The World Bank approved on Thursday in Washington an
investment credit of USD11.0 million as additional financing for the
Sustainable Livelihoods Project II (SLP II) in Mongolia. This will increase the
impact of SLPII by further scaling up institutional mechanisms that reduce
vulnerability and promote livelihoods in communities throughout the country.

Mongolia’s economy has grown rapidly in recent years.
However, the country still faces considerable social challenges. Despite
encouraging trends in poverty reduction, there is substantial variation within
the country. Poverty incidence in Mongolia is higher in rural areas, where
almost half of the population lives. Semi-nomadic herder households constitute
the single largest group amongst the poor.

SLP II is the second of the three-phase Sustainable
Livelihoods Program which started in 2002. SLP II is supported by the World
Bank, the European Union and  the
Japanese Government and aims to enhance livelihood security and sustainability
of communities throughout Mongolia.

The first phase of SLP from 2002-2007 piloted innovative
approaches to reducing herder risk, building local-level assets through
citizens’ engagement and contributions and increasing access to financial
products. These tested approaches and institutional mechanisms have been scaled
up nationwide during the second phase of the program since 2007. The final
phase of the program, if approved, would aim to institutionalize the approaches
and mechanisms developed and demonstrated under the program.

The additional financing will provide one additional year
for financing SLP II, principally the Pastoral Risk Management and Community
Initiatives components.

The project will continue to be
implemented by the Sustainable Livelihoods Project Office, with sub-offices in
each aimag and soum throughout the country. The Project is under the overall
responsibility of the Ministry of Finance and includes a Project Steering Committee
comprising relevant government and non-governmental agencies.