Tag Archive for: Economic Growth

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Courts for Kids: Alleviate Poverty and Building Community

Courts for kidsIn low-income countries, a basketball court can be much more than just a place to play. Courts for Kids, a nonprofit that uses sports to alleviate poverty, was officially established in 2007 after an initial volunteer trip to the Philippines in 2006.

Impact in the Philippines

In 2006, 72.5% of people in the Philippines lived on less than $5.50 per day. As of 2023, that number has decreased to 58.7%.

Initially, 24 students and adults, mostly from Southwest Washington, went to the Philippines to build a multi-use sports court. Since then, Courts for Kids has built 286 courts in 35 countries, with the participation of more than 5,947 Americans.

The courts are often built for soccer, basketball, and volleyball, but sports are not their only purpose. They serve as community gathering spaces, which can help boost the local economy.

Additionally, crops can be dried on the courts during harvest season. This additional space makes local agriculture more efficient, boosting the local economy.

Community Enhancements

In some communities, locals have added kitchens next to the courts. This addition generates income for the community through food sales and makes food more widely available, leading to better nutrition. Courts for Kids uses sports to alleviate poverty in this way.

The courts also create numerous social benefits, helping bring children from different communities together. The consistent use of the courts also fosters bonds between local community members. Shared public spaces strengthen communities.

The courts are funded by community fundraisers, volunteer contributions and corporate sponsors providing materials and funds.

Long-term Developments

The courts are not just for play. They offer opportunities to help underprivileged communities thrive.

Courts for Kids demonstrates how community-based activities can assist communities suffering from extreme poverty. It is not just about athletics; it is about long-term development and community building.

All of the courts built by Courts for Kids are used daily or almost daily, continually improving their communities. Additionally, they have led to an 88% increase in young girls participating in sports.

A court is an investment. It is an investment in communities, health and the futures of children in low-income communities. Through both local partnerships and community participation, each court becomes a foundation for opportunity and creates a more resilient and sustainable community.

– Julia Cholerton

Julia is based in Gig Harbor, WA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Pexels

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Domestic Violence and Poverty in Romania

poverty in RomaniaRomania is one of the lower-income countries in Europe. Its gross domestic profit (GDP) per capita in 2024 was only $20,080, significantly lower than that of other European countries such as Spain, at $35,326, or Italy, at $40,429.

Communist Rule in Romania

Nicolae Ceaușescu ruled Romania as a communist dictator from 1965 to 1989, first as head of the Communist Party and, from 1974, as the country’s president. Romania was one of the poorest countries in Europe during this period.

During this time, domestic violence, particularly against women, was not punished by law. This issue only gained attention in Romania after the fall of communism in 1989. Even after 1989, married women or women with partners were still not protected, as the Criminal Code and Law 1991 did not incriminate violence such as severe bodily harm if the wife was the victim. Other forms of violence against women, such as marital rape and sexual harassment, were also not punished. This highlights the government’s neglect in addressing domestic violence and poverty in Romania at the time.

Romania’s Economic Incline

Ceaușescu’s focus on quickly paying off Romania’s foreign debt led to a severe shortage of food items like bread, milk and meat. Other necessities, such as heating and electricity, were severely restricted, even in harsh winters, causing civilians to live in severe deprivation. This also affected Romania in the years following the end of communism, as their GDP per capita did not surpass $2,000 until 2002. However, since 2002, Romania’s GDP per capita has consistently increased and reached $25,693 in 2026. Additionally, while Romania has one of the lowest minimum wage salaries in the European Union in 2026, at around $972 per month, this represents a 6.8% increase from the previous year, indicating gradual economic improvement.

Domestic Violence Policy Changes

Laws regarding domestic violence in Romania have gradually improved over the years. In 2003, Law 217/2003 was established, allowing the National Agency for Family Protection to be implemented within the Ministry of Labor, Family and Equal Opportunities. The agency aimed to develop various aspects of the domestic violence justice system, such as punishment for perpetrators and shelters for victims. Law 211/2004 also granted victims of domestic violence free counseling sessions and financial compensation from the government. Furthermore, in 2012, the government established Law 25/2012, which made changes to Law 217/2003. Law 25/2012 stated that domestic violence includes physical, verbal, psychological, sexual, social and spiritual violence. Victims are allowed to ask the court for a restraining order, which can expel the aggressor from the home and require a 200-meter distance from the victim.

Poverty in Romania

Romania’s poverty rate has consistently decreased over the years. In 2017, 23.6% of the population, or about 4.6 million people, lived in poverty; by 2023, that figure had declined to around 19%, or roughly 3.6 million people, according to World Bank data. Separately, Romanian police recorded more than 40,000 domestic violence cases nationwide in just the first four months of 2025, according to Romania’s Ministry of Internal Affairs — nearly identical numbers between urban areas (19,984) and rural areas (20,046).

Conclusion

Both domestic violence and poverty in Romania have decreased since the country’s emancipation from communist leader Nicolae Ceaușescu in 1989. Although both issues remain prominent today, Romania continues to make improvements in its justice system and economy.

– Bianca Burdulea

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

Photo: Flickr

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Everything To Know About Remittances to Philippines

Remittances to PhilippinesRemittances are an important driver of economic growth in the Philippines. Remittances amounted to $38.34 billion in 2024, accounting for 8.7% of the GDP. Approximately 40% of all remittances to the Philippines came from the United States, followed by Singapore and Saudi Arabia.

Background Information About the Philippines

The Philippines is an island country in Southeast Asia in the Pacific Ocean. The country is the twelfth-most populated country in the world, with a population of more than 117 million.

The Philippines fell under Spanish rule from the mid-16th century to the late-19th century, until it became a U.S. territory. Between 1906 and 1934, an estimated 120,000 Filipinos migrated overseas to Hawaii to work in sugarcane and pineapple plantations. After independence in 1946, many struggled with rural instability and moved overseas to the U.S. Since then, the U.S. has remained the top destination for Filipino migrants.

Despite poverty rates falling from 23.5% in 2015 to 15.5% in 2023, poverty in the Philippines remains high. About 28% of Filipinos remain at risk for falling back into poverty, especially from climate related risks. Additionally, the unemployment rate in the Philippines remains high, which was at 4.8% in May 2026 and is higher than the previous year’s 3.9%.

Migration was initially a way to curb high unemployment and poverty rates; however, it has changed to a long-term solution for national economic development.

The Philippines launched an overseas employment program in the 1970s, which led to many Filipinos pursuing work in the Middle East, Canada, Australia and New Zealand. Remittances from diaspora communities are an intrinsic part of the Philippines’ economy and household income.

Importance of Remittance to the Philippines

  1. Drives the National Economy – Remittances continue to support the Philippine economy despite global uncertainties. Remittances support consumer spending, stabilize the peso and provide a buffer against shocks.
  2. Helps Household Consumption Grow – Remittances help household consumption, which grew by 3% in the first quarter of 2026. This allows the Philippines to rely on consumer spending to grow their GDP.
  3. Covers Essential Needs – About 75% of remittances are used for food, medical expenses, school fees and housing expenses. Meanwhile, about 25% is used to save and invest in assets.
  4. Key Pillar to the Local Community – Remittances support families while also contributing to spending on local businesses and job creation.
  5. Empowers Women – About 1.25 million or 57.2% of Overseas Filipino Workers (OFWs) were women. Remittances empower families and shifts traditional gender roles.

Looking Ahead

Remittances to the Philippines remain an important source of inflow to the Philippine economy. Remittances support domestic consumption, strengthens communities and drives national growth. Although there are criticisms of heavily relying on remittances, it continues to be an important driver of economic growth and development in the Philippines.

– Maya Hagiwara

Maya is based in Tokyo, Japan and focuses on Good News for The Borgen Project.

Photo: Flickr

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How the Ghana Chocolate Industry Is Growing

Ghana Chocolate IndustryGhana is the world’s second-largest cocoa producer and one of the largest suppliers of cocoa beans to the global chocolate industry. Cocoa supports the livelihoods of hundreds of thousands of farming families across the country. However, many cocoa farmers remain economically vulnerable, creating an opportunity for Ghana to capture more value from the crop it produces.

From Cocoa Beans to Chocolate

The Ghana chocolate industry is expanding as the country invests in domestic cocoa processing and chocolate manufacturing. By turning more cocoa beans into cocoa powder, butter, liquor and chocolate products within Ghana, the country can create economic opportunities beyond farming while retaining more value from its agricultural exports.

The International Labour Organization (ILO) found that Ghana earned $2.71 billion from cocoa exports in 2017, with approximately 80% of those exports consisting of raw beans. The organization also found that increasing domestic processing could create thousands of formal jobs.

Cocoa and Poverty Reduction

The expansion of the Ghana chocolate industry matters as cocoa farming has historically played a role in reducing poverty. According to the World Bank, the poverty rate among cocoa farmers fell from approximately 60% in 1991 to 24% in 2005 as cocoa production expanded.

Despite this progress, poverty remains a significant concern in Ghana. The World Bank reports that more than 20% of the population continues to experience poverty, with poverty rates exceeding 50% in some northern regions.

Cocoa farmers face additional financial challenges. The International Cocoa Initiative reports that Ghanaian cocoa farmers earn approximately $0.40 to $0.45 per person per day from cocoa, with cocoa accounting for about two-thirds of farmers’ household income. Small farms, low yields and high input costs can make it difficult for farming families to build financial security.

Expanding the Ghana chocolate industry cannot eliminate rural poverty by itself. However, increasing the amount of cocoa processed domestically could create additional employment and economic activity while strengthening demand for cocoa produced by Ghanaian farmers.

COCOBOD Invests in Farmers

The Ghana Cocoa Board, or COCOBOD, oversees cocoa production, marketing, quality control and industry development. Its programs also aim to improve farm productivity and farmer livelihoods.

COCOBOD reported in 2024 that it had rehabilitated 74,813 cocoa farms covering more than 67,000 hectares. Those farms belonged to 56,105 farmers. Another 44,480 rehabilitated farms, owned by 28,510 farmers, had begun producing cocoa.

COCOBOD also reported that 792,954 cocoa farmers and their households and dependents had been registered in its farmer database. The system allows the organization to better track farmers and improve the distribution of resources.

These programs address poverty at the farm level by supporting the productivity of an industry on which rural households depend. Higher productivity can give farmers the opportunity to generate more income from existing farmland.

Processing Creates Jobs

Domestic processing adds another economic layer to Ghana’s cocoa sector. The ILO studied two cocoa processing companies in Ghana to estimate the employment effects of expanding the industry.

The study found that cocoa processing creates formal jobs in manufacturing, but that the industry remains relatively capital intensive. The ILO estimated that processing 40% of Ghana’s cocoa before export could create approximately 4,000 permanent jobs directly in cocoa processing.

The jobs would include positions requiring different levels of skills depending on the technology used at processing facilities. The ILO also found that processing jobs tend to offer higher-quality employment, including longer-term positions and social security benefits.

The Ghana chocolate industry can create additional opportunities beyond processing plants. Manufacturing chocolate products requires packaging, transportation, marketing and other inputs, connecting cocoa production to a broader domestic supply chain.

Partnerships Strengthen Farmer Livelihoods

International organizations have also developed programs focused on the financial security of Ghanaian cocoa farmers. The World Cocoa Foundation, for example, has supported initiatives involving financial services and income diversification.

One World Cocoa Foundation-supported project in Ghana created 41 village savings and loan associations across 24 communities. The groups included 1,132 members, 84% of whom were women. Participants collectively saved $176,122, while $90,979 was distributed through loans.

These savings groups give farmers and their families access to financial tools that can help cover farm expenses and household needs. The program illustrates how economic support can complement efforts to increase agricultural productivity.

Building More Value at Home

Ghana’s cocoa sector demonstrates how agricultural production can contribute to poverty reduction while creating opportunities for further economic growth. Cocoa farming helped reduce poverty among cocoa-producing households during earlier periods of expansion, while new investments in processing could create additional employment and economic activity.

The Ghana chocolate industry still faces challenges, including low farm productivity, high production costs and fluctuations in global cocoa markets. Domestic processing alone will not guarantee higher incomes for farmers.

However, the ILO’s employment projections and COCOBOD’s investments in tens of thousands of farms show measurable opportunities within the sector. By expanding processing alongside programs that improve farmer productivity and financial resilience, Ghana can retain more economic value from its cocoa and create opportunities for the communities that produce it.

– Camille Utter

Camille is based in Seattle, WA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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World Bank Framework Reducing Poverty in Nigeria

Poverty in NigeriaLocated on the western coast of Africa, Nigeria is a country with diverse geography and an even more diverse population. An estimated 250 ethnic groups call Nigeria home, with hundreds of languages spoken across the nation. Building on Nigeria’s diversity and economic potential, the World Bank Group has endorsed a new Country Partnership Framework that will run from 2026 to 2032. By encouraging private-sector investment and supporting economic growth in Nigeria, the framework aims to create more job opportunities.

New Policies Aim to Strengthen Nigeria’s Economy

As part of this effort, the World Bank also approved the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing operation to help strengthen Nigeria’s economy. The program aims to encourage investment from businesses and entrepreneurs while supporting government efforts to create jobs and promote economic growth. By attracting both private and public investment, the initiative seeks to expand economic opportunities and strengthen key sectors across the country.

Through the new framework, 32 million Nigerians are expected to gain access to electricity, while broadband connectivity will expand to reach 58 million people. Health and nutrition services will improve for 40 million people, and 9.5 million farmers will receive support to increase agricultural productivity. By investing in energy, digital infrastructure, health care and agriculture, the framework aims to improve living standards and support long-term economic growth in Nigeria.

Poverty in Nigeria

Despite these efforts, poverty remains a significant challenge in Nigeria. According to the World Bank, 41.8% of Nigerians lived below the international poverty line in 2022. Rising inflation and limited economic opportunities have made it difficult for many families to afford necessities such as food, housing, education and health care. The World Bank estimates that an additional seven million Nigerians fell into poverty in 2025, increasing the share of people living below the national poverty line from 61% in 2024 to 63%.

For many Nigerians, poverty affects daily life in tangible ways. Families often struggle to afford basic necessities and maintain stable housing as the cost of living continues to rise. By expanding access to electricity, internet services, health care and agricultural support, the Country Partnership Framework aims to address some of the barriers that contribute to poverty and limited economic opportunity.

In a 2022 poverty assessment, the World Bank reported that four in 10 Nigerians lived in poverty and lacked access to essential services such as education, safe drinking water, electricity and sanitation. The report also found that only 17% of workers held jobs that provided wages sufficient to lift them out of poverty, as many Nigerians rely on small-scale farming and household businesses for income.

A New Framework: Reducing Poverty

The World Bank identified three key areas for reducing poverty in Nigeria: implementing macroeconomic reforms, supporting farm and nonfarm household enterprises and expanding access to electricity, water and sanitation. The new Country Partnership Framework aligns with these priorities by investing in infrastructure, agriculture and human development programs designed to improve economic opportunities.

With Nigeria’s population expected to continue growing, expanding economic opportunities for young people will be critical to the country’s long-term development. If successful, the partnership could help create jobs, strengthen businesses and improve access to essential services for millions of Nigerians. Through investments in key sectors and support for economic growth in Nigeria, the World Bank hopes to help build a stronger and more prosperous future for the country.

– Alexandra Pedroza

Alexandra is based in Salt Lake City, UT, USA and focuses on Good News for The Borgen Project.

Photo: Pexels

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Bafa Resort Reducing Poverty in Sierra Leone

Poverty in sierra leoneThough Sierra Leone is known for its beautiful beaches and vibrant culture, this West African country also faces persistent poverty. Inflation, minimal career opportunities and unequal access to resources and education contribute to almost two-thirds of citizens living below the poverty line. Repeated media coverage of tragedies in Sierra Leone, such as civil war, natural disasters and disease outbreaks, often deters tourists from visiting and supporting local businesses. However, tourism may have the potential to strengthen Sierra Leone’s economy. Here is how places like Bafa Resort can create new financial opportunities for Sierra Leone.

Poverty in Sierra Leone

As of 2024, about 65% of Sierra Leoneans, more than 5.5 million people, were living below the national poverty line. Poverty is especially prevalent in rural areas, where the poverty rate is roughly three times higher than in most urban areas. One of the many factors that contribute to the prevalence of poverty is the lack of stable job opportunities, particularly in rural areas. In 2022, about 289,000 adults were unemployed in Sierra Leone. Most people rely on inconsistent, low-paying jobs to survive, with 91.7% of working adults holding informal jobs.

Youth ages 15 to 24 and women are especially at risk of being unemployed or underemployed. Approximately 15.6% of adult women and 35% of youth in the workforce are underutilized. Low-income families often lack the funds to send their children to school, forcing youth to accept low-paying jobs and about 30% of girls to marry before age 18. Even when children can go to school, many schools do not have sufficient school supplies, qualified teachers or decent classrooms to effectively teach students.

About Bafa Resort

Bafa Resort is an eco-resort in the Banana Islands of Sierra Leone. Guests can enjoy meals made from locally sourced ingredients and partake in activities such as fishing, free diving, hiking and kayaking. Bafa Resort also offers several camping packages to suit guests’ preferences and budgets, ranging from guests pitching their own tents to relaxing in one of several “glamping tents” overlooking the ocean.

Bafa Resort has made intentional efforts to support islanders and local businesses. By buying locally sourced foods, Bafa Resort supports more than a dozen Sierra Leonean businesses while providing guests with fresh, quality meals. The community also receives “development fees” on behalf of resort guests to help support local industries and higher education. Additionally, locals are given priority for employment opportunities, especially women and youth.

One local who has benefited from working at Bafa Resort is kitchen manager and team leader Kona Keitell, affectionately known as “Aunty Kona” or “Aunty K.” Despite only having a Grade 2 level education, Keitell ensures that daily operations in the kitchen and the rest of the resort run smoothly. In 2018, Keitell was the first Bafa employee to benefit from the resort’s three-month paid maternity leave after welcoming her baby, Augusta. With the responsibility and skills she has learned through Bafa Resort, Keitell hopes to one day open her own restaurant.

Looking Forward

According to tour guide Peter Momoh Bassie, tourism is crucial in fostering economic growth in Sierra Leone. Places like Bafa Resort not only provide jobs and the chance to escape poverty for locals, but also advertise the nation as a tourist hotspot where visitors can relax, explore and enjoy the natural beauty. By changing global perceptions and supporting local businesses, tourism offers Sierra Leoneans a second chance at life.

– Lily Alexander

Lily is based in Surrey, BC, Canada and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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How Nollywood Is Creating Economic Opportunities in Nigeria

Musicians perform on an outdoor stage, creating economic opportunities in Nigeria.Nigeria’s film industry, known as Nollywood, has grown from a local entertainment sector into one of the largest film industries in the world. Nigeria’s growth is unfolding against a difficult backdrop: the World Bank has reported that poverty in Nigeria has been rising in recent years, with 63% of the population, or roughly 140 million people now living below the national poverty line. Against this backdrop, Nollywood’s expansion carries added significance. Beyond producing movies, Nollywood is creating economic opportunities in Nigeria by generating jobs, encouraging entrepreneurship and supporting businesses across several industries. According to Elton B. Stephens Company (EBSCO), the Nigerian film industry produces thousands of films each year and employs many people directly and indirectly. As the industry continues to expand, it is helping many Nigerians build sustainable livelihoods while contributing to the country’s economic growth.

Nollywood Creates Jobs Across Many Professions

Nollywood employs far more than actors. Every film production requires screenwriters, directors, producers, cinematographers, editors, sound engineers, makeup artists, costume designers, photographers and marketers. The industry also supports caterers, drivers, hotel operators, equipment rental companies and digital content creators. Greater investment in Africa’s film and audiovisual industry could create more than 20 million jobs and contribute billions of dollars to the continent’s economy, United Nations Educational, Scientific and Cultural Organization (UNESCO) reports. As one of Africa’s leading film industries, Nollywood plays an important role in expanding economic opportunities in Nigeria through direct and indirect employment.

Access to finance remains one of the biggest challenges for many creative entrepreneurs. To address this, the Bank of Industry introduced the Creative Industry Financing Initiative (CIFI) in partnership with the Central Bank of Nigeria. The initiative provides loans to businesses in film, fashion, music and information technology to help them expand their operations and create jobs. CIFI helps filmmakers buy equipment and improve production quality. By supporting entrepreneurs in the creative sector, the initiative strengthens economic opportunities in Nigeria and encourages investment in one of the country’s fastest-growing industries.

Training and Mentorship Support Young Creatives

Several organizations are helping young Nigerians build careers in the creative industry. The Tony Elumelu Foundation provides entrepreneurship training, mentorship and seed funding to thousands of African entrepreneurs each year, including business owners in film and other creative sectors. The Lagos State Creative Industry Initiative also provides training for aspiring filmmakers, actors and content creators. The program focuses on developing practical skills that prepare participants for careers in Nigeria’s growing entertainment industry. In addition, the Africa International Film Festival (AFRIFF) offers workshops, masterclasses and networking events that connect emerging filmmakers with experienced professionals from Nigeria and around the world. These opportunities help participants improve their skills and build valuable industry connections.

The impact of Nollywood extends beyond film production. As more movies are produced, businesses in transportation, hospitality, tourism, fashion and technology also benefit. Hotels host film crews, transport companies move equipment and cast members, while fashion designers and makeup artists gain new clients through productions. According to UNESCO, stronger investment in Africa’s film industry could unlock millions of jobs across the continent. Nigeria’s success demonstrates how creative industries can become powerful drivers of development. As Nollywood continues to grow, it is creating economic opportunities in Nigeria by supporting entrepreneurs, generating employment and helping more young people earn sustainable incomes.

Conclusion

Nollywood has become much more than an entertainment industry. It is creating jobs, supporting entrepreneurs and encouraging investment across several sectors of the Nigerian economy. Funding initiatives such as the Bank of Industry’s Creative Industry Financing Initiative, entrepreneurship support from the Tony Elumelu Foundation, training through the Lagos State Creative Industry Initiative and networking opportunities provided by AFRIFF are helping more Nigerians build successful careers in the creative sector. While challenges such as access to funding and infrastructure remain, continued investment in Nollywood could expand employment opportunities and contribute to poverty reduction by helping more Nigerians earn stable incomes through the creative economy. With sustained support, Nollywood is well positioned to keep turning creative talent into lasting economic opportunity for millions of Nigerians in the years ahead.

– Abisola Oladipupo

Abisola is based in Hatfield, UK and focuses on Good News for The Borgen Project.

Photo: Unsplash

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How China Plus One is Creating Jobs in Vietnam

China Plus OneOver the past decade, a shift in global manufacturing has quietly reshaped Vietnam’s economy. As companies move to reduce their dependence on a single country for production — a strategy known as “China Plus One” — Vietnam has become one of the world’s favored alternatives. The result is a wave of factory investment that is pulling rural Vietnamese workers into steady, formal jobs and helping drive one of the developing world’s most dramatic reductions in poverty.

What “China Plus One” Means for Vietnam

The China Plus One shift took hold after 2018, when U.S. tariffs on Chinese goods pushed multinational firms to diversify their supply chains. Vietnam, with labor costs roughly half those of neighboring China, a young and growing workforce, and membership in 17 free-trade agreements, positioned itself to absorb the change. It has become a leading destination for electronics, footwear and apparel manufacturing.

The investment figures are striking. In 2024, Vietnam attracted around $38.2 billion in registered foreign direct investment and a record $25.35 billion in actual disbursements, up more than 9% from the year before, with most of it flowing into manufacturing, according to figures from Vietnam’s Ministry of Planning and Investment. Much of that capital builds factories, and factories create jobs.

The Anchor: Samsung

No company illustrates the trend better than Samsung. The South Korean electronics giant has invested about $23.2 billion in Vietnam, making it the country’s single largest foreign investor, and now employs roughly 87,000 people across six manufacturing plants. Its footprint is so large that Samsung’s operations accounted for around 13% of Vietnam’s GDP and export turnover in 2024, according to Vietnam’s National Statistics Office. Its network of local suppliers employs tens of thousands more, spreading the benefits well beyond Samsung’s own payroll.

The Role of U.S. Companies

American firms sit at the center of Vietnam’s China Plus One boom. Vietnam is now Nike’s largest manufacturing base worldwide, producing roughly 51% of the company’s footwear, and the factories that supply Nike employ close to 500,000 Vietnamese workers. Apple’s suppliers have followed suit: contract manufacturers like Foxconn now assemble iPads, AirPods and other devices in Vietnam, work that once happened almost exclusively in China. This deepening trade relationship has paid off for both sides. U.S. imports of Vietnamese goods surged more than 360% in the decade to 2023, topping $144 billion, according to U.S. government data reported by CNN.

From Factory Floors to Poverty Reduction

The human impact makes this a development story. Manufacturing jobs have drawn workers out of subsistence agriculture and into the wage economy, often transforming quiet rural provinces into industrial hubs. Regions like Thai Nguyen and Bac Ninh, once farming districts, now host sprawling industrial parks that employ tens of thousands.

That transition tracks closely with Vietnam’s broader gains. The World Bank reports that Vietnam’s extreme poverty rate fell from 14% to under 4% between 2010 and 2023, while GDP per capita climbed from under $700 in 1986 to nearly $4,500 in 2023, a rise that export manufacturing largely powered. For millions of families, a factory paycheck has meant predictable income, access to benefits and a path into the middle class.

Why It Matters

The model has real limits. Much of Vietnam’s electronics work remains lower-margin assembly that depends on imported components, and factory towns can suffer when global demand slumps. Analysts note that sustaining progress will require Vietnam to move up the value chain and build domestic capacity.

Still, the core lesson offers hope to advocates of global poverty reduction: integration into world markets, combined with steady investment, can lift large numbers of people into stable work. For Vietnam, China Plus One has been more than a supply-chain footnote — it has been a jobs engine.

– Jen Phan

Jen is based in Hanoi, Vietnam and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Small Countries Reducing Poverty

small country reducing povertyWhen people discuss global poverty reduction, they often focus on large economies like China or India. However, several smaller nations have achieved remarkable progress through targeted social programs, strong public investment and people-centered development strategies. These examples show how small countries reducing poverty can create meaningful change despite limited resources.

Many of these nations prioritize health care, education, environmental sustainability and social protection. Their success demonstrates that governments do not need massive populations or global economic dominance to improve quality of life and reduce poverty.

Costa Rica: Prioritizing People Over Military Spending

Costa Rica stands out as one of the strongest examples of a small country reducing poverty through long-term social investment. In 1948, Costa Rica abolished its military and redirected funding toward education, health care and public welfare.

This decision helped create one of the most stable social systems in Latin America. According to the World Bank, Costa Rica built a health care system that covers nearly the entire population while also maintaining high literacy and life expectancy rates.

Costa Rica also invested heavily in rural electrification, clean water access and environmental protection. The country now generates most of its electricity from renewable energy sources, which supports sustainable economic growth.

These policies reduced poverty while improving public health and economic opportunity. Costa Rica proves that governments can strengthen human development when they prioritize social investment over military expansion.

Uruguay: Building Strong Social Protection Systems

Another example of a small country reducing poverty is Uruguay. Although Uruguay has a relatively small population, it developed one of the strongest welfare systems in Latin America. The government expanded pensions, unemployment support and health care coverage while increasing access to education. Uruguay also implemented labor protections that strengthened wages and worker rights.

According to the Center for Economic and Policy Research, Uruguay consistently ranks among the countries with the lowest poverty and inequality levels in the region.

Uruguay’s economic strategy also focused on inclusion. Rather than concentrating growth among elites, policymakers expanded benefits to lower-income households and rural communities. This approach increased economic stability and reduced vulnerability during financial downturns.

The country demonstrates how democratic institutions and social spending can help small nations achieve lasting poverty reduction.

Bhutan: Progress Beyond Economic Growth

Bhutan offers a unique insight into how small countries reduce poverty as it measures national success differently from most countries. Instead of focusing only on Gross Domestic Product (GDP), Bhutan promotes the concept of Gross National Happiness (GNH). This concept emphasizes sustainable development, cultural preservation, environmental conservation and good governance. While Bhutan still faces economic challenges, the country has significantly reduced poverty over the last two decades.

According to the World Bank, Bhutan reduced poverty from 23.2% in 2007 to 8.2% in 2017 through investments in infrastructure, agriculture and social services.

Bhutan expanded road networks, improved rural health care access and increased school enrollment across remote communities. Hydropower exports also generated revenue that supported public programs.

This country’s development model shows that economic progress does not need to come at the expense of environmental sustainability or social well-being.

Mauritius: Diversifying Economy

Mauritius transformed itself from a low-income agricultural economy into an upper-middle-income country through diversification and investment in human capital. During the ’60s, many predicted economic difficulties because Mauritius relied heavily on sugar exports. However, the government expanded into tourism, manufacturing and financial services while investing in education and infrastructure.

The World Bank credits Mauritius with maintaining strong growth and reducing poverty through inclusive economic reform.

Mauritius also developed trade partnerships and encouraged foreign investment, which created jobs and increased income opportunities. Free education and health care strengthened social mobility and supported long-term development.

The country’s success demonstrates how smaller economies can adapt and compete globally through strategic planning and inclusive growth, moving itself away from the effects of poverty.

Important Lessons from Small Nations

The successes of these countries reveal several patterns behind small countries reducing poverty: Governments invested in health care and education. Leaders prioritized long-term human development. Social protection systems supported vulnerable populations. Economic growth reached rural and low-income communities. Policymakers emphasized sustainability and inclusion.

These nations also adapted policies to fit local conditions rather than copying outside models without modification. These examples are important to highlight because they demonstrate that poverty reduction remains available with the right policies and political commitment.

Global poverty still affects hundreds of millions of people, but the achievements of these smaller nations provide hope and practical guidance for others to follow. As governments continue to work toward the U.N.’s Sustainable Development Goals (SDGs), these examples of small countries reducing poverty remind the world that size does not determine impact. Strong social policies, inclusive economic growth and investment in people can help nations build a more equitable future.

– Leah Denning

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

Photo: Flickr

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Migration to Ecuador: An Untapped Economic Potential 

Migration to EcuadorWith a total population of approximately 18 million and an area of 276,841 square kilometers, Ecuador is one of the smallest countries on the South American continent. Due to its geographical location, it is also one of the largest host countries for hundreds of thousands of migrants. According to the United Nations High Commissioner for Refugees (UNHCR), migration to Ecuador is significant as more than 123,000 irregular migrants cross the Ecuadorian-Colombian border each year.

Meanwhile, the UNHCR estimates that nearly 500,000 refugees, asylum seekers, or people in need of protection have remained in Ecuador in the hope of a better life. Most of these are irregular migrants from Colombia and Venezuela. These groups are at risk of marginalization due to stigmatization, discrimination and a lack of valid documentation—yet new data shows that a well-organized strategy for integrating refugees has immense potential to boost the country’s economic growth. However, since the outbreak of the pandemic in 2020 the country has been struggling with serious crime issues. Drug cartels and gang crime are causing an increasing exodus of young and productive Ecuadorian workers. The result: no economic growth and a rising poverty rate.

Emigration of Productive Labor

Ecuador, once known as the “Island of Peace,” attracted immigrants from around the world due to its comparatively low homicide rate. As the Center for Strategic and International Studies reported, Ecuador’s homicide rate in 2019 stood at 6.7 per 100,000 inhabitants, making it one of the lowest among Latin American countries. 

During the pandemic, the situation shifted dramatically: Lockdowns forced businesses to close, tourism declined and oil exports fell. Ecuador’s central bank reported a 7.8% decrease in gross domestic product (GDP), while unemployment rose rapidly. Three out of 10 workers lost the jobs they held before the pandemic; half of them remained unemployed. The homicide rate jumped to 50.91 per 100,000 inhabitants in 2025.

As a result, income levels in Ecuador have changed: according to the National Institute of Statistics and Census (INEC), income poverty rose from 25% in 2019 to nearly 33% in 2020—1.4 million people fell into income poverty.

At the time, an undesirable but already well-researched phenomenon plagued the country: the positive correlation between poverty and crime. In other words: rising poverty leads to a higher risk of violence and crime, which, according to Ecuador’s Ombudsman’s Office (DPE), has resulted in the displacement of more than 300,000 Ecuadorians in recent years. Demographically speaking, most of them are young men of working age. A paper by the Inter-American Development Bank (IDB) calculated the direct cost as an average of 3.44% of the GDP annually. Indirectly, the exploding crime rates slow down economic growth.

Ecuador as a Host Country

Ecuador serves as a transit and entry country for groups from Africa, Cuba and Haiti. The country has, for decades already, been experiencing an influx of refugees from countries plagued by armed conflict and violence. Nonetheless, two main groups mark migration to Ecuador: 

Migrants from Colombia who have fled an armed conflict between guerrilla groups and the government that has been ongoing for more than 50 years. There are an estimated 130,000 to 200,000 Colombians living in Ecuador; according to the UNHCR, 94% of the more than 80,000 recognized refugees are Colombians.

In addition, Ecuador is home to Venezuelans who fled the humanitarian crisis under the Maduro regime. Around 440,000 migrants have applied for asylum, but only a small number of Venezuelans in Ecuador have valid residency documents. For Venezuelans, it takes months or even years to obtain a document such as an ID card or a passport. These delays are due to very high financial barriers, political restrictions, and the general collapse of the Venezuelan bureaucracy.

Migrants in Ecuador Face Legal Obstacles and Discrimination

The status of undocumented refugees creates significant barriers and contributes to the marginalization of these groups. At the same time it opens the door to systemic discrimination, exposes them to the risk of crime and violence, and traps refugees in a cycle of poverty. Access to housing, healthcare, education or employment appears to be significantly more difficult. Although an estimated one-third of refugees in Ecuador hold a college degree, the vast majority end up in the informal sector, with some earning a per capita income of only about $175 or less.

People in host countries often stigmatize minorities. They frequently project the violence and poverty prevalent in refugees’ countries of origin onto those seeking protection, which hinders their cultural and socio-economic integration. In crisis and conflict situations, politicians exploit fear and uncertainty for propaganda against migrants, in the hope of achieving better election results by stoking fears of competition for jobs or a strain on public finances.

Migration to Ecuador Can Boost Economic Growth

However, contrary to all the clichés, propaganda, and hate campaigns, recent statistics from the Center for Global Development (CGD) show that Venezuelan migrants are underrepresented among those detained for criminal offenses in Ecuador. In 2025, Venezuelans made up 2.4% of Ecuador’s population but accounted for only 1% of all detainees. Studies even suggest that refugees are more likely to be victims of crimes committed by their hosts than the other way around, but most of these cases remain unreported due to lack of trust in Ecuador’s authorities.

Given the country’s precarious security and economic situation, the integration of migrants is a crucial factor for economic growth and the well-being of the Ecuadorian population. As the International Organization for Migration (IOM) notes, Venezuelan migrants contribute an estimated $900 million annually to the Ecuadorian economy—simply through their consumption of goods and services. A well-thought-out bureaucratic strategy and a liberalized refugee policy could benefit the country and generate additional resources to combat gang violence and crime.

Migration and Poverty

Humanitarian aid plays a crucial role in integrating migrants into Ecuador’s society. The situation in Colombia is a prime example of how vital financial support can be for the stabilization and integration of refugees: the country has taken in over 2 million Venezuelans. Through programs such as the “Humanitarian Cash Transfer” (HCT), which was funded by USAID’s Bureau for Humanitarian Assistance (BHA), households received $100 per month over a six-month period.

A study conducted by the International Monetary Fund (IMF) estimated the total cost of health care, education and other services for this period of assistance—assuming a total of 2 million refugees—at $1.3 billion. The IMF’s analysis highlights that host countries are under significant financial pressure. However, the study found a surprisingly positive impact on the countries’ productivity. Due to the growth of labor force and a better match between migrants’ human capital and available jobs, these countries are able to achieve meaningful productivity and growth gains in the medium term. The study estimates that GDP could grow by 2.5 to 4.5 percentage points by 2030. Furthermore the authors assume that the costs of integrating migrants and refugees would decrease if they gained access to the labor market due to increased economic activity and the expansion of the tax base. 

Projects such as HIAS’s Economic Empowerment Program aim to educate Venezuelans about their economic opportunities and help them develop a greater awareness of their skills and how to apply those skills in a business setting. By offering training, mentoring programs and start-up capital, Venezuelans can be integrated into the labor market. In this way, refugees are provided with a sustainable livelihood—while simultaneously contributing to a net benefit for Ecuadorian society and economic growth.

Conclusion

Migration to Ecuador plays a major role in the country’s middle-term and long-term development. In order to boost economic growth, Ecuador must tackle its national crime rate explosion. Therefore, the country needs to break its cycle of poverty, especially amongst migrants from Venezuela and Colombia. Moreover, the Ecuadorian population should recognize the potential that refugees bring to their country. Foreign aid and assistance combined with a consistent socio-economic integration strategy can provide long-term solutions for downsizing poverty and minimizing the negative effects on Ecuador’s economy.

– Oliwia Kowalak

Oliwia is based in Berlin, Germany and focuses on Good News for The Borgen Project.

Photo: Unsplash