1. GEF - ADAPTATION TO CLIMATE CHANGE WORKSHOP IFAD in Mongolia - country background Rome, 18-19 May 2007 presentation by Thomas Rath, Country Programme Manager

2. Mongolia – country background Landlocked between Russia and China 2.4 million people 1.08 million ( = 43 %)Rural population: 1.08 million ( = 43 %) Lowest population density of the world: 1.4 person / km2 "twin terrors of isolation and distance“

3. The countryside Mountains zone (Altai mountains) Mountain - steppe zone Steppe Gobi desert

4. Climate – the extreme Summer: warm and short (100 days) Winter: very cold and long Precipitation: 300 mm per year Dzud : the winter disaster Occurrences of prolonged dry periods (“droughts”)

5. Dzud – the winter disaster Three consecutive dzuds (1999-2001) 11 million animals lost Small, vulnerable herders were pushed in deep poverty and destitution

6. Economy* GDP shares: services (54%) ; industry (24%); agriculture (20%) GDP per capita: USD 1075 GDP growth: 7 % (in 2004: 10%) * National Statistics for 2006

7. The rural sector: livestock Agriculture contributes 20 % to GNP Livestock make up 80% of gross agricultural output About 30 % of export earnings

8. Rural Poverty Poverty remains widespread, but declining. In 2003: 36 % ; in 2006: 32 % Poverty in rural areas: 38 % (urban: 28 %) Poverty incidence has worsened in aimag centres, but improved in UB and soum centres!!

9. Towards Improved Resilience Resilience Vulnerability Exposure to harsh winter Fragile nat. resources (rangeland, water) Insecure land tenure Weak services coping strategy: -Community NRM -Hay making -Access to finance -Change production -Health & education -Other….

10. IFAD country experience (past & ongoing interventions) Poverty reduction: targeting the poor Pasture management: herder groups and RMMC Non farm economic activities Social development activities Rural finance: outreach to the rural, remote areas through mobile banking Long-term experience in four aimags (provinces)

11. IFAD country experience (past & ongoing interventions) Livestock re-stocking Vegetable production Co-managed NRM Water supply through well rehabilitation Extension services(quality and outreach) Breeding private Vet. Services rehabilitation of clinics and schools, training of doctors, school teachers, School drop out program ; mobile kindergarten Other Economic activities Access to finance: mobile banking (XacBank)

12. Country Strategy Mongolia Gov policies PRSP New IFAD Country Strategy IFAD strategic Framework New project pipeline

13. Goal of Country Program Poor women and men are empowered to achieve higher income and improved food security * (* refers to IFAD strategic framework and MDG1)

14. Strategic Objectives for 2007 - 2009 SO 1: Access to remunerative and stable premium markets SO 2: Access to affordable and viable rural financial services SO 3: Access to sustainable natural resources

15. Project 1: Rural Markets and Poverty Reduction Project SO 1: Access to remunerative and stable premium markets A) value chain development identification of private entrepreneur product development producer involvement B) Rural Financial services Innovative MF products for producers Investment funds for enterprises

16. C) Community Infrastructure Upgrading of social infrastructure Renewable energy systems for village heating and/or electrification For better access to markets: road repair, market place

17. Project 2: Rural Finance Services SO2: Enhance access of the poor to financial services Building up credit history through training and working capital Pilot group loans to lower collateral requirements

18. Project 3: Natural Resources Management SO 3: Access to sustainable natural resources Consolidate grassroots-led NRM Groups access financial resources for economic activities Organisational structure Governance Renewable energy

19. Thank you !