Third Sustainable Livelihoods Project (SLP3)
The Third Sustainable Livelihoods Project (SLP3) aims to foster improved rural local governance and effective service provision by building capacity and institutionalizing community participation in the planning and delivery of priority investments. It will do so by supporting the implementation of the new Integrated Budget Law (IBL), which is the centrepiece of the government’s decentralization reform process. SLP3 will provide essential training, development and performance grants to all 330 soums and benefit 40% of Mongolia’s population.
Public finance management
- To promote the establishment of practical and sustainable conditions for citizen involvement in decision-making that allow citizens’ local development preferences to be conveyed clearly to local government;
- To establish conditions – through training (and the award of performance-based grants under Component 2) – that are conducive to constructive responsiveness on the part of government;
- To institutionalise in government effective, efficient, transparent, accountable and lawful financial management, planning, procurement, and management information system (MIS) capabilities; and
- To institutionalise community supervision of local development initiatives and strengthen the supervisory role of soum hurals (social accountability).
- Other Swiss academic and research institutions
- SDC Field Office
- World Bank - International Bank for Reconstruction and Development
In the last two decades, Mongolia has taken significant strides towards the establishment of a stable, open, and democratic state. At the same time, the economy has undergone a profound shift – from one of central control based largely on semi-nomadic pastoralism to one that is market-oriented and driven by a world class mining sector. The substantial economic benefits in prospect need to be distributed equitably, however, so that poverty reduction can be accelerated, particularly in rural areas. Decentralisation is seen by government and by key stakeholders as critical to economic growth, diversification, and equitable and sustainable development. Decentralization will also contribute to better citizens’ access to good quality services, infrastructure, and communication facilities.
To improve governance and community participation for the planning and delivery of priority investments in rural Mongolia.
The main beneficiaries of SLP3 will be rural citizens throughout Mongolia, including large numbers of poor households, herders, minority ethnic groups (mainly Kazak), and artisanal miners. SLP3 beneficiaries comprise about 40% of Mongolia’s population. Local government officials will also clearly benefit: 25% of aimag-level SLP council members are women, as are 39% of the members of soum SLP councils in the aimags and 52% of members of duureg SLP councils in Ulaanbaatar City.
Results from previous phases:
The major result of SLP has been to demonstrate the value of community driven fund utilisation, which culminated in the adoption of the IBL. The newly-institutionalised Local Development Funds (LDFs) have in fact been modelled on the ‘Community Development Funds’ (CDFs) piloted under SLP2. The proposed performance-based grants of SLP3 also build on SLP2 experience and on international experience. Through the implementation of CDFs, which have financed over 6,000 projects in mostly health and education, important insights have also been gained into citizen participation in decision making in Mongolia. Reported levels of citizen satisfaction under SLP2 are high. In 2011, more than 80% of citizens were satisfied with the outcomes of CDF investments and the procedures adopted. Moreover, the participation of households in SLP2 has grown every year, paving the way for the higher levels of citizen participation required under the IBL.
|Directorate/federal office responsible||
International Financial Institution (IFI)
Swiss Academic and Research Institution
|Budget||Current phase Swiss budget CHF 12'940'000 Swiss disbursement to date CHF 5'583'117|
|Project phases||Phase 1 01.09.2012 - 31.12.2020 (Current phase)|