Global Financial Crisis Response | 2008 - 2011

The year was 1997. I was hired by UNDP Mongolia to establish and head up its communications operations in the country (UNDP Mongolia Communications Office). At the time, Mongolia was experiencing “one of the biggest peacetime economic collapses ever” (Pomfret: 1994) . And it showed. Food was scarce, unemployment high, poverty was increasing, and the capital Ulaanbaatar consisted of decaying and shabby Soviet and Communist architecture. The country felt isolated and cut-off from a world experiencing the boom of the late 1990s and the information technology revolution. 

Working in the country for two years (1997-1999) taught me a great deal about how a country recovers from a severe crisis and rebuilds its economy. I learned about human resilience and how markets can restore economies; the key role information technology plays and the importance of unfettered information and knowledge sharing to give people the tools they require to re-build their lives and grow wealth. Read more about this experience here: http://www.davidsouthconsulting.com/case-studies/case-study-4-un-undp-mongolia-1997-1999.html

The unfolding Global Financial Crisis in 2008, while caused by the collapse of the financial system, also presented an opportunity to apply the lessons learned in the late 1990s. The crisis was a roller coaster ride and provided a front row seat to what happens when too much debt and fraud overwhelms the financial system. A conference in Switzerland on African trade opportunities in 2008 was disrupted by the crisis as participants received frantic calls from London and New York and grabbed their bags and fled. Later that year I joined my wife (a foreign correspondent) in Reykjavik, Iceland as demonstrations erupted resulting from the collapse of their banks. Later this was called the ‘Pots and Pans Revolution’ (https://en.wikipedia.org/wiki/2009_Icelandic_financial_crisis_protests). See pictures of the demonstrations here: https://www.flickr.com/photos/15195144@N06/albums/72157613009834677

In 2009 I attended a UN conference in Geneva, Switzerland to evaluate the crisis and forecast where it might go. I wrote a blog about it here: http://www.davidsouthconsulting.com/blog/2016/1/8/global-crisis-report-from-the-un-conference-on-the-social-an.html

On the streets of Paris in 2009.

As this was happening something very exciting was emerging. While researching the e-newsletter Development Challenges, South-South Solutions for the United Nations Office for South-South Cooperation (UNOSSC), it became clear a quiet revolution was ocurring as a result of the rapid spreading of mobile and information technologies across the global South. That represented an exceptional crisis response tool where governments and the financial system were failing people. The e-newsletter was being sent to a global subscriber base across the United Nations and governments, reaching a highly influential audience in the global system. 

In 2011, this research went into the landmark first issue of the magazine Southern Innovator (called “a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space…”). This transformative magazine leveraged even greater change as it inspired many, as well as being cited as an influence on the UN’s and UNDP’s strategic priorities (the current innovation agenda and the focus on South-South cooperation). 

The repercussions of the 2008 Global Financial Crisis are still with us. Central banks continue with emergency measures (low interest rates, asset purchases, QE etc.) and consumer, government and corporate debt continues to rise. An ability to respond and recover will still be needed and David South Consulting will be there. 

© David South Consulting 2017

High Impact Communications in a Major Crisis: UNDP Mongolia 1997-1999 | 18 February 2016

I was head of communications for the United Nations mission in Mongolia from 1997 to 1999. The mission had to primarily tackle three major crises: the country's turbulent transition from Communism to free markets and democracy, the social and economic crash this caused, and the Asian Financial Crisis (Pomfret 2000) (Quah 2003)*.

Richard Pomfret said in 1994 "In 1991 Mongolia suffered one of the biggest peacetime economic collapses ever (Mongolia's Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994)."

From Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah: "The combined effect of these three shocks was devastating as 'Mongolia suffered the most serious peacetime economic collapse any nation has faced during this century'. Indeed, Mongolia's economic collapse 'was possibly the greatest of all the (peaceful) formerly'" Communist countries. 

"The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies." Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. - Feb., 2000), pp. 130-139 (Publisher: University of California)

Writing in 2018, author John West  found, in a chapter titled Mongolia's Corruption Curse (Transparency International and the World Bank had found corruption worsened in Mongolia after 2001), "In many ways, Mongolia has everything going for it. After being a satellite state of the former Soviet Union for much of the twentieth century, Mongolia regained its independence with the end of the Cold War. A relatively peaceful political revolution in the early 1990s ushered in a multi-party democracy and open society which have remained in place. ... And it is blessed with vast reserves of copper, gold, coal, molybdenum, fluorspar, uranium, tin and tungsten deposits. True, Mongolia experienced great upheavals as the breakup of the Soviet Union saw its trade decline by 80%. But Mongolia was also perfectly placed to benefit from the commodity super cycle driven by China, which is now the destination for the vast majority of its exports.

"However, despite much hype about the Mongolian "wolf economy", this country of so much promise is being dragged down by massive corruption. ...

"Mongolia's corruption is greatly weakening its attractiveness as an investment destination, is fracturing society and weakening its fragile political institutions. Its culture of corruption has also fed its love-hate relationship with foreign investors, which has destabilized the economy." Asian Century ... on a Knife-edge: A 360 Degree Analysis of Asia's Recent Economic Development by John West, Springer, 24 January 2018.  

In this role, I pioneered innovative use of the Internet and digital resources to communicate the UN's work and Mongolia's unfolding crises. The UN called this work a “role model” for the wider UN and country offices. A survey of United Nations country office websites in 2000 ranked the UN Mongolia website I launched in 1997 and oversaw for two years (1997-1999), third best in the world, saying: “A UN System site. A very nice, complete, professional site. Lots of information, easily accessible and well laid out. The information is comprehensive and up-to-date. This is a model of what a UNDP CO web site should be.” (http://www.scribd.com/doc/274319690/UNDP-Mongolia-United-Nations-2000-Survey-of-Country-Office-Websites)

As part of a strategic plan to raise awareness of Mongolia’s development challenges and to spur action on meeting them, a Communications Office was established for the UN mission in 1997. Acting as a strategic hub, the Communications Office and its dynamic and talented team, were able to leverage the existing budget to spur action on many fronts, including:

Media

Working with journalists and media both within Mongolia and outside, the Communications Office was able to significantly raise awareness of Mongolia and its development challenges. This was reflected in a substantial increase in media coverage of the country and in the numerous books and other publications that emerged post-1997. The book In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999 (ISBN 99929-5-043-9) archived the stories by theme.  

Ger Magazine

Ger Magazine (the Mongolian word for home and traditional tent dwelling) was published as the country’s first e-magazine in 1998. There were four issues in total from 1998 to 2000. The launch issue was on the theme of youth in the transition. Mongolia was transitioning from Communism to free markets and democracy and this had been both an exhilarating time and a wrenching time for young people. The magazine drew on talented journalists from Mongolia and the handful of international journalists based there to create a mix of content, from stories about life adapting to free markets to stories on various aspects of Mongolian culture and life.

The second issue of the magazine proved particularly effective, with its modern life theme and cover story on a thriving Mongolian fashion scene.

Archived issues of the magazine can be found at the Wayback Machine here: https://archive.org/. Just type in the UN Mongolia website address for the years 1997 to 1999: www.un-mongolia.mn.

Blue Sky Bulletin

The Blue Sky Bulletin newsletter was launched in 1997 initially as a simple, photocopied handout. It quickly founds its purpose and its audience, becoming a key way to communicate what was happening in the country and a crucial resource for the global development community, scholars, the media and anyone trying to figure out what was happening in a crazy and chaotic time. Blue Sky Bulletin was distributed via email and by post and proved to be a popular and oft-cited resource on the country. The quality of its production also paralleled Mongolia’s growing capacity to publish to international standards, as desktop publishing software became available and printers switched to modern print technologies. Blue Sky Bulletin evolved from a rough, newsprint black and white publication to becoming a glossy, full-colour, bilingual newsletter distributed around Mongolia and the world.

Archived issues can be found online here:

Blue Sky Bulletin Issue 1

Blue Sky Bulletin Issue 2

Blue Sky Bulletin Issue 3

Blue Sky Bulletin Issue 4

Blue Sky Bulletin Issue 5

Blue Sky Bulletin Issue 6

Blue Sky Bulletin Issue 7

Blue Sky Bulletin Issue 8

Blue Sky Bulletin Issue 9

Blue Sky Bulletin Issue 10

Publishing

MHDR 1997

The Mongolian Human Development Report 1997 (MHDR), the country’s first, placed the story of the Mongolian people during the transition years (post-1989) at its heart, using photographs, stories and case studies to detail the bigger narrative at play.

This groundbreaking Mongolian Human Development Report went beyond just chronicling Mongolia’s state of development in statistics and graphs. Designed, laid out and published in Mongolia, the report broke with the practices of many other international organisations, who would publish outside of Mongolia – denying local companies much-needed work and the opportunity to develop their skills. The report’s costs helped to kick-start a publishing boom in the country and significantly raised standards in design and layout in the country. The foundations laid down by the project producing the report ushered in a new age in publishing for Mongolia.

The report’s launch was innovative, not only being distributed for free across the country, but also part of a multimedia campaign including television programming, public posters, town hall meetings and a ‘roadshow’ featuring the report’s researchers and writers.

The initial print run of 10,000 copies was doubled as demand for the report increased. To the surprise of many, once hearing about the free report, herders would travel to the capital, Ulaanbaatar, to pick up their copy. The report proved people cared passionately about the development of their country and that development concepts are not to be the secret domain of ‘development practitioners’. The report also became an English language learning tool as readers compared the Mongolian and English-language versions.

You can read the report's pdf here: http://www.mn.undp.org/content/mongolia/en/home/library/National-Human-Development-Reports/Mongolia-Human-Development-Report-1997.html

Mongolian AIDS Bulletin

Assembled by a team of health experts after the Fourth International Congress on AIDS in Asia and the Pacific, the Mongolian AIDS Bulletin was published in 1997 in the middle of an HIV/AIDS crisis. It provided timely information and health resources in the Mongolian language and was distributed across the country.
 
“Mongolia’s first AIDS Bulletin marked the beginning of the UNDP Response to HIV/AIDS/STDs Project back in the autumn of 1997. Over 5,000 copies of the magazine were distributed across the country, offering accurate information on the HIV/AIDS situation. The project has been pivotal in the formulation of a national information, education and communication (IEC) strategy, bringing together NGOs, donors, UN agencies and the government.”
 
Source: YouandAids: The HIV/AIDS Portal for Asia Pacific

Green Book

In the Mongolian language, the Mongolian Green Book details effective ways to live in harmony with the environment while achieving development goals. Based on three years' work in Mongolia - a Northeast Asian nation coping with desertification, mining, and climate change - the book presents tested strategies.  

EPAP Handbook

The Environmental Public Awareness Handbook was published in 1999 and features the case studies and lessons learned by UNDP's Mongolian Environmental Public Awareness Programme (EPAP). The handbook draws on the close to 100 small environmental projects the Programme oversaw during a two-year period. These projects stretched across Mongolia, and operated in a time of great upheaval and social, economic and environmental distress. The handbook is intended for training purposes and the practice of public participation in environmental protection.

In its 2007 Needs Assessment, the Government of Mongolia found the EPAP projects "had a wide impact on limiting many environmental problems. Successful projects such as the Dutch/UNDP funded Environmental Awareness Project (EPAP), which was actually a multitude of small pilot projects (most costing less than $5,000 each) which taught local populations easily and efficiently different ways of living and working that are low-impact on the environment.”

Mongolia Updates 1997, 1998, 1999

Mongolia Update 1998 detailed how the country was coping with its hyperinflation and the Asian economic crisis.

The mission simultaneously had to deal with the 1997 Asian Crisis (http://en.wikipedia.org/wiki/1997_Asian_Financial_Crisis) and the worst peacetime economic collapse in post-WWII history (http://www.jstor.org/pss/153756).  

Mongolia Update 1998 - Political Changes

1998 proved a tumultuous year for Mongolia. The country's existing economic crisis caused by the transition from Communism to free markets was made worse by the wider Asian Crisis. The government was destabilised, leading to an often-confusing revolving door of political figures. In order to help readers better understand the political changes in the country, a special edition of Mongolia Update was published that year.  

UNDP Mongolia: The Guide

The Guide, first published in 1997, provided a rolling update on UNDP's programmes and projects in Mongolia during a turbulent time (1997-1999). The mission simultaneously had to deal with the 1997 Asian Crisis (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis) and the worst peacetime economic collapse in post-WWII history.

Each edition came with short project and context summaries, key staff contacts, and facts and figures on how the country was changing. For the first time, any member of the public could grasp what the UN was up to in the country and be able to contact the project staff. An unusual level of transparency at the time for a UN mission.

Memoranda of Understanding

Three Memoranda of Understanding were negotiated with the Mongolian Government to help focus efforts and aid the attainment of internationally-agreed resolutions. This was affirmed by a series of youth conferences, One World, held in 1998 and 1999.

Strategy and Leadership in a Crisis

The scale and gravity of the crisis that struck Mongolia in the early 1990s was only slowly shaken off by the late 1990s. The economic and social crisis brought on by the collapse of Communism and the ending of subsidies and supports from the Soviet Union, led to a sharp rise in job losses, poverty, hunger, and family and community breakdowns.

The challenge was to find inspiring ways out of the crisis, while building confidence and hope. The sort of challenges confronted by the UNDP Mongolia Communications Office included:

1) A food crisis: agricultural production was down sharply, and the traditional nomadic herding economy, while at peak herd, was failing to get the meat to markets and to a high enough standard to restore export levels to where they once were. As a result, a cross-border trading frenzy became the solution to falling domestic food production and availability.

2) HIV/AIDS/STDs crisis

3) A major banking crisis

4) Both the Asian Financial Crisis and the Russia Crisis.

5) An ongoing political crisis and an inability to form stable governments.

“Mongolia is not an easy country to live in and David [South] showed a keen ability to adapt in difficult circumstances. He was sensitive to the local habits and cultures and was highly respected by his Mongolian colleagues. … David’s journalism background served him well in his position as Director of the Communications Unit. … A major accomplishment … was the establishment of the UNDP web site. He had the artistic flare, solid writing talent and organizational skills that made this a success. … we greatly appreciated the talents and contributions of David South to the work of UNDP in Mongolia.” Douglas Gardner, UN Resident Coordinator and UNDP Resident Representative Mongolia

Citations

The response by the Communications Office has been cited in numerous articles, stories, publications and books. It has also contributed to the development of the human development concept and understanding of human resilience in a crisis and innovation in a crisis. Book citations include:

Modern Mongolia: From Khans to Commissars to Capitalists

Wild East: Travels in the New Mongolia

A more detailed list of citations can be found here: http://www.davidsouthconsulting.com/about/

For research purposes, key documents were compiled together and published online here: https://books.google.ca/books?id=K76jBgAAQBAJ&dq=undp+mongolia+key+documents&source=gbs_navlinks_s

In 2001, the UN won the Nobel Peace Prize for “their work for a better organized and more peaceful world” and its communications innovations, with work such as that in Mongolia being cited as a contributing factor to the awarding of the Prize.

In 2000, the Millennium Development Goals (MDGs) were launched in a 15-year bid to use a focused approach to development centred around eight goals to accelerate improvements to human development. From 2000 to 2005, work was undertaken in various UN missions (Mongolia, South Africa, Turkmenistan, Ukraine) to communicate the goals and to reshape communications activities around the goals.

*Curbing Corruption in Asia: A Comparative Study of Six Countries by Jon S. T. Quah, Eastern Universities Press, 2003 

Transition and Democracy in Mongolia by Richard Pomfret, Europe-Asia Studies, Vol. 52, No. 1 (Jan., 2000), pp. 149-160, published by Taylor & Francis, Ltd. (http://www.jstor.org/stable/153756?seq=1#page_scan_tab_contents)

UNDP Mongolia team photo in 1997. I am sitting front row centre left of the UN Resident Coordinator Douglas Gardner.

© David South Consulting 2017

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Starting from Scratch: The Challenge of Transition 1997 | 25 January 2016

By David South (Canada), UNV Information Officer, UNDP, Mongolia

UNV News #78 November 97

After seven years of transition to a market economy, Mongolia – a former satellite of the Soviet Union that has had a democratic government since 1992 – has been profoundly changed. Where it once had a rigid communist government and few contacts with the west, Mongolia has pursued rapid economic, political and social liberalisation. Mongolia has a small population – 2.3 million – spread out over a vast territory wedged between Russia and China.

Communication has in many ways deteriorated over the past seven years as the old communication networks from the communist era have not been fully replaced by the private sector. More and more it became apparent that government and the private sector were almost working in the dark in understanding how transition has affected Mongolians.

In partnership with the Mongolian government, UNDP initiated the researching of Mongolia’s first human development report back in the middle of 1996. It was launched on September 5 of this year, with UNVs playing a key role. To lead the team in producing the report, British poverty specialist and UNV Shahin Yaqub was brought in. Only 29-years-old – one of the youngest UNVs in Mongolia – Yaqub joined a rapidly expanding UNV presence in the country. There are now 24 international UNVs and 26 Mongolian UNVs deployed throughout the country in UNDP’s projects.

The thirst for expertise in Mongolia – a country undergoing the growing pains of transition to a market economy – has placed high demand on UNVs. UNVs occupy senior roles in all of UNDP’s projects.

The 1997 Mongolian Human Development Report is a prime example of the important goal of capacity building conducted by the UNDP. For Yaqub, the report’s principal author, it was like starting from scratch. A poverty research office had to be set up before the work could begin. A team of Mongolia’s top statistical researchers had to be trained in the latest methodologies for social research.

Yaqub was excited by the project. He said: ”There was no office when I first came. We had to organise the office to understand who does what and basically create the focal point for poverty analysis in Mongolia”.

Yaqub also had some of his basic assumptions tested. The small population of this country – only 2.3 million – had meant the previous communist regime was able to build up a large archive of statistics on the population. A good portion of the information was not up to international standards, but it potentially represented a wellspring of data to start from. “Mongolia is number-rich. To even have that kind of data is very rare for a developing country. But unfortunately we found all this information was stored on Russian mainframe computers that didn’t work anymore!”

During the actual production of the report, Yaqub was joined by three more UNVs: Mustafa Eric, a Turkish journalist working with the Press Institute of Mongolia, Jerry van Mourik, a Dutch journalist now working as the Support Officer to the United Nations Resident Co-ordinator, and UNDP Information Officer David South, a former journalist with the Financial Times in London, England.

The high-profile role played by media UNVs was crucial if the report was to not end up collecting dust on a government shelf. The report is a repository of essential and new information on the state of human development in Mongolia, including data showing rising poverty rates and serious threats to food security. Like all human development reports produced by UNDP, it was not meant to be a prescriptive tract, but a lubricant for a national debate on sustainable development in Mongolia. This altered the design and presentation of the report.

Instead of looking academic, the report took on the appearance of a magazine, from its cover to colourful children’s paintings inside. UNV Mustafa not only assisted with the report’s design and production, he also used his contacts in the Mongolian media to ensure the report was distributed across the country. UNV van Mourik assisted with publicity, including producing an emotionally-charged television commercial weaving together vignettes from Mongolia’s recent history to tell the story of human development.

Already in its second print run in both English and Mongolian, the report has been adopted as their study guide by Mongolians wanting to learn English.

“Mongolia is a rewarding place to work,” said Yaqub. “As a technical specialist and UNV, what you bring to the job is valued. I researched poverty for five years before coming to Mongolia and I felt I had something to contribute. But I also realised I had something to learn as well. You always have to keep in mind you are bringing your own baggage to the job – be it cultural, emotional or intellectual. Coming from an academic background, I was not afraid to be told I was wrong.”

Yaqub, who had worked in poverty analysis in the Philippines and Bangladesh before coming to Mongolia, will never forget the country that sparked his new passion: horses.

“You give up things as a volunteer – your time, your income, all the things you took for granted back home. But what you give up is compensated by rewarding work and good friends. When I learned to ride a horse, I can place it directly and clearly to Mongolia – that memory will always be with me.”

Just before Yaqub left Mongolia for work with UNDP in New York, he participated in a series of public debates in one of Mongolia’s poorest provinces, Khuvsgul aimag. The public debates are used to introduce the report to the grassroots while sparking discussion on sustainable human development.

"Starting from scratch: The challenge of transition": UNV News, November 1997

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A Partnership for Progress: UNDP in Mongolia 1997 | 19 January 2016

A Partnership for Progress: The United Nations Development Programme in Mongolia

Editor: David South

Publisher: UNDP Mongolia Communications Office

Published: 1997

Background: The Partnership for Progress brochure raised the curtain on UNDP's programme in Mongolia and my work heading UNDP Mongolia’s Communications Office. I led the Office from 1997 to 1999, garnering awards and praise for the quality of the offline and online resources.

A Partnership for Progress

“For years we were under the domination of foreign countries. So really, Mongolia is a new nation.” With these words, Prime Minister M. Enkhsaikhan described the enormity of the task ahead for Mongolians. While Mongolia has been an independent nation for most of this century, this has not been the case with its economy. Just as a new democratic nation was born in the 1990s, so Mongolia’s economy lost the large subsidies and trading arrangements it had in the past with the Soviet Union. The time to learn about free markets and the global economy had arrived.

Under socialism, Mongolia was dependent on the Soviet Union. Prior to the socialist revolution in 1921, the country experienced hundreds of years under the influence of the Chinese. It is only since 1990 that Mongolia has had an opportunity to build the foundations of an independent economy and political culture. But it takes money and know-how to make the transition work. This is the kind of nation-building support the United Nations Development Programme (UNDP) specializes in. UNDP’s fifth country plan for Mongolia has come to an end, and in cooperation with the Mongolian Government the sixth – the Partnership for Progress – has begun.

Meeting the challenges of transition

The international community rapidly responded to Mongolia’s needs in the early 1990s. Along with the large international donors, the UN system is playing a pivotal role with UNICEF, UNFPA, WHO and UNDP to assist in the country’s social reconstruction. Other agencies now operating in Mongolia include UNESCO, UNV, UNHCHR, World Bank and the IMF. The UN’s capacity to coordinate, not only within the UN family of organizations, but also with donors and the international NGO community has proved extremely useful in mobilizing the technical assistance needed at this critical time. The goal is capacity building, or the transformation of both the human and economic resource base to fit the economic and social demands of transition.

UNDP’s Partnership for Progress with the Government of Mongolia serves as the framework for assisting the Government to combat the worst effects of poverty and social disintegration brought on by economic transition. The programmes and projects mounted with UNDP assistance not only tackle the lack of material resources, but also the dearth of practical experience in the strategies and methodologies required to nurture open government and encourage democratic procedures, protect human rights, preserve the environment and promote the private sector.

Mongolia is a large country with poor infrastructure. This means it is not only difficult to transport food or make a phone call, but also to develop and deliver programmes that reach the entire country. It is through the expertise of the UNDP, drawing experience from around the world, that these obstacles to a market economy and an open democracy can be overcome.

UNDP has had a country office in Mongolia since the 1970s. UNDP’s resource mobilization target for the five year programme from 1997 to 2001 is US $27.5 million, with 45 percent to be directed to poverty alleviation, 30 percent to governance and 15 percent to environmental protection. With this material input and the goodwill it generates, the Mongolian Government can design appropriate social and political structures to support their efforts in seeking lasting solutions to the problems brought on by transition. Mongolia can then become an equal player in the global community of the 21^st Century.

UNDP in Mongolia

The UNDP’s programmes in Mongolia follow the global principle of helping people to help themselves. Through a close working relationship with the Mongolian Government (the Partnership for Progress), UNDP personnel work with many thousands of Mongolian counterparts in government, academia and NGOs all over the country. In addition, UNDP has a large contingent of United Nations Volunteers (UNVs) deployed in Mongolia. There are over 27 international UNVs working in all UNDP programme areas and further 26 national UNVs working as community activists to foster participation in the poverty alleviation programme. Another six national UNVs are involved in the UNESCO/UNDP decentralization project.

A peaceful transition

The transition in the 1990s from socialism to democracy and free markets has profoundly transformed the country’s political and economic character. Mongolia is a young democracy that is also a model for bloodless political revolution. Today, this participatory democracy boasts scores of newspapers, dozens of political parties and a vigorous parliamentary system. On the economic front, a command-based economy has been replaced by free markets. But there has been a high price to pay in social disintegration and dysfunction, as the former social supports disappear and their replacements fail to “catch” everyone. As with all social upheaval, vulnerable groups – the elderly, the young, the weak – bear the brunt of the social and economic shocks as the old gives way to the new.

The bubble bursts

Before the 1990s, the Mongolian economy was totally dependent on subsidies from the Soviet Union. The state owned all means of production and private enterprise was foresworn. Farmers and herders were organized into cooperatives. Factories had more workers than they needed. Wages were low but no one starved. The state provided for the basics of life – health care, education, jobs and pensions. Free fuel was provided to get through the severely cold winters, and during blizzards lives were saved in stranded communities with food and medicine drops by Russian helicopters.

The bubble burst in 1991 when the Soviet Union disintegrated and the subsidies came to an end. Prior to this, communist countries accounted for 99 percent of Mongolia’s imports and 94 percent of its exports. Mongolia’s economy suddenly lost its buttress and immediately collapsed.

A sense of freedom

Although the economic picture was bleak, politically Mongolians rejoiced and embraced the principles of Western parliamentary democracy. A new sense of political and personal freedom took hold. Freedom of religion ensured a revival of Buddhism. Monasteries sacked and razed under the Communists were restored and religious observance once again became part of daily life.

Collectivization began to give way to free markets and privatization. A voucher system was used to redistribute the assets of many state-owned entities. Each citizen was issued with vouchers to the value of 10,000 tugrigs (at the time worth US $100). They could be bought and sold like shares of stock.

Livestock was privatized and previous limitations regarding ownership of animals were lifted. As a result, the composition of herds changed and the numbers of animals soared to the highest levels in 50 years. While the collapse of the state sector has led to severe hardship, many nomadic herders who astutely manage their herds are self-sufficient in meat and milk. Many continue the old energy saving ways, including collecting dung for fuel and using their animals for transport. Some find it possible to live almost completely outside the cash economy.

Transition shock

The spectre of the worst aspects of market economies soon loomed for many who had known only a poor but predictable life under a command economy. Suddenly unemployment, inflation and reduced services became the norm. Previously reliable export markets in the newly constituted Commonwealth of Independent States disappeared entirely, leaving a ballooning trade deficit and a plummeting tugrig. The fall in global prices for cashmere and copper have only exacerbated an already critical situation.

Poverty strikes

Poverty and starvation hit with a vengeance. According to Food and Agriculture Organization (FAO) figures, a third of the population now lives at starvation levels. The demise of collectivized farming has contributed to both a shortage of food and reduction in food self-sufficiency. Thousands of homeless children work, beg or steal in the streets of the capital, Ulaan Baatar. Many descend into the sewers for warmth to escape the subzero temperatures that prevail for most of the year, while others seek refuge in the few children’s shelters in the city.

Unemployment is high. Women are particularly vulnerable, with more than 100,000 summarily removed from the pension rolls at the beginning of 1997. The retired, whose pensions have decreased dramatically in value are also in severe distress, with almost all relying on their families, friends and neighbours. Those without such support are left to live a precarious existence.

Poverty alleviation

To reverse a rapidly deteriorating situation, the Government instituted a six-year National Poverty Alleviation Programme (NPAP) with the primary objective of reducing poverty by 10 percent by the year 2000. Designed with assistance from UNDP, donors and Mongolian NGOs, the NPAP is founded on new principles unseen before in Mongolia. Responsibility is decentralized, with each of the 21 aimags (provinces) having a local Poverty Alleviation Council with responsibility for identification, formulation and appraisal and approval of projects. Thus the people of the area can respond to local needs – identify them, propose solutions to problems and act to determine their own futures.

The Mongolian National Poverty Alleviation Programme addresses a wide range of social issues, including income poverty and the crisis in the health and education sectors. Solutions to such urgent social welfare problems are a high priority for the Mongolian Government – and international assistance is critical. The introduction of fees for health and education services that were previously free has placed an unbearable financial strain on some families. School drop-out rates and truancy are problems in both urban and rural areas. The costs associated with general maintenance and heating of public buildings adds another financial burden in the transition period.

Emphasis on women

A US $10 million soft loan from the World Bank for the period 1996 to 1999 supports Mongolia’s efforts to follow up on the commitments of the World Summit for Social Development, the Fourth World Conference for Women and other recent global initiatives.

The NPAP institutional framework focuses on explicit measures to alleviate poverty by attending to sustainable livelihoods, employment creation, gender equality, grassroots development and human resource capacity building. Mongolia’s historically high levels of literacy, health care and education auger well for the future of this approach, in spite of the many obstacles facing the people.

In addition, the Women’s Development Fund and the Social Assistance Fund have mobilized national NGOs and international donors for both income generation schemes and distress relief for the vulnerable. The success of women in actively implementing projects with the help of the various funds is a testament to the strength and resilience of ordinary Mongolians.

Working with the National Poverty Alleviation Programme initiatives, the UN System Action Plan and Strategy provides technical assistance and capacity training to realize the objectives of the national programme.

In all, eight new projects are on the agenda for 1997, including credit provision, skills and vocational training, water and sanitation provision, urban renewal, pre-school education and one capacity building project at the institutional level.

Freedom of information

Under the Partnership for Progress, UNDP is working with donors and international NGOs to promote and foster a participatory democracy. A key component of good government and democracy is the free flow of information. That is why UNDP has placed a significant portion of its resources into ensuring government, NGOs and citizens have access to the state-of-the-art computer communications technology, especially the Internet and e-mail. The Governance and Economic Transition Programme will have nine new projects by the end of 1997: seven to support national reforms in government and the civil service, two to support journalists as they come to grips with their new responsibilities in a democratic society, and one in the tertiary education sector, following a series of faculty-strengthening education projects that have been ongoing since the early 1990s.

The Consolidation of Democracy through Strengthening of Journalism project offers direct support to working journalists.

Six journalism centres throughout the country offer hands-on training courses and access to news and information from international and Mongolian sources.

At the aimag level, Citizen Information Service Centres will be custom tailored to the information needs of each aimag’s residents. These centres will increase the free flow of information from the capital, which is currently hampered by poor communications infrastructure.

Decentralization, governance and economic transition

The Government has wisely foreseen the need to engage in a fundamental shift in how Mongolia is governed. Not only should it provide institutions that can address the social and economic shocks of the 1990s, but it also must provide a stable and efficient policy to ensure a prosperous and secure future for Mongolia.

Decentralization in government administration is a cornerstone of the Government’s policy to make managers of public services more responsive to local people’s needs. In an ambitious programme to decentralize and consolidate democracy in Mongolia, the Government has promised to devolve decision-making more and more to the local level. The UNDP plays a key role in ensuring this process continues and that local politicians acquire the skills necessary to handle these new responsibilities.

A respect for nature

Mongolia’s flora, fauna and unspoiled landscapes are at a watershed. Mongolians have traditionally had a respect for the natural environment as a source of food and shelter from the harsh climate. These close ties have meant that environmental preservation and respect for nature form an integral part of cultural traditions. As far back as the reign of Chingis Khan in the 13^th century, Mongolia has had nature reserves. The new social and economic imperatives have put a strain both on these traditions and the environment, with a corresponding stress on Mongolians.

Semi-nomadic herding still forms the backbone of the country, and the pressures of the 90s have only re-enforced this. Many Mongolians have turned to herding as the only guarantee of a steady supply of food and economic well-being.

The environment is regularly challenged by natural disasters. In 1996, a rash of forest fires destroyed large swathes of land and caused extensive economic and environmental damage. Floods, heavy snowfall, extremely low temperatures, strong winds, dust storms, and earthquakes are all natural hazards for Mongolia.

Keeping Mongolia green

UNDP’s mandate in environmental protection and preservation is reflected in its support to the Government. As Mongolia addresses the challenge of up-holding international conventions to which it is signatory, it must sustain and preserve a decent and dignified lifestyle for all its citizens.

In the area of disaster management, the Government is emphasizing preventative measures as much as relief. UNDP support is focused on an extensive campaign for preparedness, technical support and capacity building to deal with both natural and man-made disasters.

The flagship programme for the environment is the Government’s Mongolia Agenda for the 21^st Century (MAP 21). The Government’s continuing biodiversity programme, under the auspices of the Global Environment Fund (GEF), has already shown results, with the on-going mapping of the country’s biodiversity for future generations.

Two new projects were initiated in 1997: the Sustainable Development Electronic Information Network reaches out to people in remote and isolated locations. The Energy Efficient Social Service Provision Project has introduced straw-bale construction, an environmentally-friendly, energy-efficient and pollution-reducing building technology. This technology uses straw for insulation within the walls of buildings. Schools and health clinics will be built with straw insulation by work crews trained by the project.

The environmental challenges Mongolia faces are acknowledged by the world community as both requiring a global and a national commitment. UNDP acts as conduit for a number of globally-supported programmes focused on local action. The axiom “think globally, act locally” is the principle guiding the UNDP/Mongolian Partnership for Progress’ environmental activities.

"A Partnership for Progress: The United Nations Development Programme in Mongolia": UNDP Mongolia Communications Office, 1997

Mongolia was experiencing 'shock therapy' during the 1990s, as well as austerity, as a result of the collapse in subsidies and state supports when trade relationships with the Soviet Union ended.

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Global Crisis: Report from the UN Conference on the Social and Political Dimensions (2009) | 8 January 2016

A Report from the UN Conference on the Social and Political Dimensions of the Global Crisis: Implications for Developing Countries (12-13 November 2009)

Organised by the United Nations Research Institute for Social Development, Geneva, Switzerland. Held at the Palais des Nations.

A conference in Geneva struck a pessimistic note on the current global financial crisis and any hope for a new social and economic order. The conference asked “whether current policy reforms are conducive to a transformative social change or if they only reproduce the status quo.”

A March 2009 IMF report on the downturn’s affect on the Global South and developing countries found that “fluctuating commodity prices, high fuel costs, the rise in food prices in addition to a decrease in remittances, foreign direct investment and aid flow could mean an increase in the financing needs of low-income countries by at least US $25 billion.”

The presenters at the conference painted a picture of a robust neo-liberal economic order that is already in the process of dusting itself off from the crisis and restoring its dominance.

Bob Jessop, from the University of Lancaster, captured the paralysis of opposition to the neo-liberal order by saying “They are busy doing it and we are busy talking about it.”

To paraphrase philosopher Friedrich Nietzsche, that which does not kill us makes us stronger. Neo-liberalism may in fact be strengthened by the crisis, according to presenters. It will evolve and take on new forms, they argued.

The world’s business elites have an enormous capacity to re-shape the rules of the economic game back in their favour. While the massive state support to the banking sector had led some to believe governments were restoring faith in public investments, in fact state support is seen as “timely, targeted and temporary.” When asked about the future as the crisis passes and countries come out of recession, the presenters believed this was a short-term recovery, and that far worse economic crises would be coming in the next five to 10 years. Andrew Martin Fischer, from the Institute for Social Studies at Erasmus University, believes the harmful effects of the bailouts will be pushed to the periphery over the next five to 10 years, harming the poor. He also believes a major financial crisis is brewing in China. He called "China the fault line in the future."

The powerful, he pointed out, displaced the costs of their mistakes onto other people. Proponents of different approaches had missed the moment because they were not able to present off-the-shelf strategies that could be deployed in a crisis on short notice. Thus, they had left the field open to neo-liberal solutions.

The global crisis in the short-term has not been worse because of unprecedented global cooperation. Keynsian measures have been used to solve the crisis, but are also used to preserve Wall Street. Also, the enormous contribution of growth in China and India means there are other sources of wealth in the world than just the North.

Getting back to normal should not be what we are doing, the panelists concluded at the conference’s final session. Governments should look at new opportunities for social policy. The panelists were disturbed that the International Monetary Fund (IMF) is seen as part of the solution. This means deep cuts in public expenditure are coming. There will not be a trickle down of wealth and the imbalances from before the crisis will remain. In short, the system was not working before the crisis.Some policy suggestions put forward included: rural income guarantees, managed migration to support development goals, making a gender perspective critical to development. Governments should take a preventive approach to tackle future crises. Unfortunately, it now seems no money is left to address these problems. Yet business as usual is not an option with so many inequalities and imbalances.

“This conference on the social and political consequences of crisis is a critical subject for debate at this juncture,” said UNRISD’s director, Dr. Sarah Cook. “We are now at a point where many countries, particularly in the North, are emerging out of the severe shock of immediate crisis. Discussions of alternative policies and institutional arrangements at national and global levels may become less urgent; the status quo is reasserting itself and the space for ideas and policies that offer the possibilities of more stable, sustainable and equitable development will quickly shrink.”

Session 1: Impacts, Coping Strategies and Livelihoods

Session 2: Social Policy: Country and Regional Perspectives

Session 3: Social Policy: Global Perspective

Session 4: Political Economy Dimensions of Crisis

Developmental Aid Flows around the World Source: OECD