ILO holds discussion on pathways to strengthen the social and solidarity economy in Mongolia

“The most important asset for a cooperative is trust, rather than money. Hence, good governance must be the foundation, before we venture into business opportunities.” -Representative from a herders’ cooperativetee members and observers reviewed the key findings and policy recommendations of the study on the social and solidarity economy (SSE) in Mongolia at a hybrid meeting on April 3, 2024. National advisory committee members include representatives from the government, employers’ and workers’ organizations, SSE supporting organizations and intermediaries, SSE representative institutions, and international organizations.

In his opening remarks, Mr. Chang-Hee Lee, Director of the Country Office of Beijing, highlighted social and solidarity economy actors contribute to the social, economic, and environmental objectives of the Sustainable Development Goals. He noted that the study is the first of its kind in Mongolia that maps social and solidarity economy entities and explores how these entities contribute to decent work and sustainable development.

Mr. Lee remarked that concrete actions based on the study findings can contribute towards realizing Vision 2050, the long-term development policy of Mongolia, and Mongolia’s Decent Work Country Programme 2023-27. He also pointed out to the leadership role that the Mongolian government plays in the international arena on this portfolio. He mentioned that the Mongolian government proposal for a resolution calling for the proclamation of 2025 as the second UN International Year of Cooperatives was adopted during the 47th plenary meeting of the United Nations General Assembly.

In her opening remarks, the representative from the SME Agency under the Ministry of Food, Agriculture and Light Industry (MOFALI), the main agency responsible for SMEs and cooperatives, said that the study findings are relevant for the government’s priorities around care, green, and circular economies. She noted that as the main actor of the SSE, cooperatives can play a critical role in improving the herders’ livelihoods and building resilience to the impacts of climate change.

Ms. Heejin Ahn, Technical Officer of ILO Bangkok, informed participants about the international tripartite definition of the social and solidarity economy that is included in the Resolution concerning decent work and the social and solidarity economy adopted at the 110th International Labour Conference (ILC) in 2022.

She noted that a set of values and principles give coherence to the SSE. Furthermore, Ms. Ahn noted that the government of Mongolia co-sponsored the UN Resolution “Promoting the Social and Solidarity Economy for Sustainable Development” adopted in April 2023. Ms. Ahn informed the participants that the regional workshop “Social and Solidarity Economy for Advancing the Sustainable Development Goals in Asia” will take place in Bangkok, Thailand, on 18-19 June 2024, where study findings from four countries, including Mongolia, will be presented.

Purevdulam Jamiyansuren, Chief Monitoring and Evaluation Officer at Development Solutions and consultant for the ILO study, presented its preliminary findings. She stated that the social and solidarity economy in Mongolia comprise of cooperatives, associations, partnerships, social enterprises, foundations, mutual societies and self-help groups, and other entities that operate according to values and principles of the social and solidarity economy, as per the ILC and UN definition.

Ms Jamiyansuren noted that, out of 158 SSE entities surveyed, the majority had social benefits for their members over profits as their main objective. She noted that capacity building is needed to clarify the status of registration for different groups, especially for young people who are interested in starting SSE initiatives. She also emphasized that SSE entities have limited financial capacities. She suggested that they can perhap better articulate their contributions towards the SDGs in their organizational mission documents, however such documentation is currently lacking. Ms. Jamiyansuren concluded by presenting preliminary policy recommendations to strengthen the SSE ecosystem, including sensitizing the public on the concept of the SSE, integrating the SSE in laws and policy documents, establishing umbrella organizations for SSE actors to represent and advocate for their needs.

A panel discussion with SSE practitioners who participated in the study followed the presentations. The panelists shared their experiences and perspectives on how they practice and promote SSE principles in their operations. A representative from a herders’ cooperative narrated that by forming a cooperative of 20 women dairy farmers in her locality, they experienced higher productivity, efficiency, and eased access to finance, through a mutual fund and concessional loans.

She said “the most important asset for a cooperative is trust, rather than money. Hence, good governance must be the foundation, before we venture into business opportunities.” Another representative of women led cooperative of garment producers said that through reaping the benefits of cooperation through the cooperative model, “we can shift mindset from seeing each other as competitors to partners.”

“The most important asset for a cooperative is trust, rather than money. Hence, good governance must be the foundation, before we venture into business opportunities.

Representative from a herders’ cooperative

The second panel discussion focused on sharing plans to implement the study recommendations. A representative from the SME Agency under the MOFALI noted that the Ministry is revising the existing law on cooperatives and developing a 5-year implementation plan. She noted that the SME Agency will launch a knowledge-sharing and networking platform to share information on how to establish a cooperative, auditing requirements, benefits of joining a cooperative, and financing opportunities, among others. She also noted her plans to include the SSE in future policy documents. A representative from the Mongolian Employers' Federation (MONEF) stated that she plans to use the findings in future advocacy activities to disseminate the concept of the SSE to the wider business community, especially the relevance of the SSE to facilitate the transition of workers and businesses from the informal to the formal economy. Finally, a representative of the Mongolian National Co-operative Association stressed that umbrella institutions can advocate for and collaborate with relevant Ministries to ensure cooperative members’ needs are adequately reflected in legal and policy provisions.

A round of Q&A and open discussion ensued the presentations. Participants expressed the need to learn from good international practices on the SSE, particularly on developing legal frameworks, public procurement policies, and education for youth. All participants agreed more awareness raising is needed on the concept of the SSE in Mongolia and expressed interest in promoting the SSE in partnership with key stakeholders, including the ILO. The workshop recording can be viewed here.

Strengthening the Social and Solidarity Economy in Asia – Phase 2 project

The workshop was part of the Strengthening the Social and Solidarity Economy in Asia – Phase 2 project which aims to inform and create policy dialogue on the contributions of the SSE to decent work and sustainable development among policymakers, workers’ and employers’ organizations and development practitioners in five countries in Asia (Cambodia, Kyrgyzstan, Mongolia, Thailand, and Vietnam). The project outputs and outcomes are aligned with the Resolution concerning decent work and the social and solidarity economy adopted at the 110th International Labour Conference in June 2022, and UN Resolution on Promoting the Social and Solidarity Economy for Sustainable Development, adopted by the General Assembly on 18 April 2023. The project deliverables will also be contributing to the implementation of the ILO’s office-wide strategy and action plan on decent work and the social and solidarity economy, endorsed by the 346th session of the ILO Governing Body in November 2022.