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© David South Consulting 2021
Wednesday, February 26, 2020 at 3:58PM UN/UNDP Mongolia Development Portal (www.un-mongolia.mn)
I launched this portal in 1997, in the middle of a major economic crisis in Mongolia. This award-winning (winner in 1998 of the People's Choice WebSite 500 award and the CyberTeddy Top 500 Website award) and pioneering United Nations Mongolia development web portal was singled out by UN headquarters as an example of what a country office website should be like.
At this time, Mongolia was still recovering from the chaotic and turbulent transition from Communism to free markets and democracy begun at the start of the 1990s, called by some "one of the biggest peacetime economic collapses ever" (Mongolia's Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994). There was a thirst for information: access to the Internet was still limited and access to mobile phones was just the preserve of the rich. As a legacy of the past, information, especially that about the outside world and the country’s true economic and social conditions, was restricted. During the years of Communism, even simple travel from one place to the next was strictly regulated.
While today we can take it for granted that the Internet, and mobile and smart phones, deliver the world’s information in seconds, this just was not the case in the late 1990s in Mongolia.
"Cyber-Teddy's Top 500 Web Site" was an online award from the late 1990s.
The UN/UNDP Mongolia development web portal addressed the urgent need to communicate what was happening in the country during a major crisis, and to transparently show what the UN was doing to address the crisis. It made critical data on the country’s development easy to find, and informed the wider world about the country and its people and culture. While the Internet had only just arrived in Mongolia, from the start the UNDP Mongolia Communications Office was experimenting with this powerful new technology to reach a global audience. This included Mongolia’s first web magazine, Ger (launched in 1998). After the www.un-mongolia.mn website launched in 1997, a media campaign began to inform readers of its presence. This ad appeared regularly in magazines, newsletters and newspapers.
"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."
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)*.
UNDP Mongolia staff photo 1997. I served for two years as the UNDP Mongolia head of communications (1997-1999). I am sitting front row centre left of the UN Resident Coordinator Douglas Gardner.
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.
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.
The Nobel Peace Prize 2001 joint winners.
GOSH Child Health Portal (www.gosh.nhs.uk)
In 2001 I undertook a two-year contract to modernise the online resources for the Great Ormond Street Hospital for Children NHS Trust (GOSH)/Institute of Child Health (ICH). My strategy was inspired and informed by initiatives encountered while working as a health and medical journalist in 1990s Canada - a time where government austerity spurred a need to experiment and try new ways of doing things.
Having seen the impact first-hand of pilot experiments in Toronto aimed at widening access to information and resources for patients and their families, I applied this knowledge to the GOSH Child Health Portal Project (2001 to 2003). Drawing on the wider NHS Modernisation Plan, and a multi-year consultation process undertaken by the hospital, the Project was launched in three phases.
How far the UK had fallen out of step with global developments with the Internet became clear from the start. The distance that had to be traveled in the span of two years was vast. Essentially, to go from being a web laggard to a web leader.
Award-winning (http://www.scribd.com/doc/35249271/Childnet-Awards-2003-Brochure), the GOSH Child Health Portal was called by The Guardian newspaper one of the “three most admired websites in the UK public and voluntary sectors,” and a UK government assessment called the overall GOSH child health web portal a role model for the NHS. At the time, Prime Minister Tony Blair (whose wife, Cherie Blair, was an early supporter and champion of the project) had this to say: “Making sure that your child has helpful, easy-to-read information will make a significant difference to their time in hospital. I am sure that this website will prove very useful for children and their families.”
The project was delivered in three phases. At every stage, progress was communicated to the wider public and colleagues in various ways, via in-house media and through constant engagement with British news outlets. Screen grabs and other resources from the project can be found online here:
Phase 1: https://books.google.co.uk/books?id=g826gFjEXWsC&printsec=frontcover&dq=gosh+health+phase+1a&hl=en&sa=X&ved=0ahUKEwj5u__dqIHLAhVJOxoKHZ3IDZcQ6AEIJTAA#v=onepage&q=gosh%20health%20phase%201a&f=false
Phase 2: https://books.google.co.uk/books?id=E2ZVlFbrCzsC&printsec=frontcover&dq=gosh+health+phase+2a&hl=en&sa=X&ved=0ahUKEwjEodr0qIHLAhWK2BoKHStJB7QQ6AEIJjAA#v=onepage&q=gosh%20health%20phase%202a&f=false
Phase 3: https://books.google.co.uk/books?id=KVE6QqDp1HsC&printsec=frontcover&dq=gosh+health+phase+3&hl=en&sa=X&ved=0ahUKEwiXwe-FqYHLAhVBvxoKHXhOCooQ6AEIJjAA#v=onepage&q=gosh%20health%20phase%203&f=false
Project documents: https://books.google.ca/books?id=4aeDBgAAQBAJ&dq=gosh+child+health+portal+key+documents&source=gbs_navlinks_s
The Cable and Wireless Childnet Award called Children First “an outstanding example of how a hospital can create quality, authoritative information on issues relating to health in a fun, child-centered and accessible way.”
More here from The Guardian and CBS: Hospital unveils international website for children and Web Projects For Kids Get Their Due
The Childnet Awards in 2003 were awarded by Trond Waage, the Norwegian Ombudsman for Children, at the Science Museum in London (and hosted by British media personality Carol Vorderman) (https://en.wikipedia.org/wiki/Carol_Vorderman).
The GOSH Child Health Portal team receive the Childnet Award in 2003 at London's Science Museum (Photo: CBBC Newsround).
"Web Projects For Kids Get Their Due", CBS News, April 25, 2003. "First place in the not-for-profit category went to Britain's largest children's hospital, Great Ormond Street Hospital here in London (www.gosh.nhs.uk/kidsandteens). There is nothing fun about being sick, yet this child-friendly site is both entertaining and educational. It also gives young patients an opportunity to interact in a secure environment."
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© David South Consulting 2020
Monday, October 22, 2018 at 7:58AM 
Back in 2015, when we were looking for a new London headquarters, we had to think carefully about where it should be. Those who know London will know it is a city of many contrasts. The city reflects its industrial and economic legacy very well. It has parts that are very dense with population and work spaces; while other parts (basically where the wealthy live/lived), have wonderful green spaces.
As the former "workshop of the world" in the 19th century, London had also become the most polluted city in the world with horrific living conditions for its inhabitants. But as the result of highly effective campaigners over the decades, the city became a healthier place to live and also 'greener'. The air and water was cleaned up and the population gained access to clean water and modern housing and sanitation. The devastation from two world wars, combined with poverty and poor living conditions, led to London experiencing a declining population despite improvements to living conditions. This changed by the late 1990s, when a revived economy and globalisation started to push the population back up again. But with a growing population has come increasing air pollution, mostly from vehicles.
Our work made us think very hard about how the urban environment affects human health. And we decided we didn't want to be bathed in that air pollution that had grown since the early 2000s. We also like to keep fit and encourage those we work with to do the same. So, rather than be monstrous hypocrites and locate ourselves some place that is 'trendy' but polluted and unhealthy, we set up our new HQ in a bird sanctuary surrounded by wonderful green space for excercise and long, thoughtful walks.
But, what about our studio? That's in Iceland, a country where 100% of its energy comes from renewable sources. A stunningly beautiful place where you can swim or lounge in geothermal heated pools in both urban and rural areas. We find the atmosphere there restorative.
Some amazing people have been attracted to this location. And one of them is journalist Beth Gardiner. Her new book, Choked, tackles the very thing we were trying to reduce our exposure to: air pollution. In Choked Gardiner travels the world to see how its rapid urbanization is also coming with a 21st century air pollution crisis. Read more here: https://www.bethgardiner.com
Pictured: NOT our HQ but we can always dream, can't we?!
Well, we are almost as nice as this.
David South
English not your first language? No problem. Various search engines now do translation. For example, into Mandarin Chinese.
The book on Mongolian rock and pop was published in 1999 in the Mongolian language.
2020, David South International, HQ, London, birds!, david south consulting, environment, green, sanctuary in 21st century, Agenda 2030, David South Consulting, David South International, Digital, Geopolitics, Health and Human Development, Human Development Innovator, International Development, Knowledge Sharing, Sustainable Development Goals Wednesday, May 23, 2018 at 9:59AM
Preface
It could be said the world and the global order both stand at a crossroads. Countries have never been so connected as they are today because of the communications revolution that began in the 1990s. The trade linkages brought about by the most recent phase of globalization (post-1980s) have dramatically increased prosperity for some regions and countries, China being the most obvious example. But, as we are reminded on a daily basis, the environment is stressed, with species depletion and pollution being the most extreme signs of this stress. And war and civil strife are still with us.
In 2015, the United Nations launched the Sustainable Development Goals (SDGs), 15 years after it had launched the Millennium Development Goals (MDGs) in 2000. Both sets of goals attempt to benchmark progress on improvements to human well-being and to give countries and the international community a road-map to what is most important. The eight MDGs have been followed up with 17 SDGs (and many views on how effective such a strategy really is). It seemed as good a time as ever to reflect on what role I have played in this period, as well as to look forward to what will happen over the next 12 years (2030).
The Quotes
"The United Nations is designed to make possible lasting freedom and independence for all its members."
“We must build a new world – a far better world – one in which the eternal dignity of man is respected.”
US President Harry S. Truman
"It has been said that the United Nations was not created in order to bring us to heaven, but in order to save us from hell."
UN Secretary-General Dag Hammarskjold at University of California Convocation, 13 May 1954.
"Today continuing poverty and distress are a deeper and more important cause of international tensions, of the conditions that can produce war, than previously."
"The stark and inescapable fact is that today we cannot defend our society by war since total war is total destruction, and if war is used as an instrument of policy, eventually we will have total war."
Canadian Prime Minister Lester B. Pearson
"A shift is necessary toward lifestyles less geared to environmentally-damaging consumption patterns."
"We may get to the point where the only way of saving the world will be for industrial civilization to collapse."
Maurice F. Strong, Former Under-Secretary General of the United Nations; Founder of the United Nations Environment Programme (UNEP)
"a super-crate, to ship a fiasco to hell"
"a sinister emblem for world power"
Architect Frank Lloyd Wright
From its founding, the United Nations was constructed around the highest human aspirations after two devastating World Wars, while also drawing fire from its critics and skeptics (American architect Frank Lloyd Wright being one of the more biting).
In January 1949, US President Harry Truman set forth a challenge for the remainder of the 20th Century. The wealthy nations must aid the poorer ones to become wealthier and more democratic: in short, to become like the United States (Starke 2001: 143). The means of accomplishing this was to be international development, and its tool, foreign aid.
Development as defined by President Truman at the start of the first international development period of the 20th century meant “nothing less than freeing a people from want, war, and tyranny, a definition it is hard to improve on even today (Starke 2000: 153).”
I grew up in the Canada of the 1970s and 1980s. For most of that time, the charismatic and internationally-minded Liberal Prime Minister Pierre Trudeau was in power. Canada's profile and role in the United Nations and international development was high at this time, in particular in 'peacekeeping' missions.
Peacekeeping holds a special place for Canadians. An innovative initiative from then-Ambassador to the United Nations and later Prime Minister Lester B. Pearson in the 1950s (he received the Nobel Peace Prize for it), Canada has since had a long history with peacekeeping missions.
When I served with the Canadian Armed Forces Reserve in the early 1980s, we trained not only for war with our Cold War foe the Soviet Union, but also for peacekeeping missions. In fact I nearly went on one if not for my acceptance to study at the University of Toronto in 1985. Otherwise, I would have been off on a peacekeeping mission that year.
This phase of international development and the United Nations was framed by the Cold War and its tensions and limits: the world divided between opposing ideologies and economic systems and travel between these two worlds (Communism versus free markets and democracy) was severely restricted.
And when I graduated in 1989 from the University of Toronto, all this fell apart very quickly. The First Phase of International Development had come to a swift end.
Above: Pierre Trudeau, John Turner, Jean Chretien and Prime Minister Lester Pearson. Photographed 4 April 1967. Source: Digital Library of Canada. Below: David South photographed at Hillcrest High School, Ottawa, Canada, 1985.
The Second Development Phase
In 1997, I was hired to head the communications office for the UN/UNDP Mongolia mission. It was a pivotal time in international development. With the forces of 'globalization' unleashed (and China's rapid rise already well underway), the UN was clearly also in a period of great change and stress. The collapse of the Soviet Union in 1991 and its trading system (Comecon), pitched former Communist countries into severe crisis. Comecon locked-in Soviet Union satellite allied nations (including Mongolia) into a reciprocal arrangement of trade links and subsidies. The Mongolia I arrived in in 1997 was a country in turmoil. Poverty was widespread, food was difficult to get, unemployment was very high, families were falling apart under the stress of the crisis, and people's health was poor, with very high rates of alcoholism and STDs.
This second phase of international development can be characterized by the international response to the collapse of the Soviet Union and the adjustment to the rapid changes brought about by the forces of globalization. The communications revolution was getting underway at this time as the Internet began to arrive, even in Mongolia, which had been cut-off from full relations with the Western world during the period of Communism. Mobile (cell) phones were around but still a luxury item used by wealthy businessmen or senior government officials. International aid and development was primarily in the domain of large international institutions and bilateral donors.
UN/UNDP Mongolia played an important role in helping to stabilize Mongolia during the late 1990s and to put in place the foundations for recovery from crisis (called "one of the biggest peacetime economic collapses ever" at the time). Mongolia eventually, briefly, became the fastest growing economy in the world by the second decade of the 21st century.
In the 1990s, the UN was being challenged to think and do things differently and to respond to the communications revolution. This presented a great opportunity to use the Internet and computing to communicate in new ways; to innovate and experiment. Despite its crisis, Mongolia was able to embrace these new ways and was called a "role model" for the wider United Nations by 1999 (the end of my assignment in Mongolia).
United Nations identity card circa 1997.
UN head of communications for Mongolia, David South (seated front row centre), 1997-1999.
The Third Development Phase
With the adoption of the Millennium Development Goals (MDGs) in 2000, it could be argued, a third development phase had begun. The turn of the century was also during the so-called 'Dotcom Bubble' when investment in the Internet economy was peaking, and China was on the cusp of being accepted into the WTO (World Trade Organization) and getting set for another period of rapid expansion and growth. Both phenomenon were fueling greater trade and connectivity, especially between the countries of the so-called "global South".
The MDGs were an attempt to guide and focus development at the international and national level by setting forth eight goals as a challenge. But, just as these internationally agreed goals were being rolled out, something was quietly happening away from New York. In China, it was clear the country had done something truly remarkable: following its own development goals and plans, China lifted the largest number of people in human history out of poverty in the shortest space of time. Those who are students of history will know how stunning an accomplishment this is: China was once a country held up as a poster child for poverty, political instability, frequent famines, human misery and global isolation. China had been the country featured in the charity and famine appeals pleading for relief and aid, just as the countries in Africa and Southeast Asia were to become.
China's growing export power was also powering globalization. And liberalized trade was powering growth for many countries in Asia and Latin America. This increasing export trade and global connectivity was creating new wealth for many countries and growing the middle classes of the so-called 'global South'. At the same time, the Internet revolution was being joined by the mobile technologies revolution. These communications tools were making it possible to connect with people who had been frozen out of global markets, while simultaneously creating whole new digital economies employing people and creating new wealth.
Beginning in late 2006 after working around the world in various UN missions on assignments related to the MDGs, I began an exciting new opportunity with the then-Special Unit for South-South Cooperation (SSC) (now the United Nations Office for South-South Cooperation - UNOSSC).
From 9-11 December 2017, I participated in the Workshop on Innovations in Service Delivery: The Scope for South-South and Triangular Cooperation held in Dhaka, Bangladesh. Hosted by the a2i (access to information) division of the Bangladesh Prime Minister’s Office, the implementing unit for Digital Bangladesh, it was convened by the Government of Bangladesh and the United Nations Office for South-South Cooperation (UNOSSC). Senior Partner David South is third from the left on the panel. Photo: Yoko Shimura
21 Years of Creating International Change | 1997 - 2018
Timeline
Early to Mid-1990s: Covering the United Nations as a Journalist. Stories included the Canadian peacekeeping mission in Somalia (Somali Killings Reveal Ugly Side of Elite Regiment and Does the UN know what it's doing?), debates over the response to the conflict in the Balkans (Peaceniks Questioning Air-Raid Strategy in Bosnia), and what constitutes appropriate food aid (Aid Organization Gives Overseas Hungry Diet Food). In 1993 I covered the World Health Organization's Canada-wide roll-out of the Healthy Cities initiative in the feature Taking Medicine to the People: Four Innovators in Community Health for Canadian Living magazine. In 1996 I covered, from Port-au-Prince, the Canadian UN peacekeeping mission in Haiti for Id Magazine (Haiti Turns to Free-Market Economics and the UN to Save Itself).
1997: Begin a two-year assignment as head of communications for the UN/UNDP Mongolia mission (1997-1999). Called "one of the biggest peacetime economic collapses ever", I was thrown into the deep end as part of the UN's efforts to rescue Mongolia from this severe crisis. I established the award-winning UN/UNDP Mongolia Communications Office (a high-profile and lively hub staffed by media professionals) and quickly developed and launched the award-winning UN Mongolia Development Portal (www.un-mongolia.mn) (called a "role model" for the United Nations). I developed and launched the mission's first newsletter, Blue Sky Bulletin, as well as the first Mongolian Human Development Report, the Mongolian AIDS Bulletin, the UN's and Mongolia's first online magazine, Ger, while overseeing the country's largest bilingual online and offline publishing operation. In Starting from Scratch: The Challenge of Transition, I document the challenge to re-start Mongolia's data collection after it was wiped off the mainframe computers that once stored it during the Communist period (a cautionary tale for our times if there ever was one!). In Freedom of Expression: Introducing Investigative Journalism to Local Media in Mongolia, I give an account of a workshop for Mongolian journalists keen to learn more about the discipline of investigative journalism and how important it is in a democracy. In Partnership for Progress: UNDP in Mongolia, I painted a picture of Mongolia's country conditions in 1997, what was at stake, and how the UN was responding.
1998: Develop and launch Mongolia's first web magazine, Ger. Lead two international media tours of the country, one in 1997 (Scandinavian media), and the other in 1998 (women journalists). Many stories were generated from the two international media tours and were compiled in books published by UNDP, including In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999 (ISBN 99929-5-043-9). Read an example story here: The Milk of Kindness Flows in a Peculiar Land A Steppe From Nowhere by Leslie Chang (The Asian Wall Street Journal, 15 August 1998).
1999: Publish many books on Mongolia's development, including In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999 (ISBN 99929-5-043-9) and the Mongolian rock and pop book (ISBN 99929-5-018-8). Whilst working for a UK-based international development consultancy, I prepared papers for the American Foundation for AIDS Research, the Global Fund to Fight AIDS, Tuberculosis and Malaria, the Harvard Institute for International Development (HIID), for various UN agencies including UNCTAD and UNAIDS, and coordinated the preparation of the report and launch strategy for the World Bank's Task Force on Higher Education.
2000: My work in Mongolia is covered and cited in various books published after 1999, including Wild East: Travels in the New Mongolia by Jill Lawless (ISBN 97814-5-964-5783), Modern Mongolia: From Khans to Commissars to Capitalists by Morris Rossabi (ISBN 9780-5-209-38625), and Dateline Mongolia: An American Journalist in Nomad's Land by Michael Kohn (ISBN 9781-5-7143-1554). Ukraine. Work on the strategic re-launch of the UN Ukraine web portal and advise on the communications strategy for the UN Resident Coordinator. This is also the year in which the Millennium Development Goals (MDGs) were launched and the new development portal reflected this in its structure and content.
2001: Begin work on the development of the award-winning GOSH Child Health Portal for the National Health Service (NHS). As part of the NHS' Modernisation Plan, it was called a "role model" for the NHS and one of the “three most admired websites in the UK public and voluntary sectors,” and was developed and launched under heavy public and media scrutiny. Each stage of the Portal's development would coincide with a high-profile media launch. For example, the Hospital's 150th birthday celebrations included Her Majesty Queen Elizabeth II and pop star Madonna.
The Nobel Peace Prize 2001 joint winners.
2002/2003: Win the Childnet Award in 2003 for the Children First website.
2002/2003: Win the Cable & Wireless Childnet Award in 2003 for the Children First website.
2004: South Africa. Work at the University of Pretoria for UN South Africa on a digital communications and marketing strategy for a youth volunteer organization.
2005: Turkmenistan and Mongolia. Work for UN missions on an MDGs communications strategy and on the country programme review.
2006: Turkmenistan. Work for UNICEF. Begin working for the Special Unit for South-South Cooperation (SSC) in New York.
2007: Research and write UN e-newsletter Development Challenges, South-South Solutions for UNDP's Special Unit for South-South Cooperation (SSC). Sample Stories:
Computing in Africa is Set to Get a Big Boost
Ring Tones and Mobile Phone Downloads are Generating Income for Local Musicians in Africa
Dynamic Growth in African ICT is Unlocking Secrets of SME Treasure Trove
Grassroots Entrepreneurs Now Have Many Ways to Fund Their Enterprises
Trade to Benefit the Poor Up in 2006 and to Grow in 2007
Social Networking Websites: A Way Out of Poverty
Creative and Inventive Ways to Aid the Global Poor
Innovation from the Global South
Youth Surge in the South A Great Business Opportunity
Web 2.0 to the Rescue! Using Web and Text to Beat Shortages in Africa
Mobile Phones: Engineering South's Next Generation of Entrepreneurs
2008: Research and write UN e-newsletter Development Challenges, South-South Solutions for UNDP's Special Unit for South-South Cooperation (SSC). Sample Stories:
Cyber Cities in the South: An Oasis of Opportunity
Nollywood: Booming Nigerian Film Industry
Illiterate Get Internet at the Touch of a Button
The South Has a Good Story to Tell
Insects Can Help in a Food Crisis
New Weapon Against Crime in the South
Urban Youth: A Great Source of Untapped Growth
Innovative Mobile Phone Applications Storm South
Computer 'Gold Farming' Turning Virtual Reality into Real Profits
Mobile Phones: New Market Tools for the Poor
Reader response experiment begins with crowd-powered news website NowPublic. Initial proposal for the development of book or magazine on innovation. Awarded grant for Cuba study tour by BSHF.
2009: Research and write UN e-newsletter Development Challenges, South-South Solutions for UNDP's Special Unit for South-South Cooperation (SSC). Sample Stories:
DIY Solution Charges Mobile Phones with Batteries
Solar Powered Village Kick-Starts Development Goals
Rebuilding After Chinese Earthquake: Beautiful Bamboo Homes
Making the World a Better Place for Southern Projects
Growing a Southern Brand to Global Success: The Olam Story
Afropolitan: African Fashion Scene Bursting with Energy
Diigtal Mapping to put Slums on the Map
Adjust e-newsletter content based on reader responses. Begin posting content on Twitter platform.
2010: Begin development of the new global magazine Southern Innovator with the UN's Special Unit for South-South Cooperation (SSC) and a design team in Iceland led by Solveig Rolfsdottir. The magazine was produced to the UN's design standards, as well as abiding by the UN's Global Compact. With production in Iceland, the magazine could be designed and laid out using 100 percent renewable energy sources.
Develop and launch the new branding for David South Consulting and its website, davidsouthconsulting.com, all designed by one of Iceland's top graphic designers and illustrators, Solveig Rolfsdottir.
2011: Launch the first issue of Southern Innovator Magazine at the GSSD Expo in Rome, Italy.
It is called “a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space…”. Launch www.southerninnovator.org website (now www.southerninnovator.com) and social media including Twitter account @SouthSouth1.
To avoid censorship and interference, Southern Innovator's editorial operations were based in London, UK and its design studio was based in Reykjavik, Iceland (a high-ranking country in the World Press Freedom rankings and a former top place holder in the UNDP Human Development Index). Using a women-led design studio, it developed a design vision that could communicate across borders using clear graphic design and high-quality images. For example, when it launched in 2011, infographics were rare in development publications and at the UN; now they are commonplace. It also tried to be as ‘green’ as possible. The studio was powered on 100 per cent renewable energy (in particular, geothermal energy); the hard copy of the magazine is printed on paper from renewable forests.
2012: Launch second and third issues of Southern Innovator Magazine at the GSSD Expo in Vienna, Austria.
Called a "Beautiful, inspiring magazine from UNDP on South-South innovation.”
With 201 Development Challenges, South-South Solutions stories posted on the NowPublic platform, a total of 336,289 views by 2012 had occurred, according to the NowPublic counter.
2013: Launch fourth issue of Southern Innovator Magazine at the GSSD Expo in Nairobi, Kenya.
Called “fantastic, great content and a beautiful design!” and “Always inspiring.”.
2014: Launch fifth issue of Southern Innovator Magazine at the GSSD Expo in Washington, D.C. U.S.A. The Twitter account @SouthSouth1 called “ one of the best sources out there for news and info on #solutions to #SouthSouth challenges.” Final issues of e-newsletter Development Challenges, South-South Solutions published.
The two publications proved influential on a number of fronts, being early to draw attention to the following: the rising use of mobile phones and information technology in development, the world becoming an urban place, innovative food solutions including the nascent insect food sector (now a big thing), altering perspectives on what is possible in Africa, the use of data science to innovate development, and tracking the growing number of technology hubs and the fast-growing start-up culture in the global South. The publications were cited for shaping the new strategic direction adopted by the United Nations Development Programme (UNDP) (the UN’s leading development organisation) and its first youth strategy, and the development of the Sustainable Development Goals (SDGs). As the world’s first global innovator magazine, Southern Innovator’s design had to be appropriate for a diverse audience. It has drawn praise for being both “beautiful” and “inspiring”, while its use of sharp, modern graphic design and infographics inspired others in the UN to up their game when it comes to design.
The Southern origins of sustainable development goals: Ideas, actors, aspirations by Sakiko Fukuda-Parr and Bhumika Muchhala (SDG Resource Centre).
2015: Develop scale-up plan for Southern Innovator Magazine.
South-South cooperation and innovation have now become the key methodology for the UN’s delivery of its programmes and projects. In 2015, China pledged US $2 billion to “support South-South cooperation” and called for the international community to “deepen South-South and tripartite cooperation”. In development parlance, they have been “Mainstreaming South-South and Triangular Cooperation” in their plans.
The current policy vogue for innovation in developing and developed countries can trace its roots back to some of the early work done by these two publications (and which was further amplified by the annual Global South-South Development Expo (GSSD Expo), which often would feature innovators from the two publications, spreading the innovation message around the world). Both publications had set out to inspire and “champion a global 21st century innovator culture”. And they have done this, as can be seen from concrete evidence and anecdotal responses from individuals and organizations alike.
UN Bribery Scandal
After the arrests in 2015 related to the unfolding UN Bribery Scandal (read more on this here: The Strange Saga of "South-South News"), the budget for the UNOSSC was suspended pending the outcome of two internal audits conducted by the United Nations (Statement Concerning the United Nations Office for South-South Cooperation). The second audit can be found online here: https://www.scribd.com/doc/307245166/OIOS-Audit-of-Ng-South-South-News-OIOS-Cut-Out-Ban-Photo-Op-with-Ng-at-UNCA-Ball.
UNDP (the United Nations Development Programme) had the following to say about the UNOSSC's senior management up to 2015 under the Directorship of United Nations Envoy for South-South Cooperation, Yiping Zhou, calling it "unsatisfactory":
"The United Nations Office for South-South Cooperation (UNOSSC) is an independent entity created by the General Assembly in 1974, General Assembly resolution 3251(XXIX), to support cooperation among developing countries.
UNOSSC receives its mandate and policy framework from General Assembly decisions and resolutions. UNOSSC also serves as the Secretariat of the High-level Committee (HLC) on South-South Cooperation, a subsidiary body of the General Assembly.
UNOSSC is hosted by UNDP and, as is the case with similar entities, is expected to follow UNDP rules and regulations, including those pertaining to financial and HR management. UNOSSC is likewise subject to UNDP’s oversight and due diligence instruments.
UNDP’s Office of Audit and Investigation (OAI) recently published an Audit of UNOSSC which rated the Office ‘unsatisfactory’.
The Audit makes 16 recommendations with the objective of improving UNOSSC’s effectiveness in the areas of: governance; programme and project activities; and operations." Excerpt from Statement (5 May 2016)
The retirement in 2016 of Southern Innovator's Editor-in-Chief, Cosmas Gitta, meant the magazine lost its strongest advocate within the UNOSSC and thus was not included in the next budget post-audits.
The US investigations by the F.B.I. (Federal Bureau of Investigation) leading to arrests and subsequent court trials from 2015 onwards, were joined by Australian authorities in 2018. These revelations and confessions paint a picture of a high-level, multinational criminal conspiracy to launder money and pay bribes at the United Nations that also included the collusion and aid of various senior UN officials at the time. Not only do these revelations offer new context to Southern Innovator's attempts to gain future support from the UNOSSC, they explain why Southern Innovator faced extensive obstruction, deception and unethical and unprofessional behaviour during this time, despite the documented success of the magazine and its associated e-newsletter to reach and inspire readers, while shaping UN strategic policy on innovation (Strategic framework of the United Nations Office for South-South Cooperatio, 2014-2017).
2016: Many books have been published citing stories from the e-newsletter Development Challenges, South-South Solutions and Southern Innovator Magazine. They include: Beyond Gated Communities edited by Samar Bagaeen and Ola Uduku (Routledge: 2015), Chile in Transition: Prospects and Challenges for Latin America's Forerunner of Development by Roland Benedikter and Katja Siepmann (Springer: 2015), Export Now: Five Keys to Entering New Markets by Frank Lavin and Peter Cohan (John Wiley & Sons: 2011), Innovation Africa: Emerging Hubs of Excellence edited by Olugbenga Adesida, Geci Karuri-Sebina and João Resende-Santos (Emerald Group Publishing: 2016), New Directions in Children's and Adolescents' Information Behavior Research edited by Dania Bilal and Jamshid Beheshti (Emerald Group Publishing: 2014), A Sociological Approach to Health Determinants by Toni Schofield (Cambridge University Press: 2015).
Many papers have been published citing stories from the e-newsletter and the magazine. They include: Afro-futurism and the aesthetics of hope in Bekolo's Les Saignantes and Kahiu's Pumzi by Mich Nyawalo, Journal of the African Literature Association, Volume 10, 2016, Issue 2, Autonomous Systems in the Intelligence Community: Many Possibilities and Challenges by Jenny R. Holzer, PhD, and Franklin L. Moses, PhD, Studies in Intelligence Vol 59, No. 1 (Extracts, March 2015), Decoding the Brand DNA: A Design Methodology Applied to Favela Fashion by Magali Olhats, Universidade Federal de Santa Catarina Florianopolis, 2012, Edible Insects and the Future of Food: A Foresight Scenario Exercise on Entomophagy and Global Food Security by Dominic Glover and Alexandra Sexton, Institute of Development Studies, King’s College London, Evidence Report No 149, September 2015, Evaluation of Kenyan Film Industry: Historical Perspective by Edwin Ngure Nyutho, School of Journalism and Mass Communication, University of Nairobi, 2015, Evaluation of the Regional Programme for Africa (2008-2013), UNDP Independent Evaluation Office, 2013, High-level Committee on South-South Cooperation Seventeenth Session: Framework of operational guidelines on United Nations support to South-South and triangular cooperation: Note by the Secretary-General, 22-25 May 2012, New York, The New Middle Class and Urban Transformation in Africa: A Case Study of Accra, Ghana by Komiete Tetteh, The University of British Colombia, 2016,Propagating Gender Struggles Through Nollywood: Towards a Transformative Approach by Nita Byack George Iruobe, Geonita Initiative for Women and Child Development, 17 July 2015, Reberberation: Musicians and the Mobilization of Tradition in the Berber Culture Movement by TMG Wiedenkenner et al, The University of Arizona, 2013, Recasting ‘truisms’ of low carbon technology cooperation through innovation systems: insights from the developing world by Alexandra Mallett, Innovation and Development, 5:2, 297-311, DOI: 10.1080/2157930X.2015.1049851, Routledge Taylor & Francis Group, 2015, "Slam the Slums": Understanding architecture through the poor by Malini Foobalan, November 26th, 2009, Song Lines: Mapping the South African Live Performance Landscape: Report of the CSA 2013 Live Mapping Project Compiled by Concerts South Africa, Samro Foundation, 2013, Strategic Framework of the United Nations Office for South-South Cooperation, 2014-2017, Executive Board of the United Nations Development Programme, the United Nations Population Fund and the United Nations Office for Project Services, 27 to 31 January 2014, New York, Wearing Your Map on Your Sleeve: Practices of Identification in the Creation and Consumption of Philippine Map T-shirts by Pamela Gloria Cajilig, paper presented at the 6th Global Conference (2014): Fashion: Exploring Critical Issues, Mansfield College, Oxford, United Kingdom, 15th to 18th September 2014, Young Girls' Affective Responses to Access and Use of Information and Communication Technology (ICT) in Information-Poor Societies by Dania Bilal et al, New Directions in Children's and Adolescents' Information Behavior Research, Library and Information Science, Volume 10, Emerald Group Publishing Limited, 2014,Youth Empowered as Catalysts for Sustainable Human Development: UNDP Youth Strategy 2014-2017, United Nations Development Programme, Bureau for Development Policy.
Testimonials
“The e-newsletter Development Challenges, South-South Solutions proved to be a timely and prescient resource on the fast-changing global South, tracking the rise of an innovator culture driven by the rapid adoption of mobile phones and information technology …
“In 2010, work began on the development of the world’s first magazine dedicated to the 21st-century innovator culture of the global South. My goal was to create a magazine that would reach across countries and cultures, meet the UN’s standards, and inspire action. Southern Innovator was the result. Mr. [David] South played a vital role in the magazine’s development from its early conception, through its various design prototypes, to its final global launch and distribution.
“Both the e-newsletter and magazine raised the profile of South-South cooperation and have been cited by readers for inspiring innovators, academics, policy makers and development practitioners in the United Nations and beyond.
“I highly recommend Mr. [David] South as a thoughtful, insightful, analytical, creative and very amicable person who has the unique ability to not only grasp complex problems but also to formulate a vision and strategy that gets things done. … ” Cosmas Gitta, Former Assistant Director, Policy and United Nations Affairs at United Nations Office for South-South Cooperation (UNOSSC) in UNDP
“I think you [David South] and the designer [Solveig Rolfsdottir] do great work and I enjoy Southern Innovator very much!” Ines Tofalo, Programme Specialist, United Nations Office for South-South Cooperation (UNOSSC)
2017: Invited to speak at the Workshop on Innovations in Service Delivery: The Scope for South-South and Triangular Cooperation in Dhaka, Bangladesh.
2018:
Stories
Somali Killings Reveal Ugly Side of Elite Regiment
Does the UN Know What it's Doing?
State of Decay: Haiti Turns to Free-Market Economics and the UN to Save Itself
Starting from Scratch: The Challenge of Transition
Philippine Conference Tackles Asia's AIDS Crisis
UN Contest Winner in "State of Total Bliss"
A UNDP Success Story: Grassroots Environmental Campaign Mobilizes Thousands in Mongolia
Freedom of Expression: Introducing Investigative Journalism to Local Media
Traffic Signs Bring Safety to the Streets
Stories: Development Challenges, South-South Solutions | 2007
Stories: Development Challenges, South-South Solutions | 2008
Stories: Development Challenges, South-South Solutions | 2009
Stories: Development Challenges, South-South Solutions | 2010
Stories: Development Challenges, South-South Solutions | 2011
Stories: Development Challenges, South-South Solutions | 2012
Stories: Development Challenges, South-South Solutions | 2013
Stories: Development Challenges, South-South Solutions | 2014
Books + Publications
A Steppe Back?: Economic Liberalisation and Poverty Reduction in Mongolia
Blue Sky Bulletin Newsletter UNDP Mongolia | 1997-1999
Human Development Report Mongolia 1997
In The Interests of the Exploited?: The Role of Development Pressure Groups in the UK
In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999
Innovations in Green Economy: Top Three Agenda
Lima to Delhi: What Can Be Learned on Urban Resilience?
Mongolia Update - Coverage of 1998 Political Changes
A Partnership for Progress: UNDP in Mongolia 1997
Pax Chaotica: A Re-evaluation of Post-WWII Economic and Political Order
The Sweet Smell of Failure: The World Bank and the Persistence of Poverty
Southern Innovator Magazine Issue 1: Mobile Phones and Information Technology
Southern Innovator Magazine Issue 2: Youth and Entrepreneurship
Southern Innovator Magazine Issue 3: Agribusiness and Food Security
Southern Innovator Magazine Issue 4: Cities and Urbanization
Southern Innovator Magazine Issue 5: Waste and Recycling
Southern Innovator and the Growing Global Innovation Culture: Background Paper
South-South Cooperation for Cities in Asia
UNDP in Mongolia: The Guide | 1997-1999
UNDP Travelling Seminar: Environment and Development | Mongolia 1998
What is the Next Agenda for the Next 21 Years?: The Fourth Development Phase?
Update: I will publish this in the new year after the holidays. Keep checking back for this post.
Further Reading
Peacebuilding: The Twenty Years' Crisis, 1997-2017 by David Chandler, Palgrave, 2017
ORCID iD: https://orcid.org/0000-0001-5311-1052
© David South Consulting 2018
Agenda 21, David South International, ICT, Internet, Nobel Peace Prize, United Nations, United Nations Development Programme, communications, david south consulting, design, digital, peacekeeping in 21st century, Agenda 2030, Agenda 21, Asian Financial Crisis, Children, Corruption, Cosmas Gitta, Crisis Response Media, David South Consulting, Digital, Douglas Gardner, Emerging Markets, GSSD, GSSD Expo, Geopolitics, Global South, Health and Human Development, Hillcrest High School, Human Development Innovator, ICT4D, International Development, Knowledge Sharing, Kofi Annan, Media, Millennium Development Goals, Mobile Phones and Information Technology, Mobiles, Nobel Peace Prize, Policy Innovator, Reverse engineering, Shock Therapy, Southern Innovator, Sustainable Development Goals, UNDP Mongolia, UNOSSC, United Nations, University of Toronto, Youth Wednesday, January 10, 2018 at 12:00PM
Researcher and Writer: David South
Consultancy: David South Consulting
Publisher and Client: USAID
Published: 2000
Background: This excerpted text is from a business prospectus prepared in 1999 for USAID to promote construction opportunities in Mongolia to the US construction industry. At the time, Mongolia was in the grip of a severe crisis, called one of "the biggest peacetime economic collapses ever". By 2012, Mongolia was called the "fastest growing economy in the world". It is proof the foundations for Mongolia's recovery from crisis were laid in the late 1990s.
“No other Asian country enjoys more political freedom today than Mongolia. And no other Asian country has shown greater commitment to open markets. But Mongolia has received little reward for its efforts.” Fortune Magazine, December 1998
Discover a New Democracy
Mongolians are some of the highest per capita donor recipients in the world: On average US $50 per person. The vast majority of this aid is targeted at infrastructure projects. Mongolia in 2000 is an opportunity waiting for American business. Democratic, with a free market economy, the country offers regulatory freedom, a belief in the private sector setting standards and a pro-Western attitude friendly to American companies.
Mongolia's history is marked by the rise and fall of cities, the ebb and flow of political and economic systems. The country has experienced being the largest empire for its time in the 13th century, to being occupied by foreign powers. Economically and socially the country has lived through feudalism, communism and now, capitalism. The one thing that has remained stable throughout this rich history has been the nomadic way of life. Livestock remains to this day a major pillar of the economy and contributes to one of the country's major foreign currency earners, cashmere wool.
After over 70 years of communist rule, Mongolians finally turned their backs on communism and robustly embraced free markets and democracy in 1996 with the election of the Democratic Coalition. A gradual opening up of the country had begun under the ruling Mongolian People's Revolutionary Party after the collapse of the Soviet Union and under pressure from peaceful public demonstrations.
After the fall of the Soviet Union, the country suffered what many economists have called the largest peacetime economic collapse in the 20th century.
While it is a fact that Mongolia's economy is severely underdeveloped, both in terms of infrastructure and diversity, it is also true the country is the freest in Asia. As Fortune Magazine noted in a December, 1998 issue, "No other Asian country enjoys more political freedom today than Mongolia. And no other Asian country has shown greater commitment to open markets. But Mongolia has received little reward for its efforts." Mongolia, for American business, offers a win-win situation, an opportunity to join in the building of a strong democracy in Asia while tapping the rich resources, both natural and in human capital. American businesses can enjoy a regulatory environment that is more flexible than in the United States, and a government that lets businesses do what they do best: serve the needs of customers and make money.
Youthful
A Bright Young Future
Demographically, Mongolia is a very young country. A by-product of high birth rate policies during the communist period, 60 per cent of Mongolia's population are aged between 1 and 24, with 37.6 per cent between the locally accepted definition of youth of 15 to 34. In 1998 the New York Times Magazine called Mongolia "The youngest place on earth". Even a cursory glance at the streets of the capital, Ulaanbaatar (population 600,000), will reveal a young population taking their fashion and cultural cues from the West, and who hold correspondingly Western aspirations to own homes and start businesses. Mongolia enjoys exceptionally high rates of literacy ( 96 per cent), post-secondary enrolment (65,089 students in 1998) and the urban population quickly embraced Western consumer products as they became available.
Growing
The Construction and Environmental Services Industry in Mongolia
Today, Mongolia officially has 100 architectural and engineering design companies and over 500 construction companies. Of these, 40 are considered large operations with their own in-house design and engineering outfits, or who have a close relationship with one or more companies that either manufacture or import construction materials. The country is a rich resource for raw materials for the construction industry, but this vast wealth remains under-utilised. According to geological surveys spanning the decades from 1930 to the 1990s, over 200 deposits were discovered that could be tapped for construction materials.
At the beginning of the 20th Century, there were few permanent standing structures in Mongolia, apart from Buddhist monasteries and royal palaces. At the beginning of the 20th Century most Mongolians lived in the round ger felt tent. It wasn't until the communist revolution that construction of sedentary dwellings and buildings in the country picked up pace. In 1924, three years after the 1921 revolution, the State Committee for Construction was established (by 1926 it became the Construction Department of the Ministry of Industry), and undertook the large-scale construction of buildings based on European designs.
From the 1960s the construction industry in Mongolia emerged as the country industrialised. Mongolia received aid from both China and Russia up to the Sino-Soviet dispute, and both countries were the main funders for construction projects. Many buildings in the downtown of the capital were built by the Chinese government.
Up until the election of the Democratic Coalition in 1996, all construction activities were conducted under the direction of the state. Building booms took place in the 1970s and 1980s as the communist government tried to meet the demand for apartments and other facilities. At its peak in 1989, the construction sector made up 10 per cent of the gross national product. With the collapse of the Soviet Union at the end of the 1980s, many building projects in Mongolia ground to a halt as Soviet subsidies were withdrawn. Across the country it is possible to see the empty shells of apartment buildings, holiday resorts and half-built sports stadiums.
The Mongolian People's Revolutionary Party, under popular pressure for a change, began to gradually make the shift to free markets and democracy. The first state privatization programme began in 1993 under the direction of international experts. It wasn't until the election of the Democratic Coalition in 1996 that significant reforms were taken to fully introduce a free market economy. And it wasn't until 1997 and 1998 that the fruits of these measures started to appear.
The construction industry was fully privatised in 1998, with companies becoming limited or wholly owned entities. There now exists a mix of private and public companies in this sector. All of the companies are in the early stages of learning how to work and prosper in the free market.
The legacy of working under a command economy has left many companies ill-equipped and under-funded, many not operating at full capacity or not at all.
The private sector has shown itself to be capable of initiating real estate development projects, most commonly the building of private apartments, shopping complexes and small hotels.
Weaknesses in management and financing do lead to long delays, poor quality and in some cases, the abandonment of a construction project mid-way. According to the State Statistical Office, the construction sector shrank from 1991 to 1994. In 1994, activity increased 26 per cent from 1993. Since then the gross national product has averaged growth of 3.3 per cent, but still has not caught up with the rate at the end of the 1980s.
The environmental services sector has received a significant boost from international donors working in Mongolia. Various donor funded projects are building and renovating facilities using energy-efficient technology. These donors have also conducted training workshops and education campaigns for local construction companies. Being a very cold country, awareness is high over the financial and environmental benefits of energy-efficient techniques. Construction techniques, however, are weak and Mongolia has a long way to go in utilizing these technologies efficiently.
It is a misnomer to think most Mongolians are wandering nomads. In fact the majority of the population of 2.4 million now live a sedentary lifestyle in small towns or in the big cities of Ulaanbaatar, Erdenet and Darkhan. Under communism these urban centres were economically dependent on state enterprises, many of which now have either gone bankrupt, idle or have been privatized. There is currently a significant migration to the capital from these economically devastated communities. Officially the government was able to track 6,518 people, mostly between the ages of 18 and 39, moving to the capital in the first half of 1998 – a 60 per cent increase on 1997. Unofficial migration to the capital is believed to be far higher.
At present a majority of the population still live in ger tents or sub-standard makeshift wooden housing. The construction industry cannot meet the high demand for modern housing, with amenities like running water, toilets and electricity.
“The business atmosphere in Mongolia is inviting and [our] partnership has faced very few obstacles while entering the market. Based on our positive experience here, we plan to continue and expand our presence in the Mongolian marketplace.” Mrs. Bolormaa Reiner, Representative Johnson and Johnson-Mongolia
Foreign Aid
Economic Prospects for the Country
Large donor community
Along with the collapse of the Soviet Union, Mongolia also lost significant economic subsidies, which contributed to the severe crisis of the early 1990s. The World Bank has estimated these subsidies reached a third of Mongolia's GDP in the late 1980s. Since then international donors have played a key role in helping to restructure the Mongolian economy to adapt to the demands of a market economy.
Infrastructure has always been a weak point for Mongolia, and it was considered the most isolated and underdeveloped of the former Soviet bloc countries. International donors have placed infrastructure development at the top of their agendas. Since 1997 foreign aid in the form of grants and loans has hovered around US $250 million, with the vast majority of this aid going towards infrastructure development. Priority areas are highways and transportation, power stations and communications. By sector the aid breaks down as follows: 30 per cent to mining, 27 per cent to energy, 19 per cent to transport, eight per cent to communications, five per cent to social security and three per cent to other areas. The donor community and the Mongolian government want to dig the country out of decades of underdevelopment, which currently hampers the budding private sector from becoming more sophisticated.
These large-scale infrastructure projects offer enormous opportunities for US firms experienced in working in cold-weather conditions. There are also opportunities to develop world class office space for these international donors, something that is currently lacking in Ulaanbaatar.
Foreign investment to date
Actual large-scale foreign investment to the country has been slow coming and still doesn't represent a major economic opportunity. The major players in direct foreign investment outside of development aid have been Mongolia's old neighbours, Russia (20 per cent) and China (33 per cent). This decade the country has attracted US $200 million in foreign investment and registered 840 jointly owned or wholly owned ventures.
New-found affluence
It is estimated that around five per cent of the capital's population fit into a middle or upper income category. The late 1990s have seen the emergence of a new breed of affluent Mongolians. Many of these affluent Mongolians struck it rich trading in once-unobtainable consumer products or servicing the expanding foreign community. This class of traders have developed a sophisticated taste for all things Western – Mercedes Benz cars, four-by-four jeeps and western fashions. Vehicle registrations have steadily risen since the introduction of a market economy. In 1996 the number of vehicles was 65,020; by 1997 it was 70,088.
New home owners
In 1998 50,000 families became homeowners as a result of privatization of apartments. All the apartments are of Soviet era and do not meet the aspirations of the growing middle class. Many of these new homeowners immediately set about renovating these apartments, installing modern appliances and furniture. A significant minority is renovating apartments with the intention of selling them on to wealthier Mongolians or foreigners. The high number of renovations and additions to buildings in the capital is also indicative of other things: the economy has changed and existing buildings do not meet the new demands, and that people have money to pay for the renovations.
Business Opportunities
USAID has identified the following opportunities in the Mongolian construction sector:
- Donor-funded projects: Large-scale infrastructure projects that are funded by loans or grants from international donors, are a safe bet. These projects require management and technical expertise that is often difficult to find locally. This includes projects that require an international tender.
- Fully funded foreign projects: Any project requiring a building that meets international standards. International companies have little choice when it comes to finding adequate office or retail space.
- Low-cost labor: The Mongolian workforce is highly literate and often speak a second language, usually Russian amongst older workers, and English amongst the young. Unemployment levels are high in Mongolia and workers are keen to get a job. Generally salaries are as follows:
- Manager: US $250
- Accountant: US $200
- Engineer: US $150
- Secretary: US 100
- Driver: US $100
- Qualified worker: US $100
Source: FIFTA
- Donors: Many large-scale projects are directly funded by donor grants or loans and therefore are a low-risk, reliable source of income. At the June, 1999 donors meeting in Ulaanbaatar, US $320 million was pledged, the largest amount in eight years of donor funding. Most of these pledges are targeted at “hard” infrastructure and private sector development.
- Imports rule: Imported construction materials dominate the marketplace and will continue to do so for the foreseeable future. Many of the materials are poor quality and from China. American companies can attract customers with their obvious advantages in both quality and innovation.
- Large resource base: Mongolia's large wealth of mineral resources is inefficiently utilized, with many mines and factories working under capacity or not at all. These resources could be tapped to produce construction materials locally for the domestic market, or more lucratively, for the booming Chinese market hungry for resources.
- Very cold country: Mongolia's capital, Ulaanbaatar, is the coldest capital in the world. Mongolia's winters dip below minus 40 Celsius, and for those who live in apartment buildings, this can be a difficult time. Many apartments are inadequately insulated, and dip below zero when the central heating system is disrupted due to poor maintenance. There is an urgent need for high-quality aluminium and plastic windows and doors. Budgets are tight in Mongolia yet many organizations spend vast sums to heat buildings. It has been proven that during the course of the winter heating costs can be reduced from Tg 4,200 (US $4.20) per square metre, to Tg 280 (US $0.28) in an energy efficient dwelling.
- Windows are expensive: Mongolia must import all windows and glass products. When the cost of freight is added, windows become an unnecessarily expensive portion of any construction bill. This is a business opportunity for any company who can domestically produce glass products and windows at a cheaper price than imports. A National Code for Insulation of Buildings is being revised and none of the existing windows and doors meet this requirement.
- No chemical industry: While Mongolia exports oil to China for refining, the country does not have a domestic chemical industry, and consequently plastic and rubber is imported for construction purposes. Stone tiles like marble are currently also imported from outside, despite this resource being available in Mongolia.
- Central heating and water unreliable: For those who live in apartment buildings, the regular disruptions to both the water and heating supply are not only inconvenient, but also bad for business. Technology that can by-pass relying on the central system (common to many Soviet-era cities, this system is wasteful and subject to regular breakdowns), is urgently needed. Alternative energy sources like solar power and wind can bring electricity to those who are not on the grid.
- Free trade zones: The towns of Sukhbaatar (Russian border) and Zamyn-Uud (Chinese border), both served by rail, are the focus of Mongolian government attempts at increasing cross-border trade. At Zamyn-Uud Japan has upgraded the customs house facilities and trans-shipment facility. On the Chinese side, a major trading market has been constructed and a boom is taking place based on trade with Mongolia.
“Arthur Andersen has had representation in Mongolia since 1993. We have been very active in the development of the accounting and auditing profession in Mongolia. January 1999, Arthur Andersen opened Arthur Andersen Mongolia Audit LLC.” Mr. C. L. Ruddell, Representative Arthur Andersen-Mongolia
What Do Mongolians Say They Need?
In interviews conducted by USAID, Mongolian government officials and construction companies detailed what they felt were the most urgent priorities:
- Education and training: The vast majority of engineers and managers in the Mongolian construction industry received their training under communism. They were trained to work under a centrally planned economy, and will need to learn how to thrive in a free market situation where there are no guarantees. The Construction Training Institute currently only offers courses to managers and engineers. Its curricula is out-of-date and awareness of modern construction techniques and standards is weak. Exposure to computer-assisted construction methods is urgently required as well as training in foreign languages.
- Awareness of International Standards: No Mongolian companies can offer state-of-the-art consulting on construction projects.
- Licensure, apprenticeships and guilds: Standards are very weak in the construction sector and there is not a highly developed mechanism to ensure construction managers, engineers and workers meet a minimum qualification.
- Being Earthquake-proof: While the National Design Codes and Regulations do stipulate that buildings must meet minimum requirements against earthquakes (Mongolia is located in a seismically active region, and severe earthquakes have happened), most buildings post-1989 fail to meet these requirements.
- Weak infrastructure: Developing the transportation infrastructure of Mongolia will be key to future improvements in the economy. The rapidly developing Chinese economy offers many opportunities to Mongolia if roads and highways can be upgraded.
- Better coordination and promotion: Working with FIFTA or the Foreign Investment and Foreign Trade Agency, Mongolian companies seeking foreign investment for projects need to improve their networking and presentation skills.
Obstacles and Market Risks
Corruption: While Mongolians will tell you corruption has reached all levels of government, it is important to keep in mind it does not come close to the levels of corruption found in other former Communist countries. Foreign businesses do not suffer from harassment or intimidation by criminal gangs.
Inexperience with the free market: Foreign businesses and travellers to Mongolia do experience difficulties communicating Western business concepts like consumer rights and service. It has to be said that over the past three years this has changed considerably for the better, and continues to improve as Mongolian businesses learn the importance of the axiom "the customer is always right".
Differences between Mongolian and US standards: While Mongolia's regulations and laws are different from those in the US, it is important to keep in mind that the regulatory environment in Mongolia can be much freer in some areas. Also, many of the new laws have been drafted based on US laws and Mongolia's constitution was written upon the advice of US legal experts.
Harsh climate: The long cold winters do present problems for some foreign businesses not used to working in cold-weather climates. This is also an area where American companies are at a specific advantage.
Financial instability: Mongolia has had a number of serious banking crises since the early 1990s. Many private and public banks are insolvent due to bad loans. This can lead to long delays to construction projects and/or non-payment of salaries.
Contract bidding: Only those contracts that are directly commissioned by the government will be subject to an open bidding. Private sector work is usually not subject to open bidding or design competitions.
Downtime: Since Mongolia does no international corporate presence in the capital, any technical problems to equipment or software can involve downtime and delays as parts or repairs are sought in China. It is important to take this into consideration when establishing an operation in Mongolia.
Advantages of Working in Mongolia
- Regulatory freedom
- Private-sector driven
- Market economy taking off
- Democratic
Privatization of Land: Can I Own Land in Mongolia?
The dual legacies of communism and nomadism have made the issue of private ownership of land in Mongolia a thorny one. The government has passed the necessary legislation to make owning land in urban areas possible. However, inexperience with the concept of owning property and the laws that govern this make buying land risky. It is advisable to get a reliable local partner and to use the services of a law firm that knows the Mongolian situation. Long-term leases are available and might be a good option.
Mongolian Government
Financial commitment to date:
The Ministry of Infrastructure Development has developed projects to encourage the production of construction materials locally. Due to financial constraints these projects have not been implemented. They include projects on cement, glass and paint production, rock processing, lime extraction and road development.
Government plans:
At this time the Mongolian government has not been able to develop a long-term strategy for the development of the construction sector. There are no specific policy incentives directly supporting real estate and housing development. The Ministry of Infrastructure is looking to the private sector to offer direction and guidance.
Future Opportunities
The Tumen River Project: The eastern portion of Mongolia is included in a major trade zone development project initiated by the United Nations Development Programme. The Tumen River Area Development Programme (TRADP) is focusing foreign investment and infrastructure upgrading on eastern Mongolian, North-East China, the Democratic People's Republic of Korea and eastern Russia. This region has cumulatively attracted US $961 million from 1991 to 1997, with Mongolia's second biggest trading partner, China, making significant development gains. While the Democratic People's Republic of Korea has been a thorn in the Project's side, both Mongolia and China are keen to push ahead with improving infrastructure and trade links. It is impossible to ignore the fact that China has made significant gains and that trade links with Mongolia continue to tighten.
A feasibility study is currently underway on a railway link from Arxan, China to Choibalsan, Mongolia, and possibly on to Ulaanbaatar. As donors begin to fund these projects it would be prudent for American businesses to start building a relationship in the region to take advantage of future contracts.
Commercial Street 2005: The City of Ulaanbaatar, Mongolia's capital and commercial centre, has drafted the blue prints for the construction of a modern commercial and business centre for the next millennium. Commercial Street 2005 will offer infrastructure and services that match global standards. The current Soviet-era infrastructure of Ulaanbaatar is an impediment to future growth and is unsuitable for Mongolia's new market economy.
The project covers 20 hectares of 1 km length in a historically vibrant part of the city. The city will pay for the engineering and infrastructure works for the complex and local businesses will pay for the construction of secondary buildings. Commercial Street 2005 is looking for foreign investment to participate in the building of a food supermarket, trade and service complex, a twin-towered international trade and service complex, a banking centre, a business centre and renovations to nearby apartment buildings. It is estimated the project will create 10,000 jobs and would cost an estimated US $100 million.
Darkhan: With a population around 55,000, Darkhan is as-yet an untapped opportunity. Located north of Ulaanbaatar and close to the border with Russia, Darkhan is linked by a good road and rail. Along with the mining town of Erdenet, Darkhan has a modern infrastructure. Having been trained to work in the former state industries that once dominated the city, the population is well-educated and skilled. Today, coal mining and agriculture are key to the economy. The city is potentially a good stable base for accessing the Russian market.
Getting started
Registering prior to undertaking construction work is relatively simple. The Government Agency for Construction issues three degrees of licenses. The first license is for small projects, the second is for small to medium-sized projects, and the third is for large-scale projects anywhere in Mongolia. As the project develops the company is obligated to notify and allow local building inspectors to enter the site.
Residency Permits
All foreigners wishing to remain in Mongolia for more than 30 days must apply to the State Centre for Civil Registration and Information for a temporary residency permit or a short-term residency permit.
Temporary Residency Permit
The applicant must present to the State Centre for Civil Registration a request issued by FIFTA. FIFTA will issue such a request to any agreed foreign investor immediately. Permits are generally issued within a couple of days and are valid for a period of time from three months to one year. A temporary residency permit can be renewed an unlimited number of times. Each renewal will re-validate the permit for a period from three months up to one year, as requested by the investor.
Short Term Residency Permit
This non-renewable permit is issued to foreigners who plan to spend no more than 90 days in Mongolia. Applicants are required to present a written request from a Mongolian or foreign organization stating the activity in which the person will be engaged and the reason the permit is needed. In case of an exploratory visit by a potential investor, a letter from the home company will suffice.
Entry Visas
Investors may apply for single-entry and multiple-entry visas at the Foreign Ministry's Chancellery Building in Ulaanbaatar or at Mongolian diplomatic missions in other countries.
Single-Entry Visas
A single-entry visa is valid for three months from its date of issuance and entitles the bearer to enter and stay in Mongolia for 30 days. A letter of invitation or applicable work papers are required. This type of visa is issued at the Ulaanbaatar airport or land border-crossing point.
Multiple-Entry Visa
A multiple-entry visa entitles the bearer to enter and exit Mongolia an unlimited number of times and is valid for a period of six months to one year. For the issuance of this type of visa, an official letter stating the reason for travel and a copy of the certificate of the organization must be submitted by the investor.
(Source: FIFTA)
Infrastructure facts
Airports – Mongolia has 81 airports, of which 31 can be used year-round. Only eight are paved.
Roads and highways – Mongolia has 1,531.7 km paved roads.
Railway – Mongolia has 1,750 km of rail track, mostly a north-south line reaching from Russia to China, with spur lines to the copper mining city of Erdenet and the coal mining city of Baganuur. A short line goes from the eastern city of Choibalsan to Russia.
Registered trucks - 25,473 (1998)
Major infrastructure projects (1997-1999)
USA
Mongolia energy sector project - US $45,500,000
World Bank
Mongolia coal project - US $35,000,000
Transport rehabilitation project - US $32,313,000
Asian Development Bank
Telecommunications - US $24,381,000
Power station rehabilitation - US $38,277,000
Ulaanbaatar heat efficiency project - US $29,487,000
Provincial towns basic urban services project - US $7,695,000
Road development - US $22,499,000
Ulaanbaatar airport project - US $37,524,000
Japan
Road construction (1996) - (Yen) 11,590,000
Rehabilitation of power plant IV (1995) - US $46,000,000
France
Rehabilitation and extension of UB telephone network - (F Franc) 25,000,000
Germany
Telecommunications - (DM) 10,000,000
South Korea
Thermoelectric power plant in the Gobi desert - US $8,000,000
Upcoming major infrastructure projects
Asian Development Bank
Improving Ulaanbaatar heat efficiency (until 2002) - US $39,785,000
Japan
Building of rural schools - US $20,000,000
In 1998 Tg, 208 billion was invested in Mongolia, of which Tg 57.2 billion was on construction/major improvements
Source: State Statistical Bulletin
Construction trends in Mongolia show that in-country production of materials has suffered greatly.
Building doors and window
Tg 417.8 million in 1989
Tg 2.9 million in 1998
Bricks (million pieces)
172.8 (1989)
18.9 (1998)
Cement (in thousand tons)
512.6 (1989)
109 (1998)
On a positive note, sales of furniture went up
Tg 34.7 million in 1989
Tg 185.2 million in 1998
US-Mongol Construct 2000: Building a New Democracy was published by USAID. It helped lay the foundations for a construction boom in the mid-2000s.London HQ | Geneva GLOBAL HUB | Reykjavik DATA
