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The Economic Crisis In Zimbabwe

Economic Crisis In ZimbabweAs of early 2026, Zimbabwe has been facing a severe economic crisis. Decades of instability have been caused by a combination of economic conflicts, including hyperinflation, currency collapse and high public debt, a crisis that has deepened over the years. Problems stem back as far as the early 2000s, when inflation rates rose quickly, rendering the Zimbabwean currency worthless. Zimbabwe’s rising rates of inflation have caused increased difficulty for residents to afford basic necessities, for businesses to set adequate prices on required goods and an overall loss of profit.

About Zimbabwe

Zimbabwe is a landlocked country in southern Africa, bordered by Zambia, Mozambique and Botswana. When the country gained its independence in 1980, Zimbabwe encountered several economic challenges that prevented it from achieving broader social advancement. Fast-track reforms, controversial land redistribution cases and the misuse of governmental funds severely impacted agricultural production, hindering future economic development. These decisions led to public protest and the suspension of international economic aid. The withholding of financial support, combined with the public’s increasing distrust of the government, worsened the crisis in the years that followed.

Due to these events, the economic crisis has taken a significant toll on civilians, with many struggling to afford basic necessities as a result of rising inflation. The problem has been recognized by several parties both inside and outside the country, and multiple short and long-term solutions have been proposed with varying degrees of success.

Solutions

A significant development involves Zimbabwe’s engagement with the International Monetary Fund (IMF). Founded in 1944, the IMF is a global organization with the goal of ensuring economic cooperation and reducing global poverty. In early 2026, the IMF met with Zimbabwean officials to form strategies for economic recovery. One outcome was the Staff Monitored Program (SMP), which aims to strengthen credibility around new policies by positively adjusting monetary and fiscal frameworks and advancing governmental reforms. According to the IMF, Zimbabwe’s economic growth is projected to increase to around 4.6% to 5% as of early 2026.

Looking Ahead

While the economic crisis in Zimbabwe has been acknowledged and efforts are underway to stabilize it, permanent long-term results remain to be seen. Lasting recovery will depend on cooperation from all parties to rebuild both the national currency and the trust between policymakers and the public.

– William Mancuso

William is based in Lake Mary, FL, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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Poverty Amid Currency Discrepancies and Inflation in Egypt

Inflation in Egypt

Egypt is starting to recover from what was, in 2023, a widening gap between its official currency exchange rates and black-market rates. With a record high inflation rate of 38% documented in September 2023, Egypt’s economy remains caught between the two exchange rates. To facilitate an understanding of the timeline, these figures reflect the peak of the crisis in 2023, followed by developments in 2024 and 2025 as reforms continued to unfold. Although the peak of inflation in Egypt has passed, recorded as 13.6% in March 2025, food prices continue to surge and remain an area of difficulty for the population. Meanwhile, the Central Agency for Public Mobilization and Statistics (CAPMAS) continues to withhold poverty data, feeding fears that although there is an apparent phase of stabilization, worsening hardship and poverty may be masked.

Currency Dynamics and Discrepancies

Egypt has long held the problem of what can be known as a dual-rate system. While the Central Bank of Egypt sets an official currency rate against the U.S. dollar, the black-market rate continues to fluctuate based on supply and demand. As Egypt is heavily dependent on imports, many businesses and individuals need access to dollars to purchase goods and services. However, when the dollar supply becomes insufficient through official channels, many have to turn to the black market, where the exchange rate is significantly higher.

This reveals a widening gap between those who have access to foreign currency and those forced to rely on depreciating and unstable Egyptian pounds. Although this gap has narrowed in 2025, businesses still struggle to access dollars, driving up both import and consumer prices. These developments reflect gradual adjustments since 2023 instead of focusing solely on a single moment of change.

Inflation in Egypt and Purchasing Power

Although a recent decline in inflation in Egypt has been observed, pressure remains. In January, inflation in Egypt increased by 1.6% after having been stable in December. Despite this, the cost of health care services continues to rise by 4.6% monthly, with sustenance costs increasing by 2.1%. This continues to drive poverty and decrease the purchasing power of individuals, as the prices of goods erode real wages.

Egypt’s reliance on Russia for wheat, and the impacts of the war in Ukraine, have doubled bread costs. The government has tried to reduce these increases through subsidies and price restrictions, and many protests have occurred over the years regarding the price of bread. Even with slower inflation and subsidies, purchasing power remains weakened, with many still below the poverty line, although this is beginning to decrease.

There are also concerns regarding how CAPMAS defines poverty. The latest report classifies extreme poverty as 550 pounds per month per person, and poverty as 857 pounds per month. These definitions are not in line with global poverty standards. Therefore, what appears to be a decrease in poverty may partly reflect shifts in definitions.

Disproportionate Impacts on Business and Living Standards

Various groups of people are being affected in different ways by the economic crisis. One example is young people giving up on education and resorting to any available work to sustain themselves and their families. This includes redefining what a decent life means, as many are no longer able to uphold previous standards. This has also led to a decrease in confidence regarding the future, with concerns about stability. Many Egyptians have moved back in with family, delayed marriage or given up on private further education.

Businesses are also struggling, as many rely on higher unofficial exchange rates to operate. This leaves them with higher running costs and makes it difficult to stay afloat. With fluctuating inflation, instability and record import prices, many businesses operate at a loss or at reduced capacity. As individuals lose purchasing power, they are less able to afford goods and services that once fit within their budgets.

Policy Response and Recommendations

In recent years, Egypt has been heavily reliant on loans from the International Monetary Fund (IMF) and its Gulf allies. In 2024, the IMF approved a $3 billion loan for Egypt with the condition of “a permanent shift to a flexible exchange rate regime.” With effective implementation, Egypt may be able to improve economic stability and build resilience. This would require measures that boost investor confidence, increase transparency and reduce incentives for black-market activity. Investor confidence could be strengthened through clearer public communication of monetary policy, more frequent publication of economic data and improvements in financial governance that make procedures easier for businesses and households to navigate.

To do this, Egypt needs to strengthen its foreign currency reserves by increasing and diversifying foreign investment and exports. Foreign currency reserves could also receive support through the encouragement of investment in infrastructure that improves transport and shipping efficiency, which would lower import costs and encourage export competitiveness. A focus on greater flexibility of the official exchange rate would go a long way toward this stable future, in which market forces play a more influential role, keeping in mind that adjustments need to be gradual to inhibit shocks and destabilization. Gradual adjustments paired with targeted fiscal measures would support small and medium-sized businesses during periods of volatility, which would also support employment and production.

Looking Ahead

In clarifying the progression from 2023 through 2025 and devising practical steps for reform we can see how stabilization may eventually translate into improvements, namely the alleviation of poverty, felt across society. While current data indicate a decline in poverty and unemployment, many Egyptians have not yet felt improvements in daily life. The country could benefit from intentional efforts toward a more stable and transparent economic landscape for a future where the positive impacts reach every household.

– Maryam Qutbuddin

Maryam is based in Reading, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Unsplash

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Behind the Beautiful Forevers: Books Redefining Poverty

Behind the Beautiful ForeversIn the current age characterized by rapid globalization and unprecedented wealth, extreme poverty remains one of humanity’s most pressing moral and economic challenges. Though statistics and policy papers offer one lens into the issue, books have an all-consuming power that can transcend the bounds of the cold measures of bureaucracy.

Alongside influencing readers and raising awareness, these books have also prompted policy executives to cite these works in designing aid strategies; NGOs have adopted their approaches; and readers have been moved to volunteer, donate and advocate.

Three landmark works in the world of literature, among the millions of others that this article is going to discuss, have played an enormous role in transforming how the world thinks about poverty, catalyzing public awareness and lacing it with public policy influence.

The End of Poverty

When economist Jeffrey D. Sachs published “The End of Poverty,” it was written with the primary purpose and goal of being a rally cry as well as a detailed blueprint for eradicating extreme poverty by 2025. Drawing on his experience advising governments and the United Nations (U.N.), Sachs argued that targeted investments in health, education and infrastructure could break the “poverty trap” for the world’s most impoverished nations.

The book popularized the Millennium Development Goals to audiences beyond policy circles, bringing them into mainstream discourse. By weaving the threads of real-life case studies from sub-Saharan Africa, South Asia and Latin America with the needle of economic theory, Sachs portrayed the fight against poverty.

This fight has plagued our world since time immemorial, with a raging urgency. He also portrayed it as a fight that is plausible and winnable. Its influence extended to advocacy campaigns like the ONE Campaign. It encouraged donor nations to re-examine their foreign aid commitments.

Poor Economics

Whereas on one hand, Sachs envisioned large-scale macroeconomic interventions, on the other, “Poor Economics” brought the conversation down to the micro level, to the average person’s household. Drawing on more than 15 years of field experiments in developing countries, Abhijit Banerjee and Esther Duflo, a duo who would go on to win the Nobel Prize in 2019, challenged conventional wisdom about people with low incomes.

They poignantly display that people living in poverty make rational choices within the constraints they face and that well-intentioned policies can fail if they ignore behavioral realities and societal factors. Their research pushed governments and NGOs to incorporate approaches rooted in evidence, such as small-scale randomized controlled trials, into program design. In doing so, the book shifted development economics toward a more empirical, human-centered methodology, one that prizes adaptation over a ubiquitous solution.

Behind the Beautiful Forevers

While Sachs and Banerjee and Duflo wrote from the perspective of economists, Pulitzer Prize-winning journalist Katherine Boo brought the indescribable power of narrative nonfiction to the issue. “Behind the Beautiful Forevers” follows the lives of residents in Annawadi, a makeshift settlement near Mumbai’s airport. Over three years, Boo documented the daily struggles and moral dilemmas of families navigating corruption, caste prejudice and economic precarity.

The book stripped away the ubiquitous and abstract notions of “the poor.” It replaced them with deeply personal stories of people, stories of ambition, betrayal, resilience, injustice and most of all, humanity.  The success of “Behind the Beautiful Forevers”, including a National Book Award, brought slum realities into the consciousness of readers who might never, without it, have considered the human cost of urban inequality. The work spurred into motion discussions in classrooms, book clubs and policy panels about the lived experience of poverty and the invisible barriers to upward mobility.

Conclusion

Individually, “Behind the Beautiful Forevers”, “Poor Economics” and “The End of Poverty” speak in different realms of writing: macro solutions, micro interventions and human narratives. Together, they form a powerful triad that has altered the global poverty discourse.

The books remind us that awareness is the first step toward change and that stories, whether told in any manner, can transform not just how we think, but how we act in the grand scheme of the world.

– Ruhani Rahul

Ruhani is based in Leander, TX, USA and focuses on Good News for The Borgen Project.

Photo: Pxhere

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Women’s Economic Empowerment in Iran

women’s economic empowerment in IranIn Mashhad, Iran, Fatemeh, a single mother, lost her job during the pandemic and feared she could no longer support her two children. In 2024, she enrolled in a tailoring and legal literacy program at the Atena Women Life Quality Improvement Institute. With a microgrant, she opened a home-based tailoring business that now employs fellow women from her community. Fatemeh’s story reflects a broader movement of women’s economic empowerment in Iran—where grassroots organizations are equipping women with the tools to achieve economic independence through training, legal education and inclusive programs.

Local NGOs Lead the Way

Founded in Tehran in 2013, Atena supports more than 200 families annually. The organization offers training in entrepreneurship, legal rights and mental health counselling to marginalized women, including survivors of domestic violence and women with disabilities. The Bahá’í Institute for Higher Education (BIHE) began in 1987 when Bahá’í students were legally barred from Iranian universities.

As of 2025, it offers undergraduate and graduate programs through home-based classes and online platforms, providing educational opportunities to Bahá’í women otherwise excluded from public institutions. BIHE has earned international recognition for offering training in business, health care and IT to marginalized students across the country.

Economic Skills and Legal Empowerment

Atena provides small grants to women launching microenterprises and holds workshops on inheritance, alimony and child support rights. These legal literacy efforts empower women to claim their entitlements under Iranian law. BIHE graduates like Zahra, who studied graphic design, have been able to build home-based businesses, support their families and expand professional opportunities despite systemic barriers.

In Gilan Province, disability activist and artist Mitra Farazandeh leads programs that help women with disabilities earn a living by selling handmade art. She promotes visibility and economic empowerment through crafts and storytelling.

Overcoming Legal and Political Barriers

Bahá’í students face ongoing arrests and academic exclusion, with Iranian authorities repeatedly raiding BIHE homes, seizing materials and jailing educators. Despite this, BIHE has trained thousands of women over the past three decades, some of whom have earned graduate degrees abroad. Atena operates under close legal scrutiny, coordinating with local social welfare agencies to maintain its license and ensure continued support to vulnerable women.

Atena reports that more than 68% of its graduates increase household income by at least 30% within one year of program completion. BIHE has educated more than 1,000 Bahá’í women since its founding, creating pathways to meaningful work despite systemic exclusion. Farazandeh’s work in disability-led crafts has enabled women to earn income and raise visibility for marginalized artists.

A Path Toward Resilience

By combining vocational training, legal rights education and community support, grassroots organizations like Atena, BIHE and local disability advocates show that women’s economic empowerment in Iran is not only possible but already underway. With greater international support, these models can potentially scale and help even more women build a path out of poverty.

– Meral Ciplak

Meral is based in Edmonton, Canada and focuses on Good News for The Borgen Project.

Photo: Pixabay

Austria’s Poverty Increase in 2023

Austria’s Poverty IncreaseIn the last several years, Austria-Hungary has experienced fluctuations in poverty rates with slight increases in poverty from one year to the next. More recently, 17.5% of Austrians were at risk of poverty in 2022, and this rose to 17.7% in 2023. A minimal change, but alongside this, the numbers related to Austrians living in absolute poverty are more striking. The number of Austrians living in absolute poverty rose from 201,000 in 2022 to 336,000 in 2023, statistically a 50% increase from one year to the next. In the broader sense, this means that 2.3% of the Austrian population was living in absolute poverty in 2022, and this figure rose to 3.7% by 2023.

Austria’s poverty increase is due to many-layered socioeconomic conditions, but statistics show that many of Austria’s citizens suffering from or transitioning to poverty are either single parents or large families. Large families usually refer to households with three or more children; these households, along with single-parent households, are much more at risk of poverty compared to coupled households with two or fewer children. An added statistic is that single mothers are perhaps the most susceptible to increased poverty from year to year, since the mother needs to provide for both household income and the weight of raising the children of the household.

Family Allowance and Family Association for Mental Health

Currently, Austria has several avenues to help these types of households and counteract growing poverty, both in the form of reduction programs and citizen benefits. Unique to Austria is the cash transfer program Family Allowance, or “Familienbeihilfe,” which focuses on providing funds specifically used to aid children in a given household. However, although this program is largely open to any household in need, the amount of cash increases with the number of siblings residing in a household. In other words, the larger the family, the larger the cash transfer, making this program especially helpful in curbing Austria’s poverty increase.

Poverty reduction programs in Austria focus on economic and educational help. The Family Association for Mental Health (FAME) program is a very surgical and focused program. FAME primarily focuses on supporting children from ages 3-6 living in tough poverty conditions and works as a six-month education program for those children’s parents.

Additionally, the program further targets parents who have little to no access to the means of paying for parenting support. The six-month program consists of completing three separate modules with a mentor, allowing the children of the household to participate in activities, and fostering healthy family relationships while providing economic support for struggling families.

Citizen Benefits to Help Reduce Poverty

One of the best ways to stifle Austria’s poverty increase is through government-granted benefits to citizens in hard situations. Since Austria’s poverty increase mainly came from large families and single-parent households, there are several benefits available specifically for single mothers to avoid poverty.

For instance, it is illegal for pregnant women to work eight weeks before and after a delivery date, but the mother receives full net pay during this time. In some cases, maternity leave can even last up to two years after birth and parents can split it between each other. In addition, all mothers receive a monthly child-maintenance fund equivalent to $1,600, depending on the child’s age, job, and university level; this fund can increase up to $2,200. Single parents in Austria can also claim a single-parent tax allowance in addition to net pay and other programs such as the Family Allowance.

Looking Toward the Future

Austria’s increase in poverty is intricate and cautious, however, it might be possible to negate in future years with supportive policies and advocative bills passed in favor of not only providing for the citizens but encouraging a flourishing lifestyle for the entire family. No matter how big or small.

– Russell Bivins

Russell is based in Phoenix, AZ, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Green Jobs and Economic Growth in Low-Income Countries

Economic Growth in Low-Income CountriesA green economy could be defined by three characteristics: low-carbon, socially inclusive and resource-efficient. Focusing on renewable energy, sustainable agricultural practices and opening new horizons for eco-friendly industries, the green economy holds the potential to serve as a powerful tool for boosting economic growth in low-income countries. Using investments as a focal point, green economies target renewable energy such as solar power, wind power and hydrogen to grow employment and income as well as prevent loss of biodiversity. By integrating environmentally sustainable practices into these key sectors, nations that adopt a green economy could create jobs and mitigate long-term poverty.

Green Jobs as a Catalyst for Economic Opportunity

In many low-income countries, poverty as a result of unemployment is a widespread issue, particularly in rural areas. In this case, the green economy presents itself as an occasion to diversify job markets and offer employment opportunities in areas that have not yet been brought to mainstream industries. By expanding into sectors such as renewable energy, sustainable agriculture and waste management, green jobs create a stronger bond with the social sphere of communities instead of just an environment-based one.

The renewable energy sector alone could offer significant job creation potential as the installation, operation and maintenance of solar power systems, wind turbines and hydroelectric systems require skilled workers in both urban and rural communities. These jobs could provide stable income and improve the lives of many by reducing dependency on costly alternatives such as imported fossil fuel-based energy and thus, increasing energy affordability on a larger scale. In the past decade, employment in renewable energy has nearly doubled, reaching a whopping 13.7 million in 2022, an increase from a total of 7.3 million in 2012.

Sustainable Agriculture

For many low-income economies, agriculture is the backbone of society. Smallholder farmers produce at least one-third of the world’s food, yet many of them continue to face poverty due to escalating issues such as outdated farming practices, environmental degradation and poor yields. In Rwanda, projects such as Land Husbandry, Water Harvesting and Hillside Irrigation (LWH) have positively contributed to a wider socioeconomic understanding of the need for agroforestry projects. The LWH has improved crop yields and land degradation, leading to an increase in incomes for smallholder farmers. This has also significantly alleviated poverty concerns as well as strengthened food security in local areas.

Thus, for the agriculture sector, green jobs can provide solutions to these issues by creating and encouraging sustainable farming methods that raise productivity and prevent environmental degradation. Investing time and effort into methods such as organic farming, agroforestry and soil conservation as well as into training smallholder farmers the value of these practices is a step towards improving long-term land fertility and crop yields.

Boosting Local Economies

Increasing interest in eco-friendly industries offers another opportunity to reduce poverty in low-income countries as these industries focus on sustainable manufacturing and construction. Activities such as these are labor-intensive and difficult to outsource, meaning they create local job opportunities.

With the right training, green industries require a diverse range of skills that workers—from technicians and engineers to managers and urban planners—can develop to adapt to the demand for environmentally responsible products. An example of this is the World Bank’s Energy Efficiency Improvement in Commercial and Industrial Sectors (VEEIE) project based in Vietnam. This project works towards helping local factories to adopt energy-efficient technologies to reduce costs and increase productivity. This project contributes to the creation of green jobs that have employed local workers to carry out installation and maintenance-related services in this industry.

Economic Growth in Low-Income Countries

Green jobs have already shown considerable success in addressing unemployment-driven poverty. In Kenya, for example, solar energy projects such as the Green Mini-Grid Program have successfully used incoming investments to create jobs in rural areas. By employing local workers who are in charge of installing, operating and carrying out maintenance for the solar energy products, this initiative provides affordable access to energy as well as employment opportunities for those in need.

Green jobs have the potential to significantly contribute to economic growth in low-income countries by providing a wider range of economic opportunities at the local level. Sectors such as renewable energy, sustainable agriculture and eco-friendly industries hold the potential to contribute to long-term economic growth, job creation and providing relief for those that live under poverty. With the appropriate policies, training programs and investment in the green economy, low-income countries can stimulate local economies and play a central role in economic well-being, environmental preservation and poverty reduction.

– Mashal Aman

Mashal is based in Kyoto, Japan and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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Economic Growth in El Salvador: Key Areas

Economic Growth in El SalvadorEl Salvador, once known for its high crime rates and violence, is now witnessing a remarkable transformation. The nation’s economy has significantly improved, contributing to peace and stability. This article explores five key ways of economic growth in El Salvador: an increase in tourism, a surge in foreign investments, substantial infrastructure development, the implementation of rehabilitation and social programs, and the growth of entrepreneurship and small and medium enterprises. These changes are paving the way for a brighter future for El Salvador, highlighting the profound economic benefits of a more stable society.

Tourism

El Salvador has experienced significant growth in tourism in recent years, highlighting its appeal as a travel destination. Reforms in public security and government efforts to improve safety have resulted in a safer environment for tourists. According to the World Travel and Tourism Council (WTTC), El Salvador has had an exponential growth of 157% during the first six months of 2023 compared to previous years. The organization forecasts El Salvador to be the leading country in international tourism in Latin America in 2024. Improvements in public security have created a more favourable environment for tourism, contributing to the country’s economic growth and sustainable development in the tourism sector.

Foreign Investments

El Salvador has seen a noticeable increase in foreign investments, reflecting growing confidence in the country’s economic potential. As the country has become safer, international businesses and investors have started to take a big interest in the opportunities available. This surge of foreign capital has stimulated economic growth which could create more jobs. This has opened the door for sustainable economic progress, positioning El Salvador as an attractive destination for future investments. A recent report by the Central Reverse Bank reflects a notable surge in foreign investments in the first three months of 2024; investments from abroad increased by 8%. El Salvador’s economy expanded by $14.33 million more than in 2023.

Infrastructure Development

El Salvador’s government has made significant strides in several major projects, including the construction of a new international airport and a port in La Unión. These projects are at various stages of development, alongside the modernization of road infrastructure and the health care system with new hospitals and roads. These achievements reflect the government’s commitment to the country’s development and set the stage for a more prosperous and stable future in El Salvador.

Entrepreneurship and Small and Medium Enterprises

The reduction of violence in El Salvador could significantly impact entrepreneurship and the growth of small and medium enterprises (SMEs). According to the Bloomberg article based on Moody’s Investors Service information, the decrease in crime could encourage local companies to increase their investments. This is largely due to the implementation of the Territorial Control Plan (PCT) and the Exception Regime by the government, which has restored peace of mind and confidence among both the population and business owners. With more than 64,000 terrorists captured and one of the lowest homicide rates in the world, the safer environment has allowed SMEs to prosper, contributing to the country’s economic growth and creating new opportunities for employment and development.

Community Development Programs

The government, in collaboration with organizations like the Peace Corps, is providing training in entrepreneurship, employability skills, financial management and life skills. These programs aim to empower communities, especially the youth and women, to take advantage of new economic opportunities. By focusing on these areas, El Salvador is promoting economic security and mobility, ultimately contributing to the nation’s growth and stability.

Conclusion

To conclude, economic growth in El Salvador illustrates the significant effects of stability and growth on national prosperity. The boost in tourism, rise in foreign investments, extensive infrastructure improvements, community development programs and the expansion of entrepreneurship and small businesses are key factors driving this transformation. These developments not only emphasize El Salvador’s potential but also set the stage for a brighter and more prosperous future, pointing out the substantial benefits of a stable and succeeding economy.

– Maria Urioste

Maria is based in Maspeth, NY, USA and focuses on Good News for The Borgen Project.

Photo: Unsplash

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CERF Releases $100 million For Underfunded Crises

CERFOn August 30, 2024, the Central Emergency Response Fund (CERF) of the United Nations released $100 million for critically underfunded crises. CERF provides funding for essential supplies and services during conflict, natural disasters and other emergencies, aiming to support timely and reliable responses in under-funded crises.

Twice annually, the CERF’s Acting Emergency Relief Coordinator (ERC) allocates special grants from the Underfunded Emergencies (UFE) Window to support essential life-saving activities in neglected humanitarian emergencies. Here are the country allocations and the underfunded crises they face.

Underfunded Crises in West Africa

CERF will allocate $10 million to Burkina Faso, where more than 2 million people were internally displaced due to armed conflict between internal militias — part of a broader Sahelian violence caused by Islamic extremism and political instability. Twenty-seven percent of the country requires humanitarian assistance and millions face severe food insecurity.

Similarly, Mali faces a security crisis compounded by economic shocks. More than 7 million require humanitarian assistance, 1.37 million face crisis levels of food insecurity, 1.4 million children face undernourishment, approximately 2,600 individuals face famine and more than 350,000 are internally displaced, according to CERF. Mali will receive $11 million to help displaced populations and alleviate food insecurity

Underfunded Crises in Central and East Africa

Ethiopia is struggling with civil conflict and the aftermath of flooding that has caused deaths, displacement, and food insecurity. Up to half a million could be struggling with displacement and more than 15.8 million are food insecure, according to CERF. Meanwhile, Ethiopia faces cholera and malaria epidemics. CERF will provide $15 million to Ethiopia to help provide access to critical services and to reduce morbidity for 12.3 million vulnerable people.

Malawi is also dealing with weather patterns causing food insecurity among 5.7 million people. Aid worth $11 million could help the country deal with the effects of drought.

Since 2017, Mozambique has experienced violence that has displaced hundreds of thousands of people while weather patterns devastate the agricultural sector, according to CERF. Funding of $7 million is going towards preventing a food insecurity crisis.

Burundi faces food insecurity, violence, epidemics and natural disasters. Heavy rainfall caused flooding by the end of last year and displaced thousands. More than 1 million people are food insecure and landslides have displaced more than 47,000 people, according to CERF. Funding of $5 million will support flood recovery and displaced people.

Cameroon experiences several forms of internal violence and natural disasters. Recent floods exacerbate the situation and an estimated 1.8 million people are without adequate water and health services. Receiving $7 million could help vulnerable populations, particularly women and children, against exploitation and malnutrition.

Middle East, South East Asia and the Caribbean

Yemen is considered the largest humanitarian crisis, an eight-year civil war in Yemen between Houthi rebels and Saudi-backed government forces created an economic, social and health crisis. There are 19 million people experiencing a food insecurity crisis while flooding disrupts access to essential services, according to CERF. Many lack sanitation, water and health care access. CERF will provide $20 million to support food security and health for millions in need.

Following a brief period of democratic rule, a 2021 coup in Myanmar devolved into a civil war between a military government and various ethnic militias. Intensified fighting this year increased displacement to 3.1 million people. Almost 13 million people face moderate or severe food insecurity, according to CERF. The organization will provide $12 million to Myanmar which could hopefully help 18 million people who need funding for essential services and support for displaced populations.

Natural disasters and internal gang violence leave 5.5 million people requiring humanitarian assistance in Haiti. There are 578,000 people who are internally displaced, 8.5 million faced food insecurity earlier this year and many face gang violence, according to CERF. Funding of $9 million will support critical needs in the country.

Conclusion

These countries experience underfunded crises despite dire situations and donor pledges. This demonstrates the need for increased attention. The allocation of $100 million by CERF is a crucial step but support from international donors and organizations is essential to address the ongoing challenges these countries face.

– Luke Ravetto

Luke is based in Boston, MA, USA and focuses on Politics for The Borgen Project.

Photo: Flickr

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Declining Poverty Rates in Indonesia

Poverty Rates in IndonesiaThe Republic of Indonesia, the fourth most populous nation, sits in Southeast Asia between the Indian and Pacific oceans. Known for its breathtaking landscapes and vibrant tourist attractions, Indonesia has faced challenges with high poverty rates. In 2014, the World Bank reported that poverty reduction in Indonesia has begun to stall, with a rate of 11.3%, reflecting only a 0.7% decline since 2012. A report by the Asian Development Bank also noted that 28 million Indonesians lived below the poverty line, with most of the country’s residing in rural areas.

Significant Progress in Poverty Reduction

Currently, this trend has changed, with poverty rates in Indonesia at an all-time low. In March 2024, the Central Statistics Agency recorded a decrease in the number of people living in poverty to 25.22 million, with the poverty rate at 9.03%.  A 0.33% decline compared to the previous year and a 2.22% decline compared to the past 10 years.

According to the Cabinet Secretariat of The Republic of Indonesia, poverty rates decreased in rural and urban areas. In March 2024, the poverty rate in rural areas decreased to 7.09%, a 20% decrease compared to March 2023. The poverty rate in rural areas dropped to 11.79%, compared to a drop of 12.22% from the previous year. With the government facing challenges given the country’s large population and increase in poverty rates during COVID-19, from 9.2% in 2019 to 9.7% in 2020, poverty reduction has become a national priority, needing different approaches and efforts. 

Agricultural Services

Agriculture services were at the forefront in helping Indonesia reduce its poverty rates. A study by The Smeru Research Institute reveals that this was the largest factor in reducing poverty in Indonesia. Agriculture growth was responsible for 66% of overall poverty reduction, 55% of the reduction in urban poverty and 75% of the reduction in rural poverty. In contrast, the industrial sector, part of Indonesia’s development strategy, only reduced poverty in urban areas. These findings highlight that boosting productivity in agriculture is the most effective way for Indonesia to reduce poverty.  

Passing New Economic Policies

To address high poverty rates in Indonesia, the government introduced financial and administrative changes, known as fiscal decentralization reforms. This change aims to shift the power from the central government to local governments. 

According to Springer Link, the government passed village fund policies between 2014 and 2019 to support Indonesia’s villagers, successfully in reducing rural poverty. According to a report by the Central Bureau of Statistics, that compares the years 2015 and 2022, data reveals that the number of people in poverty has decreased from more than 28 million to 26 million. By improving infrastructure in rural areas, such as providing education, health care services and clean water, the Indonesian government effectively reduced poverty. 

Social Protection Program

The Indonesian government continues prioritizing the social protection program as part of its 2045 vision. This includes cash transfers, food assistance and labor market programs. Social protection programs particularly benefit vulnerable people in Indonesia, such as the elderly, whose numbers are expected to rise to 25% of the population by 2045, making them highly susceptible to poverty. 

The Program Keluarga Harapan (PKH) is a cash transfer program that helps low-income households alleviate financial pressure and access health care and education services. According to a report by the World Bank, this program led to a 13 to 17% increase in the number of births attended by medical professionals and a 5% increase in the number of children receiving vaccinations. 

Moving Forward

Indonesia has made significant efforts that continually contribute to the decrease in poverty rates. Indonesia has taken major steps forward to help its people, while there have been fluctuations in poverty, the government has consistently prioritized different strategies to reduce it. Indonesia’s success in decreasing poverty rates is not just a national achievement but also a great contribution to global poverty reduction efforts. Acting as a blueprint for other nations that aim to help their populations and reduce poverty.

– Nouf Hunaiti

Nouf is based in Rancho Cucamonga, CA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Child Marriage: An Obstacle to Education for Girls in South Sudan

Education for Girls in South SudanIn South Sudan, about three-fourths of girls don’t attend primary school. As the world’s newest country, South Sudan has struggled with economic and political downfalls, resulting in war, violence and the destruction of schools. Alongside high child marriage and teen pregnancy in South Sudan, it’s difficult for girls to attend school or even to have the option of an education at all.

Economic, social and political changes have to be made to provide a better education for girls in South Sudan. From state-issued fundraising to environmental amendments, more girls will be able to attend school. With more girls in school, cases such as child marriages will begin to decrease, resulting in a brighter future for girls nationwide.

Social Issues

One of the many social, controversial issues plaguing South Sudan is the high rate of child marriages. Approximately 52% of South Sudanese girls are married before age 18. According to Girls not Brides, “Child marriage is driven by gender inequality and the belief that girls are somehow inferior to boys.” Additionally, “Increased school dropout rates push young girls toward marriage and early pregnancies.” Without key motivating factors to keep girls in school, many choose to drop out or not attend at all.

Economic Issues

In 2023, the United Nations Children’s Fund (UNICEF) reported that 70% of the South Sudanese population lives in poverty. According to Girls not Brides, “Child marriage is used as a coping mechanism in response to economic and food insecurity. Families from the poorest households in South Sudan marry off daughters in order to receive dowry.” This is a common practice in South Sudan and raises little to no concerns among citizens.

A 16-year-old South Sudanese girl by the name of Atong was forced to marry a 50-year-old man in July 2011. A 16-year-old South Sudanese girl by the name of Atong was forced to marry a 50-year-old man in July 2011. “I did not know him before. I did not love him,” she said. “I told my family, ‘I don’t want this man.’ My people said, ‘This old man can feed us, you will marry him.”

Political Issues

According to Human Rights Watch (HRW) on child marriage, “There are also gaps in the Transitional Constitution, Penal Code and Child Act related to this harmful practice—including no minimum age of marriage —and no systematic or comprehensive programs to address the root causes of child marriage at the community level.” The Transitional Constitution, for example, “…does not set a minimum age of marriage. Instead, it states that every person had the right to marry a person of the opposite sex and that no marriage shall be entered into without free and full consent.”

This makes it nearly impossible for girls to attend school due to their responsibilities as a wife. According to Broken Chalk, “Shockingly, a girl in South Sudan is more likely to die in childbirth than to complete primary education.” South Sudan lacks a legal framework surrounding many things, including educational requirements. Therefore, the rules and laws are fuzzy and underdeveloped. Additionally, “A lack of quality teaching staff and inadequate school buildings are challenges that add to extreme poverty, as families desperately work for the next meal.”

Solutions

While South Sudan is far from exemplary in educating girls and young women, there are possible steps that could be taken to move toward improvements. Child marriage hinders a girl from receiving an education,and to combat this, organizations like the African Union and UNICEF have been collaborating with the government and other partners to raise awareness about the dangers. They are advocating for laws to protect young girls and working to change cultural and social norms that negatively impact them.

For example, UNICEF’s flagship Communities Care Program, designed to “promote gender-equitable and positive social transformation norms,” established 29 community discussion groups and engaged more than 800,000 people in awareness-raising activities. In 2020, the program expanded to tackle sexual violence, teenage pregnancies and child marriage in South Sudan, with 74% of participants reporting positive changes in their beliefs and attitudes.

Although child marriage is still prevalent in South Sudan, with continued efforts from the government and nonprofit organizations like UNICEF, the nation is making great strides toward reducing the incidence and improving the well-being and rights of its young girls.

– London Collins Puc

London is based in West Palm Beach, FL, USA and focuses on Global Health, Politics for The Borgen Project.

Photo: Flickr