OVERVIEW OF MONGOLIAN

COOPERATIVE SECTORTs.Altantuya

Vice PresidentNational Association of Mongolian

Agricultural Cooperatives

MONGOLIA

Territory – 1.564.116 square km19th place in the world by the territory2nd largest landlocked countryBorder with Russia to the north and

China to the south

Population – 2.8 million /one of the most sparsely populated country/

49.5% - male population50.5% - female population45% of total population live in a capital city714.0 households of which 146.1 are still

follow nomadic lifestyle Literacy rate is 96.3%Poverty rate – 27.4% /by World bank/

MONGOLIA

MONGOLIAMongolia divided into 21 provinces and 329

soums /administrative unit/It has 4 seasons with long cold winters

/temperature drops down to -30 C/ Main economic sectors are mining,

agriculture and service

Cooperative development1916 – first cooperative idea1918 – first coop was established, but did not

exist for long /18 initial founders/Oct. 1921-Model bylaw of cooperatives was

approved Dec. 1921 – Mutual help cooperative of

people /116 members among them the King and the Queen of Mongolia/

Cooperative developmentSince 1921 consumers, agricultural,

industrial and other types of cooperative business started to establish

These cooperatives became under the government control

Cooperative development1990 – Democratic changesPrivatization of state owned enterprises and

cooperativesEstablishment of new cooperatives according

to the international cooperative principles and values

Cooperative sector todayAbout 3000 cooperatives are registeredCooperative sector has 4 tier structure 

COOPERATIVES

PROVINCIAL ASSOCIATIONS

NATIONAL ASSOCIATIONS

MNCA

Cooperative sector today

30%

25%

25%

10%

10%

AgricultureConsumerIndustrial/workerSavings and creditOther

Cooperative sector todayThere are 5 national associations:

CUMTCCCUMICNAMACUMPSCMOCCU

• These organizations together established Mongolian cooperative training and information center in 1998 and formed MNCA in 2008.

LEGAL ENVIRONMENTFirst Cooperative law – 1995Amendments and revisions - 1998,2002, 2006Savings and credit cooperatives law – 2011Today, a working group consisted of

government and cooperative sector stakeholders is developing Cooperative law revisions as well as working on eliminating gaps and overlapping of legal acts concerning cooperative businesses

Government support• National program on cooperative

development: I phase 1998-2008 /was focused on cooperative

promotion, capacity building and strengthening cooperative support centers/

II phase 2009-2017 /focused on enabling legal environment, support formation of cooperative supply chain, provide investments/

• National livestock program

Government supportCampaign to promote rural cooperatives – 2012First time assessments were done and training

were given to all cooperatives throughout Mongolia. As a result 105 cooperatives received support from the Government

Short term goals of the sectorIncrease public awareness about

cooperativesCreate more favorable legal and business

environmentDevelop cooperative human resourcesForm financial institution to support

cooperative businessCreate supply chain of cooperative productsImprove statistics of cooperative sectorSupport member participation

ENHANCING THE ROLE OF WOMEN IN COOPERATIVE BUSINESS-BEST PRACTICES

Gender equality45% of total cooperative members are womenWomen leadership rate is high:

In CUMIC member cooperatives 62% have women as directors

In NAMAC members – 47.5% In UMPSC members – 40%

Best practices

Moncord - the first Savings and credit cooperative of Mongolia was founded in 1996 by the initiative of 15 women with the aim to improve their living standards and social status, and to introduce credit union services in Mongolia

Best practicesIt was a hard and long time for these women

to prove the advantages of the cooperative business

Today it has 2281 members Until now women are predominant in the

membership with 66.5%

Best practicesDarkhan noos cooperativeTraditional felt handicraft cooperative was

established in 2003 by the initiative of women in Darkhan-Uul province

84.5% of total membership are women

Best practicesIn 10 years they have established marketing

channels in Darkhan city, in several souvenir stores in Ulaanbaatar and exports members products to Germany, the USA, Japan, Switzerland and Norway.

From 2011 cooperative implements a program to help unemployed women through trainings

Best practicesUr jims cooperative1999 – 10 single mothers who became

unemployed established a cooperative Main activities:ForestationFruit tree plantationFruit processing Seedling nursery

Best practicesOne of the cooperative’s main goals is to

afforest the region Started with 56000 tree saplings in 1 hectarePast 12 years coop has regenerated 360

hectares of wasteland and have planted over 2.1 million trees

New varieties of trees were introduced in the region in 92 hectares and called their place “Green wall”

Before After

THANK YOU!