|
New ADB Strategy in Mongolia |
|
|
|
|
Saturday, 22 October 2005 |
Press Release - Asian Development Bank
ADB will support the
Mongolian Government in promoting higher private sector-led growth and
inclusive social development, in a new Country Strategy and Program
(CSP) for 2006-2008.
The CSP proposes assistance from ADB's
concessional Asian Development Fund totaling about $85 million over the
three years, averaging about $28 million a year. This will be
supplemented by an additional $40 million from ADB's regional fund and
cofinancing sources. The lending program will be supported by technical
assistance grants averaging about $1.9 million a year.
The CSP
aims to help Mongolia maintain stable broad-based economic growth and
address priority goals of reducing disparities in development between
urban and rural areas, while improving access to jobs, incomes, and
higher quality public services.
Planned for the period are
projects to address urban development, public administration reform,
agriculture, transport, and health.
The final assistance levels are subject to performance and overall ADF availability.
When
Mongolia joined ADB in 1991, its economy was in crisis and the country
was in flux, given that financial support and technical assistance
previously provided by the Soviet Union had been withdrawn. Since then
Mongolia has made a strong transition to a market economy, but there
has been insufficient growth to reduce the large percentage of the
population who fell into poverty in the early transition years.
Harsh
natural conditions, geographical isolation, difficult access to
financial resources and unemployment are the major causes of poverty,
according to the CSP. Low incomes are compounded by inadequate social
services, particularly poor medical facilities, urban services, and
education.
ADB has provided loans totaling $605.8 million to
the end of 2004 for 35 projects in the agriculture, education, energy,
financial, health, industry, telecommunications, transport, and urban
development sectors, complemented by technical assistance amounting to
$57 million.
"With much of the important rehabilitation and
emergency agenda now complete, ADB assistance is now to be better
focused on sectors that have the maximum impact on poverty reduction,"
says Barry Hitchcock, ADB Country Director in Mongolia.
"ADB
is therefore adopting a more focused approach, narrowing the number of
sectors to include assistance in agriculture, transport, education,
health, and urban development."
A key change in the CSP is
that it targets constraints to broad-based and stable growth rather
than higher growth itself, and constraints that limit economic
opportunities for the poor rather than general transition and
development constraints.
"The CSP addresses the Government's
twin priorities within a framework that will develop rigorous
performance indicators and establish systems to manage the Government's
strategy for achieving results," Mr. Hitchcock adds.
CSPs
define ADB's medium-term development strategy as agreed with the
country. A CSP update is usually prepared every year taking into
account the continued relevance of the CSP, its implementation, and
ADB's operational program.
 Be first to comment this article | |
Only registered users can write comments.
Please login or register. Powered by AkoComment Tweaked Special Edition v.1.3.0 |
News Archives 
