Swiss Agency for Development and Cooperation (SDC), of the Swiss Ministry of Foreign Affairs
Berne, October 07 / 2003 - The Swiss Agency for Development and Cooperation (SDC) of the Swiss Ministry of Foreign Affairs has approved a CHF 800'000 (USD 590'000) grant for a second Cash for Herders Programme in Mongolia. About 2'400 highly vulnerable herder families in Zavkhan aimag receive a one-fold, unconditional cash contribution to the amount of CHF 250 (USD 180). The programme aims to enable beneficiaries to cover most urgent needs during the coming winter. The programme is implemented by the Swiss Humanitarian Aid Unit (SHA), of SDC, in close cooperation with the national and local government structures. Payments are made through the branch offices of the Agricultural Bank of Mongolia.
Since 2000, SDC's humanitarian assistance to the highly vulnerable Mongol society, which suffers on top of economic difficulties from natural disasters, amounts to CHF 6 million (approx. USD 4.2 million).
Zavkhan aimag, a north-western province of Mongolia, has been hit by consequent and severe Dzud (extreme winter conditions) and drought over the last 4 years. As a result, Zavkhan aimag has lost all together 1.1 million animals or over 50% of its total livestock counted at the end of 1999. Over 1'100 herder families have lost all their livestock and 4'448 others have less than 20% remaining of what they owned before. As a matter of fact, herders, including those who have lost all their livestock, have little options to find alternative employment. Unemployment rate in Zavkhan aimag as a whole is 40.6% as of July 2003. According to a survey carried out by the Ministry of Labor and Social Welfare (2001), over 60% of the total population of Zavkhan aimag is classified as poor, which is the highest number of population in Mongolia living below the poverty line (monthly income of USD 17 per person). The current Cash Programme of SDC is designed to mitigate the difficult situation of the most affected herder population.
In 2002, SDC/SHA implemented a 1st Cash for Herders Programme in Gobi-Altai aimag, where about one third of the animal population vanished during winter 2001/02. A total number of 1'900 herder families received a cash contribution of either CHF 240 or 90, depending on the remaining livestock. The programme was highly appreciated not only by the beneficiaries, but also by local and national authorities and international agencies, which acknowledged the high flexibility of SDC's Cash Programme.
Cash contributions contribute to beneficiary's empowerment to purchase on the existing local markets what they really are in need of. Studies confirm that the introduced funds stimulate not only the local economy but contribute significantly to optimise the individual survival strategy in crisis.
Since 1999, SDC carried out more than 11 Cash Programmes, reaching over 60'000 beneficiaries with their families in conflict zones and after natural disasters. SDC intends to further explore appropriate possibilities to implement Cash Programmes.