Governance and Decentralisation Programme Phase II (GDP II)

Under the 2011 Integrated Budget Law (IBL), the government established a Local Development Fund (LDF) - a block grant transfer to local governments which gave more power to local authorities on public investment issues. The IBL also introduced a requirement for citizen participation in the decision-making process over the use of the fund. Thus, the creation of LDF constituted a significant step toward fiscal decentralization and improved civic engagement. While much emphasis was placed on fiscal decentralization, political and administrative decentralization reforms lagged behind. The government has expressed its commitment to continue with decentralization reform, and GDP II was designed to provide further support in this endeavor.

Local governments are empowered, democratic, and accountable to citizens, and they provide sustainable services responding to the needs of citizens thanks to the Government’s comprehensive decentralization policy and enhanced legal framework for civic engagement.

• The Cabinet Secretariat of the Government of Mongolia,
• Office of the President,
• Governor’s Office of Ulaanbaatar City,
• Ministry of Finance,
• line ministries,
• local governments,
• citizens,
• civil society organizations

• A decentralisation strategy for Mongolia, including a functional allocation methodology is approved by the Government
• Functions in all sectors are reallocated in accordance with the functional allocation methodology, and related legal amendments are adopted
• A refined fiscal equalisation system, which addresses the financial aspects of reassigned functions is put in place
• More active and inclusive citizen participation in local budgeting in Ulaanbaatar’s ger areas is achieved through innovative civic engagement measures 
• Priority improvements to local public service delivery in ger areas of Ulaanbaatar are identified with citizen participation and implemented
• Capacity strengthening programmes for municipal government employees and citizens aimed at fostering inclusive local governance in Ulaanbaatar are  institutionalized
• Civic engagement is increased as a result of a comprehensive communications strategy aimed at informing citizens of their participation rights and ways of exercising them
• Civic engagement policies and participatory mechanisms are further refined thanks to the coherent legal framework
  

Resultados previstos:  

• The government has elaborated policies, laws, rules and processes which assign to local governments clear functions, responsibilities, administrative authority, as well as resources in an equitable manner.
• The Municipality of Ulaanbaatar has improved capabilities to plan and deliver public services and investments in ger areas in a way that is responsive to citizens’ priorities.
• Thanks to the strengthened participation of citizens, decisions made by state institutions are more responsive to their needs and preferences.
  

Resultados de las fases anteriores:  

According to an independent outcome evaluation, GDP I has “managed to get and keep the decentralisation agenda on the table.” Key results include:

• GDP I has provided support for the elaboration of important legal documents, policies, and guidelines to strengthen decentralisation and direct democracy in Mongolia, including the Law on Legislation.
•  Public procurement practices in 39 soums have become more competitive, accountable, and transparent as a result of reform efforts supported by the programme.  Thus, the cost of public works in pilot sites has decreased by an estimated 10-15 percent.
• GDP’s support for more participatory and transparent local government practices has resulted in 14 percent increase in citizen attendance of public meetings as well as improved knowledge by citizens of local government roles and responsibilities in 17 soums.
• The government has institutionalized One-Stop-Shops (OSS) – public service delivery centers that provide a number of services from one place. Moreover, local governments have set up more than 150 additional OSSs in their soums and khoroos using their own funds. Customer satisfaction rate with OSS services was high at around 80 percent.
  

Multiple local partners, including the Cabinet Secretariat of the Government of Mongolia, Office of the President, Ministry of Finance, line ministries, Governor’s Office of Ulaanbaatar City, Open Society Forum, Transparency International-Mongolia, and Democracy Education Center.   

International NGOs and networks, including the Asia Foundation, LOGIN, Center for Democracy Studies in Aarau, Institute of Federalism at the University of Fribourg, and Lucerne University of Applied Sciences and Arts.

All projects supporting explicitly decentralisation reform in Mongolia, including those of other actors, are (co-) financed by SDC. They include: 

• Capacity Strengthening of Local Self-Governing Bodies (UNDP), 2013-2016
• Public Investment in Energy Efficiency (GIZ, 2014-2016)
• Sustainable Livelihoods Project Phase 3 (World Bank), 2015-2018
• Mainstreaming Social Accountability in Mongolia (World Bank, in planning phase), 2015-2019

A decentralisation donor mapping is attached in Annex 11.

Fase 2 01.04.2015 - 31.12.2019   (Completed)