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Tag Archive for: Economic Growth

Information and news about economic growth

Posts

Agriculture, Education, Global Poverty

Building Opportunity: Agriculture and Education in Burundi

Education in BurundiIn the heart of East Africa lies Burundi, a small, landlocked nation bordered by Rwanda, Tanzania and the Democratic Republic of Congo. Beneath its green hills and tranquil lakes, however, Burundi faces persistent poverty driven by decades of instability, underdeveloped infrastructure and dependence on agriculture. While the country has made progress since its civil conflicts ended, many Burundian families continue to struggle to meet their daily needs.

The Borgen Project spoke with Francine Nahimana, a 25-year-old woman from rural Gitega, to learn more about how these challenges shape the lives of ordinary citizens and what solutions are helping Burundians rise above hardship. “People here are hardworking, but without opportunities and support, it is difficult to move forward,” Nahimana said.

Historical Impact

Burundi’s history of ethnic and political conflict has left deep social and economic scars. During years of unrest, schools and hospitals closed, families fled their land and many professionals left the country in search of stability. These years disrupted entire generations.

According to UNICEF, conflict forced thousands of children out of school, leading to widespread illiteracy and unemployment in later years. Many displaced families lost farmland, the backbone of Burundi’s economy and still face disputes over land ownership today. Nahimana explained that her community is still rebuilding: “Some people my age never had the chance to learn to read or write. That affects jobs today; many adults are still trying to catch up.”

Agricultural Impact

According to the International Fund for Agricultural Development (IFAD), roughly 80% of Burundians depend on agriculture for their livelihoods. Yet recurring droughts, soil erosion and limited access to modern tools continue to reduce yields and income. In rural Gitega, most families tend small plots of maize, beans or cassava.

Nahimana said that when rains fail, families cut back to one meal a day and ration food to children first. For many households, farming remains a matter of survival rather than a source of profit. The World Food Programme (WFP) estimates that more than half of Burundians face chronic food insecurity, highlighting the connection between environmental vulnerability and poverty.

Efforts to improve irrigation systems and promote climate-resilient crops have begun in parts of the country, offering hope that communities can protect both livelihoods and nutrition in the coming years.

Education in Burundi

Education in Burundi is both a challenge and a solution to poverty. According to UNESCO, while primary enrollment rates have increased, completion rates remain low, especially for girls. Families often struggle to afford school uniforms, materials or the long commute to secondary schools.

Nahimana recalled walking nearly an hour each day to reach class. “My parents believed girls should be educated, but many of my friends left school early to help at home or marry young,” she said. The lack of consistent schooling limits access to formal employment, leaving many young people dependent on subsistence farming.

Expanding access to education and vocational training in Burundi could empower citizens to pursue alternative livelihoods and break cycles of poverty.

Health Impact

Health care in Burundi remains fragile, especially in rural areas, where clinics are understaffed and medical supplies are scarce. For low-income families, medical costs can be devastating. When illness strikes, adults often lose workdays and children miss school, creating new obstacles to economic stability.

Nahimana said that even minor illnesses can send families into debt: “If someone gets sick, we borrow money to buy medicine and then the next month we can’t buy fertilizer or seeds.” Expanding community clinics and enhancing maternal and child health programs could prevent minor health issues from escalating into cycles of poverty.

Youth and Governance Impact

Burundi’s population is predominantly young; according to the United Nations Population Fund (UNFPA), more than 60% of the population is under the age of 25. This generation holds the potential to transform the country if provided with stable jobs and inclusive governance.

After years of instability, trust in institutions is slowly returning. National peacebuilding efforts, supported by the United Nations Peacebuilding Fund, aim to strengthen transparency and civic participation. Nahimana believes young people are ready to lead: “We are not defined by poverty, we are defined by perseverance. With education and opportunity, we can create a better future.”

Future Impact

Burundi’s challenges remain immense, but progress is possible. Investments in sustainable agriculture, affordable health care and education, particularly for girls, could significantly reduce poverty over the next decade. The World Bank and the United Nations Development Programme (UNDP) continue to partner with Burundi to improve rural infrastructure, access to credit and food security.

These long-term projects, paired with community-level resilience, aim to ensure that economic growth reaches every hill and valley. As Nahimana’s story shows, hope endures in Burundi’s hills. Each classroom that stays open, each seed that survives a dry season and each young woman who completes her education brings the nation one step closer to lasting prosperity.

– Katie Williams

Katie is based in the United Kingdom and focuses on Global Health for The Borgen Project.

Photo: Unsplash

November 14, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-11-14 03:00:232025-11-14 02:19:16Building Opportunity: Agriculture and Education in Burundi
Economy, Employment, Global Poverty

Cannabis Transforms Poverty in Saint Vincent and the Grenadines

Poverty in Saint Vincent and the GrenadinesIn 2018, Saint Vincent and the Grenadines decriminalized possessing up to two ounces of marijuana and Parliament passed laws to establish a medical cannabis industry. Vincentians use and appreciate the medicinal properties of cannabis, as well as the pivotal role it can play in reducing poverty in Saint Vincent and the Grenadines. In 2024, 18% of Vincentian adults were unemployed; youth were twice as likely as adults to be unemployed.

Additionally, the country’s volcano (La Soufrière) erupted in 2021. Coupled with the then-recent COVID-19 pandemic, the country faced huge economic setbacks. Whereas before the pandemic, only 4% of children in Saint Vincent were below the poverty line, this has now risen to 18%. Therefore, due to the industry’s up-and-coming market, utilizing cannabis in Saint Vincent is key to recovering the economy and securing jobs for unemployed young people.

Boosting the Economy

Ironically, it is the volcanic soil that makes cannabis in Saint Vincent high-grade and fast-producing. As a result, cannabis became an instrumental trading tool during the country’s recovery from the volcanic eruption. More recently, Saint Vincent has reported more than EC$60 million (slightly above $22 million) in private investment in its cannabis industry.

Beyond just trading, the small country is also now gaining an international reputation for its high-quality marijuana. In October 2025, Saint Vincent will host the annual CannaBliss festival for the second time. This is a four-day event that attracts customers from around the globe and dually acts as a chance for networking among the medicinal cannabis industry.

Not only does this boost Saint Vincent’s tourism industry, but it is also a chance for the country to share its culture with the world. The festival will feature reggae singers with international fame. However, it will also be a chance for local Vincentian singers to display their talent!

Medicinal Benefits

Due to cannabis’s unique medicinal uses, the drug is experiencing increasing demand worldwide, with the medicinal cannabis market expected to reach $58 billion in sales by 2028.

The United States Food and Drug Administration (USFDA) currently uses Epidiolex, which contains cannabidiol, to treat seizures. It also uses Marinol and Syndros, which contain Tetrahydrocannabinol (THC), for therapeutic purposes such as treating nausea associated with cancer chemotherapy and anorexia related to weight loss in AIDS patients. The USFDA continues to research additional medical applications of cannabinoids.

Meanwhile, the cannabis market is expanding globally. The U.K., Canada and several European countries have, for the first time, approved a plant-derived cannabinoid drug (Sativex) for medical use.

Supports Cultural Practices

Emerging in ’30s Jamaica, the religion Rastafari celebrates marijuana as a gift from God. Rastas believe in peace and living organically; they often adjust their language to avoid negative terms, oppose violence and oppressive systems such as capitalism and are typically vegetarian. Rastas use marijuana ritually to help enlighten their minds; before smoking the plant, they pray to Jah (God) or to Haile Selassie I.

Moreover, supporting Rastas means supporting local farmers. Since decriminalizing cannabis in Saint Vincent, farmers can now obtain a subsidized licence to grow marijuana and companies must buy 10% of their plants from traditional agriculturalists. Before this, it was difficult for Rastas to make a living.

Farmer Bobbis Matthews said to the Guardian, “It was hard! At least three times a year, U.S. helicopters would come and tear down the crop. In those days, it felt like you couldn’t even say the word marijuana because just to say marijuana, you could get arrested.” “We had a song called ‘Helicopter.’ It was about the panic and franticness whenever you hear the sound of the helicopter,” he continued.

Now, local farmers can live and celebrate their culture legally. The growing industry has created 2,500 more jobs for a country with low employment rates. Saint Vincent has also provided additional training in best cultivation practices to support the market and farmers further.

Final Comments

Overall, Saint Vincent and the Grenadines demonstrates how cannabis can be used ethically. The country is utilizing the plant for its medicinal benefits and its significance to the religious community. Marijuana’s rapidly growing market is also helping to reduce poverty in Saint Vincent and the Grenadines by increasing employment rates and expanding trading opportunities. This, in turn, is building a fast-growing industry that will play a pivotal role in the country’s future.

– Lysia Wright

Lysia is based in Derby, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

October 28, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-10-28 01:30:302025-10-27 22:58:19Cannabis Transforms Poverty in Saint Vincent and the Grenadines
Global Poverty, Health, Migration

Dependency on Foreign Health Care Workers in Ireland

Health Care Workers in IrelandIreland has long been a source of high net emigration, with an estimated 10 million emigrants leaving the western European island since 1800. However, the past two decades have seen an unprecedented increase in the number of foreign health care workers in Ireland. The Irish health care system has experienced notable growing pains in its attempts to retain domestically-trained doctors, who often follow a decades-long trend of looking abroad to Australia, Canada and the U.K. for hire.

As Irish doctors continue to move abroad, internationally trained medics bridge the gap. Here is a look at the path ahead as Ireland copes with shortages in professional health care and works toward a more accommodating workplace for Irish doctors.

Brain Drain: Doctors Leave Ireland Behind

A telltale shift in the Irish health care industry came in the late ’90s, when rapid economic growth and demand for nursing services outpaced Ireland’s supply of workers. Since 2000, Irish doctors, most of whom depart from Ireland during or after their training, have remained similarly scarce. This period of economic expansion marked an inflection point in Irish health care, where Ireland’s historical role as a major exporter of Irish nurses reversed.

Ireland’s trend in poor doctor retention seems to mirror a similar trend affecting northern and western Europe as a whole.

Unstable Working Conditions Disillusion Doctors

Most doctors born and trained in Ireland intend to work domestically. Yet, various factors keep these workers looking for work abroad. Notably, a 2018 survey of Irish training doctors found that only 45% intended to find work domestically, hinting at an underlying push factor in the Irish medical field. A 2021 study accredits Ireland’s exodus of domestically-trained doctors to short staffing and poor training, which catalyze stressful conditions in the workplace.

The fulfillment that Irish doctors don’t find in their work environment at home, they pursue abroad. About 72% of emigrant Irish doctors prefer employment in the U.K., Canada and Australia. Naturally, international recruitment programs call on foreign-trained health care workers to compensate for Irish staffing shortages.

Foreign health care workers in Ireland must bridge the gap that Irish emigrant doctors leave behind. Nevertheless, recent assessments of Ireland’s health care system indicate that this international recruitment practice is neither sustainable for foreign-trained workers nor the communities they serve.

Challenges for Foreign Health Care Workers in Ireland

A 2025 World Health Organization study assessing nine European countries (including Ireland) found that the number of foreign-trained nurses increased 67% in these regions from 2014 to 2023 alone. Higher wages and more benefits than are available in a foreign health care worker’s home country incentivize such high immigration trends. However, a significant disconnect exists between foreign workers’ expectations and the working conditions they receive upon arrival in Ireland, perpetuating brain waste in the Irish medical field.

This occurs as foreign doctors trained in a specific setting are assigned arbitrarily to any position lacking staff, thus depriving both their origin country and their receiving country of their talent. A study interviewed foreign health care workers in Ireland and found such instances of dissonance between the position to which individuals apply and the actual role to which they are called. Due to the costly financial and emotional investment of choosing to migrate, many cannot withdraw their commitment in pursuit of a better opportunity.

Thus, many foreign doctors bear the brunt of the poor working conditions that prompt Irish-trained doctors to go abroad.

Local Implications of Sending and Receiving Health Care Workers

Local communities, either on the sending or receiving end of foreign doctors, become more vulnerable as professional health care access is redistributed across international borders. Subsequently, Ireland’s understaffed health care force leaves marginalized and low-income communities, domestic and abroad, under strain. In attempts to compensate through international recruitment, the community in Ireland outsources for doctors and the spread is thin.

Foreign health care workers in Ireland become more vulnerable to poverty as they pay the exorbitant costs associated with migration. Consequently, individuals seeking health care may not have the financial means to compete for a spot in their health care provider’s overbooked schedule. Ireland has introduced noteworthy doctor retention programs, seeking to break this cycle, with varying results.

The Path Forward for Strong Doctor Retention in Ireland

To promote universal access to quality health care, Ireland has to sustain an equitable, stress-reduced working environment for its domestically trained doctors. A shift away from brain drain in Irish health care is an uphill battle. This is largely due to systematic flaws such as hostility from or poor connections with mentors and coworkers, which weakens a newly trained doctor’s support system.

Noteworthy doctor retention efforts began in 2015, when Ireland’s Strategic Review of Medical Training and Career Structures oversaw adjusted working conditions and training opportunities for doctors training domestically. However, a 2021 study revisiting the success of these doctor retention programs found them ineffective and out of proportion to the problem’s scale. Going forward, it will take increased investment in strong mentorship for Irish training doctors and more compatible training programs to see the Irish health care industry draw a greater appeal to its workers.

Fortunately, a successful doctor retention policy, such as Romania’s, provides a hopeful template as Ireland pursues an equitable health care system benefitting workers and patients alike.

– Isla Hansen

Isla is based in Spokane, WA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons

October 27, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-10-27 01:30:232025-10-26 23:46:43Dependency on Foreign Health Care Workers in Ireland
Economy, Global Poverty, Tourism

How Georgia’s Wine and Tourism Are Helping Communities

Georgia’s Wine and TourismGeorgia, the birthplace of wine, has rightfully earned its title as “wine country.” The investment in wine-making has boosted the economy and helped many communities find their way out of rural poverty. Winemaking is deeply rooted in the country’s history and evidence shows that viticulture dates back 8,000 years in Georgia. Vineyards cover most of the country’s rolling hills, making the wine extremely popular worldwide.

The Georgian Grape Subsidy Program

A subsidy is financial assistance provided by the government to help keep prices stable and encourage economic participation among vulnerable producers. Specifically in Georgia, subsidy programs were made to stabilize farmers’ incomes, guarantee smooth harvests and ensure that even lower-quality grapes could be sold, especially those used for wine production. Subsidies have played an integral role in sustaining Georgia’s agricultural sector.

Between 2014 and 2024, nearly 45% of government agricultural spending went toward subsidy programs. These funds support the production of key crops such as wheat, hazelnuts, tangerines, apples and, most importantly, grapes. The Georgian grape subsidy program began in 2008 and, except for 2018 and 2019, has been implemented every year since.

The government has used both direct and indirect subsidies to support farmers. Direct subsidies provide cash payments to grape growers for each kilogram harvested. In contrast, indirect subsidies operate through state-owned companies that purchase grapes directly from farmers, especially when private buyers leave surplus crops on the market.

Although direct financial support declined sharply after 2017, the government continued its grape purchasing program to protect growers from market fluctuations and ensure no farmer was left behind.

Challenges in the Vineyards

Despite the progress, Georgia’s small-scale grape producers remain among the country’s most economically vulnerable people. Many still rely on outdated production methods, lack access to quality inputs and agricultural services and face limited competition opportunities in international markets. After the land reforms of the ’90s, following the collapse of the Soviet Union, farmland in Georgia became scarce.

This left most vineyards too small to support efficient production. This has resulted in high costs and limited access to capital and markets. Because of these constraints, some wineries have started to grow their own grapes to secure consistent, high-quality supplies, leaving smallholders struggling to find buyers. These farmers face the added risk of unpredictable weather and fluctuating market prices, making planning or investing in new technology difficult.

Tourism

Georgia’s wine and tourism industry is helping communities by creating jobs for local community members. Georgia’s wine culture is especially unique and the production of wine in Georgia competes with other luxury brands in the market. Research has shown that tourists appreciate the experience of learning about the process of winegrowing as much as they enjoy tasting the wine. Wine-makers in Georgia hope this trend will continue.

A Path Forward

The story of how Georgia’s wine and tourism are helping communities remains one of resilience and renewal. The government’s sustained investment in agriculture and the international demand for Georgian wine have opened new economic opportunities in rural areas. As vineyards expand and production methods improve, Georgia’s winemaking tradition continues to do more than fill glasses; it helps fill livelihoods, turning an ancient craft into a modern tool for fighting poverty.

– Arielle Telfort

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

Photo: Unsplash

October 25, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-10-25 07:30:012025-10-25 01:59:04How Georgia’s Wine and Tourism Are Helping Communities
elderly poverty, Global Poverty

Elderly Poverty in Senegal

Elderly poverty in SenegalWhile Senegal has made tremendous improvements in its economic growth within the last decade, many still overlook the issue of elderly poverty. Senegal has experienced strong growth and made strides in reducing general poverty, but older citizens continue to face serious financial hardship. Elderly poverty in Senegal is a challenge the country has faced before, but now it is time to examine it through a different lens and explore what solutions exist.

The Numbers

According to a 2018 World Bank report, only 7% of elderly citizens in Senegal live in extreme poverty. While this statistic brings hope for the elderly community, household numbers create a stark reality.

According to the “Senegal: Poverty Reduction Strategy Paper,” roughly 56% of households headed by a person over 60 live in poverty. Although these households make up just 6% of the population, they represent 19% of all households living in poverty. This data highlights that when older people serve as the main providers, the risk of poverty increases significantly.

Life for Older People in Poverty

Elderly poverty in Senegal means relying almost entirely on younger family members for food, shelter and medical bills. When families cannot provide, older adults face hunger, lack of medicine and isolation. 

Formal pension and social insurance coverage remains limited in Senegal, leaving many older people without a steady income, and rural elders face extra hurdles including long travel times to health facilities and transport barriers that reduce their access to care. These barriers prevent many older Senegalese from living independently.

Plan Sésame

To address some of the challenges faced by older citizens, the Senegalese government created Plan Sésame in 2006. This plan was set up as a health coverage program for people aged 60 and over. Plan Sésame aimed to provide free medical care in all the country’s public health facilities. 

The vast majority of elderly people in Senegal do not receive a pension and rely heavily on family members for financial support. Health care costs often compete with other basic needs like food and shelter; this dependence places older people in a vulnerable position, without the resources to make choices about their health. 

While data on exact numbers reached is limited, research suggests thousands of seniors benefit annually from the program, especially in urban areas. Rural elders, however, sometimes face challenges in using the program because of transportation barriers and shortages of medical staff. Expanding Plan Sésame’s reach and ensuring equitable access remain crucial steps.

Economic Growth

Senegal’s economy began to recover in 2021 after the downturn that COVID-19 caused. The country recorded a substantial reduction in poverty due to strong economic performance during the 2010s. Despite challenges such as rising food and energy prices that the war in Ukraine caused, Senegal’s economy remained resilient in 2022. The average GDP growth rate stood at about 5%, and the incidence of poverty fell from 43% to 37.8%. Yet, these improvements have not reached everyone equally. Elders who cannot work or access social safety nets are often left behind, missing out on the benefits of economic growth.

Looking Forward

Senegal has the potential to lift even more citizens out of poverty if it invests further in elderly care. Strengthening Plan Sésame, creating pension schemes for informal workers, and improving transportation to health facilities could give older adults better access to care and independence. Addressing elderly poverty in Senegal is not only a moral responsibility but also a crucial step toward building a more inclusive economy that supports citizens of all ages.

– Arielle Telfort

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

Photo: Flickr

October 7, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2025-10-07 07:30:492025-10-06 00:49:43Elderly Poverty in Senegal
Education, Global Poverty, Women's Empowerment

Vocational Education in Mexico

Vocational Education in MexicoVocational education and training (VET) centers play a critical role in building the skilled workforce in Mexico. These centers help students and workers gain technical knowledge that adapts to the rapidly changing global economy. Beyond improving job opportunities, investments in VET directly contribute to poverty reduction by increasing employability, raising household incomes and creating more equitable access to education.

While challenges remain, efforts from organizations such as the United Nations Educational, Scientific and Cultural Organization (UNESCO), the National Institute for Standardization and Certification of Labor Competencies (CONOCER) and German cooperation through Sparkassenstiftung show how VET centers are reducing barriers, especially for women. These initiatives are also creating new pathways out of poverty.

Skill Gaps in Mexico’s Workforce

Flexibility, adaptability and technical skills are key to Mexico’s vocational training programs. In the past, government-driven policies often limited the scope of workers’ training, restricting them to narrow skills tied to specific industries. This prevented workers from finding higher-paying jobs and slowed the country’s ability to meet global market demands. Today, VET centers address these gaps by equipping workers with diverse, transferable skills.

There is still a gender gap in vocational education enrollment. Social barriers and perceptions that technical training is “not for women” create unequal access to opportunities. Encouraging women’s participation strengthens the labor force, increases household incomes and promotes social equality.

Solutions Driving Change

During the North American Free Trade Agreement (NAFTA) reforms, Mexico’s certification system shifted from rigid government-imposed curricula to training models supported by companies and industries. This change expanded access to certifications and improved job placement opportunities by making training more relevant to labor market needs.

Expanding the Dual Vocational System

German development organizations such as GIZ are collaborating with Mexican schools to expand dual VET programs. These combine classroom instruction with workplace training, giving students both theoretical knowledge and practical experience. Sparkassenstiftung reports that thousands of young Mexicans have already been trained through this system. Benefits include higher employment rates and stronger partnerships between schools and employers.

The Impact of VET Centers in Mexico

  • They prepare the workforce to compete globally.
  • They provide jobs that strengthen economic stability and equality.
  • Partnerships with global organizations help reduce poverty and mobilize Mexico’s economy.

Mexico has more than 2,500 institutions dedicated to higher education, with approximately 20% of lower secondary students enrolled in VET pathways. By expanding access and making training more inclusive, VET centers are becoming a powerful tool in reducing poverty and improving social mobility.

Conclusion

Vocational education and training centers in Mexico are more than just schools. They are engines of economic growth and social progress. By investing in VET, Mexico is not only building a skilled, adaptable and inclusive workforce but also creating a long-term pathway to poverty reduction. Each investment in VET translates into more opportunities for employment, higher wages and a stronger safety net for vulnerable communities.

These programs prepare students for today’s labor market while giving them the resilience to thrive in tomorrow’s global economy, ensuring that progress reaches families across the country.

– Miranda Yacynych

Miranda is based in Pittsburgh, PA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

October 2, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-10-02 07:30:192025-10-01 23:06:30Vocational Education in Mexico
Development, Economy, Global Poverty

How Debt Restructuring in Ghana Creates Room for Development

Debt Restructuring in GhanaGhana has dealt with a debt crisis since the early 2000s, originating from a long history of colonialism. Although it was one of the first African countries to gain independence in 1957, Ghana continues to depend on the export of raw materials such as gold, oil and cocoa. When global commodity prices declined in the ’80s and ’90s, countries in the Global South relied on the International Monetary Fund (IMF) and the World Bank’s advice to expand production to pay debts. As a result, the price of commodities remained low for 20 years.

The HIPC Initiative and Debt Relief Successes

In 2002, the Ghanaian government granted the central bank autonomy to use monetary policy as a tool to promote economic growth and deal with inflation. Falling from 30% to 10% by 2007, fiscal policy enacted under the joint IMF-World Bank debt relief program, the Heavily Indebted Poor Countries Initiative (HIPC), was key in taming the country’s economic problems.

After part of the country’s debt was cancelled during the program’s implementation, Ghana’s external debt fell by $4.3 billion between 2006 and 2003, from $6.6 billion to $2.3 billion. Debt relief proved to be a successful means of fighting poverty and increasing the potential for development. Improvements in health care and education followed, with money being invested in social services for Ghanaian citizens.

One of the most important features of the government’s budgetary operations under the HIPC Initiative was its positive impact on poverty reduction. The Ghana poverty reduction strategy document emphasized integrated rural development, economic growth, expanded employment opportunities and improved access to public services. To achieve these goals, the government would have to implement sound monetary and fiscal policies made possible through debt relief.

New Debt Restructuring Framework in Ghana

However, the country’s continued reliance on the export of commodities has led it into another debt crisis. When the price of raw materials rose in the 2010s, more countries became willing to lend to Ghana. However, after another fall in the cost of commodities in 2013, the African country became unable to repay loans and started accumulating debt. Debt now places a new, significant burden on Ghana’s economy and society, which could lead to stagnation and higher poverty rates.

Recently, Ghana’s parliament approved a $2.8 billion debt restructuring framework for 25 creditor countries. Although the deal is not yet final, debt relief would again allow the country to invest in social services instead of using its revenues to pay off lender countries. In the 2000s, debt restructuring was critical in restoring macroeconomic stability; by rescheduling debt payments due between 2022 and 2026 to 2039 – 2043, there is hope that the country can break its cycle of debt.

The newly created Agenda for Jobs II (2022–2025) aims to develop further Ghanaian life’s economic, social and environmental dimensions. It focuses on expanding education and health care initiatives. The agenda also seeks to broaden the coverage of the Livelihood Empowerment Against Poverty (LEAP) Program.

Conclusion

In collaboration with international partners, new debt restructuring efforts in Ghana have opened a new chapter in the country’s economic development. The potential ratification of these new agreements will free up significant public funds that can be invested in public sectors such as health care, education and infrastructure, contributing to the country’s fight against poverty. Debt restructuring allows for future economic growth, catalyzing social progress.

– Rafaela Paquet

Rafaela is based in Montreal, Canada and focuses on Politics for The Borgen Project.

Photo: Wikimedia Commons

September 2, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-09-02 03:00:452025-09-01 13:28:35How Debt Restructuring in Ghana Creates Room for Development
Economy, Gender Wage Inequality, Global Poverty

Poverty Reduction in Serbia: Supporting Marginalized Groups

Poverty Reduction in SerbiaNestled in the heart of the Balkans in Southeastern Europe, Serbia was formerly part of the Yugoslav Republic. After a period of economic uncertainty and fluctuating living standards in the late 1990s and early 2000s, Serbia is making strides in improving the quality of life of its citizens.

Despite a growing economy, shrinking unemployment and existing social initiatives, women and marginalized groups such as Roma are still more likely to experience poverty and face significant challenges to receiving social assistance and entering the labor force. To continue working towards economic growth and poverty reduction in Serbia, it must focus on uplifting these groups.

Economic Growth

In its attempts to expand the job market and fight unemployment, Serbia grew its economy 3.9% in 2024, bolstering its construction industry and services sector as the country takes on foreign projects, according to World Bank statistics. Growth is projected to continue throughout 2025, with expansion in the energy sector projected as well.

Thanks to this, the incidence of poverty fell to 7.7%, however, that number largely includes women and other vulnerable groups, and does not take into account the borderline at-risk-of-poverty rate, which was 19.7% for 2024, according to Serbia’s own survey statistics. These numbers highlight the need for more targeted social assistance to continue making economic gains and raising people out of poverty.

About the Gender Wage Gap in Serbia

In 2023, the employment disparity between men and women in Serbia was 13.3%, with even larger disparities for the Roma people as a whole, but especially Roma women, whose education and employment numbers lag far behind other demographics. These numbers represent untapped potential that could benefit industry enhancement, growth and poverty reduction in Serbia.

These groups are facing cultural barriers more than economic ones. Long-standing prejudices and traditionalist value systems are holding them back from accessing the Serbian labor market. When polled directly, 40% of women, both Roma and non-Roma, articulated their willingness to join the workforce and participate in training initiatives to improve their skills and gain experience.

Social Protection

For its impoverished population, Serbia’s social protection systems include social insurance, social assistance and social services. These cover entitlements like pension and disability insurance, health insurance and low-income household assistance. Of these systems, only two programs are specifically targeted towards its impoverished populations: A financial social assistance program and a child allowance program.

These programs do not adequately support the most at-risk and marginalized groups, however. Limited budgets and a lack of policy focus mean these entitlements do little in the way of poverty reduction in Serbia. A single mother with two children receives about 18,000 dinars (€153) a month, three times less than the cost of basic monthly necessities.

As of 2022, Serbia spends 19.5% of its GDP on social protection programs. While this is a relatively high number in line with the spending of new EU member nations, 71% of social protection spending is absorbed by social insurance (pensions, disability, healthcare), leaving little left over for targeted social assistance. In reality, Serbia spends only 5% of social protection expenditures on poverty-targeted programs, significantly less than EU countries.

Solutions

Recognizing the necessity for uplifting marginalized groups in the fight for poverty reduction in Serbia, the World Bank, in conjunction with the Serbian Institute of Ethnography and the Entrepreneurship Training Institute, launched a series of personal initiative training programs specifically aimed at supporting Roma women. These programs, begun in 2024, focus on resume/CV-writing, job interview roleplays and starting a business, with the overall aim of creating a more socially and economically equal society.

The programs are already yielding results. To date, nine participants in the PI trainings have become certified trainers themselves, mentoring more than 100 women in their local communities. Others have come through the program and used their knowledge to start their own businesses, like one woman who was able to open her own hair salon in Novi Sad.

The resultant economic independence these programs are facilitating will assist in overcoming the cultural biases that keep an untapped reserve of the population from contributing to the betterment of the country. The success of the PI trainings provides a roadmap to poverty reduction in Serbia targeting its most vulnerable and marginalized groups, and with that a more inclusive labor market and continued economic growth.

– Nikola Stojkovic

Nikola is based in Villa Park, IL, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

September 1, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2025-09-01 07:30:562025-08-31 14:20:55Poverty Reduction in Serbia: Supporting Marginalized Groups
Development, Economy, Global Poverty

Fighting Poverty in Georgia: The Role of Black Sea

Poverty in GeorgiaGeorgia’s policies aimed at reducing poverty have been successful, especially regarding efforts to modernize the labor market and increase access to assistance for large portions of the population. The country’s gross national income per capita rose from $3,000 in 2010 to $5,702 in 2023, along with reducing poverty in Georgia by roughly 35% in a timespan of over a decade. There is a continued sense of urgency to address and curb poverty.

Despite these efforts, in 2024, the Georgian government backtracked on European Union accession talks. This forced successful policies that reduced poverty to be abandoned, leaving only unproven strategies. The resulting suspension of some foreign aid in the form of investments will harm citizens by hindering national economic growth and slowing trade. Furthermore, some Georgians in rural regions and minority groups, consisting of Azerbaijanis and Armenians, still face high levels of poverty due to the government’s limited current legislation focused on their needs.

Ethnic tensions in Georgia are prevalent, stemming from the need to preserve the unique identity of Georgians, especially from outside invaders, including Russia. Georgia has two breakaway regions, Abkhazia and South Ossetia, both striving for independence. However, the Georgian government and people have been skeptical of foreign influence in the regions and the potential for disruption to the Georgian identity, according to the Carnegie Endowment for International Peace.

This fear, along with the hindrance of the government viewing minorities as lesser members of the nation, has restricted support and Georgia’s hope to curb poverty in predominantly minority regions.

Black Sea Importance and Access

The Black Sea is of great importance to Georgia, allowing access to beneficial trade resources and international partnerships. Partnerships between foreign nations can also enhance security, unify independent countries and provide protection in this dynamic region. Without the Black Sea, Georgia would be unable to utilize ports to facilitate trade and resource distribution.

Also, the Blue Economy or ocean resources used for economic growth, is vital to Georgia. A recent project from the European Climate, Infrastructure and Environment Executive Agency increases support for fisheries, coastal and maritime tourism and maritime transport, according to the European Commission.

Besides ports, oil and gas pipelines also flow through and around the Black Sea, creating a significant trade route from nations such as Russia and Turkey to nations in Europe. The ability for nations to tap into Western markets is key to maintaining national economic growth and potential job growth, ensuring that the nation thrives and that poverty can be reduced.

This is beneficial not only to individual nations in the region but also to the U.S., which has the goal of minimizing adversary movements in conflict zones and areas of high trade interest. Specifically, nations that can rely on Western nations for trade and an economic boost will become less dependent on Russian trade and influence. Additionally, their national independent movements will be protected, according to the Foreign Policy Research Institute.

Georgia’s Ports

Georgia’s unique location between the Black Sea and the Caspian Sea, along with neighboring Azerbaijan, allows the country to connect seven landlocked countries. It promotes trade between Europe and Asia. According to the National Library of Medicine, Georgia maintains aspirations of being a direct hub between Europe and Asia, with added economic growth, infrastructure and development. Trade agreements are vital in preserving and increasing Georgian dominance on the Black Sea to become a significant trade and support nation in a time when foreign influence downplays the nation.

The Batumi Sea Port, located near the southwest corner of the nation, is designed to deal with cereal cargo and petroleum goods. According to the Logistics Cluster, the port transfers goods from land-based transport to ships. It also handles trade vessels and military ships from the U.S. and NATO. These military vessels dock to support regional security through joint exercises and training. By maintaining a strong flow of trade and military ships through their ports, Georgia ensures a positive economic output and strong international cooperation while maintaining security against threats.

Ongoing Strife in the Black Sea

With Russia’s ongoing expanded war against Ukraine, originating in 2014, the Black Sea is still a threatened region, facing military threats, environmental risks and disruptions to vital shipping routes. Primarily at the start of the war, the Russian Navy increased warship presence in the Black Sea and since then, both the Russian Navy and the much smaller Ukrainian Navy have utilized sea mines to deter advances from both sides.

However, with the presence of warships and mines, coastal authorities continue to warn marine traffic of the dangers, ultimately creating uncertainty in trade routes and the potential for disasters, according to the NATO Shipping Center. Environmental risks are also occurring, with mines and oil spills from Russian oil tankers harming the Black Sea shipping lanes and wildlife. Aging tankers in Russia’s shadow fleet, used to evade oil price caps, are at higher risk of spills or navigation failures. Collisions involving these vessels also disrupt trade and daily life in regions like Crimea.

With Russian deals to implement new naval policies and create new bases to house warships, Georgia will be at a disadvantage. Continued disruptions to trade and Russian influence to bar additional Georgian efforts to secure new ports and infrastructure relating to trade will negatively impact the Georgian economy and reduce poverty in Georgia.

A Future for Georgia and the Black Sea

Georgia continues to find new ways to reduce poverty. A report supported by the United Nations Development Programme (UNDP) describes how investments in social security, health care and education will help reduce poverty. To create long-lasting economic growth, the Black Sea’s role must be at the forefront of future deals. Prioritizing investment, tourism and port development will boost jobs, raise incomes and improve regional trade efficiency, key steps toward reducing poverty in Georgia.

– Avery Kachmarsky

Avery is based in Los Angeles, CA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

August 11, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-08-11 03:00:102025-08-10 10:54:12Fighting Poverty in Georgia: The Role of Black Sea
Africa, Economy, Global Poverty, Health

Vaccinations in Africa: How Gavi Advances Economic Development

Vaccinations in AfricaFor decades, Africa has faced a dangerous dependency: carrying some of the world’s highest disease burdens while producing less than 1% of its vaccines. This reliance on imports has long limited access to life-saving vaccinations in Africa, slowing responses to health emergencies and straining national development across the continent.

To reshape this narrative, Gavi, the Global Vaccine Alliance, is laying the foundations for a thriving, self-sustaining vaccine economy for the continent. Through continental partnerships, investments and innovations, the international organization created to ensure vaccine security is working to transform African health policy. The goal is to shift it from a long-standing area of weakness into a pillar of long-term economic strength.

Initiating Local Manufacturing

The COVID-19 pandemic exposed the risks of global supply chain disruptions and the weakness of economies reliant on vaccine importation. Many African countries struggled to access vaccines in the early rollout, sparking calls for regional self-reliance. In response, the African Union set a bold goal: to produce 60% of the continent’s vaccine needs locally by 2040, with Gavi central to achieving that ambition.

Through initiatives like the African Vaccine Manufacturing Accelerator, Gavi is shaping markets, lowering barriers and mobilizing funding to grow production capacity across the continent. More than 30 African vaccine manufacturing initiatives are now in motion, supported by a mix of government leadership and international investment. These efforts aim to build a sustainable, locally based supply of vaccines for routine immunizations. By producing vaccines within the continent, Africa is taking direct action to reduce its dependence on external sources and strengthen its resilience against future global health crises.

The strength of Gavi’s procurement and demand-forecasting models is crucial to growing an African vaccine economy. It allows local producers to see and rely on predictable, long-term vaccine demand figures. This crucial step sustains the development of a successful and relevant supply chain of vaccines within Africa, ensuring the local industries remain viable and successful as the continent builds to its 2040 goal.

Economic Growth Through Immunization

Gavi’s core mission of expanding access to immunization has driven development in Africa far beyond vaccine manufacturing. Vaccinations across Africa continue to deliver strong economic benefits, improving public health while boosting productivity and long-term growth. Healthier populations lead to fewer missed school days, lower health care costs and higher workforce productivity. According to Gavi, every $1 spent on vaccinations in Africa yields up to $21 in economic benefit through avoided illness, improved wages and long-term growth.

Since its inception in 2000, Gavi’s efforts have helped immunize more than 800 million children, averting more than 14 million deaths. In Africa alone, since 2000, coverage of the diphtheria, tetanus and pertussis (DTP3) vaccine across Gavi-supported African countries has increased from 52% to more than 70%. By building health systems around vaccine delivery, such as training workers, investing in cold chains and digitizing records, Gavi has strengthened public infrastructure in regions where such systems are often underfunded. This progress has not only saved lives but also helped countries make strides toward the Sustainable Development Goals.

Toward a Resilient Vaccine Future

A more secure future for African public health begins with Gavi’s support for the African Vaccine Manufacturing Accelerator. This initiative not only increases vaccine supply but also strengthens regional resilience against future pandemics. This resilience, however, is seen as only the starting point for an African vaccination economic sector. The developmental transition of African nations from Gavi support to self-financed immunization programs is hoping to create not just independence but also leadership in global health manufacturing.

In this vision, Gavi in Africa is more than a health initiative; it is an economic strategy, a security policy and a development model. As African-made vaccines begin protecting African communities, the continent moves closer to a future where health equity and economic strength go hand in hand.

– Tom Finighan

Tom is based in London, UK and focuses on Business and Global Health for The Borgen Project.

Photo: Flickr

August 10, 2025
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey 2 https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey 22025-08-10 07:30:452025-08-10 00:12:05Vaccinations in Africa: How Gavi Advances Economic Development
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