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OVERVIEW OF THE MONGOLIAN OVERVIEW OF THE MONGOLIAN ECONOMIC GROWTH SUPPORT AND ECONOMIC GROWTH SUPPORT AND

POVERTY REDUCTION STRATEGY PAPERPOVERTY REDUCTION STRATEGY PAPER

For the Poverty Forum for Low Income Countries in For the Poverty Forum for Low Income Countries in East Asia East Asia

Mrs Ts.Bumkhorol, Advisor to the Minister of Finance and Economy Mrs Ts.Bumkhorol, Advisor to the Minister of Finance and Economy

Mongolia Mongolia

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OUTLINEOUTLINE

I-PRSPI-PRSP EGSPRSPEGSPRSP ACHIEVEMENTSACHIEVEMENTS CHALLENGESCHALLENGES EXPECTED DIFFICULTIES IN EXPECTED DIFFICULTIES IN

IMPLEMENTATIONIMPLEMENTATION SOLUTIONSSOLUTIONS

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BRIEFLY ON I-PRSPBRIEFLY ON I-PRSP Government of Mongolia began the development of the I-PRSP Government of Mongolia began the development of the I-PRSP

back in October 2000 back in October 2000 Very much a ‘road map’ to the preparation of the F-PRSPVery much a ‘road map’ to the preparation of the F-PRSP Advocacy: with the support of the IFAD and WB we organized 2 Advocacy: with the support of the IFAD and WB we organized 2

day regional seminars on the theme “The development of the day regional seminars on the theme “The development of the Poverty Reduction Strategy” at 7 different locations. Poverty Reduction Strategy” at 7 different locations.

Based on recommendations of participants the task force Based on recommendations of participants the task force was established, consisting of 5-7 representatives fromwas established, consisting of 5-7 representatives from• governmentgovernment• non-government non-government • and private sector and private sector

These then took charge of the development, These then took charge of the development, implementation and monitoring of the Poverty Reduction implementation and monitoring of the Poverty Reduction Strategy at the local level Strategy at the local level

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Economic Growth Support & Economic Growth Support & Poverty Reduction Strategy Poverty Reduction Strategy

The Government of Mongolia finalized its’ EGSPRSP in The Government of Mongolia finalized its’ EGSPRSP in collaboration with colleagues from the World Bank in July collaboration with colleagues from the World Bank in July 20032003

Was approved by International Development Agency and Was approved by International Development Agency and Board of Directors of the IMF in early September 2003Board of Directors of the IMF in early September 2003

The Ministry of Finance and Economy has played the The Ministry of Finance and Economy has played the leading role in elaboration of the strategy at national level leading role in elaboration of the strategy at national level and has established technical and an inter-ministerial and has established technical and an inter-ministerial governing committees led by the Minister of Finance and governing committees led by the Minister of Finance and Economy. Economy.

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EGSPRS AchievementsEGSPRS Achievements Conducted task groups on preparation of draft document amongst line Conducted task groups on preparation of draft document amongst line

ministries and Ulaanbaatar City Council. ministries and Ulaanbaatar City Council. A working group was also established to represent civil society which A working group was also established to represent civil society which

included 200 NGO`s - this has worked on linkages between poverty issues included 200 NGO`s - this has worked on linkages between poverty issues and the EGSPRSP. and the EGSPRSP.

The Government of Mongolia demonstrated its The Government of Mongolia demonstrated its ownershipownership and thus has and thus has added considerable contributions to capacity building of civil servants and added considerable contributions to capacity building of civil servants and other participants. other participants.

The Government adopted a policy document on The Government adopted a policy document on mid-term development mid-term development strategystrategy developed in consultation with international financial institutions. developed in consultation with international financial institutions.

GoM’s strategic approach to poverty reduction has changed:GoM’s strategic approach to poverty reduction has changed:• Previous strategies on poverty reduction were mainly based on income Previous strategies on poverty reduction were mainly based on income

and social security programmes and social security programmes • In framework of the EGSPRS, poverty reduction will be supported by In framework of the EGSPRS, poverty reduction will be supported by

pro-poor growth, structural reforms at macro level and ensuring pro-poor growth, structural reforms at macro level and ensuring sustainable human development.sustainable human development.

The document serves as a sound basis for coordination of donor The document serves as a sound basis for coordination of donor assistance assistance

Three different growth scenarios are presented (3.7%, 5.5%, 6.3%), based Three different growth scenarios are presented (3.7%, 5.5%, 6.3%), based on due consideration of the domestic and external environment.on due consideration of the domestic and external environment.

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EGSPRS AchievementsEGSPRS Achievements Main requirement was to ensure participatory approach is Main requirement was to ensure participatory approach is

utilized effectively by including all stakeholders.utilized effectively by including all stakeholders. Series of consultative and business meetings as well as Series of consultative and business meetings as well as

other events were organized on the national level. These other events were organized on the national level. These consultations involved: consultations involved: • members of Parliament and the Cabinet, members of Parliament and the Cabinet, • other high-ranking government officials on national and local other high-ranking government officials on national and local

levels,levels,• representatives of donor organizations, the private sector and representatives of donor organizations, the private sector and

non-government organizations, non-government organizations, • citizens, and the poor and vulnerable citizens, and the poor and vulnerable

We introduced the draft EGSPRSP at 9th Consultative Group We introduced the draft EGSPRSP at 9th Consultative Group Meeting in July 2002 .The Donor community came to the Meeting in July 2002 .The Donor community came to the conclusion that this document will serve as a sound basis conclusion that this document will serve as a sound basis for coordination of donor assistance. for coordination of donor assistance.

Development policies and programmes articulated in Development policies and programmes articulated in EGSPRSP will be implemented through the annual Socio-EGSPRSP will be implemented through the annual Socio-Economic Guidelines and execution will be reported in the Economic Guidelines and execution will be reported in the annual Progress Report of EGSPRSP. annual Progress Report of EGSPRSP.

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CHALLENGESCHALLENGES Selection of nationwide and sectoral priority programmes to determine Selection of nationwide and sectoral priority programmes to determine

mid-term development policies and programmes mid-term development policies and programmes Costing of programme implementation Costing of programme implementation Improvement of poverty diagnostic and other indicators to support Improvement of poverty diagnostic and other indicators to support

monitoring, assessment and evaluationmonitoring, assessment and evaluation Problems associated with the need to ensure consistency with MDGs Problems associated with the need to ensure consistency with MDGs

• Selected indicators not fitting with targets Selected indicators not fitting with targets To resolve this we are working with World Bank Technical AssistanceTo resolve this we are working with World Bank Technical Assistance A lack of capacity and under-development of methodologies has meant A lack of capacity and under-development of methodologies has meant

there are difficulties in:there are difficulties in:• Estimating positive and negative affects of the structural reforms and innovation Estimating positive and negative affects of the structural reforms and innovation

policies to poverty policies to poverty • Predicting the risks which will be faced during implementation Predicting the risks which will be faced during implementation

There is also a need to improve the participatory process of development There is also a need to improve the participatory process of development

partnerspartners

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EXPECTED DIFFICULTIESEXPECTED DIFFICULTIES

The Government of Mongolia has now begun the implementation stage of The Government of Mongolia has now begun the implementation stage of EGSPRSP EGSPRSP

Key difficulties faced:Key difficulties faced:• Mongolia, has a vast territory yet a narrow economic base, Mongolia, has a vast territory yet a narrow economic base, • A small dispersed population, A small dispersed population, • Problematic climatic and environmental conditions,Problematic climatic and environmental conditions,• RemotenessRemoteness• And undeveloped infrastructure along with other attendant problems of small And undeveloped infrastructure along with other attendant problems of small

economies which negatively affect implementation.economies which negatively affect implementation. Plus we should be aware of distractions from the main goals due to a lack of Plus we should be aware of distractions from the main goals due to a lack of

appreciation of these problems which arises from our lack of capabilityappreciation of these problems which arises from our lack of capability And especially the danger of the unexpected - internal and external And especially the danger of the unexpected - internal and external

‘exogenous’ shocks. ‘exogenous’ shocks. The threat of not implementing some programmes due to a misestimating of The threat of not implementing some programmes due to a misestimating of

costscosts

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SOLUTIONSSOLUTIONS We will disseminate and advocate the strategy widelyWe will disseminate and advocate the strategy widely Thus maintaining and building ownership - ensuring Thus maintaining and building ownership - ensuring

participation by all participation by all We will be flexible and adopt alternative policies and We will be flexible and adopt alternative policies and

programmes for implementation.programmes for implementation. In order to ensure effective monitoring and evaluation we In order to ensure effective monitoring and evaluation we

should establish a Poverty Monitoring Systemshould establish a Poverty Monitoring System This also requires obtaining good feedback and well-This also requires obtaining good feedback and well-

targeted researchtargeted research Make improvements in the costing methods used for the Make improvements in the costing methods used for the

implementation of EGSPRSPimplementation of EGSPRSP Exercise leadership and commitmentExercise leadership and commitment Look to our friends in the donor community for support Look to our friends in the donor community for support And show solidarity with our neighbors in the fight against And show solidarity with our neighbors in the fight against

povertypoverty

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Thank you for your attention.Thank you for your attention.