IFAD in Mongolia

Rural Poverty Alleviation Project

Project Beneficiaries

Project Staff

Mongolia through Photography

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Arhangai Aimag

Aimag Centre: Tsetserleg, 470 km west of Ulaan Baatar
Population: 98,000
Land area: 55,000 km2
Livestock: 2 119,000

Huvsgul Aimag

Aimag Centre: Murun, 692 km north-west of Ulaan Baatar
Population: 118,000
Land area: 100,000 km2
Livestock: 2 296,000

In 1996, the International Fund for Agricultural Development started financing the Arhangai and Huvsgul Rural Poverty Alleviation Project (AHRPAP) with a loan of USD 5.04 million to the Mongolian Government. Designed to assist some 5 800 exceptionally poor households in the rural areas of Arkhangai and Huvsgul provinces, AHRPAP employs three approaches to lessen poverty: livestock re-distribution, vegetable production and income-generating activities.

The project aims to build up herd sizes that would minimize the beneficiaries' risk of losing their whole herd as a result of epidemic diseases or harsh winters. The project is also testing various approaches to a community-based rangeland management system that would address the problems created by overgrazing.

In addition to livestock re-distribution, the introduction of a livestock insurance policy is a significant factor in minimizing the herders' financial risk. The insurance premium of 4-6 % is debited to the borrower's loan account. Herder families can choose to pay back their loans either in cash (from sale of animals or dairy products) or in kind.

Eligibility criteria for a livestock loan include skills in herding and rangeland management; sufficient labour for managing additional animals; the ability to build up winter hay reserves; access to winter shelter; and sufficient grazing areas far from overgrazed zones.

Arhangai and Huvsgul Rural Poverty Alleviation Project

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The selection criteria for beneficiaries are communicated to the sub-district level through the print media and radio broadcasts. A list of eligible households is provided from the sub-district level to the local project management staff. From the application stage to approval the procedure takes between 30 - 40 days.

In the livestock project the beneficiary selects livestock from a pool of healthy, vaccinated animals. Major constraints for herders in Mongolia are the fragile rangeland and the dzud - the severe winter conditions.