Capacity Strengthening of Local Self-Governing Bodies

Project completed

The outcome of the project is to build capacities of local parliaments (hurals) to fulfil their representational and oversight mandates in order to promote effective, inclusive and accountable local service delivery. The capacity building will prepare around 7,000 local hural members to address key challenges of decentralization reform: i) to plan and budget local priorities in a participatory manner; ii) to improve local accountability and management of resources; and iii) to increase access and improve the quality of public services.

Country/region Topic Period Budget
01.01.2013 - 31.12.2016
CHF 2'850'000

Mongolia has been undergoing a momentous social, economic and political transition to democracy since 1990. The breadth and depth of change has been profound. With its decentralization reform agenda, the government is aiming to support the consolidation of the country's fledgling democracy. The major piece of reform is the new Integrated Budget Law (IBL), which is institutionalizing a block grant (LDF) for priority investments in sub-national administrative units. However, as many other developing or countries in transition, Mongolia is facing major challenges in implementing policy reforms. Capacity and expertise must be strengthened across the board to address budgetary and financial oversight requirements in an economy growing on the back of an unprecedented natural resources boom. Particularly capacity strengthening of local self-governing bodies (hurals) with its legally mandated representational, legislative, oversight and budgetary mandate is needed in order to manage increased discretionary power over resources for the benefit of ordinary citizens. Local self-governing bodies are a vital democratic institution to ensure equitable and inclusive access to quality public services.


licy framework for decentralization created and local government capacity for service delivery increased in Mongolia.

Target groups

The main beneficiaries of the project are:

  • Sub-national local assemblies (hurals)
  • Citizens (male and female) at sub-national level
  • Sub-national governments
  • Female local elected representatives
  • Excluded citizens (male and female)
  • Central government ministries and agencies

Medium-term outcomes

Local hurals have the capacity and tools to fulfill their representative, legislative, oversight, and budgetary mandated functions in order to promote effective, inclusive and accountable local governance.


Results from previous phases:  

Through its Local Governance Support Program implemented in 2007-2011, UNDP has played a key role in testing an important fiscal innovation: a block grant to aimags (provinces), allowing scope for local discretion and citizens' participation in determining how to spend this block grant. Approval of the new Budget Law (IBL) has upscaled this approach - by establishing the LDF as a block grant to local governments nation-wide.

Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
United Nations Organization (UNO)
  • United Nations Development Programme

Budget Current phase Swiss budget CHF   2'850'000 Swiss disbursement to date CHF   2'851'799
Project phases

Phase 1 01.01.2013 - 31.12.2016   (Completed)