Ulaanbaatar, 22 December 2020 – The European Union has disbursed the first 16-million-euro to the Government of Mongolia which is part of the 50.8-million-euro Budget Support programme signed by 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.

About European Union

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.

About UNDP

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.

About FAO

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.

About ILO

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.