Formalization of the Informal Economy Project

Policy dialogue on extending social insurance coverage for herders

The Formalization of the Informal Economy Project and the General Authority for Social Insurance (GASI) held dialogue on extending social insurance coverage to the herders on 3 May 2024 in Ulaanbaatar, Mongolia.

Participants attending the national dialogue

A total of 69 participants attended the national dialogue, including the General Authority for Social Insurance, Ministry of Food, Agriculture and Light Industry, National Association of Mongolian Agricultural Cooperatives, Mongolian National Chamber of Commerce and Industry, Mongolian Employers’ Federation, Confederation of Mongolian Trade Unions, The Union of Mongolian Production and Service Cooperatives, Mongolian Reinsurance JSC, and Khaan Bank.

Head of the Policy Coordination Division of the SME Agency, Minisry of Food, Agriculture and Light Industry, A.Gerelzaya

Head of the Policy Coordination Division of the SME Agency, Minisry of Food, Agriculture and Light Industry (MOFALI) Gerelzaya presented policy issues on SMEs and cooperatives, particularly the law on Reducing the negative effects caused by climate changes on traditional animal husbandry. The law was approved on 19 April 2024 and it provides regulations regarding herders’ cooperatives and government support measures. This was followed by presentation by Kenichi Hirose. He presented a review of the current social insurance coverage of herders, the need for social security in the various transformative changes, the barriers and solutions for covering the workers in the informal economy, and past efforts to extend social security to herders (particularly in the framework of the former UN Joint Programme).

ILO-GASI — Senior Social Protection Specialist, ILO DWT-Bangkok, Kenichi Hirose

The discussion touched upon a wide range of topics, such as the significant challenges and possible solutions for extending social insurance coverage for herders, whether social insurance for herders should be made compulsory or kept voluntary as in the current law, organising and coordinating the contribution collection, whether the state should subsidise contributions for herders, and promoting a social insurance culture and awareness that fosters trust in the social security systems. The participants also emphasized that partnership and coordination among government organizations, herders’ communities, cooperatives, intermediaries, and commercial banks will be crucial in extending social security coverage for the herders.

The provincial social insurance departments of Tuv, Dornod and Zavkhan aimag participants shared their experiences and best practices for addressing common challenges in voluntary social insurance coverage.

As a concrete deliverable of the Dialogue, Director General of GASI, Munkhzul, noted the importance of further enhancing the social security culture that fosters trust in social security systems and advocacy efforts to build the confidence of herders.