Tag Archive for: Economic Growth

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Renewable Energy in Georgia

Renewable Energy in GeorgiaGeorgia is a country rich in history, situated at the eastern end of the Black Sea in Eastern Europe. Once home to the ancient kingdom of Iberia, Georgia is now charting its course with one of Europe’s most significant and rapidly growing renewable energy sectors. The Georgian people aim not only to promote renewable energy but also to use it to alleviate poverty.

Pushing Toward a Green Future

This push toward a green future goes hand in hand with the country’s economic policy. Specifically, Georgia has always maintained the goal of creating a liberalized economic environment for its people. This economy would be governed through minimal state interference, reduced taxation and free trade. These principles have already been put into place. For example, Georgia achieved an average annual economic growth of 3.6% between 2017 and 2021. The country achieved this by stimulating capital and investments through a system of structural reforms. Its renewable energy sector is one such reformation that has expanded into an industry of its own.

Georgia has been involved in the energy sector since the mid-’90s and its efforts have steadily progressed, yielding significant results. Approximately 70% of the country’s electricity comes from hydropower, with the remainder generated from coal and natural gas. This positions Georgia for potential energy independence from its neighbors, opening the door to becoming an electricity exporter to other European nations. For context, the country’s total energy consumption was 4.49 million tons of oil equivalent (Mtoe) in 2020, presenting a lucrative opportunity for sustainable economic growth.

In addition, the country’s energy sector is on pace for rapid growth. The state electricity producer Georgian State Electrosystem (GSE) currently produces 4,600 megawatts (MW) of electricity, which is expected to reach 10,000 megawatts by 2033. Furthermore, new hydropower plants are being proposed to aid this development. Even more, there are plans to construct photovoltaics and wind farms in the country. The fruition of these projects would have significant implications for the country’s renewable energy output.

Potential Economic Impact

The jobs created by this initiative could spark a significant economic boom for the nation. Citizens could engage in meaningful work within an industry, revitalizing their country and promoting a healthier environment. This potential is reflected in economic forecasts, which project Georgia’s gross domestic product (GDP) to rise to 5.5% by 2025, a 0.5% increase from the previous year.

Looking Ahead

There is still much work ahead and progress continues to be made. Georgia’s legislators are focused on realizing their vision of a green future by integrating and strengthening the economic and environmental sectors. Increasing these areas would foster sustainability and financial security for the nation and its citizens. In conclusion, renewable energy has brought much-needed attention to Georgia, establishing it as a significant player on the global stage in the pursuit of a brighter future.

– Drew Ellison

Drew is based in Laurel, DE, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Pexels

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Grameen Bank: The Power of Microfinance

Grameen BankIn a remote village in Bangladesh, a group of women gather under a large tree to discuss their businesses—small shops, livestock farming and weaving.  With just a few hundred dollars from a local microfinance institution (MFI), these women—who once struggled to make ends meet—now run small businesses that can sustain their families and employ others in their community. This story, even though it takes place in Bangladesh, represents countless regions and people worldwide, showing the power of microfinance in poverty alleviation.

What Is Microfinance?

Microfinance is the practice of offering small loans and financial services to those who don’t have access to formal banking and marginalized groups who face systemic poverty. However, beyond the individual stories, the question remains: can microfinance truly reduce poverty?

The University of Maryland, Baltimore County (UMBC) Department of Economics found that a 10% increase in MFI loan portfolios per capita reduces poverty by between 0.091 and 0.159 percentage points. While these numbers may seem minor, they represent millions moving closer to financial independence.

Grameen Bank

At the heart of the microfinance movement is Grameen Bank, founded by Nobel Peace Prize winner Dr. Muhammad Yunus. Grameen’s model is unique, as its focus is on empowering women, who make up 97% of its borrowers. “We don’t empower women. They already have an inherent power in them because, without that, you cannot survive poverty,” explained Zubaida Bai, CEO of the Grameen Foundation. Its model focuses not only on providing financial resources but also on creating long-lasting, sustainable change by addressing systemic issues such as gender and power dynamics.

Furthermore, Grameen works closely with local partners to dismantle traditional gender roles and enable household dialogues where it challenges male-dominated financial decision-making. “People look at gender issues and say that women are very immobile,” Bai added. “But in reality, they know their system very well. They can be the change-makers within that system and if you enable them, they can make it long-lasting.”

Successes

The success of Grameen Bank is not just anecdotal—data backs it. According to Morduch, Grameen has provided millions of loans, with repayment rates as high as 98%. This high repayment rate reflects not only the bank’s successful lending model but also how committed the borrowers are to improving their livelihoods. Morduch also mentions that even though some institutions need external funding, the social returns on these investments far outweigh their costs. With every dollar lent, microfinance initiatives create a ripple effect that drives community-wide economic growth.

Grameen Bank’s success has benefited millions worldwide. In Uganda, for example, Grameen has worked with refugee communities, particularly women, to bring them into a financially inclusive system. These women undergo gender and power dynamics training and entrepreneurship courses and are given access to digital tools. As a result, “their income goes up by an average of 26%,” says Bai. In India, Grameen has focused on agriculture, working with farmer-producer organizations to bring women to the forefront of decision-making. In the past two years, women’s participation in these organizations has risen by 200%, showcasing how much of an impact women can have if allowed to do so.

The Broader Economic Impact

According to Khandker, microfinance programs have helped significantly reduce poverty, as seen in Bangladesh. His research shows that microfinance participation reduced moderate poverty by 5% and extreme poverty by 10%. Moreover, when applied at a community level, these reductions in poverty were not just for the borrowers alone; non-participants also benefited indirectly from the improved economic conditions. Khandker’s study revealed that more than 40% of the reduction in poverty in rural Bangladesh between 1991 and 1998 was attributed to microfinance programs.

Crépon, Devoto, Duflo and Parienté found in rural Morocco that microcredit increased ownership of assets, such as livestock and household goods. This shift toward increased assets is crucial because it gives families a buffer against economic shocks, allowing them to survive crises like illness or natural disasters. Microfinance also supports financial literacy. Programs like Grameen don’t just provide loans; they offer training in basic financial management so that borrowers can manage their resources properly. As a result, microfinance promotes saving and investment, leading to sustainable economic growth in low-income communities.

Criticisms and Challenges

While there are numerous benefits of microfinance, it still has its flaws. Some argue that microloans can lead to over-indebtedness, particularly when borrowers take out multiple loans from different MFIs. Additionally, high interest rates in some regions have raised concerns about the long-term viability of microfinance programs. However, Grameen has implemented measures to mitigate these risks, such as peer lending groups that foster accountability and household dialogues that address gender imbalances in financial decision-making.

A Path to Poverty Alleviation

Microfinance could be a powerful tool in the fight against poverty. From Bangladesh to Uganda, Grameen has shown how small loans can lead to significant social and economic change. By focusing on empowering women, addressing gender dynamics and leveraging digital technology, Grameen Bank continues to make a change in the field of microfinance. With every loan that helps an individual, a family and a community, these small steps are what create significant change in the fight against global poverty.

– Danica Lourdu Nelson

Danica is based in Parker, CO, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Pexels

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Reducing Poverty Via Social Entrepreneurship in Indonesia

Social Entrepreneurship in IndonesiaThe largest economy in Southeast Asia, Indonesia, has achieved impressive economic growth in the last decade, with a steady gross domestic product (GDP) growth rate after overcoming the effects of the Asian financial crisis in 1998. However, a significant portion of the country’s population is still living in poverty. As of March 2024, Indonesia’s poverty rate stood at 7.09% for the urban region and 11.79% for the rural area. In total, more than 25 million Indonesians are living below the national poverty line.

Social Entrepreneurship in Indonesia

Social entrepreneurs or entrepreneurs who pursue innovative ideas with the potential to solve a community problem, can contribute to poverty reduction in Indonesia. As of 2018, there were an estimated 34,205 social enterprises in Indonesia, including nongovernmental organizations (NGOs), cooperatives and micro, small or medium businesses. The study also found that young people are strongly represented in social enterprises, suggesting the increasing popularity of social entrepreneurship among young people and the growth potential of social entrepreneurship in the future. Social enterprises in Indonesia are mostly in the creative industry (22%), followed by the agriculture and fisheries industry (16%) and the education sector (15%).

Social entrepreneurship in Indonesia can support business opportunities and economic development in the country. Researchers found that amid economic crises like the COVID-19 pandemic, social entrepreneurship plays an important role in encouraging the creation of existing and new social entrepreneurial business opportunities to help solve economic development problems. Besides, social entrepreneurship also contributes to sustainable environmental policies in Indonesia. Research on green space development in Indonesia suggests that social enterprises serve as catalysts for ecological impact, effectively converting community perceptions that favor sustainability into sustainable practices.

Facilitating Positive Changes

For instance, Azzura Solar, a social enterprise co-founded by Hemant Chanrai, is a social enterprise that focuses on solar energy and empowers communities with its businesses. The Bright Future Program (BFP) of the company installs solar panels for the population in the Marga Mulya area of North Jakarta, a more impoverished region of the country with limited access to electricity. The enterprise developed its own indigenous, low-cost system that not only promotes access to electricity for needier populations but encourages the reuse of drinking bottles. The receivers of the services can pay what they can afford, with the rest of the cost covered by sponsors and Azzura Solar.

Javara, on the other hand, focused on assisting local indigenous farmers to earn their livelihood from traditional agricultural products. Through ethical partnerships with farmers, fishers and food artisans, the enterprise brings biodiversity-based food products from rural Indonesia to a broader market. With a wide range of products from honey and coffee to pasta, the company has exported sustainable agricultural products in Indonesia to 33 countries on five continents.

Looking Forward

Policymakers in the Indonesian government have promoted social enterprises mainly through financial assistance and training. The Kredit Usaha Rakyat (KUR) Program, for instance, has been in place to provide bank loans to small businesses in Indonesia since 2007. The Beginner Entrepreneur Program also provides funds for young entrepreneurs with training certificates from the Ministry of Cooperatives and Small and Medium Enterprises.

The ProKUS program in 2021 assisted impoverished and vulnerable families with activities and social and business approaches to prevent and overcome social risks after the COVID-19 pandemic. The program collaborated with social workers and 26 business mentors to incubate social enterprises across 33 districts of the country, improving entrepreneurship skills for the recipients.

With significant government commitment and existing successes, social entrepreneurship in Indonesia is a highly promising solution that can promote poverty reduction in the country. By further promoting social entrepreneurship, the government can empower the local community and contribute to sustainable development in the long term.

– Wangruoxi Liang

Wangruoxi is based in Ann Arbor, MI, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Pexels

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Seaweed Farming in Zanzibar: Lifting Farmers Out of Poverty

Seaweed Farming in ZanzibarZanzibar, an archipelago in the Indian Ocean, is an autonomous part of the United Republic of Tanzania. Tanzania is one of the most populous countries in Africa and one of the fastest-growing economies on the continent. Key to its economic growth is the local seaweed industry. Seaweed farming in Zanzibar is one of the region’s largest sources of income, is women-run and has immense environmental benefits.

Warming sea temperatures due to adverse weather have recently disowned the industry’s future and farmers’ livelihoods. However, a joint operation between The Nature Conservancy, The C-Weed Corporation, Cargill and the Zanzibar government stepped in to train the farmers on more sustainable practices.

The Seaweed Boom

Only trailing behind tourism and clove production, seaweed farming in Zanzibar is the archipelago’s third-largest industry. An overwhelming majority of the seaweed is used to produce carrageenan. This thickening agent appears worldwide in ice cream, toothpaste and cosmetic products. According to a United Nations (U.N.) report in 2018, farmers produced 15,000 metric tons of seaweed, accounting for 90% of Zanzibar’s marine exports and bringing in $8 million a year.

Additionally, seaweed farming requires no fresh water, feed or land and creates no carbon emissions. “It’s incredible from an ecological standpoint,” said Robert Jones, director of The Nature Conservancy. Seaweed also acts like a sponge, removing excess waste from the sea, improving water quality and providing new habitats for fish and other aquatic life. Around 25,000 people are employed and 80% of these farmers are women. Wading out into the ocean every morning, the women farmers of Zanzibar plant cultivate their yield in shallow waters along the coast. Doing so has brought them an essential source of income, as a quarter of the Zanzibari population lives in poverty.

Excluded from fishing and tourism jobs because of their gender, Zanzibari women turned to seaweed farming, which required no need for a boat or knowledge of how to swim. “Seaweed farming gave us our independence. I want the same for the next generation,” said Mwanaishia, a seaweed farmer in Paje, a village in the southern Island of Unguja. “I can say that seaweed farming lifted us up as women in Paje.” She can earn up to $85 a month in a good year. From her income, Mwanaisha became a landowner and built a second house that she rented out.

A Helping Hand

In 2020, seaweed farming in Zanzibar took a heavy hit. Warming waters, coastal degradation and international competition threatened the livelihoods of the Zanzibari women. “When I would check the harvest, I found that a lot of it was rotten. That’s when I realized that the environment was no good,” said Sada Hemed Suleiman, a local seaweed farmer. In response, The Nature Conservancy, one of the largest environmental nonprofits in the world, along with Cargill, a global food giant and the largest privately held corporation in the United States (U.S.), partnered with the Zanzibari Government and a local seaweed corporation known as C-Weed to revitalize the industry.

They trained farmers in sustainable practices to protect the environment and boost productivity. Mondy Muhando, a seaweed farming trainer for The Nature Conservancy, explained that the training “taught farmers on better sight selections for their farms, as well as introduced a farming technique that increases production two to three times more.” Additionally, Cargill introduced red seaweed, a new and more resilient species to Zanzibar that performs better on the international market. In total, the initiative improved the management of 528 coastal areas. The Zanzibari government then started replicating the training in more villages.

A Bright Future

This year, the state-owned Zanzibar Seaweed Company (ZASCO), in cooperation with Tanzania’s NMB Bank, announced a $3 million project to build a new production facility. According to ZASCO director Dr. Masoud Rashid Mohomed, “this will become not only the largest seaweed processing plant in Tanzania but also across the entire African continent.” As a result, Zanzibar’s seaweed farmers will be better positioned to compete internationally, with the future of seaweed farming in Zanzibar poised for growth. The hard-working women farming in the shallow coastlines will earn more money, pull themselves out of poverty and increase their voices within their communities.

– Mason Borden

Mason is based in New York, NY, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Wikimedia Commons

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USAID in the Central African Republic

USAID in the Central African RepublicThe Central African Republic is one of the world’s poorest countries, despite its abundant valuable resources such as diamonds, gold, oil and uranium. The government has faced instability since its inception in 1960 when the country became an independent country. It has since seen multiple military coups which have become especially disruptive since 2013 and more than 60% of the country lives in poverty. This amount of poverty combined with weak governance has led to multiple humanitarian issues, such as high maternal mortality rates and low life expectancy. Many people and organizations within the country and around the world work to aid struggling or displaced people in the Central African Republic. The United States Agency for International Development (USAID) has programs committed to focusing on humanitarian aid and responding to crises in the Central African Republic but also invests in economic growth, trade and the environment.

Economic Growth and Trade

Currently, USAID programs in the Central African Republic are restoring an 85-mile stretch of road in the northwest region. The construction of this road creates jobs for locals and upon completion it connects two northern cities, opening their markets to each other. Unemployment in CAR stood at 6.34% in 2022. While little information is given on this project, USAID boasts community involvement and job creation as well as the potential for new trade, all of which can aid in reducing unemployment.

Environment

USAID programs in the Central African Republic also fund the Central Africa Regional Program for the Environment (CARPE) which aims to protect the world’s second-largest rainforest. Located in the Congo Basin, the rainforest is threatened by deforestation, biodiversity loss, environmental destruction and growing global demand for resources.

About 70% of the country’s population depends on agriculture and nearly half of its population is food insecure. It is also facing an increasingly common issue with cattle farmers who cannot find grazing land. They have to travel farther than they used to graze, often causing them to cross borders into the Central African Republic because of its abundant fields. This puts a heavy strain on CAR’s resources and causes possibly violent disputes.

USAID supports the region by building up local, regional and national organizations to mitigate natural disasters, improve management of natural resources and sustain biodiversity. It also enforces logging regulations, reforms natural resource policy, engages communities in resource management and shares the benefits of forest resources.

CARPE is the largest environmental program from USAID. Its mission is to create a Congo Basin with healthy ecosystems and dynamic local leadership that supports stability and prosperity in communities. USAID works with partners such as the World Wildlife Fund to fund conservation, development, and community projects and improve the livelihoods of farmers across the region.

Crises and Conflict

Although recognizing the importance of economic growth and the environment, USAID places most of its focus on humanitarian crises in the Central African Republic. Fighting between the national army and rebel forces permeates across the country, regularly affecting civilian safety. In 2022, the government tried to remove the president’s two-term limit from the constitution, which only fueled the fire. This has led to an increase in abductions and hostages from both sides.

Because of ongoing instability, violence and displacement within the country people are often left without necessities. USAID works to combat food shortages and delivers medical aid such as measles vaccines and malnutrition treatment, according to its website. In places with more extreme conflict, they also provide emergency relief supplies, food aid, health and nutrition supplies, protection, water, sanitation and hygiene supplies and coordinated humanitarian efforts.

Food and Water

As of March 2024, USAID works with different partners to provide food security, health and nutrition, logistics support, water, protection and shelter and settlement in the Central African Republic. UNICEF, for example, partners with USAID to provide access to safe water for nearly 100,000 people through the rehabilitation and repair of more than 90 boreholes, the implementation of emergency water supply systems, and the distribution of household water treatment kits.

The World Food Program (WFP) implements cash transfers, locally procured food, food vouchers, and some U.S.-sources crops and supplementary feeding programs for young children and pregnant or breastfeeding women. These are just two of their many partners and programs which also include things such as humanitarian air transportation due to insufficient roads, latrines and hygiene kits, community safety awareness sessions, emergency case management, emergency shelter kits and more.

The Central African Republic is facing political and economic instability and a major climate crisis at the same time, leading to skyrocketing poverty and food insecurity rates. USAID programs in the Central African Republic are designed to target these issues and help remove people from violence, poverty and hunger.

– Anna Thibodeau

Anna is based in Omaha, NE, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Transforming Lives in Rwanda’s Progressive Legislation

Rwanda's Progressive LegislationIn recent years, Rwanda’s enacted progressive legislation aimed at significantly improving living standards and reducing poverty. Central to these efforts are the 2023 National Strategy for Transformation (NST1) and the Economic Recovery Fund (ERF), both designed to accelerate economic growth and ensure sustainable development. Here are how these groundbreaking initiatives are not only transforming lives but also setting a powerful example for the rest of the continent.

Economic Rebound of Rwanda

The NST1 is a pivotal framework designed to boost Rwanda’s economic growth and sustainable development. Key initiatives under NST1 include promoting industrialization, creating jobs and enhancing agricultural productivity. These initiatives have significantly contributed to Rwanda’s economic progress, with the World Bank reporting a 7.6% gross domestic product (GDP) increase in the first three quarters of 2023 despite external challenges and inflation control measures.

Moreover, educational reforms have led to universal enrollment in primary schools and substantial improvements in secondary education attendance and completion. Completion rates have increased by 57% in students and if we count late completion, this number jumps to 71%. This multifaceted approach underscores the effectiveness of NST1 in driving Rwanda’s economic and social advancements.

Securing the Future in Rwanda

To secure its upward projection, Rwanda implemented the Economic Recovery Fund (ERF). The Rwandan government’s initiatives under the ERF, particularly its focus on supporting key sectors like tourism, have indeed shown significant results. The first phase of the ERF, which included substantial support for the tourism sector, helped many businesses survive the impact of COVID-19. This support, along with continued funding, allows for more jobs to be created; it is estimated that 1,328 additional jobs will arise from tourist-based activities per million invested. As ERF fulfilled its duties, the second phase of the fund launched $250 million to increase access to finance and to continue the economic recovery that the country still feels.

Protection for Everyday

In 2024, Rwanda introduced the Social Protection Transformation Project (SPTP), a new initiative aimed at enhancing the country’s social protection system. Funded by the World Bank and coordinated by the Ministry of Local Government (MINALOC) and the Local Administrative Entities Development Agency (LODA), the SPTP focuses on strengthening social safety net programs, supporting economic inclusion and improving delivery systems.

The project includes various components such as direct support, nutrition-sensitive programs, public works, early childhood development and skills development. It aims to ensure that vulnerable households have better access to human capital and economic opportunities, thereby improving their overall resilience and well-being.

The Role Model

When compared to other African nations, Rwanda’s approach to social and economic development stands out due to its innovative use of Information and Communication Technology (ICT) in governance and service delivery. Unlike many of its peers, Rwanda has integrated ICT into nearly all facets of public administration, which has streamlined processes and increased transparency. Initiatives such as the Irembo platform allow citizens to access a wide range of government services online, reducing bureaucratic inefficiencies and fostering greater civic engagement.

This digital transformation is a key reason why Rwanda’s model is considered progressive and effective; it not only improves service delivery but also supports data-driven decision-making and policy implementation. Additionally, Rwanda’s focused and comprehensive strategies, like the NST1 and the ERF, have led to measurable successes in poverty reduction and economic growth, further distinguishing its approach from other nations on the continent.

Rwanda’s innovative and effective strategies position it as a potential model for other nations striving for sustainable development and poverty reduction. The country’s success underscores the critical role of community resilience and Rwanda’s progressive legislation in driving economic and social progress. By learning from Rwanda’s experience, other nations can adopt similar approaches to foster inclusive growth and enhance the well-being of their citizens.

– Demi Olin

Demi is based in Huntington, WV, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Alleviating Poverty in Guatemala City Garbage Dump

Guatemala City Garbage DumpGuatemala is characterized by its diverse and vibrant landscapes and equally rich cultural mosaic. However, with an estimated 55% of the population surviving on less than $6.85 a day, poverty frequently drains the color from everyday life there. According to the World Bank, limited access to services and opportunities is one reason why Guatemala’s steady economic growth, which has made the Guatemalan economy the largest in Central America, has yet to lead to significant poverty reduction. The poverty rate is the third highest in Latin America and the Caribbean and nowhere is the issue more visible than in the community surrounding the Guatemala City garbage dump.

Life in Landfill

A country of rolling mountain ranges and lush tropical forests, Guatemala is known as the Land of Eternal Spring. The Guatemala City garbage dump is an open-air landfill. An estimated 60,000 people live in extreme poverty along the periphery of the 40-acre landfill. According to a recent article by the environmental magazine Mongabay, underdeveloped infrastructure allows for build-ups of methane gas that ignites deadly fires, for waste to amass into mountains that shift underfoot. The surrounding neighborhood is rife with dangers and devoid of opportunity. Many inhabitants survive by scavenging through hazardous mounds of waste in search of materials for resale.

How Safe Passage Is Clearing Pathways Out of the Dump

Safe Passage is a nongovernmental organization (NGO) that helps families in this community free themselves from cyclical poverty. With the average adult resident having yet to progress beyond the fourth grade, the organization works towards long-term development. This is achieved by providing children with free quality education.

Within its full-day school, Safe Passage employs an experimental methodology called “Expeditionary Learning,” which integrates off-site activities into an immersive curriculum focusing on life skills and citizenship as well as traditional academic disciplines. Creating experiences away from the dump shows students how the knowledge they gather at school can be applied to real life. With this approach designed for maximum engagement, 90% of the organization’s students graduate in the ninth grade. In contrast, the national retention rate between the sixth and 10th grades is estimated at 42%.

Students navigating the transition between school and adult life can access vocational guidance, support with university and job applications, and training and employment opportunities with Safe Passage’s partner organizations through the “Próximo Paso” program. In 2023 alone, 32 students started vocational training and 14 began the university enrolment process. Furthermore, with Guatemalan schools opening for just four hours a day. The “Oportunidades” program offers students from other institutions the opportunity to participate in various extracurricular activities. This, in turn, provides a refuge from the chaos of life in the neighborhood and from the grip of its gangs.

Forging Futures with Creamos

Creamos was established in 2008 as an entrepreneurial initiative when a group of women began selling jewelry made from upcycled materials and were able to leave a life of scavenging in the dump behind them. It has since evolved into an NGO that helps others surmount the systemic barriers facing the community. Although its services extend to all in need of them, Creamos focuses especially on the neighborhood’s women. The women are subject to the converging forces of poverty and gender-based inequalities and violence. On a national level, Guatemala’s female labor force participation rate is the lowest in Latin America and the Caribbean at just 32% as of 2018. Similarly, the femicide rate is among the highest in the world, with 1.6 deaths per 100,000 women in 2021.

In 2020, Creamos introduced its Accelerated Education Program. It steers adult learners, many of whom were forced out of school and into work at the dump by a lack of resources, through a compressed academic curriculum and toward a high-school diploma. It also offers flexible scheduling and free childcare. As of 2022, an incredible 434 individuals had re-enrolled in education with Creamos. Furthermore, in 2022, the organization implemented its Workforce Development Program, through which students can access vocational training courses and internships with numerous partner organizations. They can specialize in various sectors, all selected to match current labor trends. In 2022 alone, the program served 250 people.

Holistic Approaches

In alignment with their shared mission of personal and community development, Safe Passage and Creamos provide various health care services. Safe Passage operates an on-site infirmary that treats health complaints and fosters long-term community well-being through education. It also has a social services team and offers pastoral care and a support program for at-risk families.

Epidemic levels of gender-based violence plague the community surrounding the Guatemala City garbage dump. To help address this, Creamos seeks to create safe spaces for vulnerable women. This includes providing a range of emotional care services operated by licensed psychologists, such as specialized support groups and a program designed to fortify family dynamics.

Looking Ahead

Guatemala has a human capital index of 0.46. This indicates that children born there today are projected to attain just 46% of their lifetime potential. However, organizations like Safe Passage and Creamos are working determinedly to equalize access to resources. Safe Passage is guiding children from the fringes of society inward.

Creamos, meaning “we create” in Spanish, began as a jewelry-making initiative but now strives to provide marginalized people with the tools they need to manufacture a life for themselves. Both organizations are creators at their cores: creators of safe spaces, opportunities and hope for a future where all of its people can feel Guatemala’s vitality.

– Leila Powles

Leila is based in Cheltenham, Gloucestershire, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Innovations in Poverty Eradication in Botswana

Innovations in Poverty Eradication in BotswanaAccording to U.N. statistics, 17.2% of the population in Botswana lives in poverty, with an additional 19.7% vulnerable to falling back into poverty. All economic indicators suggest a nation is on an upward trajectory in the global sphere; however, poverty remains a pervasive barrier for a significant portion of the populace. In recognition of this deficiency, the government of Botswana and the international community have formulated initiatives and programs to tackle the disproportionate rates of hardship. After gaining independence in 1966, it was one of the 10 poorest countries in the world. In defiance of this, between 1966 and 2008, economic growth averaged 8.7%, advancing Botswana into the upper-middle-income classification due to excellent governing strategies.

An Aspirational Future

Poverty reduction efforts in Botswana are a major operation despite its economy growing in recent years. Rather than applying general, tried-and-tested methods of addressing poverty, techniques in Botswana have gone further in the endeavor to confront the problem. The government constantly develops schemes and systems to rectify the country’s looming obstacles. By identifying the foundational causes of extreme poverty, the government has developed strategies designed to target the issue at its very root. Many have identified the leading causes of poverty to be unemployment, inequality, lack of education and diseases such as HIV/AIDS, according to the International Journal of Development and Sustainability.

Vision 2036 is an ambitious National Development Plan (NDP) that aims not just to reduce rates of poverty, but to annihilate it by 2036. The government created Vision 2036 in 2016 as a continuation of its predecessor, Vision 2016. The intent behind the initiative is to graduate Botswana from an upper-middle-income country to a high-income country by focusing on human, social and sustainable developments.

One key characteristic of Vision 2036 is a lessened reliance on the diamond trade. Botswana has enormously benefitted from its natural resources, utilizing them to enhance their economic mobility but it has since been a major source of inequality. Innovations in poverty eradication in Botswana such as this one are rich in considered solutions to adversity and join several other government-led projects.

Practical Government Solutions

In 2011, the government launched the Poverty Eradication Program (PEP) to lift citizens out of multidimensional poverty. The program targets those living in abject poverty, aiming to restore dignity to their lives. Citizens of Botswana eligible for PEP must be 18 or older, living on less than $1.25 a day and lacking certain assets such as livestock. The programme focuses on establishing sustainable income for households by promoting entrepreneurship and employment. PEP promotes self-reliance for low-income families that otherwise lack the resources to escape vulnerability, providing vital opportunities for millions of citizens in both rural and urban areas.

Alongside this, a labor-based programme has been in place since 2008. The Ipelegeng initiative provides income to the unemployed poor, targeting unskilled laborers and recruiting them for up to one month to maintain public facilities. While only offering short-term employment, the program takes on 50,000 beneficiaries a month, supplying them and their families with necessary supplementary income, according to the International Journal of Development and Sustainability. The scheme was first introduced as a means to relieve families from economic hardship as a result of droughts, but proved successful and so was adopted as a more permanent government operation. The rates for workers differed depending on the role and were recently increased in 2023: casual laborers are paid $45 a month, and supervisors $51 a month.

Innovations in poverty eradication in Botswana continue to be at the forefront of government sentiment. An awareness by the government of the principal causes has been recognized allowing the country to look towards a healthy, prosperous future.

– Molly Ralph

Molly is based in Bridport, Dorset, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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How Renewable Energy in Malawi Is Driving Economic Growth

Renewable Energy in MalawiIn Malawi, a landlocked country in southern Africa, economic inequality persists, hindering significant poverty reduction efforts despite consistent growth. Currently, about 70% of the country’s 20 million residents live on less than $2.15 a day and a considerable portion of national income belong to the top 20% of earners. A major factor explaining the persistent economic inequality in Malawi is the low electrification rate. Currently, only 15% of Malawi has access to electricity, one of the lowest rates worldwide, primarily due to inadequate infrastructure in information, communication and energy technology. Renewable energy in Malawi offers a viable solution to increase access to electricity and support economic growth.

The disparity between rural and urban areas is stark, with only 5% of rural regions having electricity access compared to 42% in urban areas. Additionally, even areas with electricity face inconsistent service. Leo Randall-Brown, a volunteer in Bangwe, noted, “We lose power once a week or so,” remarked Leo Randall-Brown, a volunteer in Bangwe, “but [a few months ago] it was worse.” Despite these challenges, optimism grows around Malawi’s emerging energy sector. Innovative and collaborative efforts in renewable energy present a promising pathway to address disparities and support the nation’s poorest communities.

Hydroelectric Power

Hydroelectric power is a crucial element of Malawi’s energy portfolio, generating 90% of its electricity primarily from the Shire River. Yet, this represents only about 17% of the nation’s potential hydroelectric capacity. Modernization efforts are underway to improve this infrastructure. Notably, the rehabilitation of the Nkula Hydropower Plant, a project undertaken by the Austrian company Andritz Hydro and Portuguese firm Mota Engil, has increased energy generation capacity by 50%. Additionally, projects like the Mpatamanga Hydro, supported by a World Bank-backed Public-Private Partnership (PPP), aim to significantly enhance hydroelectric capacity, marking a robust effort to maximize Malawi’s energy resources.

These ongoing initiatives are crucial for enhancing energy security and alleviating poverty in Malawi. Hydroelectric projects catalyze job creation, providing substantial employment opportunities during the construction and operation phases. They also boost agricultural productivity in downstream villages by improving access to electricity for irrigation and agro-processing activities. The development of hydroelectric power in Malawi thus represents a multifaceted approach to combating poverty, fostering economic growth and empowering local communities to thrive.

Solar Power

With an annual daily mean global solar radiation equivalent to 250 million tonnes of oil, Malawi possesses a vast and sustainable solar energy resource. Solar power, a versatile form of renewable energy, facilitates both household-level and large-scale photovoltaic (PV) cell electrification. Across Malawi, tens of thousands of solar home systems (SHS) have been adopted, providing households with reliable lighting, heating, water pumping and radio usage. Mr. Randall-Brown notes, “We have a small solar panel that charges throughout the day. It acts as a kind of backup generator.”

The 2018 Energy Policy in Malawi emphasizes off-grid electricity, highlighting a cooperative effort between the government and the private sector. Companies such as VITALITE Malawi have capitalized on this policy framework, enhancing public-private partnerships (PPPs) to expand solar home system (SHS) services to an unprecedented number of households and communities. This focus on off-grid electrification significantly benefits the nation’s most vulnerable populations, reducing the need for extensive infrastructure investments while ensuring sustainable and renewable energy in Malawi for all.

Malawi has made notable progress in developing utility-scale solar power plants, exemplified by the completion of projects such as the 60 MW Salima, 20 MW Golomoti and 21 MW Nkhotakota. These projects underscore the government’s commitment to expanding grid infrastructure. Collaborative efforts with USAID and other international partners highlight Malawi’s proactive approach to promoting interconnected sustainable development. These ongoing initiatives are creating new income opportunities for both rural and urban households and enhancing agricultural practices with solar-powered irrigation. This technology is particularly crucial for Malawi, which relies heavily on rain-fed agriculture, marking a transformative era of resilience and prosperity for the nation’s agricultural sector.

Geothermal Power

Geothermal energy holds immense promise for Malawi’s energy future, owing to its location in the East African Rift System (EARS), which endows the country with significant reserves. Approximately 55 geothermal sites dot the landscape, with three major ones—Chiweta, Mwankeja and Nkhotakota—identified for detailed investigation, boasting a combined potential of 200 MW. While geothermal efforts are largely in the exploratory phase, a plant in Nkhotakota is planned for construction.

In a concerted effort to harness the vast potential of geothermal energy, the Malawian government is actively pursuing avenues for both public and private investment.  A notable stride occurred in 2013, when the government-owned energy company EGENCO forged a groundbreaking agreement with Kenya’s Geothermal Development Company, fostering intra-African technological collaboration within the East African Rift System (EARS). Beyond its role in sustainable electricity generation, geothermal energy holds the promise of delivering direct community benefits and catalyzing economic growth and technological advancement.

Looking Forward

Malawi is on the cusp of a transformative era in its energy sector, poised to make significant strides in electrification, sustainable development and poverty alleviation. The country boasts vast untapped potential in renewable energy sources such as hydroelectric, solar and geothermal resources. By harnessing these opportunities through pro-growth domestic policies and integration with foreign entities, Malawi is primed to drive inclusive growth and prosperity. As the nation embraces foreign investment in renewable energy in Malawi, it paves the way for collaborative efforts to unlock the full potential of clean energy and propel Malawi toward a brighter, more sustainable future for all its citizens.

– Matthew Candau

Matthew is based in St. Andrews, Scotland and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Circular Economy Innovations and Poverty in Ethiopia

Poverty in EthiopiaEthiopia is a country with a cultural heritage and natural wealth. Yet, it faces high rates of poverty and environmental challenges. Even in this adversarial backdrop, innovative approaches toward a circular economy are emerging as one of the transformative solutions. These efforts shed light on how zero-waste initiatives, resource recovery programs and upcycling enterprises are not only mitigating environmental degradation but also creating economic opportunities and combating poverty in Ethiopia.

Poverty in Ethiopia

Ethiopia is among many African countries that face pervasive poverty. According to estimates by the World Bank, more than 20% of Ethiopia’s population lives below the poverty line and has little access to clean water, education and health facilities. Furthermore, rapid population growth and climatic changes raise the difficulty of the already existing challenges, making sustainable development a matter of high priority.

The principles of circular economies stress the use of resources in ways that are more regenerative, wasting little and reaping full value. It is within this argument that the circular economy opens a promising pathway for poverty alleviation in Ethiopia by inspiring economic growth while at the same time protecting the environment.

Zero-Waste Initiatives

Zero-waste initiatives aim to eliminate waste through redesigning production, reusing and promoting responsible consumption. In Ethiopia, organizations like the Zero Waste Ethiopia project pioneered such waste management strategies, with the core of reuse and recycling. By diverting waste away from landfills and incinerators, these initiatives effectively reduce environmental pollution while creating employment opportunities in the waste collection and recycling sectors.

An example of this progress is the Addis Ababa Waste-to-Energy Facility, which commenced operations in 2018. This facility converts municipal solid waste into electricity, offering a sustainable energy source to the capital while reducing methane emissions at landfill sites. In addition, community-based initiatives like the “Clean and Green Ethiopia” campaign encourage citizen participation in waste segregation and recycling, promoting environmental stewardship and community empowerment.

Resource Recovery Programs

Resource recovery programs tap into innovative technologies that release value from waste materials. Such initiatives in Ethiopia include producing biogas from organic waste and wastewater treatment plants, reducing environmental pollution and producing renewable energy and organic fertilizers. These programs empower locals by providing them with access to clean energy sources and enhanced agricultural productivity for poverty reduction.

With the support of international organizations, the Ethiopian Biogas Program began in 2009 and has since installed more than 42,000 biogas digesters in rural households, substituting traditional sources of biomass fuels and hence improving indoor air quality. The same applies to the wastewater treatment plant of the Hawassa Industrial Park, which recycles and treats industrial effluent to prevent water pollution of Lake Hawassa, sustaining the industrial development of the region in an environmentally friendly way.

Upcycled Ventures

Upcycled ventures give otherwise discarded material a high-value new life, creating a circular economy where waste represents a valuable resource. In Ethiopia, social enterprises like Sabahar and SoleRebels typify transformational potential through upcycling. Sabahar produces exquisite textiles from recycled materials, which gives artisans sustainable livelihoods while preserving traditional weaving techniques. Similarly, SoleRebels transforms old tires into fashionable footwear, offering opportunities for employment among marginalized groups while reducing waste in landfills.

These businesses not only help reduce poverty but also promote social inclusion and cultural conservation. These enterprises combine traditional craftsmanship with innovation in design, projecting cultural heritage to the world while generating income for their local communities.

Final Remark on Poverty in Ethiopia

The impacts of circular economy innovations extend into environmental sustainability dimensions, such as social and economic benefits, by creating new markets for recycled materials, employment opportunities and efficiency in resource use that contribute to poverty reduction and inclusive economic growth. However, such scaling up would involve a collaborative partnership among government, private sector and civil society stakeholders, coupled with investment in research, infrastructure and capacity building.

For a country like Ethiopia, which faces huge challenges regarding poverty and environmental issues, embracing circular economy innovations could show the way toward sustainable and inclusive development. The potential of zero-waste initiatives, resource recovery programs and upcycling enterprises can secure resilience in communities, protect natural resources and uplift the most vulnerable populations in Ethiopia. 

– Honorine Lanka Perera

Honorine is based in Highland, NY, USA and focuses on Business and Technology for The Borgen Project.

Photo: Flickr