Governance and Decentralisation Programme Exit Phase (GDP Exit Phase)

Khoroo organizers participate in “Citizen-centered civil service” training organized by the Municipality of Ulaanbaatar Training Center established in 2017.
Khoroo organizers participate in “Citizen-centered civil service” training organized by the Municipality of Ulaanbaatar Training Center established in 2017. ©SDC/Asia Foundation

The Exit Phase of the Governance and Decentralisation Programme will consolidate achievements of previous two phases to support decentralisation and democratisation reforms. It will focus on institutionalisation and ensuring sustainability of results to contribute to equitable and sustainable development through decentralized service delivery and enhanced citizen engagement in public affairs, including in the urban areas. Swiss expertise and Swiss decentralisation model will be used.  

Country/region Topic Period Budget
Democratic participation and civil society
Anti-corruption organisations
01.01.2020 - 31.12.2022
CHF  3’500’000
Background Since 2011, the Government of Mongolia (GoM) placed an emphasis on decentralisation reform to achieve more equitable and inclusive development. These efforts toward empowering local governments to provide better public services and enhancing citizen participation for greater government accountability have yielded positive results, such as approval of a comprehensive policy on decentralization reform and supporting legislations; enabling citizen participation in local development through passing the Integrated Budget Law (2011); and increased consultations with citizens through introduction of the Public Hearing Law (2015) and General Administrative Law (2016). While broad consensus among key government stakeholders on the need for continued decentralisation and democratisation remains strong, functional allocation among different government levels are either unclear or overlapped, local authorities are not provided with adequate financial and administrative authority to fulfil assigned mandates; legal rights of citizens to participate in public affairs are not coherently codified and effectively enforced; citizens’ knowledge and attitudes about importance of civic engagement remain weak; improved delivery of services and infrastructure investments to residents of Ulaanbaatar (UB) which accommodates more than half of the country’s population remains a challenge for the MUB
Objectives Sub-national governments are empowered, democratic, and accountable to citizens, and they provide sustainable services responding to citizens’ needs.
Target groups
  • The national government, including ministries and agencies
  • Local governments, including MUB
  • Citizens of Mongolia, including young women and men
  • Young journalists 
Medium-term outcomes
  • The GoM elaborates and implements policies, laws, rules and processes that assign to subnational governments clear functions, responsibilities, administrative authority, and resources in an equitable manner.
  • MUB plans and delivers more effective and responsive public services and Local Development Fund investments in ger areas.
  • Citizen engagement is strengthened for improved government responsiveness to the needs and preferences of men, women, and vulnerable groups.

Expected results:  

  • Functions of each state level are clarified through application of Functional re-allocation (FA) methodology along with consistent improvement of legal framework
  • Fiscal mechanisms for FA are designed
  • Guidance for effective implementation of decentralization reform is in place
  • MUB’s Capacity Development Framework is implemented and leads to civil service professionalization
  • Service delivery has improved through decentralized service points and digitization
  • Citizen decisions on Local Development Funds[1] (LDF) are followed by MUB and promote citizen participation
  • The legal and regulatory framework is conducive for civic engagement
  • Young women and men are equipped and motivated to become active citizens
  • Media and ICT-based dissemination channels provide reliable governance-related information.

[1] LDF are funds allocated to sub-national governments to address local development needs in consultation with citizens.

Results from previous phases:  

  • Approval of State Policy on Decentralization (2016).
  • Approval of Functional Allocation Methodology by the GoM and its application in two sectors with TA from University of Lucerne of Applied Sciences and Arts.
  • Improved legislative environment for local governments through approval of amendments to four sectoral laws and Budget Law (2016).
  • Elaboration of a draft law on Implementation of Citizens’ Political Rights with technical support from the Center of Democratic Studies, Switzerland (2016).
  • Amendment proposals to 111 laws related to citizen engagement to eliminate gaps, contradictions and duplications submitted to GoM for approval.
  • Elaboration of a Draft Law on Non-for-Profit Entities and its submission to the GoM for approval.
  • Elaboration of a Capacity Development Framework for MUB’s civil servants and its approval (2019).
  • Access to selected public administrative services for residents of seven pilot ger khoroos in UB has improved with MUB committed to upscale the pilots.  

Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Foreign state institution
  • Central State of South East

Coordination with other projects and actors
  • Strengthening Representative Bodies in Mongolia (UNDP, 2017-2020)
  • Public Investment in Energy Efficiency, Phase 2 (GIZ, 2018-2021)
  • Mainstreaming Social Accountability in Mongolia (World Bank, 2015-2020)
  • Understanding and Managing Internal Migration (IOM, 2019-2023)
  • Towards Professional and Citizen-centred Civil Service in Mongolia (UNDP, Canada, 2018-2021)
Budget Current phase Swiss budget CHF    3’500’000 Swiss disbursement to date CHF    515’686
Project phases Phase 3 01.01.2020 - 31.12.2022   (Current phase) Phase 2 01.04.2015 - 31.12.2019   (Completed) Phase 1 01.04.2012 - 31.03.2015   (Completed)