GEF - ADAPTATION TO CLIMATE CHANGE WORKSHOP

IFAD in Mongolia - country background

Rome, 18-19 May 2007presentation by Thomas Rath, Country Programme Manager

Mongolia – country background

• Landlocked between Russia and China

• 2.4 million people

• Rural population: 1.08 million ( = 43 %)1.08 million ( = 43 %)

• Lowest population density of the world: 1.4 person / km2

• "twin terrors of isolation and distance“

The countryside

• Mountains zone (Altai mountains)

• Mountain - steppe zone

• Steppe • Gobi desert

Climate – the extreme

• Summer: warm and short (100 days)

• Winter: very cold and long

• Precipitation: 300 mm per year

• Dzud : the winter disaster

• Occurrences of prolonged dry periods (“droughts”)

Dzud – the winter disaster

• Three consecutive dzuds (1999-2001)

• 11 million animals lost• Small, vulnerable

herders were pushed in deep poverty and destitution

Economy*

• GDP shares: services (54%) ; industry (24%);

agriculture (20%)

GDP per capita: USD 1075

GDP growth: 7 % (in 2004: 10%)

* National Statistics for 2006

The rural sector: livestock

• Agriculture contributes 20 % to GNP

• Livestock make up 80% of gross agricultural output

• About 30 % of export earnings

Rural Poverty

• Poverty remains widespread, but declining.

• In 2003: 36 % ; in 2006: 32 %

• Poverty in rural areas: 38 % (urban: 28 %)

• Poverty incidence has worsened in aimag centres , but improved in UB and soum centres!!

Towards Improved Resilience

Resilience

Vulnerability

Exposure to harsh winter

Fragile nat. resources

(rangeland, water)

Insecure land tenure

Weak services

coping strategy:-Community NRM-Hay making-Access to finance-Change production-Health & education-Other….

IFAD country experience(past & ongoing interventions)

• Poverty reduction: targeting the poor

• Pasture management: herder groups and RMMC

• Non farm economic activities

• Social development activities

• Rural finance: outreach to the rural, remote areas through mobile banking

• Long-term experience in four aimags (provinces)

IFAD country experience(past & ongoing interventions)

• Livestock re-stocking• Vegetable production• Co-managed NRM• Water supply through well rehabilitation• Extension services(quality and outreach)• Breeding • private Vet. Services• rehabilitation of clinics and schools, training of doctors,

school teachers, • School drop out program ; mobile kindergarten• Other Economic activities• Access to finance: mobile banking (XacBank)

Country Strategy Mongolia

Gov policiesPRSP

New IFAD Country Strategy

IFAD strategic Framework

New project pipeline

Goal of Country Program

Poor women and men are empowered to achieve higher income and improved food security *

(* refers to IFAD strategic framework and MDG1)

Strategic Objectives for 2007 - 2009

• SO 1: Access to remunerative and stable premium markets

• SO 2: Access to affordable and viable rural financial services

• SO 3: Access to sustainable natural resources

Project 1: Rural Markets and Poverty Reduction Project

SO 1: Access to remunerative and stable premium markets

A) value chain development • identification of private entrepreneur• product development• producer involvement

B) Rural Financial services• Innovative MF products for producers• Investment funds for enterprises

C) Community Infrastructure• Upgrading of social infrastructure• Renewable energy systems for village heating and/or

electrification• For better access to markets: road repair, market place

Project 2: Rural Finance ServicesSO2: Enhance access of the poor to financial services

• Building up credit history through training and working capital

• Pilot group loans to lower collateral requirements

Project 3: Natural Resources ManagementSO 3: Access to sustainable natural resources

• Consolidate grassroots-led NRM• Groups access financial resources for economic

activities• Organisational structure• Governance• Renewable energy

Thank you !