Micro Economic Development Program
Since 2002, when Micro Economic Development Program was launched, ADRA Mongolia has been working with poor low income families. Together with banking and financial institutions, from 2005 on, we have been providing low income micro-entrepreneurs financial support and access to financial services. Through ADRA Mongolia’s Self-Help Groups (SHG) and Cooperatives program, thousands of families have been able to save money and access small loans to help grow their micro-businesses, and ultimately, make the first step towards climbing out of poverty. Currently, it focuses on business development services and innovative access to credit for ultra-poor families. New areas of programming are value-chain development in rural industries and continued market research and vocational training. MED currently has a vibrant urban and rural program. The latest strategic focus includes development of further innovation in delivering the micro economic development services through establishment of primary and secondary cooperatives and Business Associations.
In many cases, people in need are marginalized from basic financial services like micro credits because they are isolated and possess no collateral. It restricts their possibilities to get out of the poverty vicious circle. That is where ADRA steps in with an empowering hand, training vulnerable families to run small business and facilitating their access to credit services. They also learn to work together in Self Help Groups and Cooperatives, and develop the habit of accumulating savings. By doing this, ADRA gives a hand up, not a handout, teaching people to help themselves.
Over 10 projects were implemented in Ulaanbaatar, Zavkhan, Selenge, Bayankhongor, Gobi-Altai, Khovd and Khuvsgul aimags and now beneficiaries are 9 districts of Ulaanbaatar city, 5 groups and 61 cooperatives of 37 soums within this program.Supporting cooperatives results are to train the members and heads and focusing on creating new trained staff, to give professional advice and develop diary products. This has many good things to unite their voices and decrease costs.