THE FOURTH NATIONAL REPORT          GOVERNMENT OF MONGOLIAMILLENNIUM DEVELOPMENT GOALS        IMPLEMENTATION   THE FOURTH ...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION        DDC        341.23        Ì-692        The Millennium Development Goals ...
THE FOURTH NATIONAL REPORT    CONTENTList of Abbreviations 		                                                             ...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION       LIST OF ABBREVIATIONS    ADB 		              Asian Development bank    A...
THE FOURTH NATIONAL REPORTMDGs		    Millennium Development GoalsMECS		    Ministry of Education, Culture and SciencesMFALI...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION       BOXES    Box 1. 	       World Economic Review    Box 2. 	       Exchange...
THE FOURTH NATIONAL REPORTTable 25.	    Number of population living in dwellings with access to central water supply engin...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION       FIGURES    Figure 1. 	    Share of Sectors in Real GDP growth (percent)	...
THE FOURTH NATIONAL REPORTFigure 34.	   The number of cellular phone users (per 1000 population)	Figure 35. 	 Target imple...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION                                                              I am happy to not...
THE FOURTH NATIONAL REPORTfocus on the two abovementioned MDGs through            requires substantial resources in terms ...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION                                                               the State Great ...
THE FOURTH NATIONAL REPORTI also thank all the working group members,representatives of the civil society and academia,who...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION     OVERVIEW     Gross Domestic Product     In 2010, the real economic growth ...
THE FOURTH NATIONAL REPORTManufacturing and Construction                                                          bOX 1. W...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION     Services                                                    to grow intens...
THE FOURTH NATIONAL REPORTSurge in prices of the non-foodstuff basket              dropped by 3.4 percent. However, in 201...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION                                 Figure 4. Major Currencies Appreciation       ...
THE FOURTH NATIONAL REPORTReview of the structure of Mongolia’s exports of         Similarly, due to increase of populatio...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION20
THE FOURTH NATIONAL REPORTGOAL ONEERADICATE EXTREME POVERTYAND HUNGER                                              21
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION              GOAL 1                   ERADICATE EXTREME POVERTY AND HUNGER    ...
THE FOURTH NATIONAL REPORT                    Table 1. Poverty headcount, poverty gap, consumption and GDP per capitaIndic...
MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION       Figure 6. Gross Domestic Product per capita and                         ...
THE FOURTH NATIONAL REPORTThere is a lack of services aimed to assist the            	Increase poverty fighting expenditu...
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
Mongolia MDG implementation. the 4th national report eng
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Mongolia MDG implementation. the 4th national report eng

  1. 1. THE FOURTH NATIONAL REPORT GOVERNMENT OF MONGOLIAMILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION THE FOURTH NATIONAL REPORT Ulaanbaatar. 2011
  2. 2. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION DDC 341.23 Ì-692 The Millennium Development Goals Implementation Fourth National Report. 2011 The Fourth National Report is published in Mongolian and English. Except for specific referenced cases, all the data and information used in the report have been taken from official sources. Contact address: National Development and Innovation Committee United Nation’s Street 5/1 Government Building II Ulaanbaatar 15015, Mongolia Telephone: (976)-51-265912, (976)-51-260973 Fax: (976)-51-260973, (976)-51-263569 Web: http://www.ndic.gov.mn/ www.undp.mn E-mail: info@ndic.gov.mn Printed with the financial support of the Pilot project to support the National Poverty and MDGs Monitoring and Assessment System (PMMS), UNDP Mongolia. ISBN 978-99962-1-624-42
  3. 3. THE FOURTH NATIONAL REPORT CONTENTList of Abbreviations 4Boxes 6Tables 6Figures 8Foreword. Elbegdorj Tsakhia, President of Mongolia 10Acknowledgements. Khashchuluun Chuluundorj, Chairman of NDIC 12Overview 14Main Report 20CHAPTER 1. The MDGs implementation in Mongolia 22 Goal 1: Eradicate extreme poverty and hunger 22 Goal 2: Achieve universal primary education 38 Goal 3: Promote gender equality and increase women’s participation in political decision- making 46 Goal 4: Reduce child mortality 56 Goal 5: Improve maternal health 62 Goal 6: Combat STIs/HIV/AIDS and TB, reverse other diseases 70 Goal 7: Ensure environmental sustainability 80 Goal 8: Develop a global partnership for development 102 Goal 9: Strengthen human rights and foster democratic governance 122CHAPTER 2. MDG implementation, advocacy and public participation 141CHAPTER 3. Local Development Index 145 CHAPTER 4. MDG Monitoring and Evaluation 151ANNEXES 153bibliography 157THE NATIONAL REPORT PREPARATORY TEAM 159 3
  4. 4. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION LIST OF ABBREVIATIONS ADB Asian Development bank AIDS Acquired immune deficiency syndrome ALACGaC Agency of Land Affairs, Construction, Geodesy and Cartography AQS Air Quality Standard AUM Agricultural University of Mongolia BE Business Entity BGD Bayangol District BZD Bayanzurkh District CDM Clean Development Mechanism CHD Chingeltei District CRKh Citizens’ Representatives Khural CTCP Child Treatment Comprehensive Package EMB embassy EPF Employment Promotion Fund ESCAP Economic and Social Commission for Asia and the Pacific FRG Federal Republic of Germany FTA Free Trade Agreement GCA General Customs Administration GDP Gross Domestic Product GEM ` Gender Empowerment Measure GES General Educational School GMCS Geology and Mining Cadaster Services HDI Human Development Index HI Health Insurance HIV Human Immunodeficiency Virus HSES Household Socio-Economic Survey IAAA Independent Agency against Corruption ICTPA Information, Communication, Technology and Post Authority IFE Institute for Finance and Economics IHM Institute of Humanities of Mongolia IMF International Monetary Fund KHU Khan-Uul District LLC Limited Liability Company LSWSD Labor, Social Welfare and Service Department MCA Millennium Challenge Account MCCI Mongolian Chamber of Commerce and Industry4
  5. 5. THE FOURTH NATIONAL REPORTMDGs Millennium Development GoalsMECS Ministry of Education, Culture and SciencesMFALI Ministry for Food, Agriculture and Light IndustryMMPs Multiple Micronutrients (Minerals and Vitamins) PreparationsMNET Ministry of Nature, Environment, and TourismsMNT Mongolian TugrugMSWL Ministry of Social Welfare and LabourM2 Money supplyNDCS National Development Comprehensive StrategyNGO Non-Government OrganizationNSO National Statistical OfficeNUM National University of MongoliaODA Official Development AssistanceOOG Office of the GovernorPLC Publicly Listed companyPLE Permissible Level of EmissionPRC People’s Republic of ChinaRF Russian FederationRH Reproductive HealthROK Republic of KoreaRP Republic of the PhilippinesSBD Sukhbaatar DistrictSEC Socio-Economic CommissionSGKh State Great KhuralSKD Songinokhairkhan DistrictSMEs Small and Medium size EnterprisesSPA Special Protected AreasSTIs Sexually Transmitted InfectionsTVET Technical and Vocational Educational TrainingUB UlaanbaatarUN United NationsUNDP United Nations Development ProgrammeWHO World Health Organization 5
  6. 6. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION BOXES Box 1. World Economic Review Box 2. Exchange Rate Dynamics Box 3. Bloomberg Business Journal List Box 4. Mongolia Poverty Profile Box 5. The MDG-based comprehensive strategy TABLES Table 1. Poverty headcount, poverty gap, consumption and GDP per capita Table 2. Under-Five Malnutrition (underweight, stunting and wasting) Table 3. Labor force participation rate and unemployment rateamong 15-24 aged, 2007-2010 Table 4. Population Migration, 2006-2010 Table 5. Enrollment Ratio in Primary Education, Percentage of pupils starting Grade 1 who reach Grade 5 and Literacy rate Table 6. Supply by Dormitories Table 7. Sex Ratio in Primary, Secondary, High and College Education, 2010 Table 8. Percentage of women in non-agricultural wage employment, 2007-2010 Table 9. Sex ratio among civil servants Table 10. Percentage of women candidates for national parliament elections and women members of parliament Table 11. Factors for Low Political Participation of Women, percent, 2010 Table 12. Reasons “Why Women Participation Should Be Increased” Table 13. Maternal Mortality, Births Attended by Health Professional Table 14. Maternal Mortality Rate per 100,000 of Live Births Table 15. HIV Infection Rate among Pregnant Mothers & Youth Aged 15-24 (percent) Table 16. Prevalence of tuberculosis Table 17. Prevalence of caries among children aged 5-6 years (percent) Table 18. Proportion of forested areas, Proportion of special protected areas, Carbon dioxide emissions per capita, concentration of nitrogen dioxide in the atmosphere Table 19. Forestation Investments (percent) Table 20. Total Forested Area of Mongolia (thousand ha) Table 21. Proportion of Forested Area under Community Management Table 22. Size of Special Protected Areas (percent) Table 23: Content of air contaminant – carbon dioxide (CO2) Table 24. Proportion of protected surface water sources 6
  7. 7. THE FOURTH NATIONAL REPORTTable 25. Number of population living in dwellings with access to central water supply engineering systems (2010) Table 26. Exports structure Table 27. ODA, Ratio of Exports in GDP, Financial Deepening, percent Table 28. Proportion of Official Development Assistance (ODA) provided To help build trade capacity (Share in GDP, million USD) Table 29. Asset structure in financial sector, 2010 Table 30. Share of money supply in GDPTable 31. Transit Freight 2003-2010 (thousands tons) Table 32. Share of transit shipments in railway transportation (2007-2010) Table 33. Total Foreign Outstanding Loans (2010, MNT billion) Table 34. Debt Sustainability Indicators Table 35. The Government Bond Trading /2006-2010/ Table 36. MDG Monitoring Indicators Table 37. Expert Evaluation Findings of Conformity of Mongolian Laws and Regulations with International Human Rights Treaties and Conventions Table 38. The public perception of the media’s political, economic and financial independence (national average, percent) Table 39. Public trust in press and media (national average, percent) Table 40. Public Perception about NGO Activities, (percent) Table 41. Have NGOs been capable to carry out their roles and duties in the society? (Percent, years)Table 42. Scope of Corruption Table 43. Indicators of the forms of corruption Table 44. Corruption Index, aimag/capital Table 45. Susceptibility to corruption judicial organizations (by levels) Table 46. Evaluation of factors influencing the corruption in judicial and law enforcement organizationsTable 47 . Public perception about the corruption in public administration and public service organizations Table 48. IAAC Budget and Budget Disbursement, million tugrugs Table 49. MDG Target 24: Current State and Target Table 50. MDG Target 24: Estimation of required funding, billion tugrugs 7
  8. 8. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION FIGURES Figure 1. Share of Sectors in Real GDP growth (percent) Figure 2. Inflation rate, 2010 (from the beginning of the year) Figure 3. Currency Hot Spots of Figure 4. Major Currencies Appreciation (against the USD. 2010). Figure 5. Foreign Trade (2005-2010, in million USD) Figure 6. Gross Domestic Product per capita and average monthly wage Figure 7. Minimum Living Standard (MLS), Minimum wage rate, Age Pension Rate and Transitional Rate of Pension (2009-2010, thous. MNT) Figure 8. Social status of youth of age 15 – 24, 2010 Figure 9. Employed Population of age 15-24 (thousand people) Figure 10. Sex Ratio in Primary, Secondary, High and College Education Figure 11. Infant Mortality Rate and Under-five mortality rate, 1990-2010 Figure 12. Under-Five Mortality Figure 13. Maternal Mortality Rate Figure 14. Size of Special Protected Areas, million ha Figure 15. Ulaanbaatar air quality monitoring stations Figure 16. Annual Mean Content of Sulfur Dioxide and Nitrogen Dioxide Figure 17. Daily mean content of sulfur dioxide in the atmosphere of Ulaanbaatar in winter period SO2 (mkg/m3) (Nov 2009-Jan 2010) Figure 18. Daily mean content of nitrogen dioxide in the atmosphere of Ulaanbaatar in winter period NO2 (mkg/m3) (Nov 2009-Jan 2010) Figure 19. Map of Sources of Rivers and Streams Figure 20. Protected sources of rivers and streams (2010) Figure 21. Water Supply and Improved Canalization Figure 22. Public Investment, MNT million (2006-2010) Figure 23. Housing fund, number of apartment, and housing space (2000-2010) Figure 24. Living space for the apartment per person, m2 Figure 25. Export growth, USD million Figure 26. Export structure, percent, 2010 Figure 27. Money Supply Structure and Dynamics Figure 28. Government Foreign Loan Sources Figure 29. Number of Landline Phone Points (per 1000 population) Figure 30. Number of landline phones (thousand units) Figure 31. Number of Permanent Internet Users (per 1000 persons) Figure 32. Number of Permanent Internet Users (thousand units) Figure 33. The number of cellular phone users (thousand units) 8
  9. 9. THE FOURTH NATIONAL REPORTFigure 34. The number of cellular phone users (per 1000 population) Figure 35. Target implementation statement (percent) Figure 36. Public trust in political parties (percent) Figure 37. Registry of assets and income declarations Figure 38. Corruption Index and its component indicators Figure 39. Perception of corruption in political, judicial and law enforcement institutions Figure 40. Susceptibility to corruption of public officials in state administrative organizations Figure 41. Factors influencing the corruption risk in judicial and law enforcement organizations (by sectors)Figure 42. Differences in Indices of Aimag and Capital City Development Figure 43. Access to Educational Services Figure 44. Culture and Art Figure 45. Access to Health Services Figure 46. Environmental Sustainability Figure 47. Social and Economic Development Figure 48. Financial Situation 9
  10. 10. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION I am happy to note that UNDP Regional Director for Asia and the Pacific has paid a visit to Mongolia in 2010, and obtained first-hand onsite information as well as successfully conducted an international conference right at the time when we were preparing our 4th National Report. The MDGs implementation is carried through the long-term national development which is MDG- based and called formally as the Comprehensive National Development Strategy of Mongolia until 2021. Determining MDGs as well as optimal ways to reach them and ensuring proper implementation plays an important role in development of Mongolia. The Fourth National Report on MDG Implementation was based on official statistical data and was compiled with the participation of non-government organizations, incorporating the ideas and comments of researchers and academia. As such, it can be regarded as publicly inclusive document, which depicts diverse views on development policies and actions. FOREWORD Global issues like environmental deterioration, terrorism, nuclear weapons, cross-continental crime, abuse of human rights, economic crisis, global Nations around the globe have joined into one big warming and poverty urges all nations around the family called the United Nations, and jointly striving world to cooperate not only for the national interests, for the Millennium Development Goals, which is a but also for the global common benefits. Mongolia comprehensive presentation of the global efforts for will continue to be an active member of the global better life of earthlings about human rights, healthy, community and will work with determination on secure and decent living conditions. The tradition issues and problems of regional and global interest. of hearings at the UN General Assembly has been established in order to assess and evaluate MDG Already 11 years passed since Mongolia started implementation efforts. Mongolia has presented its to implement the MDGs. During this period, 77.9 third National Report on MDG Implementation in percent of the targets are already met, providing 2010. a positive effect on the nation’s development. Unfortunately, some of the targets have shown 2011 marks the 50th anniversary of Mongolia’s regress and some are expected not to be met, if membership in the UN and declaring sovereign continued at the current pace. These are MDG1 Mongolia from the respected UN podium. Since on halving poverty, and MDG7 on ensuring then Mongolia has transformed passing two environmental sustainability and pollution, have different social systems as a member –state of the become an issue of concern of every Mongolian. UN as well as a sovereign independent nation. The United Nations has made a valuable contribution In 2015, we will present our final report on MDG to development of the modern democratic society implementation to the UN. It is clear that we will based on free market and cherishing human rights have to work hard in order to fulfill our commitments and freedom. with regard to the MDGs. There is a great need to10
  11. 11. THE FOURTH NATIONAL REPORTfocus on the two abovementioned MDGs through requires substantial resources in terms of financesdeveloping and implementing special programs and and time.projects in the coming four years left. In additionto helping people escaping from the so-called ‘the Let me hereby express my sincere gratitude to thepoor’ category, we need to work hard on preventing management of the Resident Mission of the Unitedour fellow citizens and households under the risk of Nations in Mongolia for their support in developingfalling into the poverty. the Fourth National Report on MDG Implementation, and looking forward continued fruitful and efficientNext but not lesser important issue is an cooperation with us.environmental issue, including reduction of airpollution in Ulaanbaatar, aimag centers and other I also would like to thank the government andsettlements. We are suffering from new diseases non-government organizations who have activelyand other negative impacts caused by air pollution. participated in preparing this report, and wishMongolia has started New Development program success in their future endeavors.within the range of activities aimed at air pollutionreduction. We consider that this program needs tobe implemented immediately in order to safe ourfuture and our children, despite that the program ELBEGDORJ TSAKHIA PRESIDENT OF MONGOLIA 11
  12. 12. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION the State Great Khural (the Parliament of Mongolia) as well the Mongolia Draft Economic and Social Development Priorities for 2012-2016 submitted for the Government approval. These policy documents focused mainly on human development, particularly combating poverty and reducing unemployment, improving access to better quality education and health services, as well as narrowing interregional development disparities. However, this Fourth National Report reveals that there rooms for improvements in area of the MDG implementation and strengthening efforts to accomplish our goals. One main concern is that the poverty rate is not reducing substantially and employment generation is lagging despite the rapid economic growth over the last couple of years. Therefore, we should focus on improving the living standards of the entire population, generating more jobs, increasing productivity and subsequently deliver equal and accessible growth in wages and income. To address these concerns the Government’s policy priorities focus on the implementation of major mining projects and programs, infrastructure development and sound management of the mining proceeds, ACKNOWLEDGEMENTS SME promotion as well as ensuring macroeconomic stability. First of all, it is my great pleasure to state that the It is encouraging to note from this Report that goals 4th National Report on Millennium Development and targets concerning maternal, infant as well as Goals Implementation has been completed. The under-five mortality, as well as targets concerning report evaluates projects and programs progress, primary education and tuberculosis fighting are provides road maps and approaches on how to expected to be met and some even over-achieved. implement them as well as providing information on the participation of NGOs and the Government The Government of Mongolia provided strong in this process. Mongolia’s regular assessment and support to the production of this Report. The Steering defining the future priorities demonstrates to the Committee comprising the top management of the people of Mongolia and the United Nations its line ministries and chaired by the NDIC Chairman fulfillment of commitments, and this effort has been was formed, and it was supported by the Working recognized internationally for many years. Groups consisting the various sectoral specialists and experts. The NDIC has coordinated the overall The government of Mongolia, specifically the report compilation. National Development and Innovation Committee from the first day of its operation, has concentrated The UNDP Resident Mission, UNFPA and other UN efforts on MDG implementation with a specific organizations have provided technical and financial focus on the goals and targets which are lagging support within the framework of their projects and behind, and reflecting activities and measures in the programs, which played crucial role in production policy documents to accelerate their achievement of the Report. Let me express my special gratitude by the 2015. For instance, policy documents like, to these organizations, especially to Ms. Sezin Mongolia Socio-Economic Development Guidelines Sinanoglu, UN Resident Coordinator and UNDP for 2011 was produced, submitted and approved by Resident Representative in Mongolia.12
  13. 13. THE FOURTH NATIONAL REPORTI also thank all the working group members,representatives of the civil society and academia,who have contributed their knowledge, expertiseand time to make available this Report.KHASHCHULUUN CHULUUNDORJCHAIRMAN, NATIONAL DEVELOPMENT AND INNOVATIONCOMMITTEE OF MONGOLIA 13
  14. 14. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION OVERVIEW Gross Domestic Product In 2010, the real economic growth was estimated and retail and wholesale industries 39.3 percent at 6.4 percent reaching MNT 4,162.8 billion at respectively. However, the livestock sector has fixed prices. This growth was mainly triggered by negatively affected on the economic growth, which the growth in the particular sectors such as mining was mainly caused by harsh winter and climate and extractive sector 3.6 percent, manufacturing calamities that resulted in massive livestock loss. The industries 6.1 percent, construction 16.5 percent, agricultural value added declined by 16.6 percent. Figure 1. Share of Sectors in Real GDP growth (percent) 15.0 - AgRICULTURE - MINING 10.2 10.0 8.9 8.6 - mANUFACTURING 6.4 - TRANSPORT AND COMMUNICATION 5.0 - tRADE - OTHERS 0.0 ECONOMIC GROWTH -1.3 -5.0 Source: National Development and 2006 2007 2008 2009 2010 Innovation Committee of Mongolia Agriculture accelerated implementation of this program is needed, and the measures aimed at re-stocking of herders and employing the members of household Due to decline of animal husbandry in 2010, a who lost their livestock in other sectors with higher number of heads of livestock fell by 11.3 million labor demand should be implemented on a priority and heads of offspring by 6.4 million compared to basis. the previous year. Moreover, a natural loss of adult animals reached 10.3 million of heads. Due to high In terms of farming industry, within the framework natural losses production of livestock originated of the “Virgin Land III” national campaign, in 2010, products, such as meat, milk, wool and cashmere, the total size of cultivated land reached 315.3 dropped significantly. thousand hectares, and the annual gross harvest yielded in 366.3 thousand tons of crops, 169.0 In particular, an abnormal high number of natural thousand tons of potatoes, 90.3 thousand tons of losses among the goats have diminished the vegetables, which enabled to supply 53.7 percent production level of the main agricultural raw material of vegetables demand domestically. Compared with - cashmere.In order to protect livestock industry the previous year, the total size of agricultural land from further natural disasters and enhance herders’ reached 584.0 thousand hectares due to an increase livelihoods, a national program - “Mongolian in the size of plowed land by 11.4 percent, and Livestock” - has been adopted by the Parliament mobilization of 255.3 thousand hectares of fallow of Mongolia, and put into effect. In future, more land.14
  15. 15. THE FOURTH NATIONAL REPORTManufacturing and Construction bOX 1. WORLD ECONOMIC OUTLOOKIn 2010, the industrial sector’s value added grew byMNT 1158.5 billion at fixed prices or at 4.3 percentincrease against the same period of 2009. In 2010, Starting from the 4th quarter of 2008 thecoal mining grew by 91.8 percent, petrol by 16.7 world economy has been faced crisis due to thepercent, and iron ore by 2.3 times, which resulted in failure of repayments on mortgages for housingmining sector worth of MNT 736.9 billion (at fixed market in USA. The loss of money on the hous-prices) or 3.6 percent increase compared with 2009. ing loans hit the banking system and thus caus-Coal mining has substantially increased due to the ing the world’s second round of economic crisis.opening of new mines Ovoot Tolgoi, Ukhaa Hudagand expansion of Hushuut coal mine. Similarly,the capacity of iron ore mines Tumurtei, Bayangol, As the crisis continued, in 2009 the rate ofTayannuur, Kharangat, Elstei and Tumurtolgoi has repayments on loans, number of bad debts andbeen expanded. Following an intensive exploration loans approved has all been affected negatively,of Tamsag and Dornogovi oil pools in 2010, petrol directly resulting from decreases in per capitamining resulted in the production of 2.2 million income, purchasing power of individuals acrossbarrels. the globe. The banks having left with numerous fixed assets changed their policies and sold theValue added of the manufacturing industry increased houses at discount prices. This lead to a sharpby 6.1 percent or reached to MNT 248.6 billion atfixed prices. Therefore, the food industry possessed drop in housing prices.the highest growth of all sectors and production ofcrop, flour, milk and dairy products has increased The stock prices for major US markets, asas well. well as copper and other main metal prices have seen price decreases.Value added of the construction sector reached MNT60.2 billion at fixed prices, that was an increase of By 2009, the world financial markets have16.5 percent compared to 2009. all depreciated and diminished by figures not seen in recent history. However, on the secondIn 2008, the government allocated MNT 1 billion tofund SME support programs, and with participation half of the year, some markets have stabilizedof the local authorities and commercial banks up to and seen prospects for positive economic change.MNT 1.4 billion were distributed to 321 citizens andbusinesses in the form of concessional (discounted) In 2010, the global commodity prices haveloans. Similarly, in 2009, the state budget fund stabilized, and economy grew again.of MNT 30.85 billion was expanded by localgovernments and commercial banks, and an amountof MNT 38,6 billion was borrowed to 1642 citizensand businesses at the discounted rates. As a result,515 new SMEs were founded and 1123 SMEs were At the national level, 1096 SMEs were founded,expanded their operations. In 2010, the government which enabled to create 5946 new jobs, and securefund of MNT 30 billion was upgraded to 40 billion, 6322 existing jobs.which was used by 1612 individuals and businessesat 12 percent per annum interest rate and 3 yearsof maturity. This assistance helped to establish 581new SMEs and expand 1031 operating SMEs. 15
  16. 16. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION Services to grow intensively from the beginning of the year, reached its peak of 13.1 percent in May of 2010, Value added of the service industry amounted to and slowed down and stabilized until the November. MNT 1770.2 billion at fixed prices, which was an Unfortunately, it surged again in December by 2.4 increase of increase of 9.8 percent compared to percent and resulted in a 13 percent increase at the 2009. Wholesale and retail business, which had end of the year. recessed in 2009, resurged in 2010 and its value added increased by 39.3 percent. The key drivers In terms of main drivers, the food basket entailed the behind this surge were a 62.4 percent increase highest inflation rate. In particular, increases in meat in the total sale of wholesale and retail sectors, prices were the most significant factor for the overall 53.3 percent increase in the volume of imported inflation. It accounts for 16 percent of the household goods and products, and 34.4 percent increase in total expenditure, and 40 percent of household the number of business entities (reaching 5058) consumer basket comprises from the meat and meat operating in the sector. products. In turn, the meat price sudden increase was associated with the devastating dzud in winter In line with the continued mining growth and of 2010, which resulted in diminished overall meat commencement of the Oyu Tolgoi project, there supply and state reserves. was an augmentation in the transportation of import freights. Consequently, value added of the Mongolia imports 70 percent of its food products. transportation sector increased by 7.0 percent. Out of 287 items in the consumer goods basket, around 158 kinds of products are imported and their share in total consumer basket is 30 percent. Inflation During the soaring inflation of 2008, 90 percent of Although it was indicated in the 2010 Annual the total increase was caused by price fluctuations Socio-Economic Guidelines that fluctuations in the in the non-food basket and food products, except Consumer Price Indices would be maintained within meat and flour. However, in 2010, growth in meat a single – digit rates, the inflation rate increased and meat product prices constituted 50 percent of to 13 percent at the end of the year due to due to the total inflation or 6.6 percentage points out of unforeseen circumstances, and other both internal total 13 points. and external factors. The inflation rate which started Figure 2. Inflation rate, 2010 (from the beginning of the year) 14 13.1 13 11.4 12 10.3 9.7 10 9 8.7 8.3 8.3 7.4 8 5.4 6 4 2.3 2 0 I.10 II.10 III.10 Iv.10 v.10 vI.10 vII.10 VIII.10 IX.10 X.10 XI.10 XII.10 Source: National Statistical Office Of Mongolia16
  17. 17. THE FOURTH NATIONAL REPORTSurge in prices of the non-foodstuff basket dropped by 3.4 percent. However, in 2010, the worldcompared with the end of 2009 represents an economy has revived and the gross production haseconomic recovery and production growth. On the grown by 5 percent. Consumption rose as a result ofother hand, in 2010, the country experienced a the global economic revival, mining industrial outputnumber of positive signs of economic expansion. For has grown dramatically as a result of increasedinstance, the money supply rose by 62.5 percent and demand for commodities and minerals as well asdomestic loans by 25.3 percent, and the outstanding increased mining and transportation capacities ofloans issued to citizens and business entities totaled major mining companies of Mongolia.to MNT 3.3 trillion, and it’s the total market valueincreased by 2.2 times. Box 2. Fluctuations of exchange ratesOverall, the inflation rate of 13 percent in 2010 wasexacerbated by factors, such as the harsh winter The amount of currency exchange fluctuations around the globe has been high asconditions in many aimags, increase in prices of well. Experts have highlighted that countrieselectricity and heating, an upward trend in cashmere with high unemployment rates, used nationwideprice, high economic growth and high inflation rate strategy of devaluing their currency comparedin China, harvest loss associated with hot weather to other currencies in order to increase theirand droughts, and Russia’s ban on wheat exports. exporting and support manufacturing.EXCHANGE RATE Net foreign reserves have passed the 2 billion USIn 2009, the world’s gross production increased by dollar mark in 2010 as a result of increase in foreign0.6 percent and economies of developing countries exchange inflows mainly due to export growth. Figure 3. Currency Hot Spots of Advenced against the U.S. dollar Declined against the U.S. dollar Small or no changes Source: Bloomberg Business week 17
  18. 18. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION Figure 4. Major Currencies Appreciation As of January, 2010, average exchange rate of (against the USD. 2010). MNT to USD was 1455.7. However, because of the aforementioned growth in currency inflow, Ñhange (%) the domestic currency has appreciated, and as of 20 December 31, 2010, the rate stood at 1257.18 demonstrating an exchange rate decline of about MNT 200. 10 Foreign trade As a result of internal and external positive factors, 0 in 2010, the foreign trade turnover of Mongolia reached to USD 6.2 billion for the first time Mongolian TUGRUG Japan YEN Malaysian RINGGIT Afghanistan AFGHAN Columbian PESO Singaporean DOLLAR Taiwan DOLLAR Mexican PESO Guatemala QUETZAL Chile PESO Western Samoa Tala South African Rand Swaziland lilangeni Tonga Pa`anga Israel Shekel Cambodia RIEL Kuwait DINAR Brazil reed Bhutan NGULTRUM South korea WON representing a growth of 53 percent compared with the previous year. In 2010, Mongolia traded with 132 countries and among them, the biggest losses incurred from the trade with the Russian Federation, Japan, Republic of Korea and Federal Republic of Germany. Hence, there is a need to enhance trade and economic relations with these countries Box 3. Bloomberg Business week and secure trade balances. In contrast, trade with the People’s Republic of China, Canada and Great The graph above shows the list of top Britain resulted in profits. currencies that have strengthened the most against dollar, presented on the last release of Bloomberg Business Weekly magazine in 2010. Mongolian togrog is the number one on the list. Figure 5. Foreign Trade (2005-2010, in million USD) 9000.0 4150.0 8000.0 - EXPORT 3245 3200 2909 - IMPORT 3150.0 7000.0 2535 - TRADE BALANCE 2138 2062 6108.6 1948 1885 2150.0 6000.0 1542.0 5779.0 1435.0 1177.3 - TOTAL TURNOVER 1063.9 5000.0 1150.0 4009.3 4023.1 4000.0 107 -252.3 -291.6 Source: General Customs - 114 -113 -710 150.0 Authority, Statistics on foreign 3000.0 2977.0 trade of goods 2241.2 -850.0 2000.0 2005 2006 2007 2008 2009 201018
  19. 19. THE FOURTH NATIONAL REPORTReview of the structure of Mongolia’s exports of Similarly, due to increase of population income and2010 demonstrates that 98 percent of exports strengthening their purchasing power the importsconsist of goods with absence or very low technology of vehicles have increased by 2.3 times comparedcontent. The growing tendency in export of mining with the previous year.products without or with low technology contentleads to vulnerability of export revenue and the As a result of increase of investment into mining,overall economy. and expansion of transportation and other service sectors capacities, both exports and imports haveThe Government of Mongolia issued a resolution grown significantly. In particular, volume of iron ore(No.6 of January 8, 2010) to expand capacity of export increased by 2.2 times and oil product importborder points “Gashuun Sukhait” and “Shivee by 1.3 times respectively.Khuren” in order to increase foreign trade turnoverwith a special focus on coal export through addressing So, if in 2009, domestic and external environmentchallenges faced by business entities and citizens had negative impact on economic growth, thewhile crossing the border. Appropriately, in 2010, situation in 2010 has reversed leading to the positivecoal export reached to 16.6 million tons displaying growths almost in all sectors. Mongolia is on thean increase of 2.3 percent from the same period of start of intensive economic growth, which providesthe previous year. This revenue increase enabled the a new opportunity for entering a new stage ofcoal overtake the exports of cooper concentrate. development. 19
  20. 20. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION20
  21. 21. THE FOURTH NATIONAL REPORTGOAL ONEERADICATE EXTREME POVERTYAND HUNGER 21
  22. 22. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION GOAL 1 ERADICATE EXTREME POVERTY AND HUNGER TARGET 1. Halve, between 1990 and 2015, the proportion of people whose income is below the minimum living standard Current Status BOX 4. Mongolia’s Poverty Level The MDG target is to reduce the poverty level to 18.0 The National Statistical Office of Mongolia percent and poverty gap to 6.0 percent by 2015. As defines the poverty level as followed. indicated in the 2010 Household Socio-Economic Survey, 39.2 percent of the total population lives Percentage of population with income below in poverty, which is an increase of 0.5 points from the poverty threshold/line is considered the poverty 2009 and by 4.0 points from 2008. This means that level. The poverty threshold/line is the minimum 1.090,1 people live in poverty and 39 persons per level of income deemed necessary to achieve an every 100 population are unable to afford basic adequate standard of living in a given country. food and non-food needs. Household income (consumption) and The regional estimates of poverty levels show a expenditure is calculated through living standards reduction in the Eastern region from 43.9 to 40.6 measurement survey. Number of poor households percent and in the Khangai region from 55.2 to 51.9 is computed on comparison of income and percent, as opposed to an increase in the Western expenditure with different structures to the poverty line. Number of households and persons and region from 48.7 to 51.1 percent. The poverty level total number of households and population with remains the same as in 2009 for the Central region. income (consumption) below the poverty line are Despite minor reductions in the poverty level in defined according to the dispersion theory of living some aimags and soums, the poverty level increased standards measurement survey. in Ulaanbaatar to 29.8 percent or by 3.1 points and in countryside to 54.2 percent or by 1.0 points while The poverty line provides an opportunity it has declined in soum and aimag centers. to measure the poverty more accurately based on distinctions and development level of that The increase in poverty has been affected by the particular country. However, the poverty line of natural disasters occurred in the recent years. Rural different countries could not be compared. In residents who lost their source of livelihood due to addition, the threshold goes up with upsurge of droughts and winter calamities are forced to move purchasing power and average income level of the to urban areas. However, in urban areas, the most population. The poverty line is set according to migrants are unable to find jobs as their profession income (consumption) per household. and qualifications do not always meet today’s labor market requirements. Consequently, they are subject The World Bank defined the 2007/2008 to many problems, such as staying uncovered by poverty line of Mongolia taking the poverty line the social welfare system, and being forced to be from the 2002/2003 Household Income and Expenditure Survey as basis and fixing consumer engaged in unofficial or low-paid job. price indices. In addition, the other factors such as workforce According to the World Bank estimates redundancy due to global economic crises of 2008- poverty headcount in 2010 was 14.8 percent. 2009 and inflationary pressures of 2008 have worsened the poverty situation in Mongolia.22
  23. 23. THE FOURTH NATIONAL REPORT Table 1. Poverty headcount, poverty gap, consumption and GDP per capitaIndicators 2007 2008 2009 2010 2015*Poverty headcount, percent 29.3 35.2 38.7 39.2 18.0Poverty gap, percent 8.8 10.1 10.6 11.3 6.0Share of poorest quintile in national consumption 6.4 7.2 8.5 7.8 11.0Gross Domestic Product per capita (at current prices, 2465.1 2232.3 3059.4 6800.0thous. Tugrug) *-Target Source: NSO, Household Socio-Economic SurveyPoverty gap, which estimates the average shortfall in a new kind of benefit for poor households inconsumption relative to the poverty line, increased order to improve targeting towards poor andby 0.7 points compared to 2009, and reached 11.3 vulnerable groups of population, generatingpercent in 2010. Poverty gap is the highest or 16.0 jobs for members of households which entitledpercent in the Western and Khangai regions, 12.3 for the aforementioned benefit, providing food,percent in the Eastern region and 7.7 percent in health and education benefits to poor familiesboth Central region and Ulaanbaatar city. Share and others. Adoption of this Law will be anof population with least consumption in the total important step toward poverty fighting andnational consumption rose up from the 2008 level improving livelihood and consumption of poorand reached 8.5 percent in 2009, but went down to households.7.8 percent in 2010. Specific activities within scope of work:Current measures During 2009 – 2010, the government of Mongoliameasures to reduce poverty within the scope of has been undertaken a number of measures tolegal reforms: support people’s livelihood,The following measures have been implemented in  Programs like ‘Child money’ and ‘Child andthe scope social welfare and labor: Development’ were continued till the very end of 2009 with the donor help, like IMF, the “The Package Law on Social Welfare” and “The World Bank, ADB, JICA and other development Mongolian Law on Employment Promotion” partners. The design and implementation of have been drafted and submitted to the State these programs were a part of the plan of actions Great Khural. to alleviate negative consequences of the global financial and economic crisis through providing The amended draft of the “The Mongolian Law social protection for the poor and marginalized on Employment Promotion” includes issues, groups, to maintain basic social services as well such as optimization of employment promotion as social welfare support to these groups at the activities coverage, creation of additional social pre-crisis level. services for targeted groups, decentralization and re-organization of employment promotion  The Law on Establishment of the Human activities as per local needs and specific features, Development Fund was passed in 2009 which increasing accountability of the local government aimed at better management of revenues of and local employment authority, engagement strategic and major deposits, and re-distributing of non-governmental organizations and private equal amount to each citizen of Mongolia as sector into employment promotion activities and “Grant of the Motherland”. According to this establishing a comprehensive registration and law in 2010, MNT 120,000 were distributed information system for labor market. to each citizen of Mongolia from the Human Draft of The Mongolian Law on Social Welfare Development Fund. covers cross-sectoral issues, such as initiating 23
  24. 24. MILLENNIUM DEVELOPMENT GOALS IMPLEMENTATION Figure 6. Gross Domestic Product per capita and coupons worth MNT 14,000 on a monthly basis average monthly wage and feeding and shelters for homeless people 8000 Figure 7.Minimum Living Standard (MLS), Minimum 6800 7000 wage rate, Age Pension Rate and Transitional Rate of Pension (2009-2010, thous. MNT) 6000 5000 160 140,4 2992.8 4000 140 2305.2 2234.9 3000 105,3 101.6 120 108 101.1 2000 100 300.5 341.5 81 274.2 70,2 1000 80 54 0 60 2008 2009 2010 2015* 40 - Monthly average wage (thous.tugrug) Source: Ministry of Social 20 - GDP per capita (thous.tugrug) Welfare and Labour 0 MLS Minimum Minimum Transitional wage age pension Rate pension  In order to secure income of the individuals laid off during the crisis period the Law on 2009 2010 Unemployment Benefits from Social Insurance Source: Ministry of Social Welfare and Labour Fund was amended, and entitlement criteria for obtaining allowances on unemployment and study allowances at vocational training centers In order to assist to overcome challenges associated were eased, and enforced . For instance, duration with the deterioration of purchasing power due for unemployment insurance was expanded from to economic crisis and high inflation, the public 76 up to 126 days, and enforced till the January servants salaries, pensions and benefits provided 1, 2011 by the Welfare Fund wereincreased by 30 percent  Target Programmes and project such as Herdsmen from October 01, 2010. The identification of poor Employment Support Programme, On the Job families and households was renewed, and 12.5 Training Programme, and Disabled Citizens thousand households at the local level were involved Employment Support Project were implemented in livelihood support activities annually. As a result as pilot activities, and their main aim was to livelihood of 82.3 percent out of 10.3 thousand support small and medium-sized entrepreneurs, households was improved in 2010. and prepare professional and skilled workforce for the sectors with higher growth and demand such as mining, construction and transport in Challenges time of economic crisis. There is no poverty reduction during the recent  Law on Pensions and Benefits provided by the years despite a relatively high economic growth Social Insurance Fund has been amended and in Mongolia, except the year 2009. Sectors the provision of issuing allowances to parents contribution to the economic growth is vary, for caring children under-five at hospitals was especially role of the sectors in poverty reducing enforced until January 01, 2011. efforts are poorly defined, and policies and actions to address poverty reduction are not coordinated and  From November 2009 to August 2010, 25.3 regulated sufficiently. Therefore, an inter-sectoral thousand citizens obtained assistance under the mechanism to assess the impact of sector’s growth ADB sponsored sub-program on “Food support to the poverty reduction and to regulate sectoral to vulnerable groups” in the form of food policies and actions is important.24
  25. 25. THE FOURTH NATIONAL REPORTThere is a lack of services aimed to assist the  Increase poverty fighting expenditure efficiencyvulnerable groups in sectoral functions, especially by establishing an optimal mechanism for inter-in in social services sector. The social welfare, sectoral coordination and alignment.employment, education, and health services aremostly universal and have not targeted towards  Develop SMEs and create many jobs whichpoor, and the people living in remote areas, and aligned with major projects and constructionvulnerable or differentiated to meet regional, urban works.and rural disparities, which ended up not reaching  Increase civil society participation in combatingneeded groups, and even sometimes worsen the intellectual poverty.poverty situation.There is an urgent need to developand implement socio-economic policies, which  Strengthen capacity of a national institutionreflect services and interventions to engage the poor which mandated to produce development plansand vulnerable segments of population or to shift to which ensure inclusive growth, functional labourthe management system which is outcome –based market, balance between economic and socialand better aligned planning and implementation development, and narrow gaps in rural andmechanisms. urban development.According to the World Bank assessment the  Enhance inter-sectoral mechanisms for linkingpoverty rate in Mongolia is reduced, while the and regulating poverty reduction policies andNational Statistical Office indicates that the country’s activities and raise their authority, rights andpoverty level is increased. It is clear that there is an accountabilities.urgentneed to review the methodology to define  Search for a suitable methodology to definepoverty and ensure a consistency of the estimates. poverty, update poverty related information using the consistent methodology, create aThe budgetary and administrative decentralization database, and improve its application.and increase of local authorities’accountability willplay a prominent role in poverty and unemployment  Increase state budget investment, support privatereduction. investment through tax and loan mechanisms in remote areas, and create a legal environmentFurther activities for targeting those to the underdeveloped local areas and decrease urban and rural disparities by Amend legal environment which enable creating jobs. the special groups and citizens such as poor  Increase competitiveness of SMEs and support households, migrants and homeless people, them in optimizing management and influence alcohol or other substance-addicted people, as them to improve work-place environment and well as people who released from jail and rest increase salaries. home to be covered social welfare system.  Support employment and promote household Align supply and demand policies at the labor development by delivering required a set of market, and to create a favorable condition for services such as social welfare, health, education, low-income, uneducated citizens to be employed legal and psychotherapy to the needed and support them. households, and define their living standards using Proxy-Means Testing (PMT), and create inter-sectoral database and ensure its effective application. 25

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