Inflammation and stories on global poverty

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5 Global Leaders Driving Poverty Reduction

5 Global Leaders Driving Poverty ReductionGlobal leaders often play a critical role in driving poverty reduction by casting decisive votes and implementing impactful policies. Indeed, around the world, several leaders have introduced programs that contribute to measurable poverty alleviation. Here are five global leaders who have focused on poverty reduction in their countries.

5 Global Leaders Driving Poverty Reduction

  1. Xi Jinping. Xi Jinping serves as the president of China, one of the world’s largest economies. Since he assumed office, the Chinese government reports that it has lifted 98.99 million people out of extreme poverty, defined as living on less than $1.69 per day. Poverty reduction has remained a central focus of national policy during Xi’s leadership.
    The nearly 100 million people affected by this effort live in diverse regions. The government supported more than 128,000 villages in improving community development.
  2. Katrín Jakobsdóttir. Katrín Jakobsdóttir is the Prime Minister of Iceland, one of the northernmost countries in the world. Jakobsdóttir is a well-respected feminist, known for her achievements in addressing poverty among women. In 2018, her administration enacted a law that prohibits unequal pay between men and women for the same work. In 2017, 13.6% of women in Iceland lived in poverty. Following the new law, that number dropped to 11.3% in 2018. By 2023, the poverty rate had fallen further to 8.9% for women and 9% for men.
  3. Narendra Modi. Narendra Modi is the Prime Minister of India, the most populous country in the world, located in South Asia. Since he took office in 2014, the Indian government reports that it has lifted 250 million people out of poverty. Over the last decade, India’s GDP per capita rose by $2,000, while 17% of the population moved above the poverty line. Modi’s administration continues to focus on sustainable development as part of its broader economic strategy.
  4. Luiz Inácio Lula da Silva. Luiz Inácio Lula da Silva is the President of Brazil, the largest country in Latin America. His success in reducing poverty is largely attributed to a social program he implemented called “Bolsa Família.” This program has reached more than 50 million people in Brazil, offering families in poverty financial benefits on the condition that they attend regular medical check-ups and ensure their children receive an education. This compromise has shown to be effective.
  5. Paul Kagame. Paul Kagame is the President of Rwanda, a country in central Africa near Lake Victoria. Upon taking office in 2000, Kagame launched a program called Rwanda Vision 2020, which has exceeded its initial expectations. In 2000, Rwanda’s poverty rate was 75.2%. However, by 2024, this figure had fallen to 38.2%. Rwanda has invested in agriculture, health care and education to improve livelihoods across the country. However, ongoing regional conflict involving the M23 militia poses challenges to further development.

Leadership and Poverty Reduction

These political figures demonstrate a range of approaches to poverty reduction, from equal pay laws to social protection programs. While each country faces unique challenges, the common thread among these leaders is their early and sustained commitment to addressing poverty through policy and investment. Their efforts offer useful models for other nations and underscore the importance of leadership in global poverty reduction.

– Nicholas East

Nicholas is based in Ashby, MA, USA and focuses on Politics for The Borgen Project.

Photo: Flickr

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Tackling Data Bias in Poverty Metrics: From MDGs to SDGs

Poverty MetricsPoverty alleviation remains a core focus of global development efforts under the 2030 United Nations (U.N.) Agenda. However, questions continue to arise about the accuracy and inclusivity of the metrics that define and measure poverty—especially in the Millennium Development Goals (MDGs) legacy. Critics point to a persistent data bias in poverty metrics, which has become even more pronounced with the rise of predictive artificial intelligence (AI) and data-driven development planning.

Overly Ambitious MDGs

The MDGs, followed by the Sustainable Development Goals (SDGs), initially aimed to achieve basic development milestones but failed to demonstrate significant progress toward sustainable development in practice. The U.N. introduced the MDGs in 2000 to address extreme global poverty.

During the early rollout of the MDGs, many observers predicted near-certain failure due to “overly ambitious goals” and “unrealistic expectations placed on aid.” Vague and sweeping targets relied on 1990 baseline levels for indicators such as child mortality and access to clean water—despite limited data availability. This reliance created a data void where estimates depended largely on guesswork. Many viewed the underlying assumption—that aid transfers alone could resolve poverty—as flawed, particularly given the global context shaped by capitalist globalization and historical exploitation.

The U.N. Independent Expert Advisory Group later criticized the MDGs for lacking sufficient data, noting that fewer than 70% of required indicators had consistent reporting in any five years. In response, the U.N. introduced the SDGs in 2015 with 231 indicators to address data gaps and improve goal tracking across development efforts.

The SDGs Data Revolution

The SDGs replaced the MDGs and marked a shift toward a more data-driven, metric-heavy development model. This approach emphasizes “big data” and quantifiable benchmarks to define and monitor progress. However, relying heavily on quantitative data presents challenges. In poverty metrics, numerical targets often distort or oversimplify the real issues. Numbers can obscure the theoretical debates that drive progress, obstructing efforts to address structural inequalities and the underlying causes of poverty.

The SDGs’ poverty eradication target continues to draw from a Eurocentric definition of poverty that emphasizes meeting basic needs. This narrow approach overlooks broader and more critical frameworks, such as feminist, racial, or decolonial theories. For instance, the focus on primary school enrollment as a proxy for educational progress ignores the need for vocational skills training and access to secondary or higher education. It also assumes that children who enroll in primary school will continue their education—an assumption that fails in contexts where girls often leave school early to become houseworkers or wives.

The data rarely reflects racial disparities in access to education—such as the disproportionate number of minority children unable to attend school. As a result, the metrics often look impressive on paper but lack practical value. These biases reinforce dominant ideologies and redefine development only in terms of poverty alleviation while failing to address its root causes.

Existing Gaps in Quantitative Data Use

Another growing concern is the increasing use of big data and AI to generate development metrics. AI models, trained on datasets mostly derived from Western countries, often replicate and amplify existing biases. These systems apply Eurocentric assumptions to global poverty issues and generate outputs that fail to capture the diverse realities of communities outside of the United States (U.S.) and Europe.

Critics argue for the need to complement big data with data ethnography and qualitative research. Semi-structured interviews and participatory research help uncover the social contexts behind data points. Without such methods, AI systems risk embedding and reproducing the same structural biases that shape current development models.

Looking Ahead

The shift from MDGs to SDGs introduced measurable targets, but the overemphasis on quantitative indicators could undermine the understanding of poverty as a complex, context-specific issue. While the MDGs struggled due to data gaps, the SDGs may now rely too heavily on numbers that fail to reflect lived experience. To build a more accurate and inclusive global development agenda, future efforts can potentially embrace a multidimensional approach—one that incorporates local knowledge, cultural context and qualitative insights.

– Autumn Joseph

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

Photo: Flickr

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UK Foreign Aid Shift Risks Global Poverty Efforts

UK Foreign Aid Shift Risks Global Poverty EffortsThe United Kingdom’s (U.K.) foreign aid budget and international policies continue to shift, sparking concerns about their impact on global poverty alleviation. The government has committed to maintaining aid at 0.5% of Gross National Income (GNI) until at least 2029. However, critics argue that reallocating aid resources limits the reach of poverty-focused initiatives worldwide.

Aid Budget Cuts and Spending Priorities

Since 2020, the U.K. has reduced its foreign aid budget from 0.7% to 0.5% of GNI. This cut remains in place despite earlier promises to restore the higher level when economic conditions improve. A significant portion of the current aid budget now covers in-donor refugee costs. In 2022, 29% of total Official Development Assistance (ODA) supported domestic refugee programs. That percentage increased further in 2023 due to rising migration and asylum pressures. These changes have fueled debates about whether the U.K. has diverted funds meant for international aid toward internal expenditures.

Cutting Global Health Funding

The U.K. also plans to reduce its contributions to the Global Alliance for Vaccines and Immunisation (Gavi), an organization that has vaccinated more than a billion children in developing countries and prevented nearly 18 million deaths over the past 25 years. As U.K. funding declines, Gavi’s capacity to distribute vaccines in vulnerable regions weakens. Aid organizations warn that these cuts could reverse progress in child mortality reduction and burden already fragile health care systems.

Tougher Refugee Citizenship Policies

The U.K. government has tightened refugee policies, making it harder for those arriving through unauthorized routes to gain British citizenship. Refugees who entered the country irregularly now face disqualification from citizenship applications. Critics argue that this policy contradicts the 1951 Refugee Convention and leaves many asylum seekers in legal limbo without a clear path to permanent residency.

Military Aid vs. Development Aid

While the U.K. reduces funding for health and humanitarian programs, it has significantly increased military assistance. Since February 2022, the U.K. has committed £12.8 billion in support to Ukraine, including £7.8 billion for military aid. In 2024/25 alone, the U.K. pledged £4.5 billion in military support. This shift reflects a growing focus on security rather than direct development initiatives, raising questions about the balance between defense spending and poverty reduction efforts.

The Future of UK Aid

The U.K.’s evolving aid priorities highlight an ongoing debate about the nation’s role in global development. The government defends its spending decisions, citing economic constraints and domestic pressures. However, critics argue that cutting aid to health, education and humanitarian projects undermines the U.K.’s leadership in poverty reduction and global health initiatives.

Looking Ahead

The Labour government, elected in July 2024, has emphasized poverty reduction, climate finance and gender equality as key aid priorities. Officials plan to release spending strategies for 2025/26 in the summer of 2025, with expectations of further refinements to aid allocation. The U.K.’s climate, humanitarian and health-related aid programs will likely face continued scrutiny amid shifting budget priorities. As international needs grow due to climate change, global health crises and conflict, the direction of U.K. aid could play a crucial role in shaping the future of vulnerable communities worldwide. Ensuring aid allocation aligns with poverty reduction goals remains essential to sustaining progress in global development.

– Arianna Distefano

Arianna is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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Bridge International Academies: Education and the Poverty Cycle

Bridge International AcademiesAccess to quality education can transform lives, offering children in low-income communities a way out of poverty. Studies reveal that individuals with higher levels of education earn more, live healthier lives and contribute to their communities. However, educational inequality still hinders millions of children from accessing quality schooling, making it challenging to break the poverty cycle. The following explores the success stories of organizations like Bridge International Academies, where education has changed communities and highlights the obstacles that still prevent it from reaching all who need it. 

Transforming Lives in Low-Income Communities

The link between education and poverty alleviation is well-documented. Children who receive quality education acquire skills to secure better jobs, earn higher incomes and lift themselves out of poverty. In countries such as Bangladesh and Kenya, organizations have invested in educating children from impoverished backgrounds to create generational change.

For example, the nonprofit organization Bridge International Academies in Kenya provides affordable, high-quality education in underserved communities. With more than 500 schools across Kenya, Uganda and Nigeria, Bridge International has helped students achieve scores significantly above national averages, creating a pathway out of poverty for thousands of students. Through affordable tuition, comprehensive teacher training and tech-integrated classrooms, Bridge International exemplifies how education can change the trajectory of low-income communities.

In Bangladesh, BRAC operates one of the largest education programs in the world. BRAC’s education model empowers young girls in rural villages to attend primary and secondary school. BRAC has proven that education dramatically reduces poverty and gender inequality: its alumni reveal a 30% increase in household income compared to nonparticipants, effectively breaking the poverty cycle within these communities. By prioritizing girls’ education, BRAC addresses poverty and promotes gender equity. 

Challenges

Despite these successes, significant obstacles remain in delivering quality education to all children in poverty. In many developing countries, children face barriers, including inadequate school infrastructure, a shortage of qualified teachers and insufficient government funding.

  • Inadequate Funding for Education Programs. Underfunded schools lack necessary resources like textbooks, desks and classroom materials, limiting students’ learning experiences. In Sub-Saharan Africa, about 20% of primary school-age children are out of school, largely due to underfunded education systems. Low-income communities often depend on external aid, which can be inconsistent or insufficient to meet UNICEF’s demand.
  • Teacher Shortages and Training Gaps. In many impoverished regions, schools face severe teacher shortages and available teachers may lack proper training. A well-trained teacher improves student outcomes, but in places like rural India and Sub-Saharan Africa, underqualified teachers remain a common challenge. In response, organizations such as Teach For All recruit and train local educators to improve teaching quality in low-income communities.
  • Gender Inequality in Education Access. Girls in low-income regions face additional hurdles, such as early marriage, household responsibilities and cultural biases that prioritize boys’ education over girls’. According to UNESCO, girls make up 48% of the global out-of-school population. Programs like BRAC’s girls’ education initiatives work to reverse these ongoing trends by ensuring girls receive equal access to education, empowering them to contribute economically and socially to their communities.
  • Impact of Conflict on Education. Conflict-affected regions suffer severe setbacks in education access, as schools may be destroyed, occupied or unsafe for children. For instance, in countries like Syria and Yemen, millions of children cannot attend school due to ongoing violence. Organizations like UNICEF provide emergency education resources in these areas, but the instability makes it challenging to establish consistent educational progress.

Moving Forward

Ending poverty through education requires global cooperation and sustained investment in educational access and quality. Governments, NGOs and private organizations must work together to fund schools, train teachers and ensure equitable access to education. Programs that prioritize marginalized groups, improve teaching quality and address barriers like gender inequality and conflict could create the most substantial impact.

Countries that prioritize education see the rewards in their workforce, economy and social development. Bridge International Academies, BRAC and Teach For All demonstrate that breaking the poverty cycle through education is possible. While significant challenges remain, these success stories underscore the transformative power of education in reducing poverty globally.

– Olivia Barker

Olivia is based in the UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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How Supporting Poverty Eradication Benefits Global Business

How Supporting Poverty Eradication Benefits Global BusinessWith more than 700 million people worldwide living in extreme poverty—defined as surviving on less than $1.90 per day—poverty remains a pressing issue that impacts both individuals and economies on a global scale. Businesses have a unique opportunity to contribute to poverty eradication while simultaneously achieving significant benefits, including brand loyalty, sustainable growth and stronger, more resilient supply chains. Supporting poverty eradication is not only a moral imperative but also a sound business strategy that aligns with long-term corporate sustainability goals.

The Business Case for Supporting Poverty Eradication

Poverty reduction creates economic opportunities that benefit businesses in various ways. As incomes rise, more people can potentially afford goods and services, directly expanding the consumer base for companies. For instance, when businesses invest in fair wages and decent working conditions, they build a more reliable, engaged and productive workforce. Supporting poverty eradication also cultivates a positive brand reputation.

Companies actively working to reduce poverty attract consumers who value corporate responsibility, as studies reveal, consumers increasingly favor businesses aligned with social impact initiatives. Moreover, poverty eradication promotes social stability, which is essential for a thriving global economy. Poverty often correlates with social unrest, political instability and migration issues, all of which can disrupt business operations and supply chains. 

Strategies for Businesses to Support Poverty Eradication

Businesses could support poverty eradication through strategic actions focused on fair labor practices, community development and sustainable supply chains. Here are three effective strategies:

  1. Ensure Decent Work Conditions. An effective way for companies to support poverty eradication is to ensure decent work conditions within their organizations and supply chains. Decent work, as defined by the International Labour Organization (ILO), includes fair wages, safe work environments and equal opportunities for all. A business that provides fair wages and adequate social protections enables its employees to achieve a higher standard of living, which lifts entire communities out of poverty.
  2. Adopt Sustainable Procurement Practices. Businesses have considerable influence as buyers, particularly in sectors that rely on extensive supply chains. By adopting sustainable procurement practices, companies can prevent poverty-related issues within their supply chains. For instance, businesses can conduct human rights due diligence to identify potential poverty risks, such as child labor or exploitative wages and address them directly. Sustainable procurement also includes sourcing materials from ethical suppliers and prioritizing fair trade partners, which strengthens global supply chains and reduces poverty.
  3. Invest in Community Development and Education. Investing in community development programs and education can create lasting social and economic benefits. Companies that contribute to local infrastructure, health or educational initiatives improve the overall well-being of the communities where they operate. Programs that provide skills training and resources for entrepreneurship empower individuals to generate income and establish local businesses, creating a multiplier effect that stimulates the economy and alleviates poverty.

The Global Impact

The global impact of business support for poverty eradication extends far beyond individual companies or communities. When businesses commit to poverty eradication, they contribute to several Sustainable Development Goals (SDGs), including SDG 1: No Poverty. Such commitments promote economic inclusivity, gender equality and environmental sustainability, which are essential for a balanced global economy. As businesses align with the SDGs, they drive sustainable development and support the vision of a world where no one is left behind.

Supporting poverty eradication is also critical in addressing urgent global challenges such as climate change and migration. Poverty often forces people to rely on environmentally harmful practices like deforestation and overfishing, which exacerbate climate change. Additionally, poverty-driven migration can strain resources in neighboring regions, creating humanitarian crises. By helping eradicate poverty, businesses play a role in mitigating these interconnected issues, making a significant contribution to global stability and resilience.

A Sustainable Future Built on Poverty Eradication

Supporting poverty eradication is good for business and it fosters a sustainable future where companies, communities and economies can potentially thrive. Businesses that prioritize fair labor practices, ethical sourcing and community development enhance their reputation and build a loyal consumer base while contributing to global stability. By embracing these strategies, companies play a crucial role in creating an equitable world, ensuring a positive legacy that supports economic and social progress for generations to come.

– Olivia Barker

Olivia is based in Guildford, Surrey, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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TECHO: Harnessing Drone Technology to Combat Global Poverty

TECHOAccording to the World Health Organization (WHO), approximately 2 billion people live beyond the reach of essential medicines and quality health care. However, drone technology is helping resolve this “last mile” problem. In Latin America and the Caribbean (LAC), more than 200 million people face poverty, struggling without access to basic needs such as clean water, housing and electricity. The World Bank estimates that as of 2023, one in four people in these regions lives on less than $6.85 per day, a clear reflection of widespread poverty. While there was a slight 1% decrease in poverty rates between 2022 and 2023, projections indicate that without further intervention, progress may stagnate.

TECHO: Housing and Social Programs

Founded in 1997, TECHO is a nonprofit organization that mobilizes youth volunteers to combat extreme poverty in Latin America and the Caribbean. The organization’s mission includes providing housing, clean water and access to social inclusion programs. In the aftermath of the 2010 earthquake in Haiti, TECHO was among the first groups to initiate reconstruction. Indeed, the organization was able to rebuild 10,000 homes. Currently, with the help of more than 500,000 volunteers, the organization has constructed homes for more than 86,000 families across 19 countries.

Advancements Through Drone Technology

In 2019, TECHO and DroneDeploy collaborated to enhance TECHO’s home rebuilding efforts in Brazil through drone technology. This partnership helped 634 communities by employing drone mapping—a technique involving aerial photography that produces comprehensive 3D visual maps. These maps improve visibility in urban settings, helping identify critical areas needing attention and the optimal approaches for intervention. The use of drones enabled TECHO to accurately assess the number of families living in poverty and in substandard conditions, pinpointing risk areas to prioritize for high-quality housing reconstruction.

Enhancing Urban Planning and Infrastructure in São Paulo

In São Paulo, TECHO aimed to introduce various social inclusion programs targeting poverty eradication and community integration. It expanded its partnership with DroneDeploy to use drones for assessing housing needs, a task complicated by often outdated data. Drones provided a precise count of families requiring improved living conditions and basic services like clean water, sewage and electricity. For instance, initial estimates suggested that a community housed 250 families; however, drone surveys revealed the actual number to be at least 520. This accurate data is crucial for TECHO to allocate sufficient resources to these communities effectively.

Looking Ahead

TECHO’s initiatives in Latin America and the Caribbean aim to address the widespread poverty affecting millions in the region. Indeed, by leveraging drone technology, the organization has been able to precisely assess housing needs. Furthermore, drones have been able to identify the most vulnerable areas for targeted intervention. In São Paulo, drones revealed a significant undercount in the number of families living in poor conditions, allowing TECHO to more efficiently allocate resources. These ongoing efforts underscore the importance of innovative approaches to tackling poverty and improving living conditions across the region.

– Charlotte Johnston

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

Photo: Flickr

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Operation Christmas Child: Hope and Global Poverty

Operation-Christmas-
In a world fraught with challenges and uncertainties, Operation Christmas Child is a ray of hope, spreading joy and tackling global poverty one shoebox at a time. This heartwarming initiative, spearheaded by Samaritan’s Purse, has gained international acclaim for its impact on children in need. With a mission to deliver gift-filled shoeboxes to children in more than 100 countries, Operation Christmas Child has become a powerful force in alleviating the burdens of poverty while brightening countless young recipients’ lives.

The Essence of Operation Christmas Child

At its core, Operation Christmas Child is a simple yet profound scheme that invites individuals, families and communities to pack shoe boxes with gifts and essentials for children in need. These festive parcels are shipped to some of the most impoverished regions globally, bringing holiday magic to those who may never experience such joy. The impact of this initiative is far-reaching, transcending borders and cultures. By providing children with a tangible expression of love and generosity, Operation Christmas Child delivers material goods and fosters a sense of hope and belonging. Since 1990, more than 209 million children in more than 170 countries have received shoeboxes from the charity. These small shoeboxes, filled with toys, school supplies and hygiene items, are potent symbols of compassion, reminding recipients that they are not forgotten.

Tackling Global Poverty Through Gift-Giving

Operation Christmas Child is a unique and impactful thread in the myriad efforts to tackle global poverty. The act of giving, especially during the holiday season, has the power to transcend socioeconomic barriers and create a sense of unity among diverse communities. The beauty of the operation lies in its simplicity and inclusivity. Anyone can participate, and every shoebox contribution becomes a building block in the collective effort to make the world a better place for children in need. This approach ensures that the initiative’s impact is widespread and deeply personal, as each donor contributes to the larger narrative of compassion and solidarity.

A Ripple Effect of Joy and Compassion

As these festive shoeboxes traverse the globe, they carry the spirit of giving and the promise of a brighter future. Operation Christmas Child’s ripple effect of joy and compassion is immeasurable. In tackling global poverty, addressing not only the material needs but also the emotional and psychological aspects of deprivation is crucial. Operation Christmas Child accomplishes this by fostering a sense of community and reminding children that they are part of a global family that cares for their well-being.

A Worldwide Movement of Generosity

Operation Christmas Child has evolved into a worldwide movement, engaging people from all walks of life to pursue a more compassionate and equitable world. In conclusion, is more than a seasonal charity; it is a testament to the boundless potential of human kindness.

– Genevieve Martin
Photo: Pexels

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China’s Hukou System Restricts Mobility

On the surface, China has been a powerhouse in diminishing global poverty. Measured by individuals living with less than $6.85 a day, China’s poverty rate decreased from 63% in 2010 to 25% in 2019. Based on the country’s official poverty line, the World Bank states that, as of 2020, China’s national poverty rate is 0%. Martin Raiser, the World Bank’s representative in China, claims that China’s work accounts for roughly 70% of the world’s absolute poverty reduction. However, the People’s Republic of China maintains ingrained inequities due to how its hukou system restricts mobility.

What is the Hukou system?

The hukou system is the administrative tool used for population management and registration. The hukou system classifies individuals into urban and rural categories, assigning certain services to each classification, such as access to hospitals and schools. This policy dictates where individuals can live, work and own land in China. This restricts population movement by reserving government services like social security and public education only to citizens with proper hukou for the area in which they live. Changing one’s hukou is often expensive and almost impossible, depending on where the individual wants to live. Due to these policies, the PRC directly shapes available opportunities for urban and rural residents, contributing to stark disparities between its civilians.

China’s hukou system controls internal migration, manages social protection and preserves social stability. By restricting the legal right to live and work in cities without proper hukou, China achieved its goal of limiting the growth of megacities. This process helped mitigate the uncontrolled growth of urban slums, but many rural residents ignored hukou restrictions in search of better economic opportunities in cities.

Hukou Controls Mobility in China

Being born in a rural area causes those Chinese citizens to lose access to the job market in prosperous cities. Thus, they are often confined to living in the same region for most of their lives. Citizens need a temporary residence permit to spend more than three days outside their city or town, preventing free mobility like in other countries such as the U.S.

Some people born with rural hukou endure a complex and costly process to change their status, but many others lack the resources to go through this legal avenue. As a result, many rural residents migrate to cities without the allowed hukou, losing access to beneficial government services and often resorting to poor housing conditions.

Larger cities often limit new hukou to wealthy households, thus, leaving poorer urban residents with worse living conditions. Smaller cities usually accept rural migrants, making it easier for them to receive their desired hukou. While this process deters migrants from moving to larger cities like Shanghai and Beijing, it also puts millions of Chinese migrants in threatening conditions.

Ingrained Inequities in the Hukou System

The hukou system exists in tandem with growing income inequality. China’s Gini coefficient reveals high-income inequality: measuring inequality on a scale from 0 (low) to 1 (high), China’s is approximately 0.47 compared to 0.41 in the U.S.

While moving to urban areas increases access to higher-paying jobs, rural-to-urban migrants face significant penalties if they do not have an urban hukou. These workers lose access to health insurance, retirement allowances, unemployment insurance, maternity benefits, work insurance, employment and education. With more than half of China’s population living in cities, only 35% of urbanites have a city hukou. This disparity means more than 250 million migrant workers do not receive social security benefits.

The hukou system disadvantages rural residents more than city-designated dwellers by limiting their opportunities. On average, a farmer’s annual income equals about one-sixth of the average salary of an urban citizen. This steep income disparity is exacerbated by how farmers pay a tax rate three times the amount urban residents pay, presenting a great challenge for upward social mobility.

The Borgen Project spoke with Lauren He, a former resident of Shanghai, about the hukou system’s inequities. He stated, “Because of my urban hukou status, I have evaded many barriers migrants face when moving to cities like Shanghai.”

“My grandparents did not grow up with the hukou system, so they were able to move to Shanghai from the countryside with fewer complications than what migrants face today. This system deeply disadvantages those who cannot get the necessary hukou,” said He.

Consumption Poverty Rates Show Inequity

Despite persisting inequity due in part to the hukou system, studies have shown that rural-to-urban migration reduces poverty. Migrant workers move to increase their salaries, with many sending money back to their families in less prosperous rural areas, expanding economic growth and lowering the risk of poverty.

However, the hukou system has widened inequities in many ways. Many migrants work jobs more susceptible to market change, indicating a higher risk of impoverishment. In addition, while migrants may have lower income poverty, they still face the challenges of high consumption poverty rates. Migrant workers with urban hukous consume up to 30% more than their counterparts without the proper hukou status, revealing a disparity linked to the hukou system.

The Future of Poverty Reduction in China

While reforms continue in the hukou system, other programs in China are working to counter poverty through more direct action. In 1989, the China Foundation for Poverty Alleviation began its mission to combat poverty by organizing projects ranging from health care and education to economic development through infrastructure construction. Headquartered in Beijing, the CFPA targets domestic and global poverty, aiding the mission to end poverty for all.

With the work of organizations like CFPA and liberalizing restrictions on hukou, change may come to help eliminate disparities between urban and rural citizens in China.

– Michael Cardamone
Photo: Flickr

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New technologies in South Sudan

new technologies in South SudanTechnology increasingly offers more and more solutions to help reduce poverty across the globe. Considering South Sudan’s unpredictable climate and scarce resources, new technologies in South Sudan can provide a gateway of opportunities and security to the locals. This can be through new farming methods and equipment, schooling, banking and monetary management.

The Problems in South Sudan

South Sudan’s current climate is posing many challenges to its poverty-stricken population. The World Bank describes poverty as ‘ubiquitous’ across South Sudan, with it estimating that two-thirds of the population requires humanitarian assistance.

Estimates stated that floods are affecting up to 1 million people every year because the floods have forced many to evacuate their homes. This has had an impact on education with floods affecting 100 schools. As a result, more than 60,000 students have reduced access to education.

In the short term, people in South Sudan have had limited access to nutrition and health care. This has contributed to the fact that 60% of the population is facing malnutrition.

It is not just flooding that impacts South Sudan. Excessive drought, temperature changes and unpredictable rainfall have all damaged day-to-day life in South Sudan. Droughts have resulted in food insecurities leading to a loss of livestock and crops.

This is severely impacting the economy in South Sudan considering that 95% of the population work in sectors that rely on the climate. This includes agriculture, fishing and forestry resources.

In the 2020-2021 period the South Sudanese economy reduced by 5.4% due to lower exports of oil and agricultural output. This is having a large impact on the living conditions of individuals in South Sudan.

The Conflict in South Sudan

As a result of the unpredictable climate in South Sudan, many have had to migrate. In fact, up to 4 million people as of 2022 remain displaced due to climate-induced dangers – 1.6 million internally and 2.3 million in neighboring countries.

Migration has led to enhanced homelessness across South Sudan. This has reduced living standards and increased disease. A lack of infrastructure has led to more exposure to malnutrition, mosquitos and climate-induced diseases such as malaria and cholera.

Serious conflicts over resources in South Sudan between groups, especially in areas of extreme drought, has led to livestock raiding and exacerbated the displacement of people into concentrated areas making resource scarcity even more serious.

Furthermore, the large weaponry market that has spread throughout the territory to the failure of the South Sudanese government, fuelling the problem and resulting in wider political instability in South Sudan. Resource conflicts have increasingly become a method to gain political support and power.

UNHCR’s Efforts

To solve the issues of conflict and lack of institutional and infrastructural support in South Sudan, the resource and climate problems require mitigation and resolution. Technology could be a solution, but South Sudan has limited new technologies presently.

First, and foremost, technology can make farming more efficient and sustainable. For example, the United Nations High Commissioner for Refugees (UNHCR) is trying to develop sustainable and resilient infrastructure such as dikes and drainage systems to try and appease the problems in South Sudan. Moreover, UNHCR has provided flood-tolerant seeds and training for locals. To help with droughts, it has introduced new irrigation systems and set up tree nurseries to regrow forests. In Maban, five tree nurseries underwent establishment in four refugee camps. These activities are introducing new skills and opportunities for the locals, that are more resistant and malleable to the changing climatic conditions. Other technologies include high-efficiency cooking stoves, reusing agricultural waste and using solar energy to extract water from boreholes.

How the US is Helping

Next, greater investment into education and human capital development is vital for presenting more opportunities for the locals to be able to use new tech. The U.S. has provided more than $117 million to South Sudan on top of humanitarian aid. This is helping the government to invest more money into their infrastructure, allowing more to access education.

The U.N. has also been providing increased support across Africa. It is important that this continues as, alone, South Sudan does not have the fiscal capacity to create a stable socioeconomic climate.

A further key area for South Sudan is taking full advantage of technology to provide education to rural areas that otherwise do not have access. This seems to have had little traction so far but could prove to be a very advantageous development.

Lastly, introducing these new technologies and skills in South Sudan will help to address the migration problem, reducing the levels of migration and allowing the population to become more dispersed again. This will hopefully help to reduce conflict in South Sudan as well.

Looking Ahead

Behind this shift to new technologies in South Sudan in the long run, support through charity and initiatives will help to smooth the transition. For example, to help with conflicts UNHCR has started several peace initiatives in Eastern Equatoria to reduce further conflict between herders and farmers, and to incentivize the use of new technology in pastoralists’ original locations, rather than internally migrating.

As a result, it becomes clear that South Sudan can reduce conflict across the country if it introduces more sustainable technology to help with the unpredictable climate. This requires the support of other countries and the cooperation of the South Sudanese government if this is to successfully reduce poverty.

– Reuben Cochrane
Photo: Flickr

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New Markets Boom in Dharavi

DharaviMumbai’s Dharavi is one of the world’s largest slums and is home to roughly 1 million people since it was established in 1884. Dharavi was initially inhabited by fishermen and later extended to migrant workers from south Mumbai. The slum’s conditions are dire and inhabitants have suffered from the spread of numerous epidemics and diseases due to the lack of sanitation, drinking water, roads and basic healthcare services.

Hidden Markets

Despite its harsh economic and social conditions, Dharavi is close to Mumbai’s two main suburban rail lines, which has made commuting to work easier for workers. Over the years, Dharavi has also developed a large number of thriving small-scale industries that produce embroidered garments, quality leather goods, pottery and plastic. Furthermore, there are estimated to be 5,000 businesses and 15,000 single-room factories located within Dharavi, making it a prime entrepreneurial realm with potential revenue that can total anywhere from $700 million to $1 billion USD a year.

Many of these initiatives are undertaken by women living in the slums, many of whom have taken the lead and become the main breadwinners of their families. In fact, out of the 65,000 rural markets in India, almost 75% are run by women.

Renuka Shinde’s Story

One such example is Renuka Shinde, who was forced to take up the role of the breadwinner after her husband left her and their three sons. Renuka traveled to Kolkata from her home in Dharavi to buy handloom saris to start her small business. At the end of a month’s hard work, Renuka brings home Rs 3,000 or roughly $48 by selling saris and other garments around Mumbai. Renuka makes a profit of Rs12,000 ($200) a month and this tends to increase during Indian festivals such as Diwali and also during wedding seasons.

Pushpalata Chittikindi’s Story

Another example is Pushpalata Chittikindi, who is left to fend for her two sons in the absence of her alcoholic husband. Pushpalata started making metal buckles and sold them piece by piece to nearby factories in the neighborhood. The businesswoman also worked as a cook and cleaner in her spare time. Following the advice of her friends, Pushpalata took a loan to set up her machine but lacked financial knowledge and experience with banks. Pushpalata took the help of a local NGO that gave out small loans to support local women.

With help from the NGO, Pushpalata started making Rs 250, about $4, per day. The businesswoman later pivoted to buying biscuits and snacks from wholesale stores and selling them from her home to nearby school kids. With the money she earned, Pushalata was able to pay off her loans in a year and rented a small store nearby, which she later named after her son, Sagar.

Women in Poverty

The biggest challenge to women looking to follow in the footsteps of Renuka and Pushpalata is access to credit – a first step to overcoming their financial struggles. In India, the poverty rate for women ages 25 to 34 was roughly 12% in 2020 and is said to increase to 14% following the dire effects of the COVID-19 pandemic. On the other hand, Indian men in poverty are roughly 100 men to every 120 women in poverty. The statistics highlight that there is disparity even within the parameters of poverty and that Indian women need support and guidance in their economic endeavors.

Addressing Credit Challenges

Thanks to the Vandana Foundation, an organization that provides low-interest micro-loans to female entrepreneurs in Dharavi, this challenge has become easier to overcome. In addition to the Vandana Foundation, many other NGOs such as the Light of Life Trust, Human Capital For Third Sector and Catalyst For Social Action, also play a big role to support India’s entrepreneurs and inhabitants.

A Take-away from Dharavi

The story of these women stands to show that although we tend to underestimate the power of small-scale local entrepreneurs, they are capable of making a considerable impact. If given the opportunity and starting resources, people have the power to change their financial circumstances and thus their lives, even in slums like Dharavi. There are hidden markets similar to the ones in Dharavi all over the world. By understanding where the opportunities lie and how to best support them, we can help people to help themselves and their communities.

– Samyudha Rajesh
Photo: Flickr