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The Ministry of Health and Social Welfare
is developing the policy for poverty alleviation
and evaluating the implementation process, conducting
the poverty survey and identifying the current
poverty level , based on findings of the survey
determining the future trends of poverty. When
developing the policy and evaluating its implementation
the Ministry applies the statistical data provided
from the National Statistical Office.
In 1994 the Government of Mongolia approved
the National Program on Poverty Alleviation
and this has been the main guide in the poverty
alleviation policy. The implementation of the
program started in 1994 and continues up to
2000.
The programme's overall objectives and focus
The main purpose of the programme is to reverse
the current trends of increasing human deprivation
and human capital erosion. To this end it aims,
inter alia, at reducing within a 6 year period
the number of poor from its present level of
26.5 per cent of the population to 10 per cent
or less. Hence , the overall strategy
is three pronged;
- Poverty reduction, through
income and employment generating activities
which will * turn around * the socio-economic
decline and contribute to participatory regenerative
economic development in an equitable way.
- Mitigation of human
deprivation, for those who can not readily
benefit from increased employment and income-generating
opportunities, by targeted income transfers
thereby allowing poor people to meet their
basic needs.
- Maintenance of high
levels of human capital formation as required
for overall longterm solutions to sustainable
human and economic development.
A. Government policy
The government s policy regarding the alleviation
of poverty is centred around the following key
principles:
- restoration of national
production capabilities and the promotion
of sustainable economic growth
- Promotion of productive
employment and the creation of jobs
- Restoration of the
previous levels reached in health and education
and the creation of conditions to improve
them further
- Creation of a social
protection system appropriate for the new
economic system
- Advancement of women
as full partners in all aspects of human life
- political8 economic and social
- Strengthening of market
relations in rural areas and the improve of
the living standards of the rural population
B. Government Strategy
Based on these policy principles the Government
has developed a strategy to achieve its policy
goals:
- restoration of national
production capacity and the promotion of sustainable
economic growth
- the promotion of productive
employment and the creation of jobs
- restoration of the
previous levels reached in health and education
and the creation of conditions to improve
them further
- the advancement of
women as full partners in all aspects of human
life- political, economic and social
- creation of social
protection system appropriate for the new
economic system
- strengthen market relations
in rural areas and improve the living standards
of rural population
The number of poor households with income less
then the minimum living standard within last
5 years is in tendency to grow up. In 1998 the
number of poor households was 155.0 thousand
from which very poor households were 61.4 thousand
and total number of poor people was 624.4 thousand.
In comparison in 1994 the percentage of poor
households was 19.6 and this figure increased
up to 29.0 in 1998. Compare to 1994 the
number of poor people grew up by 164 thousand
or by 35.6 per cent in 1998.
| |
Poor
household |
Very
poor |
Number
of poor people |
Very
poor |
Proportion
of poor household in the total households\
%\ |
| 1994 |
99814 |
- |
460348 |
- |
19.6 |
| 1995 |
80379 |
- |
361696 |
- |
15.6 |
| 1996 |
103478 |
- |
452405 |
- |
20.0 |
| 1997 |
149677 |
60718 |
587741 |
250916 |
28.2 |
| 1998 |
155049 |
61367 |
624370 |
250040 |
29.0 |
As of the poor population distribution in the
city and countryside, in 1994-1997 the majority
of poor people were living in the countryside,
however, in 1998 53.3 per cent of poor people
are living in the city.
In addition to, 30.9 per cent of the city poor
households and 27.1 per cent of the countryside
poor households are living under the minimum
living standard level.
Within the Ministry of Health and Social Welfare
there is an office responsible for Alleviation
Program. The functions of such office are directed
at coordination and monitoring utilization of
the poverty alleviation funds. Total of the
poverty alleviation
funds are divided as: 29.0 per cent- vulnerable
groups, 59.7 per cent- local development, 8.9
per cent- women development, 2.4 per cent-very
poor citizens assistance.
In 1999 the Ministry of Health and Social Welfare
prepared a new methodology, the poor and very
poor citizens are defined as follows:
When giving a definition of the poor people
the minimum living standard, worked out by the
National Statistical office in 1999, shall be
followed, and the poor people are those who
are under such level, and the very poor people
are those with income less then 40 per cent
of such level and living in a hungry way.
In addition to , the following indices shall
be considered when defining the poor and very
poor people:
- whether they have property
and receive income from such property
- citizens` working ability
and desire to work
- whether they have care-takers
with sufficient income
After execution of the above mentioned poverty
survey next poverty alleviation policy will
be developed in detail at the end 2000.
Since 1991 SSO` s Household Budget Survey \
HBC \ data has been used along with an absolute
poverty line based on a minimum bascet of goods
that should be available to all. The minimum
bascet is calculated using a physiologically
adequate food calorie level plus allowances
for non-food items such as shelter8 clothing
and heating. An alternative assessment of poverty
in Mongolia is based on the Living Standards
Measurement Survey \ LSMS \ data generated in
1995 by the World bank. These two poverty estimates
incorporate different normative decisions and
methodological choices in the construction of
the poverty line. This means assessments of
the extent of poverty in Mongolia differ according
to which data are utilized and they cannot be
compared. In 1998 the Government of Mongolia
worked out the Country`s sustainable development
program for 21 century, and within the frame
of this program the methods on poverty alleviation
were described in detail.
By: M. OYUNCHIMEG
Chief
Information and Research Division
Ministry of Health and Social welfare
HSTC@magicnet.mn
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