Mongolia is a vast, landlocked and sparsely populated country with half the population living in rural areas. Agricultural production, dominated by nomadic herding, accounts for about 20% of gross domestic product. The country is moving from a centrally planned to a market-based economy: a transition accompanied by a significant rural-urban migration.
EU Aid programmes 2007-2013
The EU-Mongolia Strategy Paper for 2007-2013 [328 KB] aims to help improve living conditions in the countryside and slow down the rural exodus. Its main objective is to support poverty alleviation by allocating 80% of the cooperation budget to sustainable rural development.
Additional support is likely to be in the areas of education and private sector development. The multi-annual indicative programme for the first four years [66 KB] (2007-2010) allocates €14 million to support these areas.
Regional and thematic programmes are also available to provide grant support for appropriate organisations in Mongolia.
The EU-Mongolia Strategy Paper 2002-2006 [200 KB] focused on rural development, particularly long-term food-security through improved livestock, crop production and marketing. A €6 million budget was allocated for the period 2002-2004 under the TACIS [200 KB] technical assistance programme to address private farming and food processing. A further €9 million was allocated for 2004-2006 to enhance the export potential for Mongolian agricultural products.
The TACIS action programme for 2002 to 2004 consisted essentially of two large projects (of over €1 million each) – the development of agricultural services and the establishment of a collection and distribution network – and three smaller ones. Under the first large project, agricultural extension centres and pasture management groups were created for a better feeding of animals and parasite control. Some laboratories were rehabilitated for improved veterinary services. Drip irrigation for vegetable growing was introduced, resulting in higher yields with a two-thirds saving in water consumption. The main achievements under the second large project were the establishment of wholesale trading/distribution mechanisms and the setting up of a market information system with publication of data on consumer goods and animal products The training courses on various topics organised under these two projects attracted 2 830 participants of which 260 were small and medium-sized enterprises.
From 2004 onwards, Mongolia became eligible under the ALA Regulation and a further €9 million was allocated for 2004-2006 to enhance the export potential for Mongolian agricultural products.
In addition to this bilateral support, since 2005 the country has also been able to benefit from regional programmes, resulting in four projects being funded under the Asia-wide Programmes [link to a3b2c1d4] (for a total amount of around €1 million), and three projects under the Asia trust fund (of around €400 000), as well as from different thematic programmes, resulting in four projects (globally amounting to €3 million) being funded under the NGO co-financing budget line.
The European Commission Delegation in China, responsible for managing relations and implementing cooperation with Mongolia, opened a technical office in June 2006 in Ulan Bator to enhance cooperation and partnership.
The European External Action Service is responsible for drawing up the EU-Mongolia cooperation strategy.
For detailed information on the programmes and projects funded in Mongolia, please refer to the website of the Delegation of the European Union to Mongolia.