The Government of Mongolia is implementing the 12 year Sustainable Livelihoods Program over three phases. The first, pilot stage of the Program, financed by the World Bank, was successfully implemented from 2002-2007 in eight aimags. The second phase of the Program will be financed by the World Bank, European Community and Japanese PHRD Grant.

The objectives, key principles, components and its activities of the Sustainable Livelihoods Project-II are described. Sustainable Livelihoods Project-II opening ceremony was held on State Palace, in 15 April 2008.

Program object: To enhance livelihood security and sustainability in local communities and build the local capacity by scaling up the effective mechanisms and processes piloted under the first phase.

• First phase - An effective approach to promoting improved, secure and sustainable livelihood strategies developed, demonstrated, and validated in selected areas, and institutional capacity created so that these strategies can be replicated and scaled-up in phase II of the program.
• Second phase - To enhance livelihood security and sustainability by scaling up institutional mechanisms that reduce the vulnerability of rural communities throughout Mongolia.
• Third phase - To fully institutionalize appropriate mechanisms utilized in phase I and II to reduce the vulnerability of rural communities throughout Mongolia.

Project implementation principles:

• Development of sustainable approaches and institutions for livelihood support
• Broad engagement of the community members in all project activities
• Decentralization and improved local accountability and decision making
• Consideration of the needs and demands of disadvantaged groups and minorities
• Creation of alternative livelihood and income opportunities
• Support to and capacity building of the local administrative structures and professional institutions
• Avoiding negative social consequences by the project
• Avoiding negative environmental impacts by the project and enhancing management of natural resources
• Maximising the number of project beneficiaries
• Linking to the socio-economic policies and programs of the Government of Mongolia

Components:

• Pastoral Risk Management
• Community Initiative
• Microfinance Development Fund
• Project Management and Capacity Building

Scope: All aimags, soums and districts of Mongolia

Project impact indicators:

• 80 percent of Beneficiaries (i.e. herders, soum governments) taking actions to mitigate pastoral risk.
• 80 percent of herders and local officers perceiving improvement in pasture land condition attributable to project interventions.
• 60 percent of Beneficiaries (i.e. citizens) satisfied with the mechanisms and outcomes of CIF Sub-projects.
• 25 percent increase in the number of Sub-borrowers at soum level and below measured from the baseline assessment conducted at start of project implementation.
• 25 percent increase in annual income of Sub-borrowers at soum level and below measured from the baseline assessment conducted at start of project implementation.

Cost of the project and source of the fund

49.9 US Dollar will be disbursed to implement Sustainable Livelihoods Project-II. Funds are from International Development Association, World Bank, European community, Japan PHRD Grant, Government of Mongolia, and Local government and citizens contribution.

40% of the total funds are an IDA soft loan, 60% are from grants.