Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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Addressing Pensioner Poverty in Hungary

Pensioner Poverty in Hungary
In April 2026, Hungary held an election that changed the governing party after 16 years. The country elected the Tisza Party, led by Peter Magyar. The election ended 16 years of Fidesz-led government. Fidesz, a right-wing political party, governed Hungary for 16 years before the 2026 election. Its record included controversial decisions on public spending, health care and education, as well as disputes with the European Union over funding and governance. The European Union withheld portions of Hungary’s funding over concerns about compliance with EU requirements, and Hungary lost access to more than €1 billion in funds in early 2026. Hungary’s pension system faces longstanding challenges, including low pensions for some retirees and the legacy of irregular employment and underreported wages. One group that has experienced particularly serious effects is the elderly, many of whom live in pensioner poverty.

Explaining the Issue: Those Affected

Many Hungarians have worked on farms and in factories throughout their lives to make ends meet. However, after retirement, many live below the established poverty line.

Some people in Hungary receive pensions far below the country’s at-risk-of-poverty threshold. Around 23% of pensioners receive a monthly income below the official at-risk-of-poverty line. According to Human Rights Watch’s analysis of official Hungarian Central Statistical Office data, the at-risk-of-poverty rate among people aged 65 and over increased from 6.3% in 2018 to 16.1% in 2023.

Poverty rates among elderly women are even higher. Historically, women in Hungary earned less than men while performing the same or similar jobs. As a result, women often receive lower pensions after retirement.

Women in Hungary also tend to live longer than men. This means that female pensioners may have to live on a lower income for a longer period during their later years.

These factors have contributed to the growth of pensioner poverty in Hungary and have left many elderly people struggling to afford basic living costs.

Fidesz Government Policies, Funding and Inflation

Hungary gained independence from the Soviet Union between 1990 and 1991. The reporting of wages and the payment of social contributions can affect the pensions workers receive in retirement. Workers whose official earnings are recorded at lower levels may consequently receive lower pensions.

Between 2009 and 2011, the government introduced changes to the national private pension system as a way to strengthen the system. However, the government implemented these changes quickly, which left gaps in the system. As a result, some of the reforms failed to provide sufficient support to those most affected.

In 2009, Fidesz also stopped using the “Swiss indexation” method to increase pensions. This system based pension increases partly on wage growth. Instead, the government introduced an indexation system based on inflation.

These decisions contributed to future economic inequality, particularly between people receiving low fixed-income pensions and current workers and recent retirees who receive higher incomes.

Inflation has also had a direct connection to the increase in pensioner poverty in Hungary. Inflation surged between 2022 and 2023, putting additional pressure on pensioners who already relied on limited fixed incomes.

To combat rising costs, the Fidesz government introduced measures such as gas price controls and food price controls in 2023 and 2025. However, price controls may have limited effectiveness if businesses increase prices on other goods or services to offset their costs.

What the New Tisza Government Plans to Do

On May 25, 2026, Peter Magyar announced plans to support 1.3 million elderly Hungarians on the lowest pension incomes. According to Human Rights Watch, the proposed SZÉP-card support represents the government’s first step toward addressing pensioner poverty. The prepaid cards are intended to help recipients cover basic needs, including food and domestic travel. Magyar has also pledged to increase pensions for people receiving less than 500,000 HUF per month, prioritizing those receiving less than 250,000 HUF. The government’s manifesto also proposes raising the minimum monthly pension to 120,000 HUF. However, this proposed amount would remain below the at-risk-of-poverty threshold.

The extent to which these measures will reduce pensioner poverty remains uncertain. These proposals are intended to provide additional financial support to pensioners on the lowest incomes. However, their impact on pensioner poverty will depend on their implementation and whether the support is sufficient to help recipients meet their basic living costs.

What is Still Needed to Address Pensioner Poverty in Hungary?

Although the Tisza government’s proposed measures aim to provide additional support for pensioners, it remains to be seen whether they will significantly reduce pensioner poverty. Deeper reforms may also be needed to address the structural issues within Hungary’s pension system.

Human Rights Watch argues that structural pension reform is needed alongside short-term payments to improve social security and adequate living standards for older people.

A new pension indexation system could also help protect pensioners from future increases in inflation and living costs. Long-term reform will need to address the underlying weaknesses within the pension system so that fewer elderly Hungarians live below the at-risk-of-poverty threshold.

– Georgina Harrison

Georgina is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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Education Reform in Vietnam Leads Way for Poverty Reduction

Education Reform in VietnamEducation reform in Vietnam has decreased out-of-school rates among adolescents by at least 80% since 2000, according to a 2026 UNESCO report. Poverty reduction in Vietnam has been equally staggering, with the rate of people living at $3 a day going from 43.31% in 2002 to 1.6% in 2022, according to the World Bank Poverty & Inequality Platform.

Vietnam’s reform efforts and its recent economic improvement led the World Bank to reclassify the country from a lower-middle-income country to an upper-middle-income country in July. While education and poverty may seem unrelated, they are heavily connected, and the improvement of one leads to the improvement of the other.

Behind Education Reform in Vietnam

Projects increasing educational opportunities for vulnerable populations have contributed to the reduction of out-of-school rates. One such project is UNESCO’s We Are ABLE (Achieving Better Living and Education) program, which gives ethnic minority women access to quality education. The ongoing program has benefited more than 8,000 students since 2019 and helped hundreds of school teachers and managers with inclusive curriculums and classroom practices, according to the United Nations Sustainable Development Group.

Other programs, such as Mother Tongue-Based Bilingual Education, which instructs children in both their local languages and in Vietnamese, and Vi Vu, a text-to-speech software that helps visually impaired students in the Southern dialect, are making schooling more inclusive and accessible, contributing to higher in-school rates.

Improvement in infrastructure has also enhanced educational opportunities. More than 90% of schools in Vietnam now have internet access, according to a UNSDG report from Jan. 2025, increasing the quality of schools and education.

Additionally, national organizations have built more classrooms for children over the years, according to Ministry of Education and Training Pham Ngoc. In a 2024 conference in collaboration with Vietnam Television (VTV), a national TV station and news site, Ngoc said that the number of classrooms in the country increased from 553,181 in 2013, with only 65.9% being structurally sound, to 628,571, with 86.6% being structurally sound, according to VTV. This nationwide increase has especially helped children in rural or remote areas, who may have previously been too far from schools to receive quality education.

Education reform in Vietnam has also significantly reduced poverty in the country.

Education Reform and Poverty Reduction: a Cycle

A 2023 study in the Social Indicators Research journal analyzed the link between education and poverty by monitoring 34 European countries from 2015-2019. The study found that an increase in education levels led to poverty reduction, and the authors even claimed that education appeared to be “one of the best effective methods to eradicate poverty” in a country.

Lack of education can put individuals into poverty because they may not have the required skills and knowledge to find employment, according to the RELX SDG Resource Centre. The article says that it is especially important for women to receive proper education to reduce poverty rates. Educated women are less likely to marry and have children at a young age, allowing them to pursue their education and receive high-paying opportunities.

Poverty also leads to worse education. It affects children’s ability to attend school, from an affordability standpoint, and affects students’ performance in school. Children in poverty not only start school less ready than more affluent peers, both academically and socially, but “the incidence, depth, duration, and timing of poverty all influence a child’s educational attainment,” according to a 2007 study in the Paediatrics & Child Health journal. Factors such as lower parental education and higher stress in the family negatively affect children’s academic development.

Looking Ahead

Education and poverty are inherently related. As education reform in Vietnam continues, poverty’s downward trend will also continue, which, in turn, will lead to better education. Although Vietnam is still working to put more children in schools and take people out of poverty, the nation is proof that education reform greatly reduces poverty.

– Koya Weiss

Koya is based in Boston, Massachusetts, United States and focuses on Good News for The Borgen Project.

Photo: Pixabay

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Top 3 Winners of the Millennium: Tertiary Sector and Poverty Reduction

Tertiary Sector
The world entered the 2000s with hope; the 1900s had seen the largest conflicts in history and devastating pandemics. Nations and people have made efforts to improve the world. Rwanda, Bangladesh and Vietnam provide examples of substantial poverty reduction since the turn of the millennium.

Rather than ranking countries against each other, this article examines different routes toward improving livelihoods and reducing poverty.

In June 2025, the World Bank updated its international extreme-poverty line from $2.15 (2017 purchasing-power-parity dollars) to $3.00 (2021 purchasing-power-parity dollars), drawing on new price data and revised national poverty lines. Older data using the $2.15 measure should be identified separately rather than directly combined with newer estimates.

Rwanda

Rwanda faced one of the worst atrocities in history during the Rwandan Genocide. After gaining independence from Belgium and later separating from Burundi, Rwanda became a free republic in 1962. The rural share of Rwanda’s population remained around 97% from 1962 until the 1994 genocide. The genocide included looting, destruction and a lack of maintenance on critical infrastructure; this culminated in a steep drop in the economy of an already poor country.

Since the turn of the millennium Rwanda has reduced the proportion of its population living under the extreme poverty line from 82% to 38% in 2023. Part of the reduction is in the shift to the tertiary sector, which makes up more than half of the country’s total GDP since 2024.

The tertiary sector has a complex relationship with poverty reduction. While it requires workers to have education or skills, which alienates the most impoverished, with proper implementation it absorbs surplus labor in less heavily qualified sectors such as agriculture. In Rwanda’s case, investment in education has been associated with a net enrollment rate of 98% in primary education. This has broadened the availability of the tertiary sector and allowed lower-income families to enter the sector. Alongside this, the increased pay leads to increased taxation, providing the government with more funds to allocate to programs such as Vision 2020. The program aims to develop Rwanda into a knowledge-based economy.

Bangladesh

Bangladesh started as East Pakistan in 1947 after the partition of the British Raj, and after decades of ill treatment its people rebelled in 1971. The country survived a genocide, which most U.N. member states do not recognize, before forming Bangladesh as an independent nation. A history of oppression has contributed to Bangladeshi poverty, similar to Rwanda; however, Bangladesh faces even further struggles with overpopulation and climate crisis. Heavy flooding routinely strikes Bangladesh, which sits only 10 meters above sea level on average. These two issues would challenge a fully developed economy, let alone a still developing nation.

Despite these challenges, Bangladesh has made substantial progress against poverty. The World Bank estimated extreme poverty at 5% in 2022 using the former $2.15 international poverty line, while warning that revised survey methods limit direct comparison with older rounds.

Job creation affects the reduction, with the tertiary sector making up 51% of the GDP and employing 39% of Bangladesh’s workforce. In real numbers, industry added 9.4 million jobs, compared with 21.2 million in the service sector. This has received assistance from the Primary Education Stipend Project, which provides food to mothers with the stipulation that their children maintain an 85% school attendance rate. This provides an educated workforce for the country and offers a route out of poverty.

Vietnam

Vietnam has a troubled history, defeating three superpowers in the previous century to ensure independence. Occupation left Vietnam fractured, and the civil war divided it. Alongside these issues, Vietnam has also had to battle the elements, with the monsoon season and regular typhoons flooding the country. To this day Vietnam struggles with education, with a survey in 2021 finding that only 58% of students completed high school-level education.

Since 1986, Vietnam has continued the Đổi Mới program, which means “Restoration.” The program focuses on international trade and shifts Vietnam from socialist autarky toward a liberated private sector. This shift transformed Vietnam from a country that suffered food shortages into one of the world’s largest rice exporters. These changes reduced poverty from 43% in 2002 (there is no data for 2000) to just 1.6% in 2022. Vietnam’s consistent 6.5% economic growth from 1986 to 2009 ranks among the highest rates within developing countries. These reforms helped create conditions associated with substantial poverty reduction.

Conclusion

While Rwanda, Bangladesh and Vietnam continue to face challenges, their experiences show how sustained economic and social development can help reduce poverty. Rwanda and Bangladesh highlight the importance of investment in education and the expansion of the service sector, while Vietnam’s experience shows how economic reform and international trade can transform a country’s economic opportunities. Although these approaches differ, they share a common theme: reducing poverty requires more than economic growth; it also requires opportunities for people to participate in and benefit from that growth.

– Eoin Baxter Mackay

Eoin is based in Prestwick and focuses on Good News for The Borgen Project.

Photo: Flickr

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How Gains in Healthcare in Bhutan Mask Gaps for the Vulnerable

Healthcare in Bhutan
Bhutan has made significant progress in improving healthcare and reducing poverty, but access to essential health services remains uneven for some rural and vulnerable communities. Continued investment in healthcare in Bhutan could help the country build on its health gains while supporting household well-being and long-term poverty reduction.

Bhutan reduced its national poverty rate from 28% in 2017 to 11.6% in 2022, according to the World Bank. However, poverty remains predominantly rural, with 87% of the country’s poor people living in rural areas. These disparities make access to essential services particularly important for communities that may already face economic and geographic challenges.

Bhutan Has Made Significant Health Gains

Bhutan has recorded substantial improvements in health outcomes over the past two decades. According to the World Health Organization (WHO), maternal mortality fell from 255 deaths per 100,000 live births in 2000 to 53 in 2023. During the same period, under-five mortality declined from 84 deaths per 1,000 live births to 19.5.

The country has also maintained immunization coverage above 99%, while institutional delivery rates reached 98.5% in 2023. These improvements reflect Bhutan’s continued investment in health services and efforts to expand access to essential care.

The 2023 National Health Survey also reported improvements in access to health services across the country. These gains provide a strong foundation for continued progress in healthcare in Bhutan, while remaining gaps show the importance of ensuring that vulnerable communities can benefit from these improvements.

Rural Communities Still Face Healthcare Gaps

Despite these improvements, geography can affect access to healthcare in Bhutan. The country’s mountainous terrain and dispersed communities can make travel to health facilities more difficult, particularly for people living in rural areas.

Bhutan’s 2023 National Health Survey found that 72.9% of the population lived less than 30 minutes from the nearest health facility. However, 8.6% lived between one and two hours away, 2.5% lived between two and three hours away and 0.8% lived more than three hours away.

The survey also found differences between urban and rural households in the type of health facility located closest to them. Hospitals were the closest facility for 87.4% of urban households surveyed, compared with 37.6% of rural households. Primary health centers were the closest facility for 52.8% of rural households.

These differences highlight the importance of strengthening primary healthcare and referral services so that people living outside major population centers can access appropriate care.

Healthcare Access Can Affect Household Finances

Access to healthcare can also affect household finances. Illness can create financial pressure through medical expenses, transportation costs and time away from work.

Bhutan’s 2023 National Health Survey found that 46.7% of households incurred health expenditures. Households spent an average of Nu 1,000.8 per month on healthcare-related expenses.

Transportation accounted for 60.7% of health expenditure among rural households. For families living farther from health facilities, transportation can therefore add to the financial burden associated with seeking medical care.

These costs are particularly relevant for households with limited financial resources. When families must spend money traveling to receive healthcare, fewer resources may remain available for other household needs. Improving access to healthcare can therefore help reduce some of the financial and geographic barriers that vulnerable households face when seeking essential services.

Continued Investment Can Strengthen Bhutan’s Progress

Bhutan’s health achievements provide a foundation for addressing remaining gaps. The WHO Country Cooperation Strategy for Bhutan for 2026–2030 focuses on strengthening collaboration with the Royal Government of Bhutan to improve health and development outcomes.

The strategy builds on a partnership between WHO and Bhutan that began in 1982 and identifies continued improvements in health services and health-system capacity as part of the country’s health priorities.

Bhutan is also strengthening its preparedness for health emergencies. In March 2026, the Ministry of Health and WHO convened a consultation to finalize the country’s National Action Plan for Health Security. The process produced a five-year strategic plan and a prioritized 24-month operational plan addressing gaps in health security capacities.

The plan brings together multiple sectors and focuses on strengthening Bhutan’s ability to prevent, detect and respond to public health emergencies. Continued investments such as these can strengthen the country’s health system while improving resilience to future health challenges.

Conclusion

Bhutan has made significant progress in improving healthcare and reducing poverty, but gaps in access remain for some rural and vulnerable communities. Differences in travel time to health facilities and healthcare-related expenses show the importance of continued attention to accessibility. Building on the country’s health achievements while addressing these gaps can help more communities benefit from Bhutan’s development progress and support healthier, more resilient households.

– Adebisi Aliyah Adeola

Adebisi is based in Cairo, Egypt and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash

 

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What to Know About the Pivot to Tackling Rural Poverty in Vietnam

Rural Poverty in Vietnam
Vietnam has long been a standout nation in Southeast Asia for targeting poverty reduction. In 2022, only 1.6% of the population lived on less than $3.00 per day, while 1.9% fell into the multi-dimensional poverty category. The multi-dimensional poverty rate refers to the percentage of the population living with deprivations other than a low income; factors like poor health, education or low access to electricity or clean water. In Vietnam, this poverty is concentrated outside of the cities—70% of the Vietnamese population lives in rural or mountainous regions, and they account for more than 90% of Vietnam’s poor.

The New-Style Rural Development Programme

Vietnam has merged two government tracks, poverty reduction and rural advancement, into one new decade-long national initiative: the New-Style Rural Development Programme. This initiative does not seek to simply temporarily lower rural poverty in Vietnam. Nguyễn Đình Hòa, an expert from the Vietnam Institute of Economics and World Economy, says the New-Style Rural Development Programme’s version of poverty reduction will measure a poor household’s ability to withstand risks and sustain livelihood long term.

Going Green

Due to the agricultural nature of rural and mountainous regions, a core component of the initiative is restructuring the green economy with emphasis on sustainability and climate resilience. It is the first time Vietnamese policy has officially integrated these concepts, with Vietnam placing special significance on a circular economy over linear production methods. A circular economy seeks to reduce waste by keeping products and resources in rotation for as long as possible. Expert Trần Xuân Quỳnh believes that, as market requirements both domestically and internationally become stricter, adopting green measures in the nation will help in “increasing brand value and expanding export opportunities,” thereby stimulating the economy and decreasing rural poverty in Vietnam.

The initiative will also target cutting emissions and preserving the environment. The government will keep forest coverage at more than 42%. There will also be designated investment in climate-resilient infrastructure in rural regions and establishments for flood, landslide and drought prevention. Concerning multidimensional poverty, the New-Style Rural Development Programme will target access to clean water and treating solid waste in line with regulations. By the end of 2026, Vietnam aims for 62% of rural households to have access to clean water.

Digital Development

A digital transformation in rural Vietnam will take place in tandem with greener policy. Rural Vietnamese lack the same abilities to use telecommunication infrastructure as people in urban areas. Consequently, rural digital use is generally tied to providing entertainment rather than generating productivity or economic value.

The application of technology will enhance efficiency for rural businesses by allowing them to track emissions and energy use. Digital development is thus a core component of the One Commune-One Product (OCOP) program, which aims to develop quality and environmentally friendly goods by region, boosting local economies with a unique product. The program will also implement technology to expedite processing, help brands build a name and expand their markets much further than just the region from which they originate.

Increasing Income

By combining these elements, the ultimate economic goal of the program is to increase rural incomes. By the end of the first phase of the New-Style Rural Development Programme in 2030, the state hopes to increase rural incomes by two and a half to three times compared to 2020. Additionally, the aim is for multidimensional poverty to be reduced by 1-1.5% each year, and to stamp out poverty definitively in what the state considers “poor communes” (poverty). The initiative gives remote ethnic minorities special consideration as they are disproportionately concentrated in these communes. It should reduce the poverty rate in these households to below 10%. At the time of the program’s completion in 2035, 85% or more of communes should meet the new rural standard, and authorities should recognize approximately 33% as modern rural areas.

The New-Style Rural Development Programme may be a national initiative, but it operates on a community level to build the livelihoods of those living in rural poverty in Vietnam to withstand risk and ultimately prosper. Combining digital and green developments will stimulate local economies in a unique way, allowing communities all over the country to retain their respective cultures while moving toward a common goal.

– Hana Hardenbrook

Hana is based in Raleigh, North Carolina USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Poverty Reduction in Albania

Poverty Reduction in Albania
Albania continues to face poverty and regional inequality, but economic development and public investment have helped improve opportunities for many households. Fortunately, some efforts are in place to work toward poverty reduction in Albania.

Beating the Odds

Albania has pursued reforms and development programs intended to reduce poverty. Over the past two decades, poverty has declined. However, the decline has not been without delays. Albania’s economy suffered from the 2008 financial crisis, and poverty rose in the years following the crisis.

World Bank estimates place 0.3% of Albania’s population below the international $3-per-day extreme-poverty line in 2020, measured in 2021 purchasing-power-parity dollars. Economic growth and poverty reduction are related but distinct measures.

Stronger labor markets, wage growth and reforms have accompanied Albania’s declining poverty rate, according to the World Bank. Additionally, the increase in economic stability is a result of private consumption, tourism and construction. By strengthening relationships with the European Union and focusing on structural reforms, Albania is bringing better living conditions to its people.

Rural Migration

In the rural areas of Albania, people lack economic opportunities, leading to emigration. Emigration from these rural areas is high because there is a lack of education, training and low infrastructure development in rural zones.

The migration patterns from rural areas to other cities and nations are important, for around 54% of Albania’s population lived in urban areas in 2011. The population steadily increased to 63% in 2021, and the United Nations estimates that it will reach 80% by 2050.

A World Bank report indicates that Albania has some of the highest per capita emigration rates in the region.

The World Bank-supported Regional and Local Roads Connectivity Project aims to improve road access in rural areas, helping communities access basic services and markets.

Albania’s Future

Albania’s development strategy includes investments intended to strengthen connectivity, employment and public services.

National programs have begun to prioritize investment in farmer training, infrastructure and regional markets. One major program created by the World Bank Group, endorsed by the Board of Executive Directors on March 16, 2023, is the World Bank’s Country Partnership Framework for Albania (2023-2027). This program focuses on helping Albania create better jobs for its population and increase human capital. The 2023–2027 Country Partnership Framework sets out an indicative financing envelope of $900 million for programs supporting jobs, human capital and resilience.

Current programs aim to support jobs, human capital and resilience. Their long-term contribution to poverty reduction will depend on implementation and outcomes.

– Kelly Thomas

Kelly is based in Tallahassee, FL and focuses on Good News for The Borgen Project.

Photo: Flickr

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The Modernization of India’s Railways Can Support Poverty Reduction

India's Railways
India’s railways transport millions of passengers daily, connecting cities and communities across the country. However, connectivity between major cities and tier-2 and tier-3 cities has been historically uneven. Since the turn of the century, increased government investment has accelerated railway modernization, including faster trains, upgraded stations and new safety technologies. Services such as Vande Bharat and Amrit Bharat, alongside the Amrit Bharat Station scheme, are reshaping passenger rail connectivity across the country. This article examines how these investments can expand economic opportunities and potentially contribute to poverty reduction.

Why Does Railway Connectivity Matter?

Smaller cities, rural communities and remote regions often have weaker connections to jobs, education and health care. Poor connectivity can limit businesses’ access to larger markets and make it harder for workers to pursue opportunities outside their immediate areas. Better connectivity can also encourage tourism and increase spending in less-developed regions. The Borgen Project spoke with Lakshya Bafna, an international business student with a scholarship from Macquarie University. He said, “From an economic-development perspective, improved railway connectivity reduces generalized transportation costs—not just the ticket price, but also travel time, reliability and the cost of accessing economic opportunities.”

Vande Bharat: Faster Connectivity and Economic Opportunity

The first Vande Bharat service was launched in 2019 between New Delhi and Varanasi. Since then, the service has expanded across India. While its fares may make it inaccessible to some lower-income households, its economic effects can extend beyond direct passengers. Faster connections can help workers reach economic centers, facilitate business activity and increase access to tourism destinations. These effects may contribute to the growth of smaller cities along its routes. Bafna explained that “positive externalities and indirect economic benefits” are important, noting that Vande Bharat can contribute to “positive effects on labor market forces, increased productivity and business activity, increased tourism, infrastructure spillovers, and improved railway network effects.”

Amrit Bharat: Expanding Affordable Connectivity

Amrit Bharat is a non-air-conditioned long-distance train service operated by Indian Railways, designed to provide affordable travel for low- and middle-income passengers. By reducing the cost of long-distance rail travel, it can make employment and economic opportunities more accessible to lower-income households. While Vande Bharat demonstrates how faster connectivity can create economic spillovers, Amrit Bharat illustrates how affordability can make those opportunities accessible to a wider population. Bafna said, “This is arguably a more direct poverty-reduction mechanism because affordability determines whether lower-income households can actually participate in the transport network. Affordable rail services can reduce the cost of accessing employment.” He continued, “For example, suppose someone lives in a smaller town but works in a larger city. If affordable rail makes daily or weekly commuting economically viable, the worker gains access to a much larger labor market.”

Amrit Bharat Station Scheme: Modernizing India’s Railway Gateways

The Amrit Bharat Station Scheme is a railway station redevelopment program aimed at modernizing facilities across India. Announced in 2022, the scheme targets more than 1,300 stations for redevelopment. Upgrades include improved passenger facilities, accessibility infrastructure and wider platforms designed to accommodate growing passenger numbers. By making stations more accessible and functional, the scheme can improve people’s ability to use rail services and connect with employment, education, health care and markets. Better stations can therefore complement improved train services by making the wider railway network more accessible to communities.

How Can Railway Modernization Support Poverty Reduction?

Better rail connectivity can expand the geographical area in which people can seek employment. Railway construction, maintenance and associated activities can also generate jobs. Improved mobility can give workers and businesses greater access to markets and suppliers, while lower transportation costs can make economic activity more efficient.

Railway modernization can also support local economic activity around stations. Bafna said, “A railway station can function as an economic node, not merely a place where passengers board trains.” He explained that modernization can create opportunities in construction, maintenance, retail and services, while potentially increasing demand for hospitality, taxis and logistics. Better stations could also make surrounding areas more attractive to businesses and investors, creating additional opportunities for employment and economic activity.

Kavach: Strengthening Railway Safety

Kavach is an indigenous Automatic Train Protection (ATP) system that the Research Designs and Standards Organisation (RDSO) developed to improve railway safety. The system provides automated train protection and collision-prevention capabilities, including protection against Signal Passing at Danger (SPAD), overspeeding, rollback and certain side, head-on and rear-end collisions. Kavach can also automatically apply brakes in specified situations, including when a train exceeds its permitted speed or when the system detects two trains moving toward each other on the same track section.

By adding another layer of protection to train operations, the system can support safer and more reliable rail services. Reliable rail services matter to passengers and businesses that depend on trains for mobility and the movement of goods. However, Kavach should not be presented as a direct poverty-reduction measure. Instead, safer, more reliable railway operations may limit disruptions to the movement of people and goods, complementing broader railway investments in connectivity and affordability.

Who Benefits From Railway Modernization?

The modernization of India’s railways requires significant public investment and can create employment through construction and infrastructure projects. Upgraded stations, including wider platforms, escalators and lifts, can also make rail services more accessible to passengers such as students, migrant workers, vendors and transport operators. However, connecting a poorer region with a wealthier one does not automatically make its residents richer. The benefits depend on affordability, accessibility, employment opportunities and local economic capacity. Bafna said the economic impact of railway modernization should be evaluated “not only by passenger numbers or travel-time savings,” but also by its effects on productivity, labor mobility, market access, employment, regional development and the distribution of benefits across income groups.

Conclusion

The modernization of India’s railways does not directly reduce poverty, but it can support the economic conditions that help communities escape it. Better rail connectivity can reduce transportation and logistics costs, expand access to employment and markets and create opportunities for businesses, tourists, students and migrant workers. If lower-income communities can access these opportunities, railway modernization may contribute to higher incomes and long-term poverty reduction. Ultimately, rail infrastructure is not a cure for poverty, but a tool connecting communities to economic opportunities.

– Dhruv Bandhu

Dhruv is based in Bengaluru, India and focuses on Good News, Technology and Solutions, and Global Health for The Borgen Project.

Photo: Pexels

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The Boom of Freelancing in Pakistan

Freelancing in PakistanFreelancing in Pakistan has experienced one of the largest surges in recent years. Pakistani freelancers earned $557 million in foreign exchange during the first half of fiscal year 2025-26. Pakistan has 2.3 million active freelancers, ranking it among the top five freelancing countries in the world. The government has introduced several policies to support young freelancers, and the chief of the Pakistan Freelancers Association, Ibrahim Amin, states that this continual progress could lead to generating up to $3 billion in exports in a few years.

Freelancing provides citizens with opportunities to work remotely and earn dollar-denominated income, benefiting some unemployed young people. The rise in the gig economy emerged after the 2008 financial crisis, as people took on part-time jobs to meet basic needs. The online hiring system is less expensive and allows a greater range of applicants to apply for jobs, giving women and unemployed youth more opportunities while they stay at home.

Government Efforts and Poverty Reduction

The government has provided freelancers with a tax incentive to route payments through the country’s banking system. Freelancers registered with the Pakistan Software Export Board (PSEB) pay only a 0.25% tax on foreign gains. The government has focused on improving freelancing prospects due to the high 11.4% unemployment rate among youth by creating the 2023 Freelancing Policy. The PSEB has also invested in digital skills. Reports indicate that most freelancers earn around $200 to $800 a month. The Software Export Board teaches new skills ranging from creative design to SEO.

Freelancing offers an alternative source of income outside sectors such as agriculture, which can be vulnerable to weather and other natural conditions. It provides a more stable opportunity by teaching new skills so people can escape poverty. Pakistan Tech Destination has 600,000 IT professionals registered, and PNY training teaches skills like jewelry making to help locals earn their keep. Global markets also connect rural populations, increasing the number of laborers earning higher than the minimum wage.

A New Opportunity for Women

Researchers reported that women’s workforce participation was 24% in 2014. After COVID-19, a shift toward IT marketing and online work gained popularity. Freelancing provides new opportunities for women in Pakistan, where it is culturally challenging for them to work in offices. Freelancing allows for flexible shifts, enabling women to balance house chores and family responsibilities.

Platforms like Fiverr, Upwork and PeoplePerHour have emerged, offering courses with important skills for women to improve their earnings. Some research estimates that women make up 15-25% of Pakistan’s freelancers. Freelancing offers women greater flexibility and access to income, although participation and earnings vary. It provides household income security and gradually enhances economic security for the country.

Future Prospects

Freelancing could contribute to Pakistan’s economic opportunities and help broaden access to income beyond major urban job markets. It might lead to a reduction in poverty with an increase in training centers for local people and tax incentives for freelancers to acquire earnings through formal banking systems. The government could recognize the advantages of this developing sector and aim to provide opportunities to address the lack of jobs in Pakistan.

– Eshal Fatima

Eshal is based in Lahore, Punjab, Pakistan and focuses on Business and New Markets, Good News, Technology and Solutions for The Borgen Project.

Photo: Unsplash

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How A Local’s Action is Reducing Poverty in Lao Cai, Vietnam

Reducing Poverty in Lao Cai
Vietnam is a country located in Southeast Asia that has been rapidly reducing the poverty rate for the last few decades. This progress followed trade liberalization and wider economic reforms beginning in the 1990s. Although the country has greatly flourished in the past decades, several regions still face high poverty rates. One example is the Lao Cai province.

Background on the Lao Cai Province

Lao Cai Province faces a higher poverty rate than the country of Vietnam. Official 2024 figures put Lao Cai’s household poverty rate at 11.24%, compared with 1.93% nationally. One of the factors for the high rate is the landscape. Lao Cai is a predominantly mountainous region. This poses a huge problem because the province chiefly relies on agriculture to bring in revenue. Additionally, the mountainous region makes traveling to different areas difficult, resulting in less accessibility to trade and revenue.

The population also plays a part in the high poverty rate. The region’s population is composed of several ethnic minorities: H’mong, Tay, Dao, Nung and Giay. These minority groups make up 71% of Lao Cai’s inhabitants. Alongside living in a mountainous region that limits accessibility to other surrounding provinces, these ethnic groups face higher chances of poverty because of a lack of tourism industry knowledge, language barriers and business support services. Many people in these ethnic minorities are taught their native tongue, which means they face challenges comprehending in educational settings where the language spoken is standard Vietnamese. In recent years, actions have been taken to provide more opportunities for the people living in the province.

Local Action to Improve Connectivity

Some individuals living in Lao Cai province have taken the matter of reducing poverty in the region into their own hands. One of these people is Giang A Thu. Thu is a H’mong leader who resides in the Giang Pang village. His actions in bringing positive change to his village include talking with different families living in the village and listening to their concerns. By building these relationships, Thu creates a personal connection with the villagers and provides guidance on how to bring improvement to Giang Pang. Thu’s family willingly gave up some of their land to help improve accessibility to schools and markets. He also encouraged villagers to donate some of their land and collect material to improve infrastructure. Additionally, Thu has provided guidance to the villagers on how to expand their livestock and worked with local organizations to ensure improvements to the villagers’ lives become reality. According to VietnamNet, Giang Pang’s poverty rate fell from 24% in 2021 to 12% in 2025 as local infrastructure and livelihood initiatives expanded.

Looking Ahead

Involving locals in Lao Cai in reducing the poverty rate bridges the gap for minority groups, providing the resources needed to successfully bring new opportunities and accessibility into their lives.

– Dorothea A Pudwill

Dorothea is based in West Springfield, Massachusetts and focuses on Business and New Markets, and Good News for The Borgen Project.

Photo: Pexels

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Politics for Progress: Effective Political Strategies for Poverty Reduction

Aerial view of a person on a bench engaged in conversation.
Even when policymakers identify promising solutions, poverty can persist because public institutions do not always deliver services or distribute opportunities equitably. Research on governance and development suggests that accountable institutions, coordinated policies and sustained financial commitments can help make anti-poverty programs more effective. Political action matters not simply because leaders set goals, but because institutions determine how commitments translate into resources for communities. This article examines political strategies for poverty reduction through governance, accountability, cross-sector coordination and international cooperation.

Governance as a Poverty Reduction Tool

Effective governance can help governments direct resources toward marginalized communities and improve access to services. The United Nations Development Programme’s Human Development Report 2021–22 examines human development challenges and the role of policy and institutions. It does not, however, establish a simple rule that higher spending on health or education automatically produces better governance.

Rwanda provides an example of institutional reforms alongside expanded social protection and public services. The World Bank reports that national poverty fell from 58.9% in 2001 to 38.2% in 2017, while subsequent programs aimed to improve access to health, nutrition, education and safety nets. These outcomes involved multiple economic and policy factors rather than institutional reform alone.

Accountability Mechanisms and Service Delivery

Accountability mechanisms can help citizens assess whether governments deliver on public commitments. Audits can identify misuse of resources, while access to information and community feedback can give officials stronger incentives to address local needs. The World Bank’s World Development Report 2004 described how relationships between policymakers, service providers and citizens shape access to education and health care.

In Uganda, primary school enrollment rose from 3.6 million to 6.9 million between 1996 and 2001. The report connects the increase to a combination of political commitment, the abolition of school fees, economic conditions and public information—not to accountability measures alone.

A separate study of community-based monitoring in Ugandan primary health facilities, published in 2009, found that community meetings and feedback were associated with greater use of services, improved staff effort and better child health outcomes. This offers stronger direct evidence of a practical accountability mechanism.

Cross-Sector Coordination and Integrated Policy

Poverty has overlapping causes, including limited health care, poor education, inadequate housing and barriers to employment. Coordinating services across ministries and levels of government can help address these connected needs more effectively than isolated interventions.

The Organisation for Economic Co-operation and Development’s Linking Indigenous Communities with Regional Development recommends combining policies related to land, entrepreneurship, infrastructure, skills and governance with greater Indigenous participation in decision-making. Its work on Canada similarly calls for partnerships that give Indigenous communities a stronger role in designing development priorities. These are policy recommendations, not evidence that a particular Canadian reform has already increased employment or reduced reliance on federal programs.

Such coordination can be reinforced by international frameworks that establish shared goals and support the measurement of progress.

International Policy Frameworks and Global Commitments

International agreements can encourage governments to incorporate poverty reduction into national plans and budgets. The United Nations 2030 Agenda for Sustainable Development includes the goal of ending poverty and calls for nationally led implementation and monitoring. Its targets offer a common framework, although formal commitments alone do not guarantee results.

Ethiopia’s Productive Safety Net Programme illustrates the use of public policy to address chronic food insecurity. Established in 2005—well before the 2030 Agenda was adopted in 2015—the program provides eligible households with food or cash transfers, often linked to public works, to stabilize consumption and protect assets. It has continued under later development frameworks and with support from international partners.

International commitments may help align donors and governments around poverty reduction, but their effect depends on funding, implementation and accountability within each country.

Reform-Minded Executives and Institutional Change

Political executives influence how public resources are allocated, which groups participate in decision-making and whether reforms continue over time. Policies that expand access to public services or protect accountability can strengthen economic inclusion, although their impact depends on how they are implemented.

Botswana is often discussed as an example of long-term economic growth following independence, supported in part by its institutional arrangements and management of mineral revenues. However, growth alone is not proof that all citizens share equally in the benefits. Botswana still faces substantial inequality and poverty challenges. Its experience shows why institutional effectiveness must be evaluated alongside distributional outcomes, rather than described as an unqualified success.

Lawmakers, Advocates and Pathways to Progress

Lawmakers shape poverty-reduction policy through legislation, oversight and budget decisions. Advocates work outside government by organizing communities, presenting evidence and pressing officials to fulfill their commitments. Both roles can contribute to sustained reform.

The global debt-relief movement of the late 1990s offers an example of coordinated pressure and policy change. Launched by the World Bank and International Monetary Fund in 1996 and strengthened in 1999, the Heavily Indebted Poor Countries Initiative sought to reduce unsustainable debt burdens so eligible countries could direct more resources toward development priorities. Alongside the Multilateral Debt Relief Initiative, it has delivered more than $100 billion in debt relief to 37 participating countries. Debt relief can create fiscal space for health, education and other services, although the eventual poverty impact depends on how countries use those resources.

Looking Ahead

Governance and political action are important tools in reducing poverty, but neither is a substitute for effective implementation. The cases of Uganda, Rwanda and Ethiopia show how public services, social protection and accountability mechanisms can support development when policies are funded and monitored. International coordination, including debt relief, can strengthen these efforts.

Voters and advocates can support leaders who protect civic participation, invest in essential services and make public spending more transparent. For policymakers, the task is to translate commitments into measurable benefits for communities facing poverty. Progress depends on sustained cooperation among institutions, lawmakers, advocates and the people their policies are intended to serve.

– Charles Bakar

Charles is based in Montréal, Québec, Canada and focuses on Politics for The Borgen Project.

Photo: Unsplash