Mongolia
Sustainable livelihoods Through Micro-Finance Innovation (SLMI)
Duration: 45 months
Start Date: 1 September 2006
End Date: 30 June 2010
Donors: ADRA NZ
Location: Zavkhan, Gobi-Alta and Selenge Aimags, Mongolia
Beneficiaries: approximately 5000
09/10 Budget: NZ$112,738
In 1991, Mongolia was one of the last Soviet-allied countries to begin moving towards global market participation. The government budget was heavily cut, and thousands of state employees lost their jobs. Between 1999 and 2002 a series of winter weather disasters added a further burden, as one-third of Mongolia’s livestock died, leading to increased poverty and rural-urban migration.
In the SLMI project, ADRA uses its unique experience and reputation to strengthen the livelihood security of low-income households through improving savings habits, micro business practices and financial services. This project will combine the distinct abilities and resources of ADRA and Mongolia’s banking institutions. ADRA’s self-help group services will enable poor and vulnerable households to benefit from group cooperation, savings, improved financial planning and, eventually, business credit, in most cases for the first time.
Based on the identified gaps in the current business environments and development needs, ADRA is providing self-help group services as part of an integrated approach to community and economic development. The project cooperates with the relief and community development interventions of local government agencies, bi-lateral development agencies (such as the Swiss Agency for Development and Cooperation), and other relevant stakeholders in the regions. By improving group cooperation, household financial management and business planning, this project is strengthening the livelihoods of poor families, thus leading to overall improvement in social welfare and quality of life.
