Australian Embassy
Mongolia

Aid Program Overview

Australian Aid Program to Mongolia: An Overview

The Australian Government will provide an estimated $10.0 million in total ODA to Mongolia in 2016-17. This will include an estimated $5.9 million in bilateral funding to Mongolia managed by DFAT.

Mongolia’s economic growth has followed the commodity cycle, driven by the rise and fall of mineral prices and private sector led investment in the mining sector. The mining sector now accounts for almost 20% of GDP and the majority of exports and, if managed well, is central to the country’s goals to reduce poverty. Australia’s aid program aims to promote well-governed, efficient public and private sectors that support Mongolian communities to benefit from resource-driven growth. Our areas of investment are where Australia has a comparative advantage and are aligned with the development objectives identified by the Government of Mongolia.

The rapid development of Mongolia’s mining sector places demands on human resources in the public and private sectors. Attracting and retaining skilled workers is a top priority for businesses, but Mongolia’s education system is not meeting the needs of a competitive economy.

For these reasons the bilateral program has consolidated to assist two sectors—human resource development and the extractives sector. The aid program engagement on governance and the investment climate can improve the speed and focus of large commercial decisions that are worth many times the aid input. Transparent and predictable regulation benefits business investments and is relevant to both Governments’ focus on aid for trade to deliver prosperity by catalysing private investment.

Australia has two aid objectives for Mongolia:

Objective 1: Mongolia’s government, civil society and private sector personnel have the skills and qualifications to deliver better services

Australia is promoting education opportunities for Mongolians by:

  • strengthening the capabilities of the Mongolian government and the private sector by providing postgraduate scholarship opportunities in Australia
  • strengthening the technical skills of young Mongolians in construction and mechanical engineering to provide skills relevant to industry needs

Objective 2: Mongolians are benefitting from a well governed mining industry

The mining sector has propelled Mongolia to lower-middle income country status through the jobs and revenues from large scale foreign direct investment. A well-governed, environmentally and socially responsible mining sector can reduce poverty and promote sustainable economic growth. Australia’s significant expertise and experience is helping promote a more stable and equitable regulatory environment in the mining sector, encouraging new activity and helping Mongolia to benefit.

Further Information

An Aid Program Fact Sheet can be downloaded here

Further information about the Australian Aid Program in Mongolia can be found on the Department of Foreign Affairs and Trade web site (here). This includes useful documents available for download.

For project specific information please see:

Australia Award Scholarships

Endeavour Scholarships

Australian Alumni

Australia Mongolia Extractives Program

Australian Volunteers

Technical and Vocational Education

The Direct Aid Program (DAP)

Australia Award Fellowships

New Colombo Plan