The functional reallocation methodology, approved on 28 January, is a major step forward in the implementation of the State Policy on Decentralisation, which is the basis of comprehensive decentralisation reform nationally.
The new methodology will enable the transfer of functions to the appropriate levels of government and between sectors, and the outsourcing of some of those functions to professional associations or non-governmental organisations based on a review of executive and self-governing bodies.
Decentralisation reform and the application of the methodology are expected to improve the quality of public services, increase the efficiency of government expenditures, and eliminate functional duplications.
"This methodology covers many important issues, such as eliminating the overlaps and gaps in functional allocation, strengthening the decentralisation legal framework, enabling the development of local self-governance, and giving consideration to related financial implications," said S. Amarsaikhan, Chair of the Citizens’ Representative Khural in Ulaanbaatar. "If it is effectively implemented, and the necessary steps are taken with proper solutions, it will be a key to the acceleration of local and capital city development."
G. Zandanshatar, Head of the Cabinet Secretariat, said "the key to implementing decentralisation is the rational allocation of public functions".
"We’ve talked about decentralisation and eliminating duplications in government functions for many years," he said. "Today, many functions at different levels overlap, and in many cases public responsibilities are not well defined or are assigned in a contradictory or unclear manner. Revenue assignment is also not fully aligned with functions."
The labour and social protection, and construction and urban development sectors will be the first to adopt the new methodology, with other sectors to be progressively rolled out. Technical working groups, comprised of sectoral experts and relevant officials, will conduct periodic reviews.
Software has been developed to support the application of the methodology and features an integrated digital law database.
SDC congratulates the government on its adoption of the new methodology. Through the Decentralisation Policy Support Project and other projects in the Governance domain, SDC is continuing to support Mongolia in addressing the challenges inherent in political, fiscal and administrative decentralisation - efforts that will provide better access to public services for citizens and contribute to poverty reduction.
