Ulaanbaatar, September 17, 2015—Rural residents in Mongolia will benefit from a $34.1 million program funded by World Bank and Swiss Agency for Development and Cooperation (SDC) that aims to make the government funding process more transparent and more responsive to community needs.

The program, the third phase of the Sustainable Livelihoods Project, was officially launched today in Ulaanbaatar with a workshop organized by the Ministry of Finance and the World Bank. The three-year program aims to help Mongolia implement the 2011 budget law, which gives rural communities a greater role in the government funding process.

“The project will empower rural communities by providing a transparent mechanism for funding to be transferred to support local development initiatives,” said James Anderson, World Bank Country Manager for Mongolia.

The program will build on the success of the first two phases of the project, which have helped set up community development funds financing more than 6,000 projects, mostly investing in education and health. It will build local government’s capacity for financing investments in infrastructure and services. Based on the budget law, funding allocations are decided each year through robust community participation.

“The Sustainable Livelihood Project has played an important role in developing rural areas in Mongolia through community participation. The Government of Mongolia and World Bank have worked together since 2002 to implement the project and increase the flow of public and private investment to herders’ communities,” said Kh. Gantsogt, State Secretary of the Ministry of Finance.

The project will also support local economic development by promoting investments for private sector growth in the more than 300 soums – or local administrative districts – throughout the country.

It will focus on financing based on governance performance, which awards additional funding for local development investments to local government entities that adopt participatory processes to reflect local needs and priorities in their planning, budgeting, implementation, monitoring and evaluation processes.

“The new phase of the project will ensure that the budget available at local level, especially Local Development Funds, will be managed and used effectively and efficiently, responding to the needs of local people. Strengthening capacities of local governments in rural areas will be key to achieving this goal,” said Markus Waldvogel, Director of Cooperation of Swiss Agency for Development and Cooperation.

The program is funded with a $22.7 million credit from the International Development Association (IDA), the Bank’s fund for the low-income countries and a $11.4 million grant from the Swiss Agency for Development and Cooperation.

Arkhangai aimag is a home to 150,000 yaks, which represents 20 percent of its total livestock population. Herders annually supply more than 20 tonnes of premium-quality yak wool to domestic processing companies.

This year, the Arkhangai Aimag Federation of Pasture-User Groups of Herders - with support from the Arkhangai aimag government, the Tariat soum government and SDC’s Green Gold Project - organised the “Mongol Yak” Festival.

Boost local economy and development 

The festival, attended by hundreds of local herders and 3000 visitors, was aimed at raising awareness among herder families about the importance of improving the quality of primary raw materials, wool, dairy products, hides/skins and meat, facilitating better collaboration between yak herders, cooperatives and domestic processing companies for sustainable value-chain development, and promoting local community-based tourism development.

“The yak festival is very important to develop Yak culture and tourism to bring as more people to the region” said Mr. G. Altan-Ochir, governor of Tariat soum of Arkhangai aimag.

Arkhangai herders are among those pioneers within the sector who have adopted new methods of combing through to the shearing of yak wool, which has significantly improved both the level of output and quality of the down delivered to processing companies.

Living in the Khangai mountain ranges of Mongolia, yaks are highly resilient and well adapted to the region’s harsh environmental conditions. Products made from yak down and hair are renowned for their ability to retain warmth. Yak down is as soft as goat cashmere, with the additional benefits of being both durable and comfortable to wear.

The unique colours of yak down - platinum, black and brown - make it an attractive material for modern clothing. Yaks also produce a number of other high-quality and valuable products. Yak milk cream is known for its taste and nutritional value, and yarn and households goods made of yak wool and hair are known for their high quality.  

Highlights of Yak Festival 

Competitions held at the “Mongol Yak” Festival among herders for educational purposes included “The Best Yak Bull”, “The Herder Family with the Best Yak Herd”, “The Herder Family that Prepared the Highest Amount of Combed Yak Down”, “The Herder Family that Prepared the Best-Quality Yak Dairy Products”, “The Best-Decorated Yak”, and “The Best Handcrafted Products Made of Yak Raw Materials”. Competition awards were sponsored by domestic processing companies: Bayalag Ulzii, Sor Cashmere, Uujin, Mongol Textile, Altai Cashmere, Jinst Murun and Tengri.

Processing companies also organised a “Fashion Show” of products made from yak down for herders featuring the latest fashions and designs.

During the festival, processing companies sold products worth MNT 7.2 million. Herder families who took part in the festival sold dairy products to visitors, earning MNT 10,1 million in income.

Two local tour operators working in the region also supported the festival, sponsoring cultural performances and arranging for tourists to visit the event.

The festival, which concluded with a midnight fireworks display, was indeed a celebration of local community, networking and collaboration to ensure a better future for the region.

SDC’s Green Gold Project aims to promote collective actions among herder households for the sustainable use of rangelands, economic development, and equitable and effective local governance. For more information, please visit  www.greengold.mn