Background

In support of the Government of Mongolia’s initiative on decentralization and the strengthening of local governance, the UNDP signed this project with the Cabinet Secretariat on 29 May, 2007.
The project objective is to improve local service delivery and the broader context of good local governance through: (i) piloting and improved arrangement for planning, financing and managing local service delivery in selected Aimags; and (ii) supporting the development and implementation of national policies, strategies and operational procedures for local governance and devolved service delivery. Through supporting institutional reform, capacity development, and increased public participation and accountability by local governments, the project aims to contribute to the localisation and achievements of MDGs.

Project Strategy

The project strategy is to provide local governments with incentives to increase their capacity for administration, planning, financial management, pro-poor service delivery and good local governance processes. Combining block grants with technical assistance, the project provides the pilot local governments with hands-on experience in managing development funds and service delivery responsibilities in a participatory and accountable manner. At the same time, the project will assist in further developing national policies, laws, rules and procedures required drawing on the lessons learned within the pilot programme.

Planned activities

Intended Output 1: Policy relevant piloting for improved local governance and local development processes are implemented.
The Local Governance Support Programme (LGSP) will design a grant modality and develop detailed operational guidelines and procedures for grant allocation, management and control in agreement with the government and participating aimags. The programme will also help facilitate decision-making processes with an active role of the local elected representatives in identifying development challenges, discussing priorities and making planning decisions, and monitoring project implementation and service delivery performance. Procedures for participatory audit of local government service delivery will be developed.
Intended Output 2: Capacity for local governance is increased through policy support for legal, institutional and decentralisation reforms.
The programme support will focus on three policy areas: (a) Functional responsibilities –  review of sectoral functions of soum, aimag and municipal governments and the roles and powers of elected hurals, (b) Local government financing – assessing the financing needs for development and service delivery functions assigned to local governments and operational expenditure needs, assignment of revenue sources, and design of fiscal transfer systems and facilitating national dialogue on policy options, (c) Inclusiveness and accountability of elected councils – review of local bodies’ representation and accountability to citizens including inclusiveness with respect to women, various occupational and ethnic groups.

Current progress

• Project personnel are placed
• Selection of the pilot aimag is underway
• TORs for international and national consultants are developed
• Draft operational guidelines are developed to be discussed through a participatory workshop with the selected aimag participants in September.