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Policies That Lifted Millions Out of Poverty Around the World

Policies That Lifted Millions Out of PovertyGlobal poverty has declined in recent decades and much of this progress stems from policies that have helped lift millions out of poverty. Governments and organizations did not rely on chance; they implemented targeted strategies that improved incomes, expanded opportunities and strengthened social protection. Here is an overview of several policies that have helped lift millions out of poverty, highlighting real-world examples and why they worked.

Conditional Cash Transfers: Direct Support That Works

One of the most effective policies that lifted millions out of poverty is conditional cash transfers. These programs provide money to low-income families while encouraging education and health care. 

In Brazil, the Bolsa Família program helped alleviate extreme poverty and improve school attendance. Low-income families with children receive payments in return for sending their children to school and ensuring regular health care checkups. According to the World Bank, the program has contributed significantly to Brazil’s declining poverty and inequality.

Mexico also implemented a similar program, Prospera, which has shown long-term improvements in education and health outcomes. These programs succeed because they address immediate needs while investing in future generations. 

Investments in Rural Development and Agriculture

Many impactful policies that have lifted people out of poverty have focused on the rural populations, where poverty is often concentrated. In Vietnam, rural development and agricultural reform played a central role in poverty reduction. This began in the ’80s with the Đổi Mới reforms. 

The government moved away from collective farming toward a market-oriented system that gave households control over land and production. According to the United Nations Development Programme (UNDP) these reforms have helped reduce poverty from 58% in 1993 to 16% by 2006, largely driven by improvements in rural livelihoods and agricultural productivity. These reforms worked because they empowered individuals, improved market access and encouraged economic participation. 

Expanding Access to Education

Education plays a vital role in policies that have lifted millions out of poverty, particularly when governments prioritize girls’ education. Bangladesh made major progress by increasing female school enrollment and supporting women’s employment in industries like textiles. Programs that provided stipends for girls to attend school helped delay early marriage and improve long-term earning potential. 

According to UNICEF, Bangladesh achieved near gender parity in primary and secondary education. Educated women contribute more to the workforce, support healthier families and help break cycles of poverty. 

Universal Health Care and Social Protection Systems

Strong social protection systems represent another group of policies that lifted millions out of poverty. These systems reduce financial shocks and improve overall well-being. In Rwanda, the government introduced community-based health insurance, expanding access to medical care. 

Citizens gained affordable health care, reducing out-of-pocket expenses and preventing families from falling deeper into poverty. The World Health Organization (WHO) highlights Rwanda as a model for expanding health care coverage in low-income countries. Health care access supports productivity and stability, both of which drive poverty reduction. 

Economic Growth Paired With Inclusive Policies

Economic growth alone does not reduce poverty; governments must pair growth with inclusive strategies. China provides a clear example of this combination. 

China experienced rapid economic growth while implementing targeted poverty alleviation programs in rural areas. These programs included infrastructure development, relocation initiatives and job creation. The World Bank estimates that China has lifted more than 800 million people out of poverty since 1980, largely through these initiatives.

China’s approach shows that growth must reach marginalized communities to create a lasting impact. 

Why These Policies Matter Today

These examples of policies that have lifted millions out of poverty reveal common traits: 

  • Governments targeted the most vulnerable populations
  • Leaders invested in long-term human development
  • Programs combined immediate relief with structural change
  • Organizations like The Borgen Project advocate for similar approaches because they produce measurable results. 

Global poverty remains a challenge, but these successes prove that effective policies can drive meaningful change. When countries adopt and adapt these strategies, they move closer to achieving the United Nations Sustainable Development Goals (SDGs) of ending poverty worldwide. 

– Leah Denning

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

Photo: Pixabay

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Rwanda’s F1 Ambitions: A Race To Transform Africa

Rwanda's F1Rwanda, a landlocked nation in East Africa, is making a high-speed push onto the global stage and Formula 1 (F1) may be its most powerful vehicle yet. Rwanda’s F1 ambitions and economic growth have become central talking points in development circles as the sport turns its attention back to Africa for the first time in more than three decades. Rwanda positions itself not only as a host of the race but also as a model for how developing nations can use global sporting events to accelerate economic transformation.

Rwanda’s $1.2 Billion F1 Bid

The Rwandan government has officially bid to host Africa’s first F1 Grand Prix since the 1993 South African Grand Prix at Kyalami. The centerpiece of the initiative is a $1.2 billion state-of-the-art circuit planned near the new Bugesera International Airport, about 40 kilometers from the capital, Kigali. Construction is expected to begin in 2026, with the inaugural race targeted for 2027 or 2028. 

Rwanda’s Foreign Minister, Olivier Nduhungirehe, confirmed that the country remains in active talks with F1 leadership, pointing to the nation’s growing track record of hosting major international events. “We have demonstrated the capacity to host major sporting events,” Nduhungirehe told Semafor Africa.

The Economic Case for a Grand Prix

The link between F1 and Rwanda’s economic growth and long-term poverty reduction is grounded in concrete data. According to Further Africa, each F1 Grand Prix injects more than $100 million into a host country’s economy. Television broadcasts reach more than 400 million viewers worldwide and generate significant sponsorship and hospitality revenue.

Rwanda’s broader economy is already on a strong upward trajectory. The World Bank reported that Rwanda’s real GDP grew by 8.9% in 2024, surpassing the previous year’s rate of 8.2%, driven by robust private consumption, significant investment and strong performance in the services and industry sectors. That growth also produced tangible results for workers, with more than half a million new jobs created year over year. 

Sports Tourism Already Delivering Results

Rwanda has not waited for F1 to begin building its sports economy. The country signed sponsorship deals with Arsenal, Paris Saint-Germain, Bayern Munich and Atlético de Madrid as part of its “Visit Rwanda” tourism campaign. This strategy helped drive a 36% increase in tourism revenue to $636 million in 2023.

In 2025, the Rwanda Development Board (RDB) reported tourism revenues rising to $685 million, supported by 1.49 million visitor arrivals, a 9% year-over-year increase. That year also saw Rwanda host the UCI Road World Championships, a historic first for Africa, alongside Season 5 of the Basketball Africa League at the BK Arena in Kigali and the 73rd FIFA Congress. Rwanda’s travel and tourism sector contributed a record $1.5 billion to the national economy in 2024, representing 9.8% of GDP.

Building the Infrastructure of Growth

Rwanda’s sports ambitions are matched by targeted infrastructure investment. The Ministry of Sports has set a target of generating approximately $20.4 million (Rwf 30 billion) from sports tourism by 2029, a dramatic increase from the roughly $681,000 (Rwf 1 billion) projected for the 2024/25 fiscal year. Plans also include the construction of 540 sports facilities nationwide by 2028/29, with priority given to schools and public spaces to broaden access to athletics and associated economic opportunities.

Job creation is a direct priority. Experts forecast steady growth in sports tourism jobs, with positions increasing from 2,625 in 2024/25 to 3,190 by 2028/29. This growth across hotels, event planning and sports support services will create clear employment opportunities for young Rwandans.

A Blueprint Beyond the Track

Rwanda’s sports-led growth model aligns with its broader Vision 2050 agenda, which prioritizes economic diversification, job creation and sustainable development. The RDB reported $2.62 billion in registered investments across 799 projects in 2025, which are expected to generate more than 38,000 jobs in real estate, manufacturing and tourism. Analysts tracking the relationship between F1 and Rwanda’s economic growth say the motorsport bid reflects a broader pattern of using high-visibility events to attract foreign investment and build lasting infrastructure.

Local drivers Eric Gakwaya and Queen Kalimpinya have expressed optimism that Rwanda’s motorsport ambitions will also catalyze the development of local talent. It will inspire a new generation to pursue careers in competitive racing and the industries that support it.

If Rwanda secures the Grand Prix, it will restore Africa’s presence on the F1 calendar. It will also demonstrate how strategic investment in major sporting events can drive poverty reduction, infrastructure development and long-term economic growth across the continent.

– Nay Mohamad 

Nay is based in Milan, Italy and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Estonia’s Startup Ecosystem Supports Economic Growth

Estonia's startup ecosystemThe startup ecosystem in Estonia has become a key driver of economic growth and innovation in recent years. Known for its advanced digital infrastructure and business-friendly policies, Estonia has created an environment where startups can develop and scale efficiently. These efforts have contributed to job creation, increased foreign investment and a more diversified economy. 

As a result, Estonia is often recognized as one of the most digitally advanced countries in Europe. Government initiatives and public-private partnerships play a central role in supporting startups. By combining digital governance with entrepreneurial support programs, Estonia has built a system that encourages innovation while reducing barriers to entry for new businesses.

Startup Estonia

One of the primary initiatives supporting Estonia’s startup ecosystem is Startup Estonia. This government-backed program aims to develop the country’s startup sector by connecting entrepreneurs with funding, mentorship and global markets.

Startup Estonia works to attract international investors while also supporting local entrepreneurs through networking opportunities and training programs. The initiative has helped foster a collaborative environment where startups can grow and access global resources. By strengthening connections between businesses, investors and policymakers, the program supports long-term economic development.

E-Residency Program

Another major contributor to Estonia’s startup ecosystem is the e-Residency program. This initiative allows individuals from around the world to establish and manage businesses in Estonia entirely online. Through e-Residency, entrepreneurs can access Estonia’s digital services, including company registration, banking and tax filing. 

This program has attracted thousands of international business owners, increasing foreign investment and expanding Estonia’s economic reach. By reducing administrative barriers, e-Residency enables startups to operate efficiently in global markets.

Digital Infrastructure and Innovation

Estonia’s digital infrastructure plays a central role in the success of its startup ecosystem. Platforms such as X-Road allow secure data exchange between government institutions, reducing bureaucracy and improving efficiency.

Digital ID systems also enable citizens and entrepreneurs to access services quickly, from signing contracts to filing taxes. These systems reduce the time and cost associated with starting and running a business. As a result, startups can focus more on growth and innovation rather than administrative processes.

Investment and Economic Impact

The Estonian startup ecosystem has attracted significant investment from both domestic and international sources. Venture capital funding and accelerator programs provide startups with the financial resources needed to scale their operations.

These investments have contributed to job creation in sectors such as technology, finance and logistics. As startups expand, they create employment opportunities and contribute to economic diversification. This growth can also benefit low-income Estonians by opening up new pathways to stable employment, particularly for young people and job seekers looking to enter emerging industries. 

Over time, a stronger, more diversified economy can help reduce poverty by increasing household incomes and expanding access to economic opportunities.

The Big Picture

The Estonian startup ecosystem demonstrates how targeted policies and digital innovation can drive economic growth. Programs such as Startup Estonia and e-Residency, combined with strong digital infrastructure, create an environment where businesses can thrive.

As Estonia continues to invest in entrepreneurship and innovation, its startup ecosystem offers insights for other countries seeking to promote economic development. By reducing barriers to entry and supporting small businesses, the startup ecosystem in Estonia contributes to long-term economic stability and opportunity.

– Jason Hill

Jason is based in Fullerton, CA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Unsplash

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Comoros’ Ylang-Ylang Industry: Why Greener Growth Matters

Comoros’ ylang-ylang industryComoros ranks among the world’s leading perfume producers, alongside Madagascar and Mayotte. In the country, the ylang-ylang flower does more than produce luxury fragrances. It supports thousands of rural households and provides a steady, environmentally conscious source of income and economic growth.

This industry also strengthens the national economy. Agriculture accounts for about one-third of Comoros’ GDP and export crops such as ylang-ylang, vanilla and cloves drive much of that growth.

Greener Practices, Stronger Incomes

Ylang-ylang creates direct economic opportunities for many families in Comoros. Around 10,000 producers cultivate the crop, particularly on the island of Anjouan. Farmers and workers earn a steady income from harvesting and selling the flowers. Women play a central role, spending long hours collecting blossoms to sell by the kilogram.

Because producers can harvest ylang-ylang flowers multiple times each month, the crop provides income year-round. This cycle of greener growth helps households manage expenses and reduces income instability. The industry also supports broader economic activity.

Small distilleries purchase flowers from independent farmers, allowing even small-scale producers to participate in export markets. These businesses create jobs and strengthen local skills in processing and production. Licensed exporters help maintain quality standards and connect Comoros to global markets.

As a result, even remote communities benefit from international trade. In 2022, ylang-ylang exports generated about $5.56 million, making the crop one of Comoros’ most valuable export products. Major markets include France, Switzerland, the U.S. and the U.K. This global demand brings valuable foreign income into the country.

Comoros’ Ylang-Ylang Industry

Recent developments are improving both sustainability and economic resilience in Comoros’ ylang-ylang industry. Producers are upgrading distillation equipment to reduce costs and improve efficiency. Improved ovens and stainless-steel alembics use less wood, lowering production expenses and making operations more sustainable.

Farmers are also planting trees such as mango and breadfruit to secure fuel sources while protecting natural forests. These efforts support long-term productivity and help preserve the resources on which livelihoods depend.

A Future Rooted in Prosperity

New environmental programs are also creating additional income streams for rural communities. NGOs now pay farmers, known as “water guardians,” to restore forests and protect water systems. These initiatives provide financial incentives while strengthening local ecosystems.

By linking conservation with income generation, these programs help reduce poverty and build economic security. Ylang-ylang already generates export revenue, employment and steady income for rural communities. Now, greener production methods are improving efficiency, protecting natural resources and creating new opportunities.

With these changes, the “flower of flowers” can continue to drive economic growth while helping communities move out of poverty. Looking ahead, greater investment in ylang-ylang production could further accelerate poverty reduction in Comoros. Training farmers in improved harvesting techniques could increase yields and raise incomes without requiring more farmland.

Expanding local distillation capacity would also allow communities to capture more value before export, creating additional jobs. Improved infrastructure, including transport and storage, could reduce waste and increase profitability. As international demand for sustainable fragrances grows, Comoros is well-positioned to establish itself as a premium, ethical supplier.

This shift could strengthen export earnings while supporting rural livelihoods. By combining sustainability with productivity, ylang-ylang production offers a practical path toward inclusive economic growth and long-term poverty reduction.

– Demetra Mykoniatis

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

Photo: Flickr

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How Running Programs Are Reducing Poverty in Kenya

Poverty in KenyaRunning has always been a big part of life in Kenya, especially in rural areas, where long-distance running is just part of the culture. But over time, it has become more than just a sport. For many people, it has become a real opportunity and, in some cases, a way out of poverty in Kenya.

In places like Iten, often called the “home of champions,” runners train every day, hoping to compete at a higher level. What is different now is that there are more structured programs and training camps that actually support these athletes and give them a better chance of succeeding.

Running as a Pathway Out of Poverty

For many athletes, running starts simply. It is just part of daily life. But with the right support, it can lead to real opportunities. Training programs can provide coaching, meals and even housing, which helps take some of the financial pressure off.

One example is Kenya Experience, a program that allows runners to live and train in a high-performance environment alongside other athletes. It connects runners with experienced coaches, structured training and exposure to international competitions, which many would not otherwise have access to. Programs like this make a difference by allowing athletes to focus more on training and less on everyday struggles.

Over time, this can lead to opportunities such as competing in major races, earning prize money or even securing sponsorships.

Opportunities Beyond the Track

Success in running not only benefits the athlete. When runners begin to earn money from competitions or sponsorships, they often use that income to support their families. In many cases, one successful runner can help pay for school fees, housing and basic needs for several people.

So it is not just one person benefiting. It can impact an entire household and sometimes even an entire community. Running also creates opportunities beyond just competing.

Coaches, trainers and even local businesses benefit from the presence of training camps and athletes. Places like Iten have seen growth partly because of the running culture there.

Why Kenya Stands Out

Kenya has become one of the most successful countries in long-distance running and that success has helped build a system around the sport. Young athletes grow up seeing people from similar backgrounds succeed, which makes it feel more realistic. There are also more camps and programs now than before, which means more access to training and support.

Not everyone will become a professional runner, obviously, but the chance alone can change how people think about their future.

Looking Ahead

Running is not a complete solution to poverty in Kenya, but it does help create opportunities. For people in areas with limited job options, it can offer a different path. As more programs continue to grow and connect athletes to greater opportunities, running will likely remain an important part of economic growth in certain communities. It is not perfect, but for many people, it is a start.

– Aaron Scott

Aaron is based in Charlotte, NC, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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How Gamified Learning Is Expanding Access to Education in Kenya

Education in KenyaKenya continues to face significant challenges in ensuring quality education, particularly in low-income and rural communities. Despite high enrollment rates, learning outcomes remain uneven, with many students struggling to meet basic literacy and numeracy standards. Limited resources, teacher shortages and regional inequalities make quality education difficult for many children, highlighting the need for innovative, accessible learning solutions.

What Is Gamified Learning and Why It Matters

Gamified learning refers to the use of game elements, such as quizzes, rewards and progress tracking, to make learning more engaging and interactive. Instead of relying solely on traditional teaching methods, it introduces systems that allow learners to “level up,” monitor their progress and improve through practice rather than being penalized for mistakes.

This model also supports more flexible learning, enabling individuals to follow different paths and build skills at their own pace. By creating a more supportive and motivating environment, gamified learning encourages consistent participation. It helps learners stay engaged over time, especially in contexts where maintaining motivation is a challenge.

Expanding Access Through Digital and Gamified Learning in Kenya

Digital learning platforms are helping address long-standing education challenges in Kenya, particularly in areas where resources and classroom support remain limited. Research shows that gamification within e-learning platforms can improve motivation, engagement and overall learning outcomes, making it a valuable tool in education systems facing persistent learning gaps.

In Kenya, platforms such as Eneza Education use mobile-based learning to reach students who may lack access to traditional educational resources. Through SMS-based lessons, quizzes and interactive features, students can practice regularly and receive feedback, even with basic mobile phones. This approach is especially valuable in rural areas, where internet access and infrastructure are often limited.

At the same time, increasing mobile access is making these solutions more widely available. Smartphone penetration in Kenya has reached around 83.5%, enabling more students to access digital learning tools and educational content through their devices.

Beyond Eneza, the broader rise of education technology in Kenya is making learning more flexible and accessible. Digital tools allow students to learn at their own pace, revisit difficult topics and stay engaged through interactive content. By combining accessibility with engagement, gamified digital learning is helping reduce educational gaps and reach students who might otherwise be left behind.

From Learning to Economic Opportunity

Education is often the starting point for preventing long-term challenges, especially poverty. When people have access to quality learning, they are more likely to develop the skills needed to secure stable jobs, build businesses and improve their living conditions. In Kenya, this link between education and economic growth is already becoming clear.

According to the World Bank, the country has made significant progress through education reforms, reaching more than 16 million students across nearly 90,000 schools. These improvements have helped position Kenya among the top education performers in Eastern and Southern Africa. At the same time, the country’s economy is expected to grow by around 5% annually, highlighting the role of education in broader economic development.

Learning outcomes have also improved over time. For example, performance in subjects such as mathematics and languages has improved, while secondary school enrollment rose by more than 50% in the years before the pandemic. These developments matter because stronger learning outcomes are directly linked to better job opportunities and higher income potential.

Similarly, research shows that innovative approaches such as gamified learning can further strengthen this impact. Gamification is not just about engagement; it also helps build practical skills such as problem-solving, decision-making and digital literacy. In development contexts, these skills are essential for employment and entrepreneurship. 

Studies have shown that gamified learning environments can improve motivation, participation and knowledge retention, making education more effective overall.

Conclusion

As digital access continues to expand in Kenya, learning is no longer limited to traditional classrooms. Gamified learning, combined with mobile-based education, is creating more flexible and accessible ways for students to build skills and stay engaged. This is especially important in contexts where consistent access to quality education remains a challenge.

Together, these developments point to a clear pathway: education builds skills, skills create opportunities and opportunities help reduce poverty. By improving both access to education and the way people learn, Kenya is not only strengthening its education system but also creating new pathways for economic participation and long-term development.

– Elif Oktar

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

Photo: Flickr

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How Women’s Self-Help Groups in India Are Reducing Poverty

Women’s Self Help Groups in India Across rural India, women’s self-help groups (SHGs) play a central role in expanding financial inclusion. These groups typically consist of 12 to 15 women who meet regularly, save money and provide small loans to one another while also connecting with formal banking systems. By pooling their resources, members gain access to credit and can invest in income-generating activities.

The World Bank reports that SHGs connect underserved communities with financial institutions and help millions of unbanked households enter the formal economy. Today, more than 80 million women participate in these networks, making SHGs one of the largest community-driven financial systems worldwide. In addition to financial access, SHGs provide platforms for training, information-sharing and community support. 

These groups help women increase household income, improve health practices and strengthen their role in decision-making. As a result, SHGs expand financial inclusion while also driving long-term social and economic change in rural communities.

National Rural Livelihoods Mission

In 2011, the Government of India launched the National Rural Livelihoods Mission (NRLM) to reduce rural poverty by strengthening women-led economic networks. As one of the world’s largest livelihood initiatives, the program aims to reach around 350 million people across 12 states, where the majority of India’s rural poor live. NRLM organizes rural women into SHGs and provides them with training, financial literacy and access to credit. 

These groups help women build savings, invest in small businesses and connect with formal banking systems. In addition, the program supports farmers, artisans and small producers by linking them to markets and strengthening their ability to negotiate fair prices. Beyond financial support, NRLM also invests in skill development for rural youth and promotes entrepreneurship at the local level. 

By combining access to finance with market opportunities, the initiative helps women move beyond subsistence work and build more stable sources of income. This large-scale approach has also created opportunities for collaboration with organizations and local initiatives that further support women’s economic participation.

Strengthening Women Entrepreneurs in India

Several organizations in India actively support women entrepreneurs by providing skills, networks and access to economic opportunities. These initiatives focus on helping women build stable incomes rather than rely on short-term support.

The Self-Employed Women’s Association (SEWA), founded in 1972, organizes women working in India’s informal economy and represents more than 3.7 million members across the country. SEWA provides financial services, training and collective support, enabling women to improve their working conditions and secure more reliable incomes. By bringing informal workers together, the organization strengthens both economic security and bargaining power.

The Raise India Foundation works directly with communities to improve access to education, skills training and job opportunities. Over the past decade, the organization has reached more than 1.8 million people through projects across several Indian states. Its programs equip women with practical skills and support them in entering the workforce or starting small businesses.

At the same time, individual entrepreneurs are creating new pathways for economic participation. Designers like Diya Joukani build independent brands by combining local craftsmanship with digital platforms. Through her work, she creates and sells her own designs, generating income while promoting locally made products.

Together, these efforts show how structured support and individual initiative can strengthen women’s economic participation and contribute to poverty reduction across India.

Women Entrepreneurs Transforming Local Communities

At the community level, women-led businesses are reshaping everyday economic life. From tailoring and food production to small retail ventures, these businesses generate income while creating new opportunities within local economies. As more women gain access to financial tools, training and support networks, they continue to build independent livelihoods and strengthen economic stability.

This progress highlights how women’s self-help groups in India are helping reduce poverty by expanding financial inclusion and supporting entrepreneurship. Through both organized initiatives and individual efforts, women are increasing household incomes and contributing to long-term community development.

India’s experience shows that when women receive the right support, the impact extends far beyond individual success. Women entrepreneurs are not only improving their own living conditions but also helping to build more resilient and inclusive communities for the future.

– Elif Oktar

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

Photo: Flickr

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Migration to Puerto Rico

Migration to Puerto RicoOutward migration long defined Puerto Rico, as hundreds of thousands of residents left the island over the past two decades. Between 2010 and 2020, Puerto Rico’s population declined by 11.8%, falling from about 3.7 million to 3.3 million residents. Following Hurricane Maria, migration accelerated, with approximately 97,000 people leaving the island in 2017 alone. These sustained outflows reduced the labor force and contributed to long-term economic challenges, including workforce shortages and declining tax revenue.

In recent years, migration to Puerto Rico has begun to shift, although outmigration still exceeds inflows. In 2024, about 25,000 people moved to Puerto Rico from the mainland United States, while approximately 38,000 residents left, showing a continued but narrowing population loss. Return migration has increased as Puerto Ricans relocate from states such as Florida and New York, while migrants from across Latin America and the Caribbean also arrive seeking economic stability. These changing migration patterns now play a growing role in shaping labor markets, housing demand and public services.

Who Is Migrating to Puerto Rico?

Many groups contribute to migration to Puerto Rico, each with distinct economic impacts. Puerto Ricans returning from the mainland often bring savings, remote income or professional experience. Migrants from the Dominican Republic and Venezuela frequently seek employment in construction, tourism and domestic labor, where wages tend to be lower and job security limited. According to the Migration Policy Institute, these sectors rely heavily on migrant labor to meet workforce demand, particularly during post-disaster reconstruction and tourism expansion.

Mainland U.S. investors and remote workers have also increased migration to Puerto Rico under Act 60. These individuals often relocate to high-demand areas, contributing to rising property values and increased housing demand. While this investment supports economic growth, it can also increase housing costs for local residents, particularly in coastal and urban regions.

Migration to Puerto Rico and Poverty

Migration to Puerto Rico has helped address labor shortages, but poverty remains widespread. According to the World Bank, Puerto Rico’s income inequality remains high, with a Gini index above 0.54, one of the highest among U.S. jurisdictions. Many workers in tourism, construction and service industries earn wages that do not keep pace with the cost of living, increasing financial vulnerability even among employed individuals.

Housing demand has increased alongside migration, placing pressure on affordability. Research from Harvard DRCLAS identifies rising property values and short-term rental growth as key drivers of displacement in communities such as San Juan. Reports from Foundation for Puerto Rico also show that tourism development has increased demand for housing, particularly in coastal areas, making it more difficult for low-income residents to secure stable housing.

Language barriers, limited documentation and restricted access to services further affect migrants. These challenges limit access to health care, education and stable employment, increasing the likelihood of long-term economic hardship.

Economic Growth, Tourism and Inequality

Puerto Rico’s economy has expanded over time, but growth remains uneven. According to the World Bank, GDP growth data shows consistent long-term expansion in economic output, measured in constant 2015 U.S. dollars. Migration supports industries such as construction, tourism and services, which contribute to job creation and economic activity. However, GDP growth does not account for income distribution or cost-of-living differences.

Tourism plays a major role in employment. In 2024, visitors spent approximately $7.1 billion in Puerto Rico, supporting more than 115,000 jobs in hotels, restaurants and leisure services. Economic forecasts from the Puerto Rico Oversight Board indicate that while tourism remains strong, overall economic growth has slowed, with projections showing flat or modest growth in the near term. The labor market remains stable, but part-time employment has increased and younger workers face higher unemployment rates.

Despite this activity, inequality persists. Inflation in essential goods continues to outpace wage growth, and federal disaster recovery funding—while significant—has faced delays in distribution. These conditions limit the extent to which economic growth improves living standards for low-income households.

Organizations Supporting Migrants and Low-Income Families

The Hispanic Federation has operated in Puerto Rico since 2017, investing more than $54 million in recovery and resiliency efforts. The organization has supported more than 250 solar energy installations across schools and community centers and provided disaster assistance following multiple hurricanes. Its programs focus on housing, energy access and community development, directly benefiting migrants and low-income families.

The Community Foundation of Puerto Rico supports economic development through grants, small business funding and workforce programs. The foundation invests in community-based initiatives that help residents—including migrants—access employment, develop businesses and improve long-term financial stability.

Catholic Extension leads a large-scale rebuilding effort that includes restoring more than 600 churches, schools and community facilities across Puerto Rico. These projects create jobs, strengthen infrastructure and support long-term community recovery in areas experiencing natural disasters.

Following Hurricane Fiona, the FEMA provided approximately $574 million in assistance to more than 712,000 households. Disaster recovery centers and outreach programs helped residents access housing support, legal aid and rebuilding resources.

Caritas Puerto Rico serves approximately 75,000 people annually across 60 municipalities, providing food distribution, disaster relief, counseling and community support services. Its programs support migrants and vulnerable populations by addressing both immediate needs and long-term development.

Conclusion

Migration to Puerto Rico continues to reshape the island’s economic and social landscape. Migration supports labor markets and economic activity, particularly in tourism, construction and service industries. However, rising housing costs, persistent income inequality and limited access to services continue to affect both migrants and long-term residents.

Targeted policies that expand affordable housing, improve workforce development and strengthen social services can help ensure that migration to Puerto Rico supports economic stability rather than deepening inequality.

– Kianna Hines

Kianna is based in Brooklyn, NY, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Kosovo’s Diaspora Fueling Economic Growth & Poverty Reduction

Kosovo's DiasporaA small state in the Balkans, Kosovo has a complex history and is a relatively new political entity. The nation was part of Yugoslavia as an autonomous province for decades. However, with the collapse of Yugoslavia in 1991, ethnic groups across the region declared independence, such as Slovenia and Croatia. 

Comprising a majority of ethnic Albanians, Kosovo declared its own independence on February 17, 2008. Today, Kosovo has defied economic expectations in many areas, largely due to its diaspora population across Europe and the world. About 800,000 Kosovars living abroad contribute a significant share of the country’s GDP through remittances.

Despite these economic successes, poverty remains a persistent problem. With poor educational performance, informal businesses, low salaries and high unemployment, Kosovo still has several institutional problems. While the rate of poverty has been declining over the past years, as of 2022, it still hovered around 25% or about one in four individuals. Along with several other factors, Kosovo’s far-reaching diaspora could help reduce these numbers.

Kosovo’s Diaspora Bonds

Over the past half-decade, Kosovo’s Ministry of Finance has issued bonds open to all nationals, particularly those living abroad. In 2021, for example, the government issued €20 million (about $23.6 million), with a guaranteed 100% return on investment and tax exemption. What this means, basically, is that the Central Bank of Kosovo offered to borrow about $23.6 million from Kosovar investors to fund infrastructure and government expenses. 

On the flip side, the Central Bank promises to repay its investors double the amount they invested. Nonetheless, by borrowing millions from its diaspora, Kosovo is better able to support important areas of the economy and education, thereby alleviating poverty and job insecurity.

How Local Governments Are Attracting Investment

After years of decentralization in Kosovo, attracting local investment to municipalities has become more difficult. Though these municipalities rely heavily on government grants, many are adapting their structures to support expatriate investors. The cities of Suhareka and Suva Reka, for example, have established a Directorate for Diaspora, which is dedicated to aiding Kosovo’s diaspora. 

This administration organizes relevant investment events and facilitates business registration and tax easements, to name only a few of the many services provided.

Real Estate Investment

Real estate makes up the largest share of diaspora investment in the Balkan country, accounting for about 70% of total investments from abroad. Investment in housing and apartments has sparked debate over the true economic impact. Some believe that investment in tourism and industrial development offers greater growth opportunities.

On the other hand, real estate investment increases employment opportunities, which in turn partially fuels the economy. With more jobs, more money circulates, benefiting everyone. Additionally, an IE University study found that a “rise of small investors increases the price-to-income ratio,” often leading to higher real estate prices. These higher prices, therefore, often indicate higher GDP per capita in the region.

In summary, it is unclear how much the Kosovan economy will benefit from these large real estate investments by Kosovo’s diaspora. Whatever the case, expatriate investors are pouring millions of dollars into the nation, ultimately growing the economy, even if by small increments.

How Is Poverty Affected?

The Kosovo diaspora offers potential economic benefits, including through government bonds, local municipal initiatives and independent real estate investment. This potential growth, however, could prompt shifts in the country’s poverty levels. Individuals are pushed above the poverty threshold as the economy grows and new jobs are created. 

While the influence of Kosovar foreign nationals is several steps removed from directly impacting poverty, their investment efforts spark a small chain reaction that eventually has the capacity to combat poverty.

– Ben Anderson

Ben is based in Madrid, Spain and focuses on Business and Politics for The Borgen Project.

Photo: Unsplash

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How Tradedepot Is Driving Growth for Small Retailers in Nigeria

TradeDepotAcross Nigeria, small retailers power local economies, yet remain disconnected from efficient global supply chains. This gap drives high costs, inefficient logistics and lost income opportunities for informal businesses. TradeDepot offers a digital solution to this challenge, bridging global supply networks and small retailers in Nigeria.

The Gap Between Small Retailers and Reliable Supply Chains

Small retailers, including family-run shops, street vendors and kiosks, are the backbone of developing economies. Many operate out of homes and are run by women balancing entrepreneurship with domestic work. Together, these businesses account for up to 80% of employment in Africa, making them a powerful driver of income generation and poverty reduction.

Studies by TechnoServe show that targeted support for small retailers can increase incomes by more than 30%. Given the scale of informal retail across Africa, even minor improvements can create lasting economic and social impact. As the final link in the supply chain, small retailers are responsible for distributing essential goods within their communities.

Yet persistent gaps between informal retailers and major suppliers result in fragmented logistics, limited visibility and widespread inefficiency. In Nigeria alone, these systemic gaps generate more than $4 billion in annual losses across the consumer goods supply chain. Most existing supply-chain technologies prioritize large enterprises, leaving informal retailers underserved.

By directly connecting small retailers to reliable supply networks, platforms like TradeDepot enable business owners to save time, reduce costs and increase profits.

TradeDepot’s Digital Solution

African retailers face some of the highest product distribution costs globally and TradeDepot is working to change this reality in Nigeria. By establishing a direct digital channel between manufacturers and informal retailers, the platform streamlines procurement, logistics and inventory management in a single system. Through this platform, small retailers in Nigeria can place orders, track deliveries and manage inventory in real time.

Increased price transparency and access to supplier discounts reduce costs at the earliest stages of the supply chain, directly improving retailer margins. TradeDepot positions itself as the middleman between global brands seeking new markets and Nigerian retailers pursuing growth. As the company scales, it is extending its logistics and distribution expertise to support informal retail ecosystems across Africa.

Market Potential for Global Brands

Africa’s young and rapidly growing population presents major opportunities for global brands. Rising incomes and urbanization are driving demand for quality consumer goods. Yet, fragmented logistics continue to constrain efficient trade and prevent profits from staying within local economies.

TradeDepot’s model reframes poverty reduction through a business lens, shifting power within supply chains toward small retailers. Rather than charity, it provides entrepreneurs with the tools, data and market access required to drive sustainable business growth.

Improved Quality of Life for Small Retailers in Nigeria

TradeDepot’s platform is transforming daily business operations, giving small retailers in Nigeria greater autonomy, predictability and control. As many informal shops are home-based and women-led, these efficiencies have a powerful impact on female entrepreneurs. Women account for 85% of TradeDepot’s retail users and 65% of its distributor network.

Access to tools such as digital wallets and credit lines strengthens financial inclusion, increasing women’s purchasing power and business agency. In a survey of more than 200 customers, 90% reported improved quality of life after adopting TradeDepot’s platform. Retailers no longer need to close shops or travel long distances to source stock.

Instead, they can access consistent inventory at fair prices through nearby depots, improving product availability for communities while boosting retailer profits.

Final Thoughts

By connecting global brands with informal retailers, TradeDepot is driving growth for small retailers in Nigeria, unlocking Africa’s consumer market while navigating the continent’s complex distribution networks. The result is stronger small businesses, more resilient local economies and a scalable, market-driven approach to poverty reduction.

– Hope Jowharian

Hope is based in Paris, France and focuses on Business and New Markets for The Borgen Project.

Photo: Pexels