Tag Archive for: OECD

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Cash-in-Hand in Honduras’ Informal Economy

Honduras’ Informal EconomyInformality is a growing phenomenon in the global South, specifically in countries of Latin America and the Caribbean (LAC). While almost everyone must work out of necessity, not all work is created equal. In Honduras, the informal economy is seeing notable change, with women entering the formal workforce and small businesses driving social and economic development.

The Informal Economy: What Is It?

While formal work involves a written contract between employer and employee and generally ensures workers’ protection, rights and stability, informal labor is a broad term with multi-faceted meanings. This might include a family-owned shop where an employee helps on the weekends, street vendors, gig workers, micro-businesses and domestic workers in cash-in-hand employment.

While this type of work occurs in every country, there are notable trends. In 2024, the OECD drew upon the survivalist aspects of informal work, noting how these jobs are often characterized by a lack of social benefits, poor working conditions, lower remuneration and poverty. Currently, 90% of the global workforce is made up of informal employees, largely from low-income countries.

While policy change is urgently needed, much informal work is also produced and performed within the household, making it difficult to categorize or track. Women are more likely to be part of the informal labor force, and four in 10 people in LAC countries currently depend solely on informal work. More than half the people in countries such as Colombia, El Salvador, Paraguay, Peru, Bolivia and Honduras are vulnerable to exploitation, with low earnings, excessive working hours and poor working conditions — conditions that may carry on into future generations.

A Case for Formalization

Employees working informally do not contribute to a country’s GDP, largely due to tax avoidance. Workers within the informal economy earn less than their formal counterparts, and their country’s economy is often weaker as a result.

J.P. Morgan notes that “informality thrives where entry is hardest” and is thus bound to disproportionately affect those without formal education or with low social standing. For these reasons, it is more likely to affect women and girls. The shift from informal to formal economies is not straightforward, but can be achieved through policy and business action, reducing the gender pay gap and the potential for violence and abuse facing women and girls.

Honduras: A Case Study

The OECD report shows Honduras’ informal economy to be the largest among the LAC countries examined, with nearly 80% of salaries coming from informal channels.

Despite this, organizations such as CAVEXSA, COCASAM and UPROCASUR have been aiding the transition from informal to formal work. These are small to medium enterprises in the agricultural sector, harvesting, packaging and transporting commodity goods such as sugar and coffee.

Backed by the ComRural II project and the World Bank Group, they are committed to providing technical training and job opportunities for rural communities. More than 3,200 Hondurans have attained job security, with numbers set to increase with every harvest. These are jobs in previously male-dominated sectors, signaling economic growth that also challenges gendered stereotypes.

Looking Ahead

Honduras’ informal economy remains essential for many, but procedures such as effective minimum wages, community-driven businesses, contributory schemes and social protection are among the ways the OECD suggests alleviating the burden of informal work.

Denis Calderón, a former okra producer and current board member of CAVEXSA, is a single mother of five. “I was a housewife — I’m not ashamed to say it,” she said, adding that “women are capable of anything,” in agriculture, domestic life and beyond. The leadership of women like Calderón in these businesses reflects a broader shift in how economic growth is taking shape in the global South.

– Grace Sandall

Grace is based in Madrid, Spain and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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5 Facts on the Current State of Education in Cyprus

Education in CyprusCyprus, the third‑largest island in the eastern Mediterranean, has long viewed education as a critical driver of socioeconomic growth. The Republic of Cyprus (recognized by the EU) and the Turkish Republic of Northern Cyprus (recognized only by Turkey) operate separate systems, making accurate, island‑wide educational figures hard to obtain. Yet, within the Republic of Cyprus, adult literacy now exceeds 98% and tertiary attainment among those aged 25-34 is almost at 47%, the highest rate in the EU. Public schools deliver primary through secondary education, while three public and five private universities provide higher learning. 

In the Republic of Cyprus, education is structured as a 6‑6 system: six years of compulsory primary education starting near age 6, followed by six years of secondary (divided into junior and senior cycles), and then tertiary or vocational pathways. Technical and vocational education and training (TVET) usually lasts two years post-secondary and is overseen by the Human Resource Development Authority (HRDA).

Public spending on education is robust, historically around 6-7% of GDP, significantly above the EU average. In 2022, education expenses made up about 4.9% of total GDP and 13% of the government budget (approximately €1.446 billion). These numbers position Cyprus among Europe’s top spenders in education quality and support.

Performance and Learning Outcomes 

Cypriot students take part in the OECD’s PISA assessments. In 2022, their average scores fell to about 418 in mathematics, 411 in science, and 381 in reading—all well below the OECD averages of 472, 485, and 476, respectively. This marks a sharp decline from 2018 and shows Cyprus falling behind many of its EU peers in core academic skills.

Adult learning engagement is another concern: in 2022, only 28.3% of adults participated in education or training, well below the EU average of around 39.5% – with participation among women at just 20.4% versus 36.7% for men. There is a marked gap between higher‑educated individuals (35.5% participation) and those with lower qualifications (10.9%).

Challenges, Reforms and the Road Ahead 

Despite high levels of investment, Cyprus’ reliance on inconsistent teacher-assigned school grades, which account for 70% of final marks, can undermine fairness. To make matters worse, university admissions rely almost entirely on centralized exams, disadvantaging students from less privileged schools or socio-economic backgrounds. Additionally, adult learning participation has sharply decreased since 2016, particularly among older populations and non-workers. 

In 2015, the government launched an Agency of Quality Assurance and Accreditation in Higher Education to standardize and improve university quality across all institutions. It has evaluated nearly 300 study programs and multiple universities since then, helping hundreds of thousands of students. The HRDA continues to finance vocational training through payroll-based fees and generous subsidies, helping bridge skills gaps in Cyprus’s economy. Technical cooperation with EU partners and UNESCO supports further reforms aimed at expanding adult training and improving early‑grade performance.

Overall, education in Cyprus remains a high‑priority sector, with solid funding, strong tertiary completion, and a national commitment to quality. However, recent declines in PISA performance and adult learning participation signal the need for greater policy involvement, particularly on lifelong learning and transparency in grading. As reforms increase, Cyprus has a chance to bolster its reputation as one of Europe’s education success stories while ensuring that all learners benefit.  

– Jeff Zhou
Photo: Flickr

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Tackling the Gender Wage Gap in San Marino

Gender Wage Gap in San MarinoThe fifth-smallest nation in the world San Marino has made commendable progress on narrowing the gender wage gap in recent years. In 2025, the United Nations (UN) praised the nation’s initiatives to balance the labor force and tighten the gender wage gap across the region.

The gender wage gap in San Marino forms part of a larger trend of gender discrimination in the country. In the past, these issues have arisen from violence towards women and an educational curriculum that did not place enough emphasis on gender equality and human rights. Furthermore, men make up 73% of management positions in San Marino. This statistic reinforces how the female workforce is underrepresented in positions of authority – a narrative the country is striving to change.

Engulfed by the Italian mainland, the tightly knit community of San Marino have experienced a wave of changes in relation to gender legislation. Policies which range from education to a revised government office have positively impacted the lives of female citizens working in their country of origin. Here are three ways in which the contributions of both government and international organizations have helped to reduce the gender wage gap in San Marino.

Bolstering and Empowering the Female Workforce

In order to balance the female labor force, the government of San Marino has actively provided incentives to employers with regards to their hiring policy. The government significantly reduced taxation costs on female workers to increase the number of women in full time employment. 

Employers also made provisions to accommodate female needs in the workplace. These hinge around the conditions surrounding maternity leave. If a female worker had given birth to a child, she now has the option to accept a part time contract in order to balance family responsibilities. This choice has provided female employees with a degree of economic stability.

Furthermore, there are developed plans for a new Office of the Ombudsman to be implemented in 2026. This office provides an outlet where workers can raise issues which have arisen at the workplace including ‘combatting discrimination.’ This political initiative grants women an opportunity to question matters regarding their wage and all aspects of their working environment.

Long-Term Financial Transparency and Security

With data scarcely published on the gender wage gap in San Marino, recent developments to showcase financial transparency statistics ensure that international organizations can monitor the progress being made. In 2002, the Organization for Economic Co-operation and Development (OECD) placed San Marino on the ‘grey list’ for not publicly sharing data collated on tax information. Fast forward to 2025, San Marino is successfully complying with the demands that the OECD expects and is no longer on the list. These measures ensure that San Marino regularly and publicly shares its financial information, which changes its previous connotations with an unwillingness to cooperate.

Denouncing Gender Based Discrimination

The wider narrative of government gender based policy importantly highlights a shift towards improving the working environment for women in San Marino. The government is currently processing a bill which provides women under the age of 35 with the guidance to start their own e-business. These legislative measures aim to provide women with the appropriate support previously received by their male counterparts.

On an institutional level, educational reforms have also contributed to a broader notion of gender equality in San Marino. An open exhibition, which featured the works of primary and secondary school children, was made accessible to the general public on the ‘fight against violence against women’ in 2025. In addition to this showcase, the University of San Marino has introduced higher educational modules addressing gender based issues and patterns of discrimination. These public initiatives highlight a government priority placed on promoting gender equality.

Looking Ahead

Despite the nation attracting little attention from global media outlets, it is important to recognize the measures that are occurring to improve the gender wage gap in San Marino. Regular discussions with international organizations have ensured that women working in San Marino have received financial support in relation to maternity. Widespread reforms in both the educational and employment sectors highlight the nation’s efforts to combat unequal pay and wider discriminatory practices. San Marino’s recent commitments to gender based policy reinforces how tackling the gender pay gap is a global issue no matter the size of a country’s population.

– Ash Fowkes-Gajan

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

Photo: Unsplash

Rural Disconnection in Chile: A Barrier to Regional Development

Rural Disconnection in Chile
Chile is a nation with immense biodiversity and culture and an example of economic growth in Latin America. Nevertheless, Chile finds itself with the glaring issue of over-centralization. The South American nation is one of the most centralized nations globally, leaving rural governments, businesses and people with significantly less access to funds, critical resources, educational opportunities and economic growth.

Centralization as a Barrier to Rural Progress

Chile finds itself as one of the most centralized countries in the world, where regional governments function in deconcentrated and decentralized municipalities. These municipalities rely significantly on the central government yet receive a fraction of their funding. Only 3% of Chile’s GDP, or 13% of the total public investment, was allocated to local government expenditure. These figures leave Chile as one of the countries with the lowest local public investment of all OECD nations. Local governments outside the nation’s capital are left short-staffed and underfunded, thus, fewer resources for rural Chileans.

Economic Concentration and Territorial Disparities

Rural disconnection in Chile also lives beyond the public sector. Chile ranks among the highest levels of territorial inequalities within the OECD. The nation ultimately reached the second-highest GDP concentration level in the OECD in 2013. A financial restriction has exacerbated such pronounced disparities. As it stands, Chile is the sole OECD country where local borrowing is illegal. Thus businesses, citizens and local municipalities are restricted from accessing prime financial resources. There is an immense consolidation of economic opportunities in Santiago, the nation’s capital. Santiago garnered a tremendous 69% of GDP growth and the majority of labor productivity advancements from 2000 to 2013.

Limited Rural Higher Education

Educational disparities are also prevalent in Chile due to its over-centralization, especially in higher education. In 2020, more than 70% of all higher education enrollments occurred in three regions, with 50% of the total enrollments in the metropolitan region where the capital resides. The lack of higher education outside of the most populated regions further propagates inequality, stagnates the possibility of growth and hordes the nation’s human capital. Human capital drives economic stability, employment and innovation. Rural disconnection in Chile has led to a concentration of half of the individuals with the highest human capital and job opportunities in one region.

Rural Poverty

The majority of the regions of Chile are overlooked and lack opportunities, access and investment. Rural disconnection in Chile has led to noteworthy levels of child poverty. The 2020 National Socioeconomic Characterization Survey (CASEN) saw a pandemic-induced economic downturn. The year 2020 witnessed a 1.7 increase in percentage points for children and adolescents living in poverty, where rural residents were one of the four most vulnerable groups, with 18.1%. Those living in rural areas have less access to critical means for economic improvement and are thus exposed to harsher pitfalls in times of crisis.

Fundación 99

While Chile’s rural population finds itself in a state of vulnerability with its lack of investment and access to essential services, there are organizations passionate about reducing these deficits. Fundación 99 is an NGO determined to tackle social inequalities in order to achieve long-lasting social progress. The organization fights to help people in need with gender equity, inclusion and community participation as the guiding principles. The foundation intervenes in three key areas: education, public spaces and infrastructure and local economic development.

Fundación 99 has been channeling a lot of its efforts into empowering rural education in Chile for the last five years. The organization implements strategies that look for sustainable impact after their intervention is finalized. Two ongoing projects are communities of learning and educational bridges. These endeavors strive to foster enriching educational experiences for underdeveloped communities. Communities of learning look to create academic-minded communities where education is not limited to the classroom. Educational bridges equip educators with contemporary practices and innovative teaching techniques, encouraging strong student involvement. Their commitment to these communities is pursuing a society where development and opportunity are available to all.

Rural disconnection in Chile leaves countless individuals with unequal availability of funds, critical resources and educational opportunities. The human capital of rural Chile limits the potential of numerous people and deprives the country of reaching its maximum level of development potential. However, with strides such as those carried out by Fundación 99, lasting and genuine progress is being pursued.

– Agustín Pino
Photo: Flickr

Elderly Poverty in Palestine

Elderly Poverty in Palestine
According to a 2021 report from the Palestinian Central Bureau of Statistics (PCBS), only 5% of the population in Palestine is 60 or older. The World Bank reports that Palestine’s poverty rate stood at 27.3% in 2021, a decrease of around 2% from the previous year when the economy deteriorated as a consequence of the onset of the COVID-19 pandemic. Elderly people have an increased risk of falling into poverty and the absence of adequate social protection systems exacerbates this vulnerability. The U.N. states that “in most countries, the risk of poverty increases with age.” OECD countries’ data from 2015 indicates that people in the age category of above 75 report poverty levels higher than those in the 66-75 age group. In 2017, the prevalence of elderly poverty in Palestine stood at 27%, equating to 5% of Palestine’s total number of impoverished persons.

4 Facts About Elderly Poverty in Palestine

  1. Uneven distribution. Elderly poverty in Palestine is not evenly distributed across the country. In fact, according to data gathered in 2017 by the PCBS, the percentage of older people living in poverty in the Gaza Strip stood at 47%, which is almost 29% more than in the West Bank. The Gaza Strip notes higher poverty rates in general due to the now 15-year-long Israel-led blockade of Gaza, which has brought severe economic and humanitarian consequences to Gaza.
  2. Low education levels contribute to elderly poverty. Slightly more than 40% of the elderly in Palestine have no educational attainment. Given the relationship between education and economic well-being, this could be one of the factors affecting the financial stability of older individuals in the country. Moreover, lack of education significantly affects the transmission of poverty from generation to generation and education is often a key determinant of financial success. PCBS data from 2019 shows that illiteracy rates are highest among the elderly age group of 65 and older.
  3. Lack of economic independence increases vulnerability to poverty. Another significant fact about the demographic profile of older individuals in Palestine is that only 13% of them engaged in employment in 2018, with a stark contrast between the West Bank (16%) and Gaza (7%). This suggests that a large majority of the elder community is not financially independent, making them more vulnerable to poverty. As a matter of fact, senior citizens in Palestine typically depend on other family members to meet their needs.
  4. Health and disability. Approximately 48% of Palestine’s elderly had to deal with at least one impairment or disability in 2020. Mobility difficulties are the most common, followed by visual impairments. In addition, “33% of the elderly in Palestine suffer from at least one chronic disease according to a medical diagnosis (36% in the West Bank and 27% in Gaza Strip).” For elderly people living in poverty, a lack of access to essential goods and services could easily exacerbate health conditions, PCBS reports.

Looking Ahead

A lack of adequate social safety nets exacerbates elderly poverty in Palestine. In 2020, following the negative impacts of the pandemic on the country, the U.N.’s Joint Sustainable Development Goal Fund, the World Food Programme (WFP), UNICEF and the International Labour Organization (ILO) worked with the Palestinian Ministry of Social Development to improve the social protection system. The Joint SDG Fund says, “While the existing Palestinian social protection system is among the most advanced in the region, it is not sufficient to address the needs of the most vulnerable groups.” The collaboration aims to strengthen the social protection system and make it “more inclusive and accessible to older people, particularly women.”

In June 2022, Palestine’s GDP rose by 1.1%. A stronger financial performance may improve the living standards of the population overall.

– Caterina Rossi
Photo: Unsplash

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Promoting Virtual Education in Peru

Virtual Education in Peru
“It feels new, well, very new, but we are adapting to the situation,” said the Peruvian child when the CGTN America reporter asked him about his experience with Peru’s I Learn at Home virtual education program. For a country in which only 24% of households have consistent internet access, virtual education is certainly a new experience. Peru launched the Aprendo en Casa (I Learn at Home) program shortly after the Peruvian government closed down schools in 2020 in reaction to the COVID-19 pandemic.

Ever since the program has consolidated various low and high-tech solutions to broadcast an interactive learning environment on multiple media. Here is the story of Peru’s Ministry of Education’s promotion of virtual education in Peru.

Pandemic Challenges

The COVID-19 pandemic hits hard around the globe and Peru is one of the worst-impacted countries in the world. In response to the pandemic, the Peruvian government imposed the strictest shutdown in South America since March 2020. However, the shutdown, compounded with Peru’s low connectivity, imposed a particularly harsh challenge.

Among the many challenges is the challenge in education. Under the shutdown, switching to virtual learning was not as simple as moving classes online. In response to Peru’s particular challenges, Peru’s Ministry of Education launched the I Learn at Home virtual learning program shortly after the lockdown, according to OECD.

In response to the sudden COVID-19 shutdown, the Ministry of Education launched the program with equal rapidity only 12 days after the shutdown, OECD reported. To ensure the constant improvement of the program, Peru’s Ministry of Education collaborated with Innovation for Poverty Action which uses machine learning to survey the needs of hard-to-reach students. The Ministry then used this data to develop the program to ensure maximum outreach and maximum classroom engagement, in the shortest possible timeline.

About I Learn at Home

To ensure the maximum outreach of the program in low connectivity regions, Peru’s Ministry of Education strives to diversify the channel of access to learning materials. According to OECD, the Peruvian government teams up with major private telecommunications companies to produce and broadcast the learning materials on TV and radio, in addition to the internet.

To maximize internet travel to the I Learn at Home webpage, Microsoft and Amazon help design the web page with “web-light” and “mobile-responsive” technologies so that people can access the webpage through smartphones and from areas with slower internet. For parts of the country that lack household electricity access, loudspeakers at community centers broadcast learning materials so kids can hear their teacher giving lectures in their homes.

Through the multi-media platform, the virtual classroom brought children back to an interactive learning environment. Teachers and actors go back and forth on the learning materials with actors asking questions during classes and doing learning activities making it look like a classroom. According to OECD, WhatsApp helps organize teachers and parents into classroom groupings. Teachers distribute homework materials either online or through mailing in print materials. Teachers and families then communicate feedback through those channels.

The Impact of Virtual Education in Peru

The result of Peru’s Ministry of Education’s promotion of virtual education in Peru is significant. OECD has indicated that after a month of the debut of the I Learn at Home initiative, 95% of children reconnected to their education through one channel or another and that another month after that, 82% of the kids expressed happiness about the learning program. According to UNICEF, the innovative joint initiative reached 145,628 children living in hard-to-reach areas. As Peru reopened its schools in March 2022, its precious experience in virtual education showcases how innovation and technology can help education to reach those who are at a material disadvantage.

– Peiyi Yu
Photo: Flickr

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Mental Health in Chile Since COVID-19

Mental Health in Chile
Depression and anxiety have risen in post-COVID-19 Chile. Prolonged confinement, uncertainty and lack of social contact triggered a dramatic increase in these pathologies. However, these frightening figures have made these diseases visible at levels never seen before, which is the first step to achieving important changes.

Depression and Anxiety on the Rise

Mental health is often a silenced topic in Chile, as well as in most parts of the world. One can see the unequal treatment that patients suffering from mental illness compared to physical illnesses received by the lack of services dedicated to these and the discrimination that mentally ill individuals have suffered. These are diseases that the media has traditionally not highlighted and that many treat as minor problems. Undoubtedly, this generates mistrust on the part of the affected person when seeking help.

Due to the COVID-19 pandemic, depression and anxiety are some of the most worrying results of the lockdown. A study that the Catholic University of Chile conducted, in collaboration with the Chilean Safety Association (ACHS), indicated that mental health issues were among 35% of respondents by 2020. While, in 2020, the number of people that some symptoms of depression affected was 13%, in 2022, it rose to 16% due to unemployment and economic instability due to the COVID-19 pandemic. Meanwhile, as many as 28% suffered from anxiety.

Despite the problems with mental health in Chile, the total budget dedicated to mental health is currently at 2%, which is the lowest among all OECD countries. Without a doubt, this situation requires governmental action to achieve a change in strategy and an increase in the budget.

Mental Health: Challenges and Solutions

The impact that mental instability has on one’s performance and on society reaches consequences that affect the whole country. Giving these illnesses the importance they require and establishing a prompt response can have a positive impact on society’s well-being but also on reducing poverty. For example, mental issues have massive indirect costs that have links to the lack of productivity and motivation of the affected person. According to the Pan American Health Organization (PAHO), mental health problems are the main cause of disability in Chile. Chile is also one of the Latin American countries with the highest depression rates, especially among the lowest-income groups. This suggests that chronic depression or severe anxiety disorders cause the inability to perform well in society, increasing the possibility of unemployment, drug addiction, and therefore, the risk of poverty.

Thus, mental health problems increase the levels of poverty while poverty increases the chances of suffering from mental issues. In order to break this vicious cycle, mental illnesses ought to receive treatment in time. Accepting the reality that mental health is equally important to physical health and making this reality visible, not only brings urgency to the matter but also incentivizes people to reach out without being scared or shameful to do so. Breaking the social stigma that mental instability is a symbol of weakness or insanity is the first step toward an effective response.

The First Signs of Grass Shoots

Fortunately, there is a change for the better. The World Health Organization (WHO) has stressed the importance of mental health in a series of guidelines that it published earlier in 2022. These are in the Comprehensive Mental Health Action Plan 2013-2030. In fact, the WHO argues that every country can move towards progress simply by making the problem visible. It promotes:

  • Raising awareness about mental health so that everyone understands the importance of it.
  • Eliminating the stigma of mental illness.
  • Improving access to mental health treatment.

Mental health in Chile became more visible since COVID-19. In 2021, Chile increases its budget by 310% compared to the previous year. The funds go toward:

  • Strengthening the human resources in mental health care for children and teenagers.
  • Improving primary health care in mental health.
  • The introduction of the Remote Brief Psychological Intervention Program, which people can use to communicate with a doctor through a video call.

Some of the most recent updates in Chile show even more positive progress. The national budget for public spending in 2023 that the President of the Republic, Gabriel Boric, announced dedicated more than $18 billion to strengthen Chile’s response to mental diseases.

As Boric stated “mental health matters and we are not going to leave them alone.” Meanwhile, global mental health day was celebrated on October 10, 2022, and the Health Minister from Chile, Ximena Aguilar, reaffirmed the same idea stating that people will no longer have to face their mental health issues alone. The Government of Chile establishes as a priority to advance the improvement of the treatment of mental illnesses while protecting the rights of the people who suffer from them.

– Carla Tomas Laserna
Photo: Unsplash

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Education in Norway and Poverty Reduction

Education in NorwayAccording to the World Bank, Norway’s poverty rate stood at approximately 13% in 2019 and, in 2021, the unemployment rate stood at just 4%. Norway has made commitments to reducing poverty by prioritizing education in the nation. Education in Norway is also key to maintaining high employment rates. In 2018, Norway spent 7.6% of its GDP on education, exceeding the recommended allocation of 4-6%.

More About Education in Norway

Education in Norway is state-supported and even college is cost-free. Students in Norway generally go through three levels of education before the college level:

  1. Elementary school (ages 6-13)
  2. Lower secondary school (ages 13-16)
  3. Upper secondary school or “high school” (ages 16-19)

Attending primary and lower secondary school is compulsory in Norway and high school is “a statutory right.” There is no upper age limit to entering high school, but most students start at age 16. According to statistics from 2019, about 80% of Norwegians have completed upper secondary education, which is higher than the Organization for Economic Cooperation and Development (OECD) average.

Different Types of Learning for Different People

There are several options for education in Norway, depending on one’s background and needs. Below are some of these options:

  • Adult learning. Adults ages 25 and older have the right to finish upper secondary school and/or vocational training as well as the right to have an education program custom-fit to their needs. Additionally, “for newly arrived immigrants,” the state provides classes in social studies and the Norwegian language. According to the OECD in 2004, Norway had one of the highest vocational training participation rates among European countries.
  • Folk schools. Norway also has the option of folk schools. Folk schools are for learners who want to focus on a specific subject and put their learning into practice. There are no tests or curricula and teachers do not give grades. Students are eligible to attend these schools after finishing high school. However, for folk schools, students have to pay room and board and purchase any required learning supplies.
  • The Qualification Program. The Qualification Program, a two-year program introduced in 2007 that is still active today, helps build vocational skills for people who are “at risk of prolonged unemployment.” By working with a counselor, the program is personalized for the individual’s needs. Participants may also receive benefits, financial aid, holiday entitlements and childcare assistance.

The more educated a population is, the less likely they are to experience poverty. When personalized approaches to education are available, learners can focus their studies on what is most important for them and advance their natural skills and abilities, thereby improving employability.

Diversity

The systems of education in Norway are diverse. In fact, the country has some of the most socio-economically diverse schools in the world. Norway is also doing well with regard to closing the gender gap, ensuring equitable access to education and creating a diverse workforce. In 2017, the World Economic Forum ranked Norway as the most inclusive advanced economy in the world.

To further explain how education in Norway reduces class barriers, The Borgen Project interviewed Ingunn Jakobsen, a veteran senior high school teacher of English and Norwegian with 40 years of experience. Jakobsen states that every year, secondary schools evaluate their progress in terms of providing equal opportunities to all socioeconomic groups. She explains that these schools then “apply statistics where each school is measured in its contribution to [raising] pupils from lower income groups to a high-performing group of pupils.”

Regardless of what country workers live in, Indeed states that having a diverse workforce means a wider recruitment pool, better decision-making in the workplace, improved employee satisfaction and expanded profits.

Impact on Poverty Reduction

When education is made accessible to poor populations, it breaks the cycle of generational poverty by opening doors to greater employment opportunities. Additionally, learning skills such as reading, writing and math significantly increase marginalized groups’ incomes and strengthen the economy.

– Ava Ronning
Photo: Unsplash

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Everything to Know About Poverty in Australia

Poverty in Australia
As a signatory of the United Nations Sustainability Development Goals (SDGs), Australia aims to completely eradicate poverty by 2030. Unfortunately, the country is yet to reach the goal of zero poverty and the problem persists for the nation coming out of COVID-19 restrictions. Presently, Australia has a comparatively higher-than-average poverty rate when considering the other 34 wealthiest countries in the OECD. With the general fall of average income across the nation and the cuts on income support for poorer families coming out of the pandemic, poverty in Australia is not going to disappear any time soon. Here are several facts to know about poverty in Australia.

The Poverty Line

In order to get to grips with everything you need to know about poverty in Australia, one must become familiar with the specified criteria the nation has for quantifying poverty. Due to its reputation as a developed nation, the Australian Council of Social Services (ACOSS) and UNSW classify poverty through a measure of the number of people living below the country’s poverty line. This amounts to the number of people living below the 50% median household after-tax income, or $489 a week for a single adult and $1,027 a week for a couple with two children. Unfortunately, as of the most recent 2022 report, one in eight Australians are living below this minimum. In other words, poverty in Australia disproportionately impacts more than 3.3 million people.

How Income Support Lifted Australians Out of Poverty During the Pandemic

According to the latest 2022 report by ACOSS, the number of people living below the poverty line fell drastically after the introduction of temporary income support payments to mediate the aftereffects of COVID-19 restrictions. From the start of the pandemic, 13.4% of Australians lived below the poverty line, this soared in the March quarter of 2020 to 14.6%. However, the supplementary payments granted citizens the necessary support required to lift themselves out of poverty. A consequence of the increased income support saw an additional 646,000 people or 2.6% of Australians rise out of poverty, with overall poverty in Australia falling to just 12%.

The effects these payments had on the overall number of children living below the poverty line are even more dramatic. The child poverty rate fell from 19% in March 2020 to an impressive feat of 13.7% in June of the same year, effectively managing to lift 245,000 children out of poverty.

As of April 2021, however, the Australian government has retracted these income support payments, feeling they are no longer necessary after coming out of the pandemic. The “coronavirus supplement” has been entirely redacted and in its place, the JobSeeker payment has been increased by only $25 a week. The Senate has launched an inquiry into the rates and main drivers of poverty in the nation, however, welfare advocates argue that the state has all the evidence necessary to make a change. Instead, they believe that the subsequent inaction is a deliberate means of neglecting the most vulnerable. Some have taken it further and equated the reduction to a “political choice.”

An Influential Organization

The Australian Council of Social Services (ACOSS) is an organization that facilitates the eradication of poverty and inequality throughout the continent. Working to ensure that Australia complies with the targets under the Sustainable Development Goals (SDGs), they advocate for the nation’s most vulnerable, while mobilizing governments and communities to contribute to the discourse surrounding poverty.

ACOSS’ main areas of focus include access to employment services for the disadvantaged, an impartial social security system and ensuring governments are accountable for an equitable tax system. Its research papers have been pivotal to the understanding and further implementation of poverty-reducing measures. Key organizations now hold a deeper insight into everything you need to know about poverty in Australia as a result.

– Namra Tahir
Photo: Wikimedia Commons

Rising Prices Causing Record Inflation in Italy

Inflation in Italy
Inflation has been surging worldwide, especially hitting hard Italy. Already facing economic stagnation and record unemployment, the supply chain halt and economic crisis that the Russia-Ukraine crisis has particularly impacted Italy. In fact, inflation in Italy has risen so dramatically that the main industry lobby is warning of an “economic earthquake.”

Rising Inflation and the Economic Crisis

Like most of the EU, energy costs have been surging in Italy. Prices have been rising at an annual rate of 38.3%. This is largely due to the Russia-Ukraine crisis, as Ukraine had previously supplied most of Europe’s natural gas supply. Inflation in Italy is also at an all-time high in Italy; in fact, Italy has the third-highest inflation rate in the EU. In August 2022, the inflation rate jumped to 9%, likely due to the increase in energy and electricity prices.

Increasing inflation will have ramifications for Italy. Unlike the rest of the EU, Italian wages have been stagnant for the past decade. In fact, data that the OECD collected found that Italy was the only country in the EU where wages actually declined.

Moreover, unemployment is also at an all-time high in Italy. Currently, the unemployment rate is 7.8%, but things are far worse for Italy’s youth, who have an unemployment rate of almost 21.2%. It is the highest youth unemployment rate in the EU. and one can attribute it to poor education and a largely stagnant economy. In fact, the past decade has had the worst economic gain in Italy since 1861. 

Inflation & Poverty

The poor in Italy have felt the brunt of the economic impact caused by rising inflation. The decline of the Italian economy noticeably correlates with a rising poverty rate. Poverty has increased sharply in recent years, largely due to the pandemic. The recent increase in the cost of living has also pushed many people into poverty, with almost a 10th of the Italian population living below the poverty line.

Governmental Action

Although things may look bleak for Italy’s economy, its government has been working to prevent a catastrophe. Recently, the Italian government approved an aid package worth $17.4 billion. This package aims to curbe energy prices to protect families from rising prices. The nation has budgeted around 35 billion euros to reduce the impact of rising energy and electricity prices.

In addition, the government has also extended bonuses to low and middle-income citizens, including migrants, because they are more susceptible to falling into poverty during this economic crisis.

Like many other countries in Europe and around the world, Italy has faced considerable detriment as a country from recent crises like the global pandemic and the Russia-Ukraine crisis. Despite this, things like the unemployment rate and poverty have still been decreasing according to the most recent estimates. Furthermore, considerable government action has seen to it that Italian citizens are protected from rising prices, shielding them from further economic crises.

– Padma Balaji
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