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.

“Since the establishment of the YDC in our city, my friends and colleagues often hang out here because it’s nearby our school and is a convenient place for us to productively spend our free time,” said L. Mukhtsooj, 20, a regular client at the Khovd YDC. “The staff here are also very welcoming to us.”

There are 15 YDCs throughout Mongolia, and each provides youth with a range of programmes aimed at building their life skills, providing knowledge about their rights and responsibilities, and offering them meaningful ways to realise their potential. These multi-purpose centres also offer a range of skills-development services, such as career planning and healthy leisure activities.

“There are many clubs that bring together youth based on their interests and hobbies. We have clubs for amateur photographers and book lovers, and a girls’ group with arts and fashion, to name but a few,” said Enkhbayar, coordinator of the Khovd YDC.

The YDCs are fun, safe places for young people to spend their free time and develop their social skills. The centres also target marginalised youth and young families, providing them with life skills education and other trainings.

“We try to offer comprehensive and holistic services for our clients,” said S. Khishigtogtokh, a social worker at the Khovd YDC. “There are support groups addressing vulnerable youth, such as youth in prisons or those with disabilities. 

In assisting young families, Khishigtogtokh said: “We try our best to reach every family member, providing counselling for young people and young couples, supporting their children in their school enrolment, and addressing their health and livelihoods, jointly with other public services”.

Mr O. Battur, 28, a local auto mechanic, his wife Tsetsegjargal, 26, and their four children have benefited from the services offered by the Khovd YDC. The couple attended family and relationships workshops - the first such training in which they had taken part. “I learned a great deal about family relations and parenting,” Battur said. “It’s been an interesting training for a man like me who knew nothing other than fixing cars.”

His wife Tsetsegjargal also attended a skills-development training organised by the Khovd YDC and became a certified kindergarten assistant. And while finding a job in such a remote town is a challenge, she is nonetheless positive about the future. “My dreams are now brighter. I want all my kids to finish school and be well-educated. I want to build a happy family,” she said.