To increase the capacity to develop policies on inclusive growth among key public and private stakeholders, the TA will (i) identify the main drivers of inequality and constraints to more inclusiveness in Mongolia, (ii) conduct a consultative process to identify key constraints to inclusive growth involving key public and private stakeholders to support these efforts, (iii) improve institutional and human capacity for inclusive growth in selected government and professional business entities, and (iv) provide policy recommendations on inclusive growth and future project investments in priority areas.
|Project Name||Promoting Inclusive Growth|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Education / Technical and vocational education and training
Finance / Small and medium enterprise finance and leasing
Industry and trade / Small and medium enterprise development
Public sector management / Public expenditure and fiscal management - Social protection initiatives
|Gender Equity and Mainstreaming|
|Description||To increase the capacity to develop policies on inclusive growth among key public and private stakeholders, the TA will (i) identify the main drivers of inequality and constraints to more inclusiveness in Mongolia, (ii) conduct a consultative process to identify key constraints to inclusive growth involving key public and private stakeholders to support these efforts, (iii) improve institutional and human capacity for inclusive growth in selected government and professional business entities, and (iv) provide policy recommendations on inclusive growth and future project investments in priority areas.|
|Project Rationale and Linkage to Country/Regional Strategy||
Protecting people with low skills and income from the impact of high inflation and enabling their full participation in economic growth through greater employment and access to core public services is a key government responsibility. Strategy 2020 identifies inclusive growth as one of ADB's three strategic pillars along with environmental sustainability and regional integration. It emphasizes the need to promote a development strategy which (i) provides greater access to opportunities by expanding human capacities through investments in education, health, and basic social protection; (ii) improves the poor's access to markets and basic productive assets by putting in place sound policies and institutions; and (iii) strengthens social safety nets. The Organisation for Economic Co-operation and Development further supports the thrust of ADB's Strategy 2020 by advocating a policy approach to reducing inequality based on three pillars: human capital investment, inclusive employment promotion, and well-designed redistribution policies. There is a need to analyze constraints to inclusive growth in Mongolia, with emphasis on the non-resource sectors. Given the changes in the economy and the resulting rapid socioeconomic changes, there is also a need to refocus broader development objectives and prioritize inclusiveness in development planning and policies. This necessitates consensus and capacity building at the national and local levels and the development of clear road maps for policies and programs.
To support inclusive growth, the government is supporting inclusion by strengthening vocational training, increasing social security coverage, promoting employment for disadvantaged groups, and investing in disadvantaged urban areas. These need to be complemented by policy development capacity and a long-term strategy focused on achieving inclusive growth to (i) create and expand economic opportunities (mainly productive employment); and (ii) ensure broader access to these opportunities for members of society to participate in and benefit from growth. Currently, there is limited public debate and understanding of the consequences of social and economic inequality; no monitoring and a lack of capacity across various sectors (government, private sector, media, civil society) to define and monitor progress toward inclusive growth; and weak policy and development capacity to be able to address inclusive growth in key sectors. Identifying and addressing such constraints will support inclusive growth and good governance.
Since 2009, ADB, in cooperation with Japan International Cooperation Agency and the World Bank, has supported modernization of the social welfare system in Mongolia by improving targeting methodologies and introducing social transfers directly targeted at the poor. As a second step, poor and marginalized households need to be brought into the formal labor market to obtain decent and productive jobs to sustain their living standards.
|Impact||Mongolia's medium-term strategic plan and the corresponding yearly socioeconomic guidelines reflect inclusive growth policies.|
|Description of Outcome||Improved capacity to develop policies on inclusive growth among key public and private stakeholders|
|Progress Toward Outcome||The impact of the TA is already partially achieved at the end of the TA through the incorporation of inclusiveness in the recently passed Law on Development Policy and Planning. This resulted specifically from work undertaken under the TA, with a legal requirement now in place that all policy and program development must take account of inclusiveness. The guidelines for the formulation of the yearly socioeconomic guidelines and the medium-term strategic plan are being formulated along the Law on Development Policy and Planning (impact indicator). The effect of the TA is also evidenced by the fact that certain new policies and programs include specific reference to inclusiveness or inclusive growth (e.g., State Policy on Employment, State Policy on Health).|
|Description of Project Outputs||
1. Analysis of the main drivers of inequality and constraints to inclusiveness of growth in Mongolia
2. A consultative process to identify key constraints to inclusiveness of growth has reached key public and private stakeholders.
3. Institutional and human capacity for inclusive growth is improved in selected government and professional business entities.
4. Policy recommendations on inclusiveness of growth and future investment in priority areas are identified.
|Status of Implementation Progress (Outputs, Activities, and Issues)||The TA achieved all outcome and output indicators. A pre- and post-survey directed at key stakeholders measured a significant increase in all aspects of capacity (human, organizational, and institutional) to develop policies on inclusive growth (outcome indicator). Far greater familiarity with the concept of inclusive growth was reported in post-TA interviews and reflected in its incorporation into various policies and programs developed in 2015 and 2016. This resulted from a combination of factors, including a better understanding of inclusiveness as a result of the pre-TA assessment, involvement in a number of consultative activities under the TA, an extensive capacity building program on inclusive growth including for the media and private sector, the preparation and dissemination of research papers and other documents, activities such as the international symposium on inclusiveness in 2015, and the substantial number of media and public relations activities undertaken under the TA.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation||The TA will focus on stakeholders and activities at four levels: (i) at a macro level it will identify and analyze the significant drivers of inequality and key sectors affected; (ii) at the government level it will work with NDIC and the cabinet to identify inclusive growth indictors and an effective monitoring framework to assist in mid- and long-term development planning, prioritization, and monitoring; (iii) at the stakeholder level it will conduct a broad participatory assessment and awareness building with private sector, the public, and civil society to help better define their roles in sustaining inclusive growth; and (iv) at the community level it will implement two pilots focusing on maximizing the potential for promoting inclusive growth through two government programs which support decentralization and targeting.|
|Consulting Services||ADB will recruit a consulting entity using quality- and cost-based selection with the standard ratio of 80:20 to provide 16 person-months of international and 64 person-months of national consultants, including expertise in (i) socioeconomic analysis and policy development; (ii) consultative processes and outreach; and (iii) the development and implementation of social surveys. The firm will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). An administrative and technical coordinator will be recruited as an individual consultant to facilitate day-to-day organizational and technical matters and liaise with the executing agency.|
|Procurement||The consulting firm will be responsible for procurement of the TA equipment in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). The executing agency will retain the equipment upon TA completion.|
|Responsible ADB Officer||Walker, Wendy M.|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Urban and Social Sectors Division, EARD|
|Concept Clearance||18 May 2012|
|Fact Finding||12 Mar 2012 to 16 Mar 2012|
|Approval||06 Dec 2012|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|06 Dec 2012||07 Feb 2013||07 Feb 2013||31 May 2015||31 May 2016||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,000,000.00||0.00||0.00||0.00||0.00||1,000,000.00||06 Dec 2012||970,835.21|
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|Title||Document Type||Document Date|
|Promoting Inclusive Growth: Technical Assistance Completion Report||TA Completion Reports||Mar 2017|
|Promoting Inclusive Growth||Technical Assistance Reports||Dec 2012|
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