SWISS AGENCY FOR DEVELOPMENT AND COOPERATION IN MONGOLIA

Annual Report 2013

SWISS AGENCY FOR DEVELOPMENT AND COOPERATION IN MONGOLIA

Swiss Agency for Development and Cooperation (SDC) in Mongolia

Swiss Cooperation Office of the Embassy of Switzerland in Mongolia

Sky Plaza Business Centre Olympic Street 12, Khoroo 1, Sukhbaatar District, Ulaanbaatar, Mongolia P.O.Box 37 Ulaanbaatar 210648 Mongolia Tel: 976 11 331422 Fax: 976 11 331420 E-mail: ulaanbaatar@eda.admin.ch (SDC) Website: www.swiss-cooperation.admin.ch/mongolia

Photos & Layout

Swiss Cooperation Office of the Embassy of Switzerland of in Mongolia

Gamma Photo Agency

Cover picture © Mongolian Potato Programme

Publishing

Contents

Country Context

2

Introduction to new Swiss Cooperation

Strategy 2013-2016

4

Programme highlights

6

Agriculture and Food Security

6

Vocational Education and Training 12

State Reform, Local Governance and

Civic Participation

16

Outlook for 2014

22

AnnuAl RepoRt

2013

SWISS AGENCY FOR DEVELOPMENT AND

© D.Davaanyam / Gamma photo agency

Country Context

Mongolia’s “Year of Three Elections” concluded with the reappointment of incumbent President Tsakhia Elbegdorj of the Democratic Party (DP) on 26 June in the first round of the presidential election. His victory marks the continuous

dominance of the DP in Mongolian politics. After the 2012 parliamentary and local elections, the DP now controls all major political offices for several years, including the Cabinet, Parliament, Presidency and most local governments. The re-election of Ts. Elbegdorj is widely perceived as a sign of policy stability and continuity until the next legislative elections in 2016.

Political stability is likely to remain high in the short term despite tensions within and across parties. Because the DP did not secure

a majority of seats in Parliament last year, it had to form government with the Mongolian People’s Revolutionary Party (MPRP) and the Mongolian National Democratic Party (MNDP). Ideological differences between the DP and the MPRP are particularly marked. The MPRP threatened to leave the coalition in December 2012 after its leader,

former President Nambar Enkhbayar, was convicted of corruption. The party ultimately stayed after the Supreme Court reduced Mr N. Enkhbayar’s sentence. In August 2013, Mr. N. Enkhbayar was pardoned by the President of Mongolia. The DP also faces strong opposition from the previous ruling party, the Mongolian People’s Party (MPP), and there are reported to be increasing tensions within its ranks.

Despite a marked slowdown in commodity exports and a significant drop in foreign direct investment (FDI), Mongolia continues to be one of the fastest growing countries in the world.

The economy expanded by 12.3 percent in 2012 and 11.7 percent in 2013. It is estimated that strong growth has helped reduce poverty by more than 11 percent over the past two years. Growth has been buoyed by a relatively mild winter that has boosted agricultural production, and by expansionary fiscal and monetary policies. The latter have been deployed to compensate for a 10.5 percent decrease in exports (reflecting lower international prices for coal and copper) and a 48 percent decline in FDI in the mining sector in 2013, both of which have been key drivers

© D.Davaanyam / Swiss Cooperation Office

of economic growth in the past. Worryingly, an increasing amount of government spending is taking place outside the budget (financed by sovereign bond proceeds), which creates significant contingent liabilities for the state. On the positive side, copper shipments from Mongolia’s largest mine, Oyu Tolgoi, started on 9 July, 2013.

The role of foreign mining companies in the exploitation of Mongolia’s mineral resources continues to be a controversial issue at both the political and public levels. The environment

for foreign investors deteriorated during the “Year of Three Elections” as evidenced by the significant decline in foreign direct investments (FDI). One of the commonly cited reasons for the decline was the Foreign Investment Law enacted in May 2012 which required Parliamentary approval for deals in which foreign companies sought to acquire shares of more than 49 percent in Mongolian firms in “strategic industries”. To counteract the falling FDI trend, Parliament passed a new version of the Foreign Investment Law in early October 2013, which is seen as being friendlier to FDI. In addition, a number of imminent legislative changes are being carefully watched in Mongolia and abroad, including Parliament’s expected approval of the new Mineral’s Policy and Law. In September 2013, Parliamentary discussions on revision to the Mining Law led to a nationalistic protest outside Government House, where some protesters were armed with small bombs and hunting rifles. The incident ended with numerous arrests by the police.

The risk of social tensions is fuelled by high inflation and the widespread perception of rising inequality. Rapidly increasing prices are

hurting the living standards of Mongolians, in particular those who are not benefiting from the income earning opportunities stemming from the country’s mining boom. Inflation rose to 12.3 percent despite the efforts of the Mongol Bank, which aimed to keep inflation below 8 percent. Although government spending on social welfare has seen a rapid rise, low-skilled workers and poor herders face continuing hardship. The more wealth distribution is perceived to be benefiting the urban elite, the higher becomes the risk of social unrest in what was traditionally a relatively equal society.

In terms of international relations, Mongolia continues its pragmatic “third neighbours” diplomacy. In order to balance its close relations with

neighbouring Russia and China, Mongolia is actively cultivating ties with democratic third countries, in particular the US, Japan and South Korea. Mongolia is also seeking to strengthen its ties with Europe. In November 2012, Mongolia joined the Organization for Security and Cooperation in Europe (OSCE), becoming the organisation’s 57th participating state. The OSCE will be chaired by Switzerland in 2014. In 2013, Mongolia successfully organised the VII Ministerial meeting of the Community of Democracies during its Chairmanship. This was the largest gathering of its kind in Mongolian diplomatic history.

Introduction to new Swiss Cooperation

Strategy 2013-2016

2013 marks the start of the Swiss Cooperation Strategy for Mongolia 2013-2016. The strategic goal of the strategy is to contribute to equitable and sustainable

social and economic development in Mongolia.

SDC aims to achieve its strategic goal through interventions in three complementary priority domains:

Agriculture and Food Security; Vocational Education and Training;

State Reform, Local Governance and Civic Participation.

Consequently, and in line with the new strategy, SDC in Mongolia expanded its project portfolio in 2013 with the commitment of five new major projects with a total budget of about CHF 21 million. All new projects are implemented by competent multilateral, bilateral and NGO partners.

Capacity Strengthening of Local Self-Governing Bodies (CSLB) overseen by UNDP;

Youth Development Programme (YDP) implemented by UNFPA;

Engaging Stakeholders in Environmental Conservation Phase 2 (ESEC II) implemented by The Asia Foundation;

Vocational Skills Development (VSD) implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ);

Public Investment in Energy Efficiency (PIE) implemented by GIZ

In addition, two sizeable components of the Green Gold project, both implemented by different partners, began in 2013. They are:

Marketing component

Extension services component

GEFAK

S e r v i c e s a n d S y s t e m s f o r E c o n o m i c D e v e l o p m e n t

By Ts. Mongolkhatan

Consular Secretary

Swiss Cooperation Office of the Embassy of Switzerland

SDC scholarship winner helps people in

wheelchairs

“I pursue my dream,” said 19-year-old Odbayar without a hint of exaggeration. Her statement is simply the resolution of a girl who is determined to go her own way.

Odbayar - a second-year student at the University of Humanities who is studying to be a language teacher - is one of 60 recipients of an SDC-funded scholarship.

“We used to live in Khovd,” she said. “After the death of my grandfather, I moved with my grandmother to Ulaanbaatar to live with my aunt.” In Ulaanbaatar, the all-female household rented a plot of land on which to erect a ger - a story typical story of the thousands of rural migrants who move to the capital to try and escape poverty, only to find themselves further impoverished.

When Odbayar started university, her feelings were mixed; she feared the tuition fees would place an added burden on her family.

“My aunt’s cleaning job brings in MNT 200,000 a month, and my grandmother contributes her pension worth of MNT 200,000. In order to pay for my first year of tuition, we had to be very frugal with our expenditures. My aunt and grandmother allowed no extras for themselves. I’m happy to win this scholarship. It is a total of 1,200,000 MNT, which represents about half of my tuition fees. It’s a great relief for my family.”

Every morning Odbayar makes a one-hour journey from her ger to the university, each time feeling as if she is crossing an invisible divide separating two different worlds.

“When I started university, I grasped how big the gap was between rich and poor. I also realised that a good education was the only way out poverty. For me, the SDC scholarship is like a vehicle which shortens my journey to good education. Thanks to the scholarship, I don’t need to take bad, underpaid part-time jobs, as I did last year; I can fully concentrate my time and energy on study.”

As part of the scholarship programme, students are required to design and implement a small project. Odbayar has initiated a project at the National Union of Wheelchair Users on the socialisation of male wheelchair users. Within the framework of the project, her team has organised trainings, leisure activities and outings, and has involved beneficiaries in cultural events. More activities are being planned. Ganbat, a project beneficiary, said: “Because of the bad infrastructure, wheelchair users don’t leave their homes. Men in particular have limited social lives because they are reluctant to ask for help. Meeting and sharing experiences with people in the same situation can be really empowering. The project provides me with great moments to be with other men. We can share our problems more openly than in mixed groups. I really enjoy it.”

Odbayar said: “When we approached people and explained what we needed, they were willing to help us. For example, a beauty salon offered its services, the Drama Theatre provided free tickets, and a soft drink company delivered juices for a New Year event. “Now I know that dreams can come true when people are willing to share, as did people from faraway Switzerland.”

Odbayar with wheelchair users

Agriculture and Food Security

Goal: Increased incomes and better livelihoods for vulnerable rural populations

PRoDuCtIvIty

Improved productivity of farmers and herders

MarkET aCCESS

Improved access for herders and farmers to markets

LIvELIhOODS

Improved livelihood security for herders and farmers

Projects under agriculture and Food

Security Domain:

• Mongolian Potato Programme • Green Gold Project

• Animal Health Project

• Index-based livestock Insurance Project • Coping with Desertification Project

Programme h

Ighl

Ight

|

Revitalising Mongolia’s potato and

vegetable sectors

Mongolia has recognised Switzerland’s support in revitalising its potato and vegetable sector. Through the Mongolian Potato Programme’s introduction of new varieties, the availability of healthy seeds and improved storage facilities, today Mongolia is almost self-sufficient in domestic potato production. • In 2013, national potato production reached

190,000 tonnes (22 percent lower than 2012) on an area of 14,474 ha (10 percent lower than 2012).

• Annual potato consumption has almost tripled during the project period, from 30kg to 80 kg per person.

• Thanks to healthy seeds and better cropping systems, yields have increased by 57 percent since the start of the project. This has had a substantial impact on the incomes of about 23,000 potato growers. However, Mongolia has experienced overproduction in the past few years, which has negatively affected market prices. To offset this, farmers’ organisations and the government decided to reduce the overall production area.

• In relation to the vegetable sector, Mongolia is meeting less than 50 percent of the domestic demand. The very short growing period due to the cold climate is challenging. Considerable efforts have been made in variety testing and seed multiplication, particularly for cabbages and onions, which are by far the most important vegetable crops. 16,082 ha 14,474 ha 190,000 tn of potatoes 244,000 tn of potatoes 2012 2013

Annual potato consumption per capita

30kg

80kg

©Swiss Coopereration Office

Onion harvest - Field of Oyuntsetseg, Orkhon soum, Darkhan-Uul aimag

2012 2013 CHF 115,000 CHF 191,000 Cooperatives equity: 2012 2013 CHF 118,000 CHF 129,000

Cooperatives annual sales:

2012 2013 CHF 32,000 CHF 45,000 Cooperatives dividends to members:

|

Enabling herders to better manage

their pastures

Focusing on the sustainable use of rangelands, Switzerland continues its support to Mongolian herders through promotion of collective organizations - Pasture User Groups (PUGs). PUGs are increasingly being recognised as the largest community-based and self-governing institution of herders.

• Since the start of the project, Green Gold facilitated the formation of about 960 PUGs involving 53,000 herder households in 96 soums (26 percent of all soums). By 2013, 67 business-oriented cooperatives had been established. The number of female PUG leaders increased from 8 to 30.

• Aimag Federations of APUGs (Associations of the Pasture-Users Groups) are increasingly recognised by local Governments (governors). Facilitated by the APUGs, the representatives of the herders were able to tap into financial resources made

available through the introduction of the new Local Development Fund (LDF). Thirty PUGs were able to increase financing by local governments for their projects from CHF 4,900 in 2012 to CHF 26000 in 2013. Projects included sea buckthorn planting, livestock breeding, forage planting, the operating of community warehouses, and the supply of yak wool.

• About half of the PUGs have successfully negotiated Rangeland Use Contracts with their local government, which has led to increased investment in measures aimed at reducing disaster risks and increasing rangeland rehabilitation practices, such as rotational grazing and resting.

On the economic side, herders’ cooperative equity increased from CHF 115,000 in 2012 to CHF 191,000 in 2013; cooperative annual sales rose from CHF 118,000 to CHF 129,000 in the same period. Herders’ cooperative dividends, distributed to members, increased from CHF 32,000 in 2012 to CHF 45,000 in 2013. As of 2013:

53,000

960

67

30

• Significant progress has also been made in curriculum revision at the School of Veterinary Medicine and Biotechnology, with the first enrolments expected in autumn 2014. The structure of the new curriculum was developed based on experiences shared with the Vetsuisse Faculty in Bern and via training at the Royal Veterinary College in London. Young teachers trained in student-centred teaching will use the skills they have learnt in their lectures, which will contribute to an improvement in the quality of education.

|

Insuring livestock protects herders

from economic losses

SDC continues to provide funding to the World Bank and Mongolian Government’s joint initiative, the Index-based Livestock Insurance Project. The scheme is a public-private-partnership project aimed at reducing herders’ vulnerability to “dzuds” and other natural disasters.

In 2013, 19,500 herders (13 percent of 140,000 herders in total) took out insurance to protect their livestock against economic losses due to mortality caused by harsh winter, diseases, etc. Herders paid total premiums of CHF 1.1 million. More than 3,400 herders have been paid out for damages suffered in 2012, representing a total of around CHF 193,000. The pay outs are calculated on the basis of the livestock mortality in each Soum. The project covers the entire country, and herders can find at least one of the seven contracted private insurance companies in each of the 21 aimags.

|

Improving veterinary services in

Mongolia

Veterinary services and public health are priority areas for the Mongolian Government given the importance of the livestock sector to the national economy. SDC is supporting the government in this area with its Animal Health Project (AHP) which aims to make the animal health system more effective by aligning the structure of the veterinary service with international guidelines, by training technical personnel in disease control, and by updating formal veterinary education. Having an effective animal health system will help facilitate access to international markets for Mongolia’s livestock products.

• Good progress has been made in national disease-control capacity for the two selected diseases: Brucellosis and Foot and Mouth Disease, both of which are among the most important animal health challenges in Mongolia. • Regarding Brucellosis, by the end of the 2013,

almost all aimags have been covered by the brucellosis vaccination campaign. The success of this campaign has been evaluated through post-vaccination controls. Good levels of protection have been recorded in small ruminants; however, protection of the cattle population is not yet sufficient. Improved disease-control capacity was also in evidence during the foot-and-mouth disease outbreaks in 2013, when the government reacted in both an effective and timely manner.

3,400

CHF 193,000

19,500

CHF 1.1 million

© Animal Health Project

Vets making foot and mouth decease risk assessment

|

highlights from the Coping with

Desertification Project

2013 marked the completion of SDC’s Coping with Desertification Project (CODEP), which achieved the following major outcomes:

• The establishment of the National Committee for Combating Desertification, which is now a well-functioning government body responsible for the coordination and implementation of the National Action Plan on Combating Desertification. • Support for the establishment of 44

Water-User Groups for crop, vegetable and fodder production. A total of 971 ha of irrigation systems were completed, enabling convenient access to irrigation facilities for at least 800 farming households in Buyant and Khovd soums, Khovd aimag. This has led to an estimated 21 percent increase in household incomes. • The introduction of a range of soil and water

conservation technology has prevented soil erosion on more than 1600ha of land

• Introduction of the Eco School approach, which aims to raise youth awareness of environmental issues, was introduced into 138 schools in 11 aimags and Ulaanbaatar city. The mainstreaming of Education for Sustainable Development into the Mongolian education system in Mongolia will continue through another new project. • Support for an integrated national monitoring

system for desertification. A comprehensive monitoring methodology was developed to provide accurate information about desertification for policymakers.

Ecoschool students preparing soil for flower planting, Sagil soum, Uvs aimag

By Ts. Enkh-amgalan

Green Gold Project Manager

“The comb that made a difference to our lives”

“With the extra income, I can buy new felt covers to keep the ger warm for winter. It was really an eye-opening experience for me. If we sort our yak down by age of the animal and color, the price can reach even higher, up to MNT 10,000 per kilogram,” said G. Borkhuu, a herder from Must soum in Khovd aimag.

This story is about how a small revelation made a big difference to 39-year-old Borkhuu’s family income. Borkhuu has been herding since he was 16, following in the footsteps of his ancestors, grazing yaks on highland pastures across the Altai mountain range in western Mongolia.

Four of his five children go to school, and his wife has been ill for the past three years, which has left him struggling financially, particularly during September at the start of the school year.

“Having only about 200 animals, I couldn’t think of any other way to increase our income aside from selling a few sheep and up to three yaks in autumn and a small amount of cashmere in the spring,” he said.

“This cash is seasonal, and happens only twice a year. By the time we sell animals in autumn and cashmere in spring, the debts have already accumulated because we have had to borrow money from neighbours and from the bank. We are left with barely any surplus to buy books for the children and to pay for medication for my wife. “Our ger is more than 15 years old; the felt covers are all worn out, and in winter it is freezing cold inside.”

Just when things seemed to be toughest, a chance meeting with a neighbour helped Borkhuu change his situation for the better.

“There are plenty of opportunities, you just need to look for them,” he said.

His neighbor, bagh governor N. Tumur, told him about an announcement he had seen in the soum governor’s office inviting local herders to take part in a training on yak combing. There are processing companies buying combed yak wool, sorted by color and quality, for MNT 4500-5000 per kilogram. Borkhuu couldn’t believe in his ears: “MNT 5000 per kilogram for yak wool - is that possible?”

The following morning, he rode his motorcycle to the training, accompanied by his 12-year-old son. At the training he learnt how to comb yaks to harvest their fine wool or down - he had no idea it could be so fine and delicate.

Borkhuu also talked to a representative from a company in Ulaanbaatar and arranged to sell him his yak wool in the soum centre. The representative also gave him two combs. He then combed about 80 of his yaks, sorted the wool and made his way to the soum centre, where he sold 32kg for MNT 5300 per kilogram, for which he received MNT 170,000. Since 2009, the Green Gold Project has been supporting yak herders living in the mountain regions with limited opportunities for access to markets, with training on yak combing and quality sorting and by linking them to buyers in the city.

Vocational Education and Training

Goal: Improved employability of rural men and women

vOCaTIOnaL EDuCaTIOn anD TraInIng

Improved employability of VET trained young men and women (geographic focus on six western aimags)

vOCaTIOnaL SkILLS DEvELOPMEnT

Rapid skills development and improved employability of men and women with lack of marketable skills

Projects under vocational Education

and training Domain:

• Vocational Education and Training Project • Vocational Skills Development Project • Youth Development Project

• Small and Medium Enterprise Development Project

Programme h

Ighl

Ight

S

Programme h

Ighl

Ight

S

|

Contributing to vocational education

in Mongolia

The Swiss programme has a niche in the reform process of the technical vocational and education system in Mongolia, fine-tuning it to match the demands of labour markets. SDC’s Vocational Education and Training (VET) Project is working to provide sought-after vocational skills for the private sector, which shall contribute to a rise in rural employment.

• The main focus of the VET project in 2013 has been the piloting of an innovative approach for Mongolia to the development of curricula in technical and vocational education. This involved the development of six occupational profiles and curricula templates. Using new curricula, six VET schools in the six western aimags which benefit from SDC’s project will be able to provide more practice-oriented training for both women and men in the selected occupations. They are:

• Dairy producers at Ulaangom Polytechnic

College in Uvs aimag;

• Fruit and vegetable preservers at Khovd

Polytechnic College in Khovd aimag;

• Subsistence mixed crop and livestock farmers

at Vocational Training Production Centre (VTPC) in Bayankhongor aimag;

• Automotive vehicle mechanics at VTPC in

Gobi-Altai aimag;

• Concreters at Zavkhan VTPC in Zavkhan

aimag;

• Road workers at Ulgii VTPC in

Bayan-Ulgii aimag.

• As a result of facilitation by the VET Project, such private sector organisations as the Mongolian Employers’ Confederation, the Chamber of Commerce and Industry, Association of Mongolian Agricultural cooperatives, Association of Road workers, Association of Milk Producers and Associaion of Vegetable Growers and other professional associations have demonstrated a commitment to VET sector development by signing Memorandums of Understandings (MoUs) that have led to improved cooperation at local levels. The MoUs will support more in-company trainings and more employment opportunities for VET school graduates.

|

Developing vocational skills for

unskilled men and women

To complement its intervention in vocational skills development in Mongolia, at the end of 2013 SDC launched a three-year pilot Vocational Skills Development (VSD) Project in cooperation with GIZ. The project will focus on short-term skills development training and vocational career guidance aimed at women and men who are ineligible to enrol in the formal TVET sector. Interventions in six western aimags, Ulaanbaatar, Darkhan-Uul and Govisumber aimags will enhance the employability of up to 5000 people who lack the marketable skills required to productively engage in the economy.

© Vocational Education Training Project

Mechanical students VET school in Govi-Altai

|

Linking rural and urban medical

practitioners for timely diagnosis

The Telemedicine Project – the result of a decade of partnership between Swiss and Mongolian doctors – came to an end in 2013 and was handed over to the Ministry of Health, which has affirmed its commitment to continue supporting the Mongolian Telemedicine Network and utilising the telemedicine system.

• The telemedicine system, introduced by the Swiss Surgical Team, is helping to improve the quality of, and access to, health services in remote rural areas. The basis of the system is telemedicine equipment, which was made available to 21 aimag hospitals and the major hospitals in Ulaanbaatar.

• The introduction of telemedicine helps to bridge the vast distances that are difficult to cover on unpaved roads. Telemedicine is used to discuss medical cases between physicians in rural areas, who generally lack specialised knowledge, and experts in Ulaanbaatar and elsewhere in the world.

• As of June 2013, more than 28,000 babies were screened for hip dysplasia in the Maternal & Child Health Research Centre in Ulaanbaatar using the CampusMedicus – a software system used by Telemedicine, which enabled case-by-case consultations with doctors in Switzerland in timely treatment for 1300 babies, who otherwise faced a lifetime of hip problems.

|

Building youth life skills

In 2013, SDC joined a multi-stakeholder UNFPA initiative to build life skills for young men and women to enable them to become more resilient to vulnerability and to increase their employability in the current period of booming economic growth. • Recognising the demand for better life skills

and sexual and reproductive health education in VET institutions, the Ministry of Labour, in cooperation with the Youth Development Programme (YDP), has taken the lead in developing life-skills modules and trainings for educators and teachers in VET schools. The VET schools began using the new modules in 2013.

examined

28,000

identified

1,300

Using the CampusMedicus system during the project duration:

© Dustin Barter / UNFPA

Youth participate in planning of Youth Development Centre activities

newborn babies

/

Эко сургуулийн зураг, эсвэл цөлжилт гэрэл зургийн уралдаанд ирсэн

зургуудаас оруулах/

By Dustin Barter

Youth Empowerment and Advocacy Officer

Youth Development Project

Youth Peer Educators Making a Difference

“Y-Peer saved my life, and for that I am so thankful” said Oyuka*, recalling her recent suicidal thoughts before a youth peer educator reached out to her and helped pull her back from the brink.

Life can be challenging and isolating for young people throughout Mongolia; moving from the countryside to urban centres for education and employment, leaving families behind while the country rapidly changes. In this context, UNFPA’s youth peer education program, Y-Peer, reaches out to the most vulnerable and marginalised youth in Mongolia - not just educating, but also saving lives. Y-Peer educators are youth trained in such fields as outreach and counselling who go into the community to provide support for other young people. With support from SDC, UNFPA initiated an innovative Y-Peer campaign called New Friends. Being a peer educator at a young age is no easy feat, requiring confidence, empathy and flexibility. Even then, reaching out to the most marginalised youth is a challenge. The New Friends campaign encouraged peer educators to seek out “new friends”: Youths who have fallen through society’s cracks, be they sitting alone in the schoolyard or skipping school altogether. When troubles arise, youth peers are on hand, taking note of early signs of things going awry.

Enkhbat joined Y-Peer as an enthusiastic, conscientious youth who was keen to support his peers in Zakhan aimag. Following introductory training, he was determined to make a difference as part of the New Friends campaign. With the aim of reaching out to people beyond his comfort zone, each day he noticed a girl sitting alone in the schoolyard, despondent and not talking with anyone. “She didn’t like to talk and couldn’t express what she wanted, so we started writing letters. Each letter explained bit by bit what she was experiencing.”

Living in a dormitory away from home, Oyuka struggled with personal demons; her mother was very sick and her classmates were bullies. She was worried about her mother, but ongoing conflict between them meant they never talked. It was distressing and was eating her up inside.

“Enkhbat, my friend, please forgive me. Now I have no other means to live. In fact, I don’t even understand myself. My classmates misunderstand me and it leaves me no option. I have no one; it’s difficult, it makes me feel bad. As my classmates bully me, I’d rather die … Please stop worrying about me … Please don’t write to me,” she wrote. Unperturbed, Enkhbat continued to exchange letters: “Don’t be sad, my friend. We can talk together, my friend. If you have something that you don’t want to share with others, you can tell me. I won’t tell anyone; I will keep it to myself,” he wrote.

Letter by letter, trust was built. As the threat of suicide increased, Enkhbat suggested visiting a doctor trained in psychology. Reluctant at first, Oyuka finally acquiesced and they visited the doctor together.

In discussing Oyuka’s desperate plight, Enkhbat was able to bridge the communication gap. Bit by bit, Oyuka’s outlook on life and confidence improved, causing the bullying to stop. There was hope.

“Y-Peer saved my life,” she said. “And for that I am so thankful.”

* Names have been changed to protect people’s identities

Youth supporting their peers

State Reform, Local Governance and

Civic Participation

Goal: Effective, efficient and fair local governments, satisfied citizens, genuinely

representative and effective CSOs

LOCaL gOvErnanCE

Improved performance and accountability of local governments

DEvELOPMEnT OF CIvIL SOCIETY

Improved capacity and social accountability role of civil society organisations (CSOs) (geographic focus on the national level)

Projects under State reform, Local

governance and Civic Participation

Domain:

• Governance and Decentralisation Programme

• Public Investment in Energy Efficiency Project

• Capacity Strengthening of Local Self-Governing Bodies Project

• Capacity Building of the Local NGOs Project

Programme h

Ighl

Ight

|

Advancing efforts for greater

decentralisation and wider civic

engagement

The SDC Governance and Decentralisation Programme (GDP) is assisting Mongolia in making further steps in strengthening the decentralisation reform process and in supporting nascent forms of direct democracy.

• Based on technical assistance and recommendations for policy and practice provided by the GDP, the Office of the President has issued two important guidelines and policies to strengthen decentralisation and direct democracy: (1) “The National Agenda for Citizens’ Participation”, which is a guideline for the implementation of “The Mid-Long Term Strategy Paper for Citizens’ Participation” (2012-2022), adopted by presidential decree in September 2012; and (2) A presidential decree issued in January 2013 to establish a “Policy Board on Decentralisation through Direct Democracy and Civic Engagement”, which institutionalises a means for debating decentralisation policy under the auspices of the Office of the President.

• Decisions on Local Development Fund (LDF) expenditure is facilitated with participation from local citizens. The Fostering Civic Engagement at the Sub-National Level (FOCE) Project – the largest component under GDP - is empowering communities to independently determine the allocation of funds and is ensuring that there is a greater level of participation in local-government decision-making processes. In four of the six pilot sites, local governments allocated LDF resources to finance priorities identified through

FOCE-facilitated discussions among citizens. Common priorities identified by citizens included street lighting, signage for street addresses, the renovation of facilities for children and the elderly, public restrooms, and breeding animals for herders.

• The one-stop-shop (OSS) model for effective service delivery, initiated through SDC’s earlier governance work, is being institutionalised with the adoption of a government resolution committing Ulaanbaatar City and aimag governors to the allocation of annual budgets for OSS maintenance and operations. In addition, the government is now covering 40 percent of the costs of OSS replication in 10 pilot locations at the lowest administrative tier: baghs. This is another indicator of the progress that has been made in the institutionalisation of OSS, which is now a component of the GDP. A 2013 baseline survey found that 76 percent of surveyed customers were satisfied with their experiences at OSS centres.

• Government tendering leads to local development opportunities led by the private sector. Local public procurement practices have become more open, transparent and accountable in the 13 pilot aimags of the GDP’s improved Competitive Outsourcing of Government Services (iCOGS) Project. Of the 130 public tendering processes in the 13 pilot aimags, 38 contracts with a value of CHF 6.3 million were concluded through a well-structured, transparent and participatory procedure as prescribed by the law. Developed with support from the iCOGs Project, the General Procurement Agency of Mongolia is formally using the Procurement Transparency Index to assess the level of transparency of each tender.

Satisfaction rate of the surveyed clients:

76%

Open transparent tendering:

38

contracts with value of

CHF 6.3 million

from

130

13

During the bagh citizens‘ meeting, people from Azraga bagh of Undur-Ulaan soum, Arkhangai aimag prioritized a number of activities to be funded by the LDF .

© Governance and Decentralisation Programme

|

Formalising artisanal mining into

economic development

SDC continues to be the leading partner in the formalisation of the artisanal mining sector in Mongolia, which is gradually being recognised as an important contributor to rural livelihood development and the national economy.

• According to the Sustainable Artisanal Mining (SAM) Project, the livelihoods of formalised artisanal and small-scale mining (ASM) communities have shown significant improvement in all clusters of livelihood assets (physical, natural, financial, social and human). The average monthly income of formalised miners engaged in gold and fluorite mining is CHF 680 (up from CHF 450 in 2012).

• The changes in behaviour, attitude and environmental stewardship of ASM miners has been demonstrated by their rehabilitation of 26.6 ha of mined land, which represents a 47 percent increase on 2012. They have also collectively deposited CHF 50,250 into soum rehabilitation funds, which is 28 percent more than in 2012. CHF 450 CHF 680 Avarage monthly income of formalised artisanal miners: 2012 2013 Rehabilitated area in 2013:

26.6

47%

CHF 50,250

28%

© Sustainable Artisanal Mining Project

|

advocating for responsible formal

artisanal mining

Once marginalised for the negative impact they had on the environment, Mongolia’s artisanal and small-scale miners (ASM) are gradually becoming more formalised and are being recognised as contributors to the economy. This is largely due to the efforts of years of advocacy by SDC’s SAM Project.

• A change in attitude was demonstrated when, in August 2013, the Cabinet submitted a draft Minerals Policy to Parliament detailing ways to enhance the ASM legal framework. Amendments to the current draft Law on Minerals include provisions on ASM organisational forms and land access. The policy and law are expected to be approved in early 2014.

• The National Human Rights Commission of Mongolia submitted a report to Parliament with recommendations on the ASM legal framework and formalisation, and on the duties of the state towards ASM miners.

• Artisanal miners have themselves made a substantial effort in helping facilitate attitudinal change. Many have now organised themselves into self-governing bodies, and as a result there are now 37 ASM NGOs, an increase of 15 from 2012. ASM communities also established a National Federation in April 2013 that is already playing a significant role in policy dialogue, institutional engagement and sectoral advocacy.

|

Improving environmental

rehabilitation of responsible artisanal

mining

SDC renewed its commitment to Mongolia’s environmental conservation by continuing its support to the Engaging Stakeholders in Environmental Conservation (ESEC) Project throughout its second phase.

• The project has facilitated the establishment of 31 Local Multi-stakeholder Councils (LMCs) consisting of local governments, large and small-scale mining representatives, civil society and local communities. Through the LMCs, stakeholders are able to make informed decisions and strive for positive social, economic and environmental change at the local level. As a result, 17 LMCs have had soum environmental action plans approved by their Citizens’ Representative Khural, while eight have drafted plans that are awaiting approval.

• Through the support of the ESEC Project, the General Agency for Specialized Inspection has approved and integrated soil pollution, erosion and degradation indicators into the environmental inspector’s checklists; and water-quality monitoring methods have been integrated into the work duties of water guardians by the National Agency for Hydrology and Meteorology.

© Sustainable Artisanal Mining Project

Artisanal miners of Enkh Munkh Ergekh Kholboo NGO are

rehabilitating mined areas, in Zaamar soum, Tuv aimag

Local NGO leaders have benefited from a range of trainings facilitated by the Capacity Building of NGOs Project.

© D.Davaanyam / Swiss Cooperation Office

|

Suppporting local ngOs

SDC continued its support to capacity building of local civil society organisations – a strong pillar of any democratic nation. The project is coming to a conclusion in 2014.

• The Swiss supported Capacity Building of NGOs Project facilitated trainings for more than 120 local NGOs through a twin track approach 1) The creation of bespoke training materials responding to issues arising from a detailed baseline needs assessment along with input on content and pedagogy from the University of Fribourg; and 2) The creation of local civil society networks that, having learnt new approaches, receive ongoing coaching and mentoring to sustain momentum. • A key outcome of the project is the creation

of a specially designed Master’s programme on NGO Management at the Institute of Finance and Economics in Mongolia, which will start in 2014.

In cooperation with the Ministry of Energy and the Cabinet Secretariat of Mongolia, SDC and GIZ concluded a cooperation contract to implement a three-year Public Investment in Energy Efficiency (PIE) Project, which started in January 2014. The project will run until December 2016, reaching out to the remote rural provinces of Khovd and Zavkhan in western Mongolia, which are among the poorest in the country.

The PIE intervention aims to support the Mongolian government in its decentralisation and participatory budgeting reform process, and assists in the implementation of its national energy-efficiency strategy. The project will target local stakeholders at the aimag and soum levels, including those citizens who are entitled to be involved in participatory budgeting, businesses involved in energy services, local politicians and local government employees. The project will contribute to SDC’s domain goal of fostering effective, efficient and fair local governments, satisfied citizens, and genuinely representative and effective civil society organisations.

|

Strengthening local self-governing

bodies

In 2013, SDC started to co-finance the UNDP initiative “Capacity Strengthening of Local Self-Governing Bodies”, which complements SDC’s support for Mongolia’s governance and decentralisation reforms. The project was developed to contribute to the capacity strengthening of local self-governing bodies (khurals). It has a representational, legislative, oversight and budgetary mandate aimed at promoting effective, inclusive and accountable local governance. The project features capacity-building for newly elected khural members and associated training methodologies, including the sharing of best practices in citizen participation and the development or adaptation of tools to support the oversight functions of khurals. The project also develops and implements a leadership programme targeting female khural members.

By Ts. Munkhgerel

Project Officer

GDP Component 4: Bringing public services to citizen’s doorsteps

“An easy stop for a single mother”

Narantuya is an unemployed single mother of three young children who also takes care of her ailing, bedridden mother. The family lives in a ger in Uvs aimag in northwestern Mongolian, one of the coldest aimags in the country, 1300 km from the capital, Ulaanbaatar.

“Finding money for food for my family is my day-and-night struggle,” said J.Narantuya. Her main concern is putting food on the table and keeping her family warm during the harsh winter months. With no education, she has found it difficult to find work, particularly in the cold winter months. During summer, she is able to work on farms or make bricks, which brings in some income although it is very strenuous. To keep her family fed, she relies on government social-welfare benefits, which she receives at her local One-Stop Shop.

The One-Stop Shop (OSS) is a government service centre that provides a range of public services under one roof. It took her weeks, but J.Narantuya was eventually able to find someone to look after her family for a few hours to enable her to walk 3km to the OSS in the aimag centre to pick up welfare benefits totalling MNT 62,800 (MNT 52,800 for taking care of an elderly person incapable of working and MNT 10,000 in food stamps). She was also hoping that her annual allowance of MNT 120,000 for female-headed households was also transferred.

On arriving at the 110 square metre OSS office, she went to the counter that provided social welfare services. “I would like to receive the social welfare benefits to which I am entitled.” asked J.Narantuya. When she was handed the allowance, she said “I am so happy that I can bring some food and mutton to my family this afternoon.”

The OSS staff member reviewed her documents and processed her request within 10 minutes, dispensed her food stamps, and then directed her to another window where a Khan Bank teller was on hand to process her welfare payment, along with the allowance for female-headed households. She was delighted to be informed on more benefits. “Your mother

is also eligible for social welfare benefits for the elderly,” said the OSS staff, and explained the process she needed to undertake. The additional funds - dispersed on a quarterly basis - will help them meet their basic needs.

J.Narantuya’s day was a successful one; she received a total of MNT 182,800 (about USD $96) and MNT 25,000 worth of food stamps to cover the month of March. The fast and efficient service delivery of the OSS made it possible for her to buy the food she needed without adding extra stress to her life.

At present, 22 percent of Mongolian households are female-headed - 75 percent in Ulaanbaatar and 25 percent in the countryside. Seventy percent of those households are living in poverty; Narantuya’s household is but one of them. The figures demonstrate that the government needs to pay more attention to female heads of households who are struggling to survive.

outlook for 2014

Under the Swiss Cooperation Strategy for 2013-2016, the Mongolia programme is experiencing a significant increase in overall budget and number of projects, as well as the implementation of a more systematic programme-monitoring system. The overall programme budget is expected to significantly increase from about CHF 17 million in 2014 to about CHF 20 million in 2015.

The main focus of the SDC programme in 2014 will be to consolidate new project activities, to enhance coordination between projects and between domains, and to strengthen the monitoring and evaluation (M&E) capacity of the SCO and partner organisations. The largest of the projects that will be added to SDC’s portfolio in 2014 is “Education for sustainable development”, which aims to integrate education for sustainable development (ESD) into all the 756 schools in Mongolia through the revision of the curricula and the training of the teachers to adopt new student centred teaching methods. The consolidation of project activities and better coordination across the portfolio will require SDC

continue to invest significantly in the M&E capacity of its staff and partner organisations. Strengthened M&E capacity is necessary to ensure proper monitoring of the expanding project portfolio and to undertake more systematic programme monitoring as set out in the Results Framework and Monitoring System of the new cooperation strategy.

In addition, SDC is committed to strengthening its activities for the realisation of the strategy’s transversal theme of gender equality, with more targeted training on gender equality-related topics required for SDC staff and partner organisations. Thus, it requires each project to outline gender in the project’s annual action plan.

2014 marks half a century of diplomatic relations between Mongolia and Switzerland and coincides with the 10th anniversary of Swiss Development Cooperation with Mongolia. In marking these two anniversaries, SDC is supporting a number of cross-cultural exchanges and joint cross-cultural projects, the main feature of which will be a concert by Swiss and Mongolian artists using traditional instruments

abbreviations:

AFS Agriculture and Food Security

AHP Animal Health Project

APUG Associations of the Pasture-Users Groups (PUGs)

ASM Artisanal and Small-scale Mining

CBT Competency-Based Training

CODEP Coping with Desertification Project

CHF Swiss Francs

COGS Competitive Outsourcing of Government Services

CSLB Capacity Building Local Self-governing Bodies Project

CSOs Civil Society Organisations

DP Democratic Party

ESEC Engaging Stakeholders in Environmental Conservation Project

FDI Foreign Direct Investment

FOCE Fostering Civic Engagement at Sub-National Level Project

GDP Governance and Decentralisation Project

GG Green Gold Project

GIZ The Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH

IBLIP Index-based Livestock Insurance Project

LMCs Local Multi-Shareholders Council

M&E Monitoring and Evaluation

MNDP Mongolian National Democratic Party

MPP Mongolian People’s Party

MPP Mongolian Potato Programme

MPRP Mongolian People’s Revolutionary Party

OSS One-Stop-Shops

PIE Public investment in Energy Effiency Project

PUG Pasture Users’ Groups

SAM Sustainable Artisanal Mining

SCS Swiss Cooperation Strategy

SDC Swiss Agency for Development and Cooperation

UNDP United Nations Development Programme

UNFPA United Nations Population Fund

USD American dollars

VET Vocational Education and Training

VSD Vocational Development Project

VTPC Vocational Training and Production Centre

WB World Bank

WUGs Water Users’ Groups

YDP Youth Development Programme

2012: CHF/MNT 1456

2013: CHF/MNT 1636

CHF Rate