People and Projects:

Posted October 13, 2008

Job Skills in Mongolia

Country: Mongolia

In the Khentii province of Mongolia unemployment is rife, but thanks to funding from the Mongol Rally the problem is being addressed in the community of Batnorov.

In the Khentii province of Mongolia unemployment is rife, but thanks to funding from the Mongol Rally the problem is being addressed in the community of Batnorov.

The project has successfully provided business training for twenty unemployed people in Batnorov and through a local Government partnership has provided work space for a further five people who work in tailoring, shoe making and electronic goods repair.

Those benefiting have included:

Enkhsaikhan, local businesswoman:

Before joining this project, I used to plant vegetables in my garden simply to feed my own family. I particpated in two different types of training and because of the skills I have learnt my life is now completely changed.

The training taught me proper methods of planting, sowing and preserving vegetables. I also participated in a business training course which has improved my managment skills and has increased my income to support my family.

With my new managment skills I joined a group of local vegetable garderners and wrote a project proposal for them which was sent to our local Government. The result of this was that our project was endorsed and MNT 2 million (£870) was given to our group. The money has enabled us to plant crops in one hectare of land and this autumn we harvested four tonnes of vegetables, which I could not have dreamed of achieveing before I took part in the training.

Now I am happy because I can relax, knowing that my children will have enough food to eat throughout the harsh winter.

Posted November 12, 2007

Basketball In the Land of Chinggis Khann

Country: Mongolia

Topics: Sports

Hoops have come to rural Mongolia.

A project called “Nike - In the Land of Chinggis Khann” helped to provide equal access to new sporting opportunities to rural Mongolian youth. The project gave youth the opportunity to challenge themselves in nationwide basketball competitions and to initiate sports activities in some remote rural areas of Mongolia. The programme also reached out to marginalised youth living in the outskirts of Ulaanbaatar.

The programme was designed to reduce the isolation among rural youth and to enhance social activities by improving access to national level sports competitions, particularly basketball. Developing team sports, which contributes to community development, can help slow down the migration process to larger cities, which has resulted in huge numbers deserting rural villages to seek new economic opportunities.

With material support from Nike and cooperation from the local Development Guide Franchise Cooperatives, the Mongolian Basketball Association was able to bring team sports to rural boys and girls, up to age 17. This provided an equal opportunity by providing rural teams access to nationwide basketball competitions, as well as initiating sports activities in remote rural areas of Mongolia.

“Since we were kids we have played basketball in our neighborhood but there were no basketball tournaments organised,” said Zolzaya, an 11th grader who participated in the tournament. “By organising these games, the sponsoring organisations gave us an opportunity to actively take part."

The start of this event coincided with the 800th Anniversary of the Great Mongol State, which lasted for 238 days - from September 2, 2006 to April 29, 2007. Sporting events were organised with the cooperation of various Governors’ offices within the provinces and soums.

The project toured 20 centers in the Provinces, 39 locations in the soums and 25 locations in rural areas of Mongolia. Approximately 20,000 people - 1.39 percent Mongolia's entire population - participated in sporting events.

"I think this tournament has had a positive impact on how we spend our free time,” said Zolzaya.

Don't be surprised if Asia's next great basketball prospect comes from the vast deserts where Chinggis Khann once roamed.

Posted April 13, 2006 by Sean Granville-Ross

The Rich Yellow Desert

Country: Mongolia

Topics: Economic Development, Agriculture

In the early 1990s, following the collapse of the Soviet Union and the end of its assistance to Mongolia, food was in short supply for most Mongolian families. Meat from a family's own herd of livestock was the main component of the diet, occasionally accompanied by potatoes and, when available, some variety of vegetable.

Although the Mongolian diet is based on meat, vegetables are well-liked - especially those grown locally. As a result of the country's new market economy, the demand for vegetables is on the rise. But customers don't wait just any vegetables: when they shop at the local market in the western province of Gobi Altai, they ask specifically for Sharga County vegetables instead of the more abundant vegetables from China.

Why the change in tastes? Just ask Mr. Bayambatogs.

Bayambatogs has grown vegetables in Sharga County for the last 33 years. The county, located 70 kilometers southwest of the provincial centre, Altai City, is a beautiful desert oasis - a welcome oddity in the surrounding stark landscape. This is where Mr. Bayambatogs has maintained his gardens and grown his reputation.

For the better part of three decades, he was employed as a gardener by the local socialist work group, which produced vegetables for the Gobi Altai province. After Mongolia's socialist period ended and Bayambatogs's work group ceased to exist, he realized that the demand for locally grown vegetables was not being met. So, in 1995 he decided to start his own business, Bayan Sharga - which means "The Rich Yellow Desert." Over the last ten years, he and his family have grown potatoes, cabbages, carrots, onions, tomatoes and watermelons on five hectares of land.

After a decade of watching the demand for vegetables steadily increase in Gobi Altai, Bayambatogs decided it was time to modernize and improve the efficiency of his business. He contacted the Gobi Regional Economic Growth Initiative, a herder diversification and business development programme funded by the U.S. Agency for International Development (USAID) and implemented by Mercy Corps. The programme works throughout the Gobi Region in Southern Mongolia, assisting herders like Bayambatogs to achieve their business goals. The project focuses on developing cooperatives, expanding and diversifying small businesses, and improving the quality and accessibility of local business development and support services.

Since the programme began, Mercy Corps has helped to create more than 400 new businesses through the training of more than 3,500 entrepreneurs like Bayambatogs. Nearly 200 herder groups and cooperatives, comprising more than 6,000 members, are active Gobi Initiative business development clients.

In the fall of 2004, Bayambatogs received Mercy Corps assistance in developing a business plan to expand his operation. The business plan contained a summary of the proposed activities, the technical training, equipment and financing needs, the results of market research, and marketing and sales strategies. Bayambatogs applied for small business loan to buy a tractor and was approved based upon his years of experience and well-written business plan.

"We had wanted to purchase a tractor for many years, but it was difficult to receive a loan," he explained. "With Mercy Corps assistance, though, securing a loan became a lot simpler."

So far the tractor has saved countless hours of labour for Bayambatogs and his family. With the extra time, he has been able to plant more vegetables, which has increased his yields and profits. This year, he has planted three hectares of potatoes instead of the usual two hectares.

Mercy Corps has also provided greenhouse construction training to Bayambatogs. Next spring he plans to build a small greenhouse, which will give him a head start on the short growing season. Because of harsh winters in Mongolia, vegetables cannot be planted until the beginning of June and must be ready for harvest by early September.

Given his well-earned success, Bayambatogs will continue his cooperation with Mercy Corps and USAID. He plans to diversify his business by establishing a micro-dairy, which will keep him busy during the winter months when he cannot grow vegetables. He hopes that the next generation will continue the family business.

"If I can create a very successful business, I will be able to convince my oldest daughter, who is studying at the National Agriculture University, to return home and help me manage and continue to improve our business."

That way, a new generation of Mongolian connoisseurs will be able to enjoy Bayambatogs family produce.

Posted November 1, 2004 by Sean Granville-Ross

A Growing Market for Farmers in Mongolia

Country: Mongolia

Topics: Economic Development, Agriculture

Vegetable growers and dairy producers in Mongolia's Umnugobi province (or aimag) have begun supplying local produce to one of that country's largest mineral exploration operations.

The Bat-Amgalan Khurkh herder cooperative in the town of Nomgon soum, the Ankh San cooperative in Bulgan soum and the Aduut Gobi cooperative in Khurmen soum have made their first deliveries to Ivanhoe Mines’ Oyu Tolgoi gold and copper exploration site in Umnugobi.

The cooperatives – who have received technical assistance and training from the Mercy Corps Gobi Initiative project, which is funded by USAID – are supplying the 400-strong workforce with fresh soybean curds and a range of freshly grown produce.

Their first delivery of 20kg of curds, 200kg of potatoes, 200kg of onions, 150kg of carrots, 100kg of turnips, 100kg of tomatoes, 10kg of beets and 10kg of peppers on September 23 netted them more than 400,000 MNT - equivalent to about £240

Mercy Corps Mongolia Country Director Steve Zimmerman said: “Since one of the main focus areas of our project is to link new and expanding rural businesses to local, regional and national markets, Ivanhoe, as a major Gobi-area consumer, represents a solid marketing opportunity for these rural businesses. Ivanhoe solidly endorses the practice of local procurement and Gobi-area producers are seeing the value of this business collaboration.

“The herders get immediate payment for their products, helping to eliminate an outdated barter system that has prevailed since the early 1990s.

“It’s all about linking producers to markets, where those markets pay them in real money and real time. Producer-consumer relationships like this benefit the small Gobi businesses and provide a large company like Ivanhoe with an opportunity to demonstrate very tangible support for the local economy.”

Posted July 6, 2004 by Cassandra Nelson

Hard Work and Smiles for the Family of the Weeping Camel

Country: Mongolia

Topics: Economic Development, Agriculture

Throughout the Gobi and much of Mongolia, the Bactrian Camel (the two-humped version) is ubiquitous. It has become an emblem for tourists and locals alike.

This traditional symbol of Mongolia is the centerpiece for a unique film, "The Story of the Weeping Camel." The movie features nomadic herders that are beneficiaries of Mercy Corps' Gobi Regional Economic Growth Initiative.

On Mongolia's rugged steppes, tradition endures and nomadic families still rely heavily on camels. However, the number of camels in Mongolia is fast dwindling, as many traditional herdsmen migrate to the urban areas in search of more sustainable livelihoods. Today, there are about 255,000 camels left throughout the country. Just fifty years ago there were an estimated 894,000 camels in Mongolia.

Life in the Gobi

Mr. Ikhbayar and his family are a typical Mongolian herder family. They live in southern Mongolia's Umnugovi aimag (an aimag is similar to a province), home to the country's largest camel population - almost 100,000. It is also the least populated by humans, with a population density of only 0.3 people per square kilometre. It is the hottest, driest and harshest aimag in the country.

Like half of Mongolia's population they are nomadic, moving their ger (a traditional Mongolian tent) and animals several times a year in search of better grazing pastures and water. The family ekes out a basic living from their herds of camels, goats and sheep. Days are spent making felt and rope from camel wool, spinning, making dairy products, milking animals, collecting dung for fires, combing and sorting cashmere, shearing sheep, and other basic rural chores.

But last year, the family's daily routine was interrupted by unexpected guests. One day, a film crew showed up at their ger to get a perspective on the nomadic way of life. This summer, Ikbhbayar's camels and his family are appearing on movie screens around the world in the film "The Story of the Weeping Camel".

Although the family may achieve some international fame from the movie, their life has not changed. Sitting on the floor of his ger, Ikhbayar's main concerns are the weather and preparing for the upcoming winter. Summer is fleeting in Mongolia and it is crucial to their survival that the herds are well-grazed and they have managed to earn enough money and stock-up supplies to sustain the family during the long and harsh winter.

It is this brutal lifestyle that has caused many herder families to give up their traditional livelihoods and search of a better life. Unfortunately, this search of a better life is often in vain. Over the past decade, population in the Gobi has been steadily declining as herders have moved to urban areas in search of economic opportunities. But few manage to improve their lot in the cities where unemployment and poverty are rampant.

Preserving and Improving a Way of Life
In an effort to improve the conditions of rural families, Mercy Corps, with funding from the US Agency for International Development (USAID), has begun implementing phase two of the Gobi Regional Economic Growth Initiative. The goal of the programme is to develop and strengthen rural businesses and improve the livelihoods of the Gobi herdsmen.

"One of the goals of the programme is to give herders the choice to stay," explains Steve Zimmerman, Mercy Corps' Country Director in Mongolia. "Their perception is that life is better in the city and there is little opportunity in the rural areas."

Mercy Corps has been working with Ikhbayar and his family to help them increase their income and sustain their livelihood through the development of herder cooperatives, training programmes and market-development activities.

"With the assistance of Mercy Corps, we have joined a cooperative with 18 herder families," says Ikhbayar. "We have been able to increase our income with the training we have taken on cashmere classification, animal breeding and dairy production. And we have been able to market our dairy products in an exhibition Mercy Corps organised."

Ikhbayar's wife, Tseveljamts, is busy making curds from camel milk, but this year she is trying something new. "After taking training with Mercy Corps, I have started to experiment in making different flavors and shapes of the curds," she explains. "I hope they will sell well at this year's exhibition."

When asked about his plans for the future, Ikhbayar is optimistic. "I have discussed many ideas with Dr. Ulgiit [a Mercy Corps veterinarian] to strengthen my camel business," he says.

By helping traditional herders diversify their businesses, expand their product lines and link them to new market opportunities Mercy Corps is enabling many herder families to remain in the Gobi. In addition to marketing and improving his camel dairy products, Ikhbayar is considering working with a tourist operator to provide camel treks.

"I want to grow my camel herd," he says. "Goats may provide cashmere, but you can ride a camel!"

Posted June 29, 2004

XacBank Awarded "5-Diamond Profile of the Month" Honor

Country: Mongolia

Topics: Economic Development

Since 2001, XacBank has worked to nurture Mongolia’s emerging economy by providing loans to entrepreneurs. Today, the bank received well-deserved praise for its accomplishments: it was nominated as MIX Market’s “5-diamond profile of the month.”

MIX Market (www.mixmarket.org) is a global organisation that provides valuable microfinance information to organisations, donors and investors. MIX Market awarded the “5-diamond” honor to XacBank (www.xacbank.org) because of the bank’s financial efficiency and accountability, outreach and impact on the communities it serves.

“This is a recognition that we are one of the most transparent institutions worldwide in the microfinance industry,” said Gankhuyag Chuluun, XacBank’s Chief Executive. “It is a significant achievement for the Bank and for Mongolia.”

Mercy Corps helped develop XacBank to fight poverty throughout Mongolia. The bank currently has over 44,000 active clients and a loan portfolio of nearly £9 million.

As Mercy Corps works to improve livelihoods in Mongolia, XacBank’s award-winning programmes will continue giving hard-working families opportunities to succeed. This collaboration is ensuring a brighter economic future for Mongolia and gaining attention around the world.

Posted November 27, 2002 by Peter Blomquist

Commentary: Fueling Mongolia's Hope

Country: Mongolia

There has been a lot of talk about nation-building over the past year, first in relation to post-Taliban Afghanistan, and now on potential post-war obligations in Iraq.

Another country should be added to the nation-building conversation: Mongolia.

Mongolia? Yes, Mongolia. While there are legitimate geopolitical reasons to think about Mongolia, sandwiched as it is between Russia and China, a better reason is that a small amount of official United States development assistance is making a real difference in the lives of many Mongolians.

I recently returned from a 10-day trip in Mongolia, where I helped lead a group of 20 to visit the Gobi Regional Economic Initiative - a three-year-old programme of Northwest-based Mercy Corps.

Mongolia is truly one of the last, wide-open places on Earth. Four times the size of California, the country has only 600 to 800 miles of paved roads; the horse and camel are still common forms of transportation. It is also one of the least densely populated places on Earth, with a population of about 2.4 million people.

One million Mongolians still live as nomadic herders - tending their flocks of sheep, goats, camels, cows, horses and yaks. Ironically, the southern Gobi Desert region of Mongolia is overgrazed right now - a combination of too many animals and several years of drought making an already arid region bear even less grass. Thirty percent of Mongolians live in persistent poverty.

Mongolia became the world's second socialist republic in 1921, and for 70 years was under the domination of the Soviet Union. But the collapse of the Soviet system brought change to Mongolia, which has had nine elections in the past 10 years.

Mongolians are a proud and independent people, and have embraced a capitalist economic model and democracy. These two arenas - economic growth and democratic, civil society - are the twin goals and challenges of Mongolia today.

Enter the U.S. Agency for International Development (AID). The Mongolia AID mission is staffed by four Mongolians and one American, mission director Jonathan Addleton. Full of ideas and enthusiasm, Addleton spoke to our group one morning about AID's £7 million Mongolian budget, highlighting areas of work including judicial reform, business development and rural livelihood.

What does £7 million mean? One way of looking at it would be £3 for every person in Mongolia. Another way is 0.004 percent of a recent estimate of what it would cost the U.S. - £163 billion - to execute a war on Iraq and stay the course over the subsequent five years of nation-building.

What good can AID do with £7 million in Mongolia? A lot of good, including the significant support it provides for the Gobi initiative. The Gobi programme works in range and water management, livestock improvement, and business development. The goal is to preserve and sustain natural resources, to help herding families improve the quality of their animals (and subsequent quality of cashmere produced, one of Mongolia's largest exports), and to provide new business opportunities through small loans to those moving to towns and cities.

We visited a master herder, Mr. Tumer, one afternoon, and learned how the Gobi initiative has helped him and the herder cooperative he leads. We sat inside his ger (a felt-covered tent or yurt), dutifully sipping airag (fermented mare's milk) as we learned how the initiative helped introduce elite bucks into his herd, and provided business training to improve the marketing of cashmere for cooperative members.

Another day we visited the bakery of Mrs. Tsetsegdelger in the aimag (state) capital of Dalanzadgad. She secured a loan through the initiative to buy a new oven. She now has five employees (formerly two), produces 12 bakery products, sells to 15 small shops and continues to operate her own retail business. Though not even 5 feet tall, her radiant smile and understandable pride filled the bakery.

In fact, everyone we talked to in Mongolia seemed to have a sense of hope and opportunity - from the herders and micro-business owners to the Mercy Corps Mongolian staff and AID staff. The country reflects an optimism created by the chance to make a difference in individual lives, and to have a national impact with good ideas. The belief in progress is palpable.

The Afghanistans and Iraqs of the world may take most of our attention and resources in "nation-building" early in this century. But it would be shortsighted not to recognize how relatively little can go a relatively long way to assist a vibrant young democracy like Mongolia.

I sat next to Mrs. Bavarbileg at dinner one night on the trip. She is the chapter director of a nationwide network of women helping women start small businesses. The name of this growing organisation is the Liberal Women's Brain Pool.

Let's make sure our national foreign policy includes finding other "brain pools" around the world - where a bit of support from the United States can unlock potential and build a better, safer world for all.

[Editor's Note: This commentary originally appeared in the Seattle Times November 27, 2002.]

Posted May 28, 2002

World Bank President Praises Mongolia Bank

Country: Mongolia

Topics: Economic Development

The International Finance Corporation—the private sector lending arm of the World Bank Group is providing a £240,000 loan to Mongolia's XacBank, marking IFC's first investment in Mongolia's financial sector. The loan will also help to bring badly needed credit to the country's microentrepreneurs, and small and medium enterprises.

"IFC sees an urgent need to strengthen Mongolia's financial institutions to support private sector development and provide small businesses and micro enterprises with access to banking services," said World Bank President James Wolfensohn at the signing ceremony in Ulan Bator on May 21, 2002.

"We also support XacBank's strategy to reach the poor and under-served communities in Mongolia."

In 1999, Mercy Corps formed a for-profit, non-bank lending institution to meet the credit needs of the Gobi region. Goviin Ekhlel - "Gobi Start" - helped finance the working capital and fixed assets needed in retail trades, light industry, transportation, agriculture, and manufacturing. Clients consisted of small and medium sized business enterprises, as well as pastoral herders who required a unique loan structure tailored specifically to their seasonal needs.

Mercy Corps initiated a strategic merger between Goviin Ekhlel and XAC in summer 2001, leading to the creation of XacBank.

Previously, Mongolians had very limited access to financial services, especially in poor rural areas. XacBank’s mission is to provide a broader array of choices to clients in locations that lack access to formal banking and credit services. Sixty-five percent of XacBank's clients reside in rural areas and more than 70 percent are women.

"As the [Mongolian] Government works to finalize its poverty reduction strategy and put it into action, it will be important to encourage the private sector as an engine of growth. I am pleased with the work being done on small and medium-sized enterprises and on microcredit. IFC's loan to XacBank will make an important contribution to this work", Wolfensohn said.

For more information, visit the World Bank Web site.

Posted February 24, 2002

Livelihoods Destroyed as 800,000 Livestock Perish in Mongolia—Emergency Relief Efforts Underway

Country: Mongolia

Topics: Agriculture, Emergencies

Extraordinarily harsh winter weather in Mongolia has killed more than 800,000 animals - the cattle, horses, goats and camels that many nomadic Mongolians rely on for survival.

The animals have suffered agonizing slow deaths of exposure and starvation. Many animals were in a weakened state already due to a severe drought last summer. Carcasses line rural roads, as herders battle the elements to skin them in hopes of selling their hides.

While there have been few reports of human fatalities, the death of so many animals will have far-reaching impact on the health, economy and food security of an entire nation. Many of Mongolia’s 2.7 million people depend on livestock for food and hides, and make their living selling their goats’ much-prized cashmere wool.

"Animals are the foundation of Mongolia’s economy," says Mercy Corps’ Programme Officer for Mongolia, Rachel Lieber. "Losing this number of animals so quickly is devastating. The impact will be felt even more in the spring when herders normally sell the cashmere and skins, and the resources aren’t going to be there."

The government of Mongolia has declared this the worst disaster to befall Mongolia in 30 years. They have worked hard to respond to the crisis but now are appealing for international aid to address this emergency.

Mercy Corps, which has been on the ground in Mongolia since February 1999, will be distributing emergency clothing and boots. Nike has donated more than 13,000 pieces of men’s, women’s and children’s clothing from its Pakistan facilities, as well as partial shipping costs. Mercy Corps will also purchase winter boots in Mongolia for immediate distribution.

Mercy Corps is currently implementing the five-year Gobi Regional Economic Growth Initiative with funding from the US Agency for International Development. In partnership with Associates in Rural Development, Inc., Pact and Land O'Lakes, Mercy Corps’ programme assists the people of Mongolia's Gobi region to accelerate and sustain market-led economic growth and development. One important component of the programme is working with cashmere goat herders to help them develop better quality cashmere and sell it for fair market prices. The programme has also recently opened a non-bank financial institution to provide small loans to herders and other business people.

Posted December 18, 2001

Market Watch Keeping Herders in Mongolia Informed

Country: Mongolia

Topics: Economic Development, Agriculture

With a land area slightly smaller than the state of Alaska, few paved roads and a population where only one in fifteen people own a television, it is not surprising that there is a premium for information in Mongolia. This is especially true for rural Mongolian herders looking to sell and buy cashmere, wool, meat, hides and skins, and other commodities at the country’s disparate markets for a fair market price.

Since 1999, Market Watch, a Mercy Corps-run programme, has helped rural herders gain access to market information. A first of its kind in Mongolia, the programme has become so successful and popular that it has been transformed into an independent, for-profit business with plans for further expansion.

Using local consultants, Market Watch compiles commodity price data at 20 markets throughout Mongolia twice a week. Rural herders and traders can then access this data through Mercy Corps’ Gobi Business News magazine, which has the largest circulation of any written media product in Mongolia and has been expanded to radio and Internet formats.

Market Watch was initially created by Mercy Corps as part of the Gobi Regional Economic Growth Initiative. The Gobi Initiative is a five-year rural economic development programme managed by Mercy Corps, in a collaboration with Pact and Land O'Lakes, with financing from the U.S. Agency for International Development.

Agriculture is the largest industry in Mongolia and plays a dominant role in the country’s sparsely populated southern region, the Gobi, where many families subsist as nomadic herders.