European Union and United Nations support Mongolia’s progress in public finance and decent work

December 6, 2024
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UNDP Mongolia

Ulaanbaatar, 6 December 2024 – The European Union (EU) and the United Nations Development Programme (UNDP), alongside the Food and Agriculture Organization (FAO) and the International Labour Organization (ILO), concluded the "SDG-Aligned Budgeting to Transform Employment in Mongolia" (SDGBE) project. 

Launched in October 2020 as part of the European Union’s €50.8 million Budget Support Programme for Mongolia, the €7.4 million project has been instrumental in enhancing Mongolia’s public financial management and employment systems. By aligning budget planning with national development priorities, it has advanced sustainable development, decent work, and inclusive economic growth. 

Key results include the adoption of Results-Based Budgeting (RBB) to align budget proposals and reporting with Mongolia’s development priorities. Six budget governors and local governments developed budget proposals using RBB approaches for 2025, while programme budget execution reports for 2023 and 2024 were developed and published. Moreover, the development of program budgeting and reporting online systems was one of the major achievements in this area. 

To improve transparency, the project enhanced public and parliamentary oversight of budgets, enabling better analysis of policy effectiveness, piloting SDG performance audits, and encouraging public participation in budget discussions. 

On employment, the project introduced more proactive and client-focused policies for wage-based and self-employment measures. In technical and vocational education and training (TVET), it supported demand-driven curricula, inclusive learning environments, and alignment with international standards, including the approval of the National Qualification Framework and Occupational Indexing. Labour standards were also improved including enhanced capacity for labour inspectors and public awareness campaigns about decent work and youth rights in the workplace.

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UNDP Mongolia

L.Munkhzul, State Secretary of the Ministry of Family, Labour and Social Protection acknowledged the significant contributions and achievements of the project, stating, “The Government of Mongolia, particularly the Ministry of Family, Labour and Social Protection, will continue to enhance and sustain results-based policies and budgeting approaches to ensure accessible and efficient public services, contributing to social and economic development.”

Collaboration between public and private sectors also advanced economic growth, with initiatives like developing export products in the camel milk and offal meat value chains. Young entrepreneurs received support to build businesses, while technology transfers strengthened agri-food systems.

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UNDP Mongolia

H.E. Ms. Ina Marčiulionytė, Ambassador of the European Union to Mongolia, celebrated the project as a significant milestone in 35 years of European Union-Mongolia diplomatic relations. She stated, “I hope all stakeholders can sustain the achievements of the project and prioritize to continue capacity building, knowledge sharing, and the adoption of best practices in public financial management and employment services.”

During the event, partners discussed strategies to sustain these achievements, with a focus on institutionalizing Results-Based Budgeting and enhancing employment outcomes. Resources developed during the project were shared through a dedicated knowledge website: www.sdgbeproject.mn 

a group of people standing in front of a crowd
UNDP Mongolia

Ms. Matilda Dimovska, UNDP Resident Representative in Mongolia, added, "What we have done over the last four years has laid down roads—the foundation for a nationwide journey toward sustainable, human and environment centered development. The systems are in place, the tools are ready, and the vision is clear. So, now I call for taking what we have built together and moving forward with even greater determination."

The training of over 17,000 public sector officers in areas such as results-based management, budget oversight, employment promotion, and labour standards highlights the transformative impact of the project. This sustainability effort has created a multiplier effect, benefiting hundreds of thousands of job seekers, unemployed individuals (including youth in remote areas and persons with disabilities), as well as employers seeking more productive and satisfied workers, and employees striving for better working conditions.

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About European Union

The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit. 

About UNDP

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. 

About FAO

The Food and Agriculture Organization of the United Nations (FAO) is the leading international agency dedicated to achieving food security for all and ensuring that no one is left behind. Active in over 130 countries, FAO works to eliminate hunger, improve nutrition, and promote sustainable agriculture. Guided by its Four Betters—Better Production, Better Nutrition, a Better Environment, and a Better Life—FAO partners with governments, organizations, and communities to deliver innovative, sustainable solutions to global challenges such as poverty, inequality, and climate change, creating a resilient and equitable future for people and the planet.

About ILO

Advancing social justice, promoting decent work. 

The International Labour Organization is the United Nations agency for the world of work. We bring together governments, employers and workers to drive a human-centred approach to the future of work through employment creation, rights at work, social protection and social dialogue.

For further inquiries:

Otgongerel Kh., SDGBE Project Communications Officer (otgongerel.khalzanbanid@undp.org)

Tselmeg Chuluunbaatar | Press and Communications Officer | EU Delegation to Mongolia tselmeg.chuluunbaatar@eeas.europa.eu 

Project knowledge website: https://sdgbeproject.mn/