Study of Extensive Livestock Production Systems

TECHNICAL ASSISTANCE COMPLETION REPORT Division: AEFN TA NO./NAME: TA No. 2602-MON: Study of Extensive Livestock Production Systems EXECUTING AGENCIES: Ministry of Agriculture and Industry (MAI) DATE: APPROV.: SIGNING: FIELD: July 1996 Sept. 1996 Oct. 1996 TA DESCRIPTION

TA AMOUNT APPROVED: $600,000 (JSF) REVISED AMOUNT: AMOUNT UNDISB.: $87,963 CLOSING: ORIG.: Sept. 1997

AMOUNT UTILIZED: $512,037 ACTUAL: Oct. 1997

Since late 1990, the Government has implemented a series of comprehensive reforms toward the creation of a market-based economy. In the extensive livestock sector, the large collectives were broken up into new, smaller companies or cooperative organizations largely owned by former workers, and more than 90 percent of the national herd had been privatized by late 1994. However, rapid decollectivization brought about sudden changes. For example, the subsidized provision of goods and services through the collectives had by 1991 become untenable, and the institutional controls required for sustainable management of rangelands ceased to operate. Herders adopted livestock management systems that had neither the controls of the collectives nor the community controls of traditional pastoral systems. Some made preemptive moves to capture the best grazing first. By 1994, the national herd stood at about 26.8 million, the largest for 30 years, and estimates for 1995 indicated a further increase to about 27.8 million. Because little was known about how the extensive livestock sector was adapting to a market-based economy, the Government sought Bank assistance to examine the sustainability of the sector following record increases in the number of animals.

TA OBJECTIVES AND SCOPE The long-term goal of the TA was to contribute to sustainable management of extensive livestock production systems in Mongolia. Its immediate objective was to assist the Government in the formulation of policies and strategies for sustainable management, and the preparation of an action plan for the extensive livestock sector. Its scope included (i) establishing an information base on sector capacities, focusing on assessing the carrying capacity of rangelands and delineating the salient characteristics of the sector, (ii) analyzing constraints and opportunities in the sector, (iii) defining a policy framework for sustainable management of livestock resources, and (iv) detailing a strategy for policy framework implementation. The TA also provided for field research in provinces selected to reflect differences in ecology and market conditions.

The TA was implemented by a team of international consultants in association with domestic consultants. The Consultant, who provided a total of 39 person-months of services, had expertise in livestock economics, environmental management, rural sociology, extensive livestock production systems, and regulatory law. Short-term domestic consultants were recruited as needed for their knowledge of specific localities and issues.

TA INPUTS EVALUATION The TA specified in consultation with the Government clear terms of reference and appropriate implementation arrangements. The important issues examined related to social welfare, pasture management, fodder production, the organization of production and marketing, pricing, access to credit, risk management, increased demand for animal products, and the type of institutional support needed from the Government. The TA also envisaged two participatory workshops at TA inception and midterm. Because the response of stakeholders at the first workshop was positive, the participatory activities implemented under the TA were intensified to include participatory rural appraisal and training of MAI staff, the organization of a policy workshop to draft the first version of the action plan, the creation of working groups to detail action plan activities for livestock production, marketing, and pasture management, and the establishment of a policy group in MAI to review drafts of the action plan.

Consulting inputs were delivered as planned. The Consultant carried out consulting services efficiently in compliance with the contract and the work program, and developed cordial relations with MAI and other key institutions. The quality of technical analyses and advisory services was high.

Three supervision missions were undertaken by the Bank. All three draft reports were reviewed interdepartmentally

2

on a timely basis, and detailed comments were passed promptly. On the side of the Government, senior MAI officials took a keen interest in TA implementation, and made counterpart staff available to participate in the TA and benefit from the technical knowledge of the Consultant. Other counterpart contributions were adequate.

TA OUTPUTS EVALUATION The Consultant accomplished its terms of reference in full and TA outputs were timely and of a high quality. The participatory rural appraisal carried out supplied detailed information on extensive livestock production systems, pasture land use and social dynamics, marketing, poverty and rural vulnerability, risk management, and the institutional setting. The participatory workshops held at regular intervals during TA implementation and the frequent policy and working group meetings led to meaningful involvement of herders, provincial governors, scientists, and politicians. This facilitated preparation of the action plan and garnered support for its implementation.

The final report of the Consultant is a well written document that clearly defines the problems affecting the extensive livestock sector, makes pertinent recommendations geared to the needs identified, and proposes a focused action plan for sustainable management of the sector based on realistic objectives and deliverable outputs. The final report comprises three volumes. They are the action plan, a report on opportunities and constraints in the extensive livestock sector, and appendixes. The action plan aims to (i) promote competitive markets, (ii) foster sustainable extensive livestock production, (iii) improve pasture management, and (iv) consolidate the institutional framework. For each of these policy areas, medium-term objectives are identified and policy actions are suggested. Detailed activities toward the accomplishment of each policy action are described specifying inputs, outputs, implementation arrangements, and expected impacts. The action plan also articulates the role of MAI and other key institutions, identifies constraints, and suggests capacity building measures to overcome the constraints identified. It prioritizes the investments required, and specifies a time frame for implementation. It also provides a conceptual framework for monitoring and evaluating implementation of the action plan.

On its own initiative, the Consultant also introduced and developed a pasture management decision support system including ecological databases, pasture management unit databases, animal databases, and socioeconomic factors that affect decision-making, and demonstrated the system to staff of MAI at a two-day workshop. The databases can be used to determine proper stocking rates of livestock for each area surveyed.

TA OVERALL ASSESSMENT AND RATING The TA met its objective and was implemented in accordance with the implementation schedule envisaged. MAI officially signified to the Bank its endorsement of the action plan, and outlined areas of special interest. Because the Consultant discussed successive drafts of the action plan with representatives of international organizations in Mongolia, support was garnered at an early stage and should facilitate implementation of activities toward the accomplishment of each policy action. The TA is rated generally successful.

MAJOR LESSONS LEARNED The high degree and quality of communication and cooperation between MAI, the Consultant, and the Bank facilitated a dynamic and flexible approach in TA implementation. The three parties were open to experimentation and collaborated in planning and decision-making.

In the extensive livestock sector of Mongolia, participatory approaches will secure the sense of ownership and commitment needed for successful TA implementation.

FOLLOW-UP ACTIONS AND RECOMMENDATIONS MAI will arrange follow-up meetings with the international organizations that expressed interest in the action plan for the extensive livestock sector prepared during TA implementation. The Bank should keep abreast of developments.

Prepared by: O. Serrat

Designation: Project Economist