On December 28, 2022, the Japan International Cooperation Agency (JICA) signed a Record of Discussions (R/D) with the Mongolian government in Ulaanbaatar on the technical cooperation project, “Project for Strengthening Self-Reliance Support System Focusing on Employment for the Needy The project is a technical cooperation project to strengthen the self-support system centering on employment for the needy.
Mongolia experienced rapid economic growth in the early 2010s due to the development of mineral resources, but economic growth has been stagnant since then. The poverty rate temporarily declined from 38.8% in 2010 to 21.6% in 2014, but the subsequent slump in economic growth caused the poverty rate to rise again to 29.6% in 2016, and it remains high at 27.8% in 2020.
In response to sluggish economic growth, the Mongolian government has initiated policies to reduce the amount of social welfare spending as a percentage of its public finances. As part of this effort, the government is working to shift from welfare to employment by tightening the conditions for receiving cash benefits for the poor, such as requiring registration with a job training agency. However, needy households and individuals who depend on social welfare services for their livelihood do not immediately find employment even after registering with a job training agency, and there is not a sufficient system in place to link such individuals to employment. Under these circumstances, the Mongolian government aims to amend the Social Welfare Law and the Employment Promotion Law in 2022 to improve the employment support system for needy households and persons.
This project will support the improvement of employment readiness support services for needy households and persons in Mongolia, and is expected to help those who have been dependent on social welfare services and other benefits to become self-reliant and participate in society. The project will contribute to SDG Goal 1 (Eliminate poverty) and Goal 8 (Both job satisfaction and economic growth) with the aim of realizing an inclusive society.
The details of the project are as follows
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