at risk of poverty in Malta stood at 16.9%, which is calculated as 60% of the national median equivalized disposable income (after social support).
● The National Statistics Office reported that 19.4% of people were at risk of poverty or social exclusion in 2025.
● The Central Bank of Malta also highlights that Malta performed disproportionately poorly in the percentage AROPE compared to its GDP, with results closer to less economically developed countries.

These points of contradiction provide an interesting case example for being poor in a developed European country. While prospering economically, Malta is home to many who do not reap these advantages. Furthermore, financial thresholds are not the only way to view those who are poor.

What Does Being Poor in Malta Look Like?

Maria is a 51-year-old domestic violence victim who finally gained the courage to leave her home after years of abuse. With no financial independence due to abusive control, she was forced to rely on a homeless shelter run by YMCA Malta.

At the APS Bank 2026 Malta Sustainability Forum (MSF), panelist Christian Okyere Inkum, Residential Service Coordinator at YMCA Malta, shared Maria’s story. APS Bank has held the forum annually since 2019 in response to the UN’s 2015 Sustainable Development Goal 1 (SDG 1), to ‘end poverty in all its forms, everywhere.’ The 2026 forum endeavored to look beyond the statistics, to understand the complex and multifaceted experience of being poor in Malta. Maria’s experience exemplifies how social circumstances, such as abuse, interact with material or financial factors to sustain the conditions of poverty.

Zooming out on the unique position of Malta in the European landscape, the country is especially vulnerable to food insecurity. A small island with a population of more than half a million, it relies heavily on imports. Food supply was severely affected by COVID-19 and the Russian-Ukrainian war, which produced a rise in food costs. As a result, the percentage of Malta’s population suffering from moderate or severe food insecurity rose from 4.3% in 2019 to 9% in 2024 according to the NSO.

Yet, these statistics are complexified by factors beyond inflation. For instance, food insecurity may accompany feelings of shame and social stigmatization. Malta News calls this shame a ‘silent barrier’ to seeking support.

The Impact on Health Care and the Elderly

The World Health Organization found that in Malta, people are more likely to make a catastrophic health care payment than in most other European countries. Although all citizens have access to free health care, dental health and prescriptions are often so significant that they can limit individuals’ ability to pay for other amenities such as food.

The age group with the highest health risks are the elderly – the group with the highest proportion AROPE. In 2025, the NSO found that 28.9% of people aged 65 and over were at risk of poverty. In his study, Brian Gialanzè said that ‘The lived experiences of poverty in old age: a Maltese case’, found that alongside health costs, a rising cost of living and stable pension incomes, older people struggle to engage in an increasingly digitized world and become more isolated. Furthermore, his study highlights the particular struggles of elderly women: historically excluded from the workforce, many are left with no pension and are therefore more at risk of deprivation.

The Impact on Refugees

Another especially vulnerable group are Third Country Nationals (TCNs), in particular refugees and those without legal documentation. Refugees fleeing persecution often enter the country with minimal funds, on top of other barriers such as cultural difference and limited knowledge of the language. This can lead to being AROPE. Undocumented individuals are unable to work legally, meaning they are likely to turn to alternative forms of which frequently pay below minimum wage. Also, on top of having limited access to social services, they may be reluctant to seek support due to their insecure position in the country.

Examples like these demonstrate that poverty statistics fail to scratch the surface of the realities of being poor in Malta. The most vulnerable in Malta are impacted by both material and social factors.

Cultivating a Sustainable Future

As much as being poor in Malta is complex, creating sustainable solutions is far from straightforward. At the MSF, suggestions varied. Increased financial literacy education would mean people could make better financial choices. However, ensuring that all had the basic needs to survive might be a higher priority and reduce victim-blaming. Alternatively, cultivating community-based support systems might be more effective at tackling multifaceted problems. Here is information about what is being done now.

  • Government schemes like the Maltese Housing Benefit Scheme give special support to domestic violence victims, acknowledging the financial barriers to leaving an abusive household.
  • Organizations like the YMCA continue to work with the homeless and roofless in Malta to help them regain independence. Focused on young people, the YMCA claims that ‘education and community participation is the best medicine.’ Setting up schemes such as YMCA Leadership Academies and community centers, the YMCA takes a multifaceted approach to tackling the complex circumstances of those AROPE.
  • Foodbank Lifeline Foundation feeds around 300 families in Malta per week, targeting the basic needs of the materially deprived. Operating on the basis of donations, they offer a six week program of weekly emergency food parcels for families. This organization has existed since 2015 and has six distribution centers across Malta, such as in the capital city of Valletta and smaller towns such as Marsa.
  • The Migrant Women Association Malta (MWAM) helps female migrants to integrate into Maltese society to reduce their social exclusion. Established in 2015 and based in the town of Hamrun, MWAM offers support, advice and community networks. For example, the Sahha Community Kitchen Project empowers migrant women by enabling them to integrate into their Maltese community, gain employment experience, as well as share their native dishes.

How Increased Employment for Maltese Women Could Help

Increased employment among younger generations of Maltese women may improve retirement security over time, although employment trends alone do not establish how future poverty rates will change. The number of Maltese women aged 25-49 in employment has risen from 39.6% in 2005 to 84.7% in 2024. Retiring with their own pensions provides greater financial security and independence. According to the Central Bank of Malta, pensioner couples who are currently retiring will have half as much dependency on one pension compared with 20 years ago.

These are just a few examples of efforts and developments being made to alleviate the pressures of being poor in Malta. From projects to target specific vulnerable demographics, to widespread increased equality amongst the population, a continued culmination of different focuses allow the Maltese people to look towards a sustainable and prosperous future.

– Hattie Murdoch

Photo: Flickr

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Why Poverty Costs More: The Strange Economics of Being Poor

Group of people in a rural setting, highlighting the costs of being poor.
The “poverty premium” is the higher cost paid by the poor compared to more affluent residents. This cost can be both quantitative (literally paying more for the same good) and qualitative (incurring costs by consuming a poor-quality product). Several factors contribute to this poverty premium, including lack of options and limited supply pushing prices up. This article will discuss the strange economics of being poor, and why, in some cases, being poor costs more.

Bulk Buying

Bulk buying involves purchasing large quantities of goods, reducing the individual cost of each item. However, it requires a larger amount of cash upfront. Those without enough cash to buy in bulk spend more on individual goods. In Malawi, poorer households cannot take advantage of bulk discounts for maize, the main staple food. Regardless of location, households could enjoy bulk discounts, but rural households are less likely to buy bulk maize compared to urban residents. This creates a cycle where poor Malawians pay more for maize, leaving less cash for bulk discounts, thus perpetuating poverty.

Similarly, in Tanzania, poorer households lack access to bulk-buying discounts, affecting various food items. The Tanzanian study found significant bulk-buying discounts across 20 food items, from tomatoes to rice. Reasons for these differences include reduced packaging costs and sellers wanting to sell perishable goods quickly. Tanzanian researchers found poorer households could not consistently use these discounts due to limited cash, despite purchasing larger quantities at times. This creates a Catch-22, where households cannot afford cheaper options, forcing them to spend more.

Water

The poverty premium is evident in water costs, with poor families in urban slums paying up to 10-20 times more for water compared to richer neighbors with piped connections. This issue relates to infrastructure, with about three in 10 people lacking safely managed drinking water services worldwide as of 2019.

A 2019 report described households in underserved Indian neighborhoods relying on water trucks and kiosks rather than household taps. In these cases, buying water from vendors could cost substantially more than receiving it through a subsidized connection; some families reportedly spent up to 30% of their income on water. Sangam Vihar, a southern neighborhood in Delhi, India, is an “unauthorized” area, limiting access to metered connections and subsidies. Residents rely on private contractors for water, costing 300-500 rupees per month in 2009, while those in affluent areas with metered connections pay around 100 rupees per month. This shows the poverty premium extends beyond bulk buying and food, affecting basic infrastructure like water.

Mobile Data

The poverty premium also affects mobile data in South Africa, where poorer rural households pay more compared to wealthier individuals. South Africa already has high mobile data prices, and poorer households face price discrimination by buying data in small quantities. The Competition Commission found competition in the data market is often restricted. Those better connected access more competitive markets, which is reduced for rural residents. Buying in small quantities is more expensive, and poorer South Africans pay more than those on data plans.

This is concerning as 30% of South Africans are on the low-income line and 20% on the poverty line. Limited connectivity restricts access to economic opportunities, and the poverty premium for mobile data can be up to 11 times higher for those unable to buy large data bundles. A survey in South Africa showed mobile phones are vital to people’s lives, illustrating the poverty premium’s impact on digital connectivity and modern infrastructure.

Looking Forward – Initiatives

Despite the widespread nature of the poverty premium, some initiatives aim to counteract its effects. In Malawi, Richard Mussa recommended government policy interventions like consumption loans and group-buying schemes. In India, a 2006 report found that insecure tenancy in slums prevents residents from investing in community-led projects to address water issues. A solution likely requires ensuring security and cooperation between private and communal spheres. In South Africa, advocacy against rising mobile data prices has been significant. Since 2016, the “#DataMustFall” campaign has gained popularity, alongside Competition Commission hearings and a data-services market inquiry from 2017-2019. Advocacy remains a strong way to promote a cause.

These initiatives, from Malawi’s group-buying schemes to grassroots advocacy in South Africa, illustrate responses to the poverty premium, from proposals to improve affordability to real-world advocacy.

The Strange Economics of Being Poor

The term “strange” refers to the counterintuitive nature of the economics of poverty, and the poverty premium falls under this category. This article has only touched on the strange economics of being poor, affecting areas like energy, education, healthcare and savings. The initiatives discussed are just a few among many that combat poverty and the premium. Poverty is not always straightforward: lacking money or infrastructure to access lower prices can make essential goods and services more expensive for the poor.

– Sebastiano Brussato

Sebastiano is based in London, United Kingdom and focuses on Politics for The Borgen Project.

Photo: Pixabay

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Livelihoods and Cash Assistance in Mozambique

Cash Assistance in Mozambique
For 52-year-old grandmother Inácia Laquareta Abraão, social protection has meant more than receiving money. Caring for her three grandchildren, she once relied on irregular income and grew what she could to help feed her family. Through Mozambique’s Productive Social Action Program (PASP), Inácia earned income while helping restore the coastline at Zalala Beach. She later invested in a small farm, where she now grows tomatoes, rice and beans. Her experience shows one way that temporary support and paid public works can help a participant invest in a livelihood. It is an individual example, however, rather than evidence that every PASP participant makes the same transition. More than 300,000 people in Mozambique have participated in PASP since its launch in 2012, with women accounting for around 65% of beneficiaries. The program aims to reduce poverty and strengthen climate resilience through labor-intensive public works and income-generating activities. These have included coastal protection, erosion control, riverbank restoration and rural infrastructure.

Why Complementary Support Matters

Cash assistance in Mozambique can help households buy food, meet immediate expenses and avoid selling essential assets. Transfers alone do not guarantee a lasting source of income. Longer-term economic security can also depend on access to skills, productive assets, markets and financial services.

PASP combines cash assistance in Mozambique with public works and income-generating activities. Its broader aim is to help vulnerable households strengthen their livelihoods and resilience; the extent to which participants achieve lasting economic security will vary with their circumstances and the opportunities available to them.

It is important to distinguish PASP from a separate cash-plus pilot that the Food and Agriculture Organization (FAO) is evaluating. That pilot involves 700 households that previously participated in PASP and combines cash transfers with agricultural inputs and technical training. Evidence from this evaluation should not be presented as a finding about PASP as a whole. Instead, it may offer separate learning about whether an integrated package of support can help participating households strengthen agricultural production and resilience.

Opening Doors to Financial Inclusion

PASP may also contribute to financial inclusion. The World Bank reports that more than 200,000 e-money accounts have been opened through the program since it began in 2012. Digital payments can reduce the time and cost involved in collecting assistance and give households an entry point into formal financial transactions.

This pathway matters for women, who make up around 65% of PASP beneficiaries. But participation in a program or access to digital payments does not automatically translate into control over productive assets or higher income. Inácia’s experience should therefore be understood as one example, not a typical or guaranteed outcome for women participating in PASP.

Research also points to persistent gender-related barriers. The United Nations University World Institute for Development Economics Research (UNU-WIDER) reported in a 2016 study using 2002-2012 surveys that female-headed households in Mozambique were, on average, around 20% less agriculturally productive than male-headed households. A 2020 UNICEF publication also raised concerns that women may remain concentrated in low-income households if social protection does not adequately address gender-specific constraints.

What Happens When the Support Ends?

Evidence from former participants offers examples of how skills and productive activities can continue beyond program participation. The World Bank reports that farming groups established through PASP in Sofala were still cultivating collective plots in 2025, producing around 14 metric tons of crops for household consumption and local markets. Another former participant used brick-making skills learned through PASP to build a more resilient home. These examples show what some participants have done after taking part; they do not establish that all participants will achieve lasting economic independence.

Important constraints remain. The International Household Survey Network reports that Mozambique’s 2025 PASP baseline sampling frame included 6,864 eligible beneficiaries across 285 communities in five provinces. The evidence should be interpreted carefully, with individual examples distinguished from conclusions about program-wide long-term impacts.

The International Labour Organization has also highlighted the importance of non-contributory social protection for poorer households while identifying challenges including limited coverage, underfunding and targeting problems, including gender disparities.

Building Pathways to Lasting Livelihoods

Strengthening PASP’s longer-term contribution will require attention to what happens during and after cash assistance and public works placements. Longer periods of support may give households more time to build assets and develop farms or small businesses. Stronger links to buyers, cooperatives, value chains and local enterprises could help participants connect production to reliable markets. Appropriate finance may help viable activities grow beyond subsistence levels.

Programs should also address gender-specific barriers so women can control assets, access land and finance and participate fully in economic opportunities. This is particularly important given women’s large share of PASP beneficiaries.

PASP illustrates how social protection and economic inclusion can support complementary goals. Cash assistance in Mozambique can help households meet immediate needs, while public works, skills, productive assets, financial services and market connections may help create opportunities to earn income over time. Inácia’s farm is one example of a participant investing in a livelihood. The wider challenge for PASP is to make pathways to employment and self-employment more accessible and durable, without assuming that every participant will experience the same results.

– James Moretti

James is based in United Kingdom and focuses on Good News for The Borgen Project.

Photo: Flickr

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Innovations in Poverty Reduction in Latvia Show Progress

Poverty Reduction in Latvia
Latvia has made progress in reducing some forms of deprivation, but poverty continues to affect a significant portion of the population. In 2024, approximately 404,000 people, or 22% of Latvia’s population, were at risk of poverty. For a person living alone, this meant having a monthly disposable income below €699. Poverty also varies greatly depending on where people live. In the Latgale region, 35.8% of residents were at risk of poverty, compared with 15.6% in the Riga region.

Alongside innovations in poverty reduction in Latvia, material living conditions have improved. In 2024, 10.9% of the population experienced material and social deprivation, down 2.6 percentage points from 2023. Severe material and social deprivation also fell to 5.3%, the lowest level recorded by Latvia’s Central Statistical Bureau.

Current Status

Despite recent improvements in material deprivation, income inequality and poverty remain challenges in Latvia. In 2024, the average monthly disposable income per household member was €950. However, people in the poorest 20% of households had an average monthly disposable income of only €317 per household member, compared with €2,084 among the wealthiest 20%.

Certain regions and groups also experience poverty at different rates. Latgale, located in eastern Latvia, had the country’s highest regional at-risk-of-poverty rate at 35.8% in 2024. Meanwhile, Latvia’s national at-risk-of-poverty rate was 22%.

Children are another important group when examining poverty. According to Latvia’s Central Statistical Bureau, 17.9% of children ages 17 and younger were at risk of poverty or social exclusion in the 2024 survey, which refers to 2023 income. This was substantially lower than the 30.7% recorded in the 2015 survey, which refers to 2014 income, demonstrating measurable long-term progress while also showing that child poverty has not disappeared.

Addressing Minimum Wage

One of the innovations in poverty reduction in Latvia is changing how its minimum-income system works. Previously, minimum-income thresholds were set at fixed amounts and reviewed only once every three years. Under a reform introduced in 2023, Latvia established a minimum-income floor connected to the country’s median income and introduced annual indexation. This allows minimum-income support to be adjusted more regularly as incomes and economic conditions change. In 2025, the guaranteed minimum income threshold was increased from 20% to 22% of median income.

The Social Climate Plan

Another approach combines poverty reduction with improvements to housing and transportation. In July 2026, the European Commission endorsed Latvia’s €617 million Social Climate Plan. Running through 2032, the plan is designed to support low- and lower-middle-income households that are particularly affected by energy and transportation costs.

One major part of the plan focuses on energy poverty. Vulnerable households will be able to receive support of up to €15,000 for energy-efficiency improvements to apartments and up to €20,000 for houses. Municipalities will also be able to improve the energy efficiency of social housing. Latvia’s plan identifies approximately 351,000 households as vulnerable to or already experiencing energy poverty.

The program also takes an innovative approach to transportation poverty, particularly in rural areas where public transportation can be limited. Plans include transportation-on-demand services in rural and remote communities, five new battery-electric trains and free bicycle-sharing programs at 97 schools. By 2032, the plan aims to move nearly 10,000 vulnerable households out of energy poverty and close to 83,000 vulnerable transportation users out of transportation poverty.

European Social Fund Plus

Latvia is also using European Social Fund Plus (ESF+) funding to address poverty through employment, education and social services. The European Union is investing €721 million in ESF+ funding in Latvia. The funding supports affordable social services, health care, community-based long-term care, education and training. It also supports programs for job seekers and people at risk of unemployment.

The program specifically includes efforts to integrate people at risk of poverty and provide food and basic necessities to vulnerable populations. These investments are intended to contribute to Latvia’s goal of reducing the number of people at risk of poverty or social exclusion by nearly 95,000 by 2030.

Conclusion

Recent statistics show measurable improvements in some aspects of poverty in Latvia. Material and social deprivation fell to 10.9% in 2024, its lowest recorded level, while the share of children at risk of poverty or social exclusion declined from 30.7% in the 2015 survey to 17.9% in the 2024 survey. However, 22% of Latvia’s overall population remained at risk of poverty in 2024, and substantial regional differences remain.

Innovations in poverty reduction in Latvia address several dimensions of poverty rather than focusing exclusively on income. Annual adjustments to minimum-income support can make social assistance more responsive to economic conditions, while new investments target energy-efficient housing, transportation access, employment, education and social services. The €617 million Social Climate Plan and €721 million in ESF+ funding represent two large-scale efforts aimed at vulnerable households and communities. Their long-term results will depend on implementation, but their specific targets provide measurable benchmarks for tracking Latvia’s progress in reducing poverty.

– Smira Chowdhary

Smira is based in Sammamish, WA, USA and focuses on Good News, and Technology and Solutions for The Borgen Project.

Photo: Unsplash

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Everything You Need to Know About Poverty in Serbia

A child stands in a dilapidated area, highlighting poverty in Serbia.
Despite improvements over the last decade, poverty in Serbia remains a persistent problem. Once a constituent republic of Socialist Yugoslavia, the country sits in Southeastern Europe and had a population of about 6.6 million in the 2022 census. Based on Serbia’s income and living conditions survey, the national at-risk-of-poverty rate decreased from 21.4% in 2021 to 19.7% in 2024. The most recent official release placed the rate at 19.6% in 2025. The at-risk-of-poverty rate is a relative measure based on household income below 60% of median equivalized disposable income. Although that figure remains worryingly high, it demonstrates strong progress in reducing poverty in Serbia. Economic growth, increased employment and international assistance may have driven these improvements.

Groups Most Affected by Poverty in Serbia

The number of Serbians who are either in or at risk of poverty varies significantly across demographics and regions. Poverty in Serbia is closely related to regional divides. In 2025, Belgrade’s at-risk-of-poverty rate was 8.4% compared to 27.7% in Southern and Eastern Serbia and 21% in Vojvodina.

The education figures below are not directly comparable to Serbia’s national at-risk-of-poverty rate. Although Serbia measures the at-risk-of-poverty rate based on household income below the national poverty threshold, the education statistics shown below use the World Bank’s international poverty line. This is set at $8.30 per person per day in 2021 purchasing-power-parity terms. Education also plays a major role in differing poverty rates. A World Bank brief using 2023 survey data found that poverty rates for people aged 16 and older without formal education are as high as 35.7%, compared with 9.1% for those who have completed secondary education.

Poverty rates also differ clearly by age. In 2025, people aged 65 and older were at the highest risk of poverty at 25.8%. This is much larger than the 14.9% for those aged 25-54.

Why Poverty Remains in Serbia

Poverty in Serbia persists for several reasons. Poverty rates in Serbia differ considerably between urban and rural communities. The World Bank acknowledges that lagging regions face several challenges, such as attracting and retaining young people, supporting local businesses and providing high-quality public services. These issues may limit economic opportunities and widen regional inequality. Young people may face constraints that further fuel poverty in Serbia. This is visible in rural areas, where poor mobility, geographical isolation and limited employment opportunities are often associated with limited access to education, jobs and vocational training. These factors may contribute to rural-urban disparities.

Efforts to Reduce Poverty in Serbia

Recent data demonstrate clear reductions in poverty in Serbia. International partners have provided key financial aid to Serbia, while the government has also made domestic changes regarding spending and legislation. Since 2014, the European Union has invested more than €91 million (about $102 million) to improve education, employment and social protection, particularly among marginalized groups. This is alongside Serbia’s participation in the EU Growth Plan for the Western Balkans, where the country could receive nearly €1.6 billion (about $1.8 billion). This is to support initiatives that tackle energy poverty, develop labor skills and increase economic opportunities. In 2024, Serbia experienced real GDP growth of around 3.9%, with unemployment reduced to 8.6%.

One of the European Union’s initiatives in Serbia is the EU Support for Social Housing and Active Inclusion (EU SHAI) program. This targets Serbians who are most vulnerable, including Roma families, domestic violence victims and those with disabilities. The program combines housing assistance with education, employment and social services. It has been implemented across 19 cities and municipalities in Serbia, with housing and inclusion support planned for 381 families. In the municipality of Raška, the program has helped more than 80 people receive permanent housing.

Domestically, the government has increased the minimum wage and pensions to provide improvements to Serbians’ living standards. Increased funding for employment initiatives, social protection and education has aimed to improve the standard of living for vulnerable groups and reduce poverty across Serbia.

The Future for Serbia

Poverty in Serbia is still an ongoing issue, especially for rural communities in the east and south. Despite this, recent data demonstrate clear improvements, with fewer people in or at risk of poverty. Poverty in Serbia can further be reduced with sustained investment from international partners and domestic reforms. These could contribute to reducing regional inequalities, increasing social protection and enhancing educational opportunities. Continued support from various actors could further decrease poverty and develop opportunities for Serbians.

– Oliver Doole

Oliver is based in Ipswich, Suffollk, United Kingdom and focuses on Business and New Markets, and Politics for The Borgen Project.

Photo: Flickr

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Solar Mesh Grids Improve Electricity Access in Haiti

Electricity Access in Haiti
Electricity access in Haiti is a major determinant of energy poverty. This term can be defined as insufficient access to energy that is both reliable and affordable enough for cooking, heating and other essential activities.

Only about a third of Haiti is electrified, with a stark difference between urban and rural areas. While urban electrification reaches up to 85%, it remains a mere 15% for rural populations. In these remote areas, which are home to 40% of Haiti’s population, wood and charcoal often serve as the primary sources for daily lighting and cooking.

Even for those connected to the grid, electricity is expensive and unreliable due to aging infrastructure and chronic mismanagement. Yet despite these challenges, Haiti represents an emerging market for renewable energy, and the country’s tropical location is ideal for solar.

The Solution

For people living off-grid, electricity access in Haiti often comes from mini-grids or solar home systems, each with pros and cons. Solar home systems are affordable and easy to install, but only produce enough power for basic lighting and charging needs. On the other hand, mini-grids can produce enough electricity for businesses and more demanding appliances but face higher upfront costs.

In 2021, a Haitian startup called Alina Eneji decided to pursue a third option: the mesh grid. The mesh grids, whose components are designed and built by the Australian company Okra Solar, combine the affordability of home solar with enough output to power small businesses.

They follow a hub-and-spoke model, where “hub” households receive solar panels, an inverter, a battery and a Pod, Okra’s metering device. Nearby “spoke” households receive a Pod and sometimes a battery, then connect to hubs by low-voltage lines. This setup allows homes within 50 meters of each other to share up to 600 watts of power and ensures that customers only pay for what they use.

The Outlook

Initially, Alina Eneji’s pilot program served only 35 homes, but it was not long before outsiders started taking notice. Following an intervention from the Global Energy Alliance, the number of connections surged to 1,000 by 2023.

Alina Eneji has continued expanding its network. An Inter-American Development Bank project approved in December 2023 aimed to support service for 8,000 additional rural households. The IDB project lists a total cost of $1.75 million and an original grant approval of $500,000. These are financing figures and an expansion objective, not evidence that every planned household has been connected.

Customers have found several new and economically productive ways to use their electricity. Some have bought the freezers and refrigerators necessary to run a bar or restaurant, while others offer paid phone charging services. Nighttime lighting has added a greater sense of safety, particularly for women.

Driko Ducasse, founder of Alina Eneji, says he wants to show stakeholders that electricity access in Haiti is within reach. “More broadly, my goal is to give back because I want other Haitians to have the opportunities that I have had.”

– Harland Pusey-Nazzaro

Harland is based in Brunswick, ME, USA and focuses on Business and New Markets, and Technology and Solutions for The Borgen Project.

Photo: Wikimedia Commons