COVID-19 means development setbacks for Mongolia: a UN Resident Coordinator’s blog

Mongoliahas recorded very few cases of COVID-19, less than 300 as on date, despite itsmore than 4,000 kilometre porous border with China. However, the country facesa major economic impact from the pandemic, says Tapan Mishra, the UN ResidentCoordinator in Mongolia.

The general picture of the COVID-19 situation in Mongolia is verypositive. The Government of Mongolia closed all educational institutionsincluding kindergartens, schools and universities at the beginning of the year.It also introduced strict measures on social distancing, such as a ban onpublic gatherings, limiting public transportation, closing public spaces suchas gyms, and making the wearing of masks in public compulsory. Travel has beenvery limited, including a complete ban on any international travel by road,rail, or air.

Mongolia has been very vulnerable to thepandemic, not only because of its physical proximity to China and Russiaincluding close links and dependence for economic interests, but also due toits own inadequate health care system.

Despite these challenges, there has been nolocal transmission reported (cases have been limited to patients importing thevirus), and I would say that the leadership of the country has dealt well withthe pandemic.

Another factor that has helped in making Mongolia’sresponse a success story, is that the citizens of the country have diligentlycomplied with the government’s directives and regulations. The requirements towear masks, ensure good hygiene, such as frequent hand-washing, and physicaldistancing, have been seriously adhered to. Even during the Tsagaan Sar, theMongolian Lunar New Year in February, they complied with government orders, anddid not even visit their extended families and elders, which is a tradition forMongolian families.

Minimizing the impact

©Global Press Journal/Dolgormaa SandagdorjMongolian students adjust to remote learning

Several UN agencies are physically present inMongolia, with more providing support from outside. In response to the COVID-19crisis, the UN bodies came together under the leadership of the office of theResident Coordinator, and we have been following the World HealthOrganization’s response plan, and the UN’s humanitarian and socio-economicresponse plans. This has involved setting up a socio-economic task force, andidentifying the needs and priorities of the most vulnerable people in Mongoliansociety.

The UN Country Team has utilized well the $1Million UN Secretary-General's COVID-19 Response and Recovery MPTF(multi-partner trust fund) allocation, for supporting the Government ofMongolia in improving the national testing capacity, and have more supplies ofpersonal protective equipment. We have been also supporting development of thedigital learning curriculum to enhance the quality of online learning, aschildren have not been able to go to school for around six months.

We stand ready to support the Government inevery possible way, from their health, humanitarian, and socio-economicresponse plans, to their longer-term economic recovery.

The economic fallout

We do not know the full impact the pandemic ishaving yet, but we know it is significant. For instance, in the first quarterof 2020, the economy contracted by 10.7 per cent, and government revenue fellby 8.6 per cent year on year, whilst expenditure went up 19.3 per cent.

NCCD ofMongoliaNational Center for CommunicableDiseases (NCCD) team.

Mongolia has a large amount of debt , whichmeans that there is an increased risk of defaulting on debt. According tothe IMF, GDP is also expected to fall sharply tominus one per cent this year, down from 5.3 per cent in 2019.

To bolster the economy, the Government approvedeconomic stimulus packages, worth over 10 percent of GDP, which includedseveral measures to support vulnerable groups, including cash benefits;mortgages, consumer and business loan repayments were deferred; and themortgage rate was reduced.

Development setbacks

Unfortunately, it is highly likely that thepandemic will set back the progress we have been making in Mongolia. TheGovernment took early, effective action against the spread of COVID-19, but theincreased borrowing, amid an economy hit by reduced exports, means that it willbe difficulty to recover from the socio-economic impacts of the crisis.

In collaboration with the IMF, World Bank andother partners, we are conducting detailed studies to look at the real impacts,but we are also working with the Government of Mongolia to ensure that therecovery plans do not leave anyone behind.

I only hope that donors provide the fundingthat is needed to support the most vulnerable people in Mongolia, and help toensure that the post-pandemic recovery benefits all members of society.