The European Union will support Mongolia’s employment sector transformation through technical assistance with UN agencies

The EU has disbursed the first EUR 16 million to the Government of Mongolia which is part of the EUR 50.8 million Budget Support programme signed by the EU and Government of Mongolia in May 2020. 

As part of this programme, a new project, “SDG-aligned Budgeting to Transform Employment in Mongolia” is launched to complement the Government of Mongolia’s efforts to tackle COVID-19 socio-economic challenges.

The project aims to support employment and promotion of decent work and improved public finance management systems through results-oriented budget initiatives as direct contribution to the attainment (of the Sustainable Development Goals).

The project will work with the Ministry of Finance, the Ministry of Labour and Social Protection, the Ministry of Food, Agriculture and Light Industry. It will be implemented by UNDP Mongolia in partnership with UN Food and Agriculture Organization and the International Labour Organization with a duration of 3.5 years.

H.E. Mr. Traian Hristea, EU Ambassador to Mongolia, highlighted that the Direct Budget Support programme is an effective mechanism that aligns EU's development assistance with Mongolia's social sector reform agenda. 

As a top up to budget funding, it gives the Government of Mongolia the additional fiscal space to implement its development priorities to improve the lives of the Mongolian people during the difficult times of COVID-19.

“The EU grant will also contribute to employment creation and decent work, especially for youth and vulnerable groups, and is designed to further assist the Government of Mongolia in strengthening its governance of revenues to create inclusive and sustainable growth.”

With the poverty level hovering at 28.4% (2018) with another 15% just above the poverty level, widening inequalities is one of the major issues in Mongolia further fuelled by unemployment, especially, in times of COVID-19, as it is causing a significant burden on businesses and the employment sector. Diverse impacts of the pandemic are threatening not only to slow down, but also to roll back the achievements that Mongolia made towards achieving SDGs by 2030 creating an unprecedented need to strengthen the efforts made by all stakeholders towards the SDGs.

“UNDP Mongolia commends Mongolia’s transition to evidence-based and result-focused planning, budgeting, monitoring and evaluation, and reporting systems. We also would like to thank the European Union for this opportunity to partner on the critical area of employment, with a particular focus on youth, people with disabilities, women, and the rural population” stated Ms. Elaine Conkievich, UNDP Mongolia Resident Representative. 

UNDP Mongolia remains committed to work with all stakeholders to increase employment and promote decent work in Mongolia by supporting efficient, accountable and responsive delivery of public services in the Labour and Employment sector; supporting the modernisation of Mongolia’s Public Finance Management systems and strengthening institutional capacities in the country” she said.

The European Union aims to deliver assistance in an effective and flexible way by making use of partner countries' systems. The EU works with its partner countries along four overall objectives: reinforcing democracy; encouraging economic and human development; fostering the rule of law and respect for human rights, and promoting peace, stability and security in the region. 

The current EU development assistance programme in Mongolia (also known as the Multiannual Indicative Programme) for the period 2014–2020 has two focal areas: Improved governance of revenues for inclusive and sustainable growth; and Support for better employment opportunities.

The EU's current financial support amounts to over €50 million with 32 EU funded projects implemented by partner international organizations together with national authorities and organizations.

The UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet.

The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger with the goal achieve food security for all and make sure that people have regular access to enough high-quality food to lead active, healthy lives.

Advancing social justice, promoting decent work. The International Labour Organization is the United Nations agency for the world of work. We bring together governments, employers and workers to drive a human-centred approach to the future of work through employment creation, rights at work, social protection and social dialogue.

EU-funded SECIM project creates 2,000 jobs in dairy, meat and vegetable value chains: The project has been implemented at national and regional levels to identify new employment pathways and creating decent work. It strengthened the value chain in five food and non-food sectors: meat, dairy, textile, leather and vegetable.  SECIM introduced a range of innovations into the selected value chains by identifying international best practices fit for the Mongolian value chain sectors. 

The project also introduced a number of international standards (ISO) on food safety and processing standards. Hundreds of workers and employees of public and private sector have undergone wide spectrum of capacity building trainings.

On 18 December 2020, the final Steering Committee meeting of the European Union funded project “Support Employment Creation in Mongolia” (SECIM) took stock of its achievements: SECIM devised a country and a product specific approach for the development of value chain. 

Over its entire project cycle, it reached more than 12,000 herders, vegetable growers, and over 80 food-processing companies. As direct result of the project intervention, around 2,200 jobs were created along the dairy, meat and vegetable value chains in the last 5 years of the project implementation.

“The European Union tax payers’ money was well spent and the European Union is looking forward for the Government of Mongolia to replicate the innovative approaches of the project in other sectors as well”, said Mr. Traian Hristea, Ambassador of the European Union to Mongolia.

The SECIM project has been implemented at national and regional levels to identify new employment pathways and creating decent work. It strengthened the value chain in five food and non-food sectors: meat, dairy, textile, leather and vegetable.  

The SECIM project’s focus on engaging with the private sector and enhancing the social partnership proved to be successful in reaching the objectives. The activities linked the primary producers with large and medium food processing industries at national and local levels. This is a substantive change from the famous “farm-to-market” projects, which put enormous efforts on capacity building of smallholder producers to help them become full-fledged players in the market.

SECIM introduced a range of innovations into the selected value chains by identifying international best practices fit for the Mongolian value chain sectors. For example, individual quick freezing and dry cleaning technologies for vegetable industry; zero defect static flaying frame for the leather sector and mechanical sheep shearing for wool. 

The project also introduced a number of international standards (ISO) on food safety and processing standards. Hundreds of workers and employees of public and private sector have undergone wide spectrum of capacity building trainings.

A total of 44 stakeholders participated in the meeting,  including Mr Unurbayar Gombosuren, State Secretary of the Ministry of Labour and Social Protection (MoLSP) as well as Chairman of the Steeering Committee, Mr Traian Hristea, Ambassador of the European Union to Mongolia, Mr Bolorchuluun, Director of Policy Planning Department of Ministry of Food, Agriculture and Light Industry (MoFALI) also National Project Director of SECiM C2, MrVinod Ahuja, FAO Representative in Mongolia, Mr Ali Badarneh, Chief of Sustainable Food Systems Division of Agri-Business Department, Project Manager of UNIDO, aimag government representatives, processing industry, professional association partners.

The European Union provided aid packages to Vulnerable People affected by the impact of COVID-19:  With the financial support of the European Union (EU), Caritas Czech Republic (CCR) in Mongolia handed over humanitarian packages/kits worth MNT 64 million (EUR 18 200) to the Red Cross in Mongolia. The assistance will be distributed to 520 households which are facing challenges as the result of the COVID-19 pandemic and related state of emergency. “The European Union is aware of the difficulties vulnerable population faces due to COVID-19 related emergency situation in Mongolia. I am pleased that with these essential items in these packages the European Union can support 520 households to brave the difficulties” said Ambassador of the European Union to Mongolia, H.E. Mr Traian Hristea.

With the financial support of the European Union (EU), Caritas Czech Republic (CCR) in Mongolia handed over humanitarian packages/kits worth MNT 64 million (EUR 18 200) to the Red Cross in Mongolia. The assistance will be distributed to 520 households which are facing challenges as the result of the COVID-19 pandemic and related state of emergency.

The humanitarian aid packages include essential nutrition, hygiene and educational items for children and families. The primary recipients of the aid packages are the families of waste collectors in Ulaanbaatar as CCR has been implementing projects in the waste management sector in Mongolia for over a decade.

“The European Union is aware of the difficulties vulnerable population faces due to COVID-19 related emergency situation in Mongolia. This year, the EU committed in total EUR 37.5 million to support Mongolia’s health, economic and social welfare sector. I am pleased that with these essential items in these packages the European Union can support 520 households to brave the difficulties” said Ambassador of the European Union to Mongolia, H.E. Mr Traian Hristea.

“Mongolia has been fighting with COVID-19 since its outbreak in early this year and we were one of the last countries to have local transmission. Since Mongolia registered its first local transmission, the Government of Mongolia has been taking measures to contain the COVID-19 among the general public. With all-out readiness level and full lockdown of the country for certain period of time, it is having great social-economic impact on the vulnerable population. MRCS is pleased to work with its partners to reach out to these population and I am sure this support will help to ease the impact” said Ms Bolormaa Nordov, Secretary General of the Mongolian Red Cross Society.

The European Union and Mongolia established diplomatic relations in 1989 and the EU has been represented in Mongolia since November 2017, when the Delegation was established. 

The EU Delegation is responsible for the conduct of official relations between Mongolia and the EU, working closely with the diplomatic missions of the EU Member States.

About CCR in Mongolia: Caritas Czech Republic in Mongolia strives to improve the lives of thousands of people through education, promotion of sustainable development, empowering of local communities and marginalized groups. Since 2006, CCR has implemented more than 20 projects in 15 different provinces in Mongolia with particular focus on pre-school and vocational education, social work, restoring livelihood, humanitarian assistance, prevention of risks of natural disasters, agriculture, and environment and recycling.

Sustainable textile production training for industry technical staff held online: Chief engineers and technical staff from the top wool and cashmere factories have been trained on Sustainable textile production. The training was organized with the support from the Ministry of Food and Agriculture and Light Industry and the European Union-funded Sustainable Textile Production and EcoLabelling project jointly with the Mongolian Wool and Cashmere Association.

Partnership for Ambitious Climate Action online forum organized: The United Nations, United Kingdom and France co-hosted the Climate Ambition Summit 2020 on December 12, in partnership with Chile and Italy. The participants aim to initiate collective support and commitment to the Nationally Determined Contribution target of 27.2% emission reduction announced by the President of Mongolia at the Summit.

The United Nations, United Kingdom and France co-hosted the Climate Ambition Summit 2020 on December 12, in partnership with Chile and Italy.  

As a follow up in Mongolia, the Ministry of Environment and Tourism and the United Nations Mongolia on December 22, organized the Partnership for Ambitious Climate Action online forum involving all important stakeholders to initiate collective support and commitment to the Nationally Determined Contribution target of 27.2 percent reduction in greenhouse gasses announced by the President of Mongolia at the Summit. 

In her remarks during the meeting, Minister D.Sarangerel said, “Today’s forum is aimed at finding ways to effectively work with international partner organizations to speed up the fulfillment of our national commitment made during the Summit,” The Minister also said the Ministry of Environment and Tourism has begun devising the NDC action plan with relevant ministries and organizations. 

Trade Information Portal to boost trade in Mongolia amid pandemic: The portal aims to make import and export activity easier and less costly for Mongolian businesses, especially micro, small and medium-sized enterprises. The Mongolia Trade Information Portal project is supported by the World Bank Group with funding from the Trade Facilitation Support Program (TFSP). The TFSP is funded by nine donor partners: the European Commission, Australia, Canada, the Netherlands, Norway, Sweden, Switzerland, the United States, and the United Kingdom.

Cassien Tribunal Aungane, Editor