Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized URBAN POVERTY IN ULAANBAATAR Understanding the Dimensions and Addressing the Challenges CONTENTS 1.0 ACKNOWLEDGEMENTS 07 6.0 INCOME POVERTY IN ULAANBAATAR 20-23 6.1 Levels and Trends 20 EXECUTIVE SUMMARY 08-13 2.0 6.2 Spatial Distribution of Income Poverty 20 2.1 Introduction 08 KEY CHARACTERISTICS OF URBAN POOR 24-41 2.2 Background and Context 08 7.0 IN ULAANBAATAR 2.3 Income Poverty in Ulaanbaatar 10 7.1 Typology of Ger Areas and Relationship to Income Poverty 24 2.4 Multidimensional Poverty 11 7.2 Trends of Growing Unemployment 27 2.5 Vulnerable Groups 12 7.3 Mechanisms that Perpetuate Unemployment 28 2.6 Conclusion 13 MULTIDIMENSIONAL POVERTY 42-49 INTRODUCTION: BACKGROUND AND CONTEXT 14-15 8.0 IN ULAANBAATAR 3.0 8.1 Overview of the Methodology 42 3.1 Poverty Decline in Mongolia: Strong Start but Faltering Progress 14 8.2 Level and Distribution of Multidimensional Poverty in Ulaanbaatar 45 3.2 Uniquely Urban Nature of Poverty in Mongolia 14 8.3 Understanding the Dimensions of Deprivation 46 AIM OF THE REPORT AND METHODOLOGY 16-17 4.0 THE IMPORTANCE OF NON-MONETARY DIMENSIONS 50-67 4.1 Aim of the Report 16 9.0 9.1 Urban Poor’s Access to Municipal Services 52 4.2 Methodology 16 9.2 Urban Poor are Underserviced in terms of Water Delivery 53 5.0 ULAANBAATAR: UNPRECEDENTED 18-19 9.3 Burden of Lack of Access to Sanitation is Disproportionate for Urban Poor 55 GROWTH OF A PRIMATE CITY 9.4 Lack of Effective Solid Waste Management is an Important Dimension of 56 5.1 Rapid Urbanization has Coincided with Urban Sprawl 18 Multidimensional Deprivation for Urban Poor and Non-Poor LIST OF TABLES AND FIGURES 9.5 Urban Poor Bear Disproportionate Burden of 57 Dysfunctional Health Care System TABLES 9.6 Lower Internet Access among Urban Poor is Likely to 60 Table 1: Urban-Rural national poverty trends: 2010 – 14 Table 2. Regional poverty trends: 2010 - 14 Exclude Them from UB’s e-Governance Initiatives Table 3. District Level poverty Headcount Table 4. Poverty by Household Head's Characteristics, Ulaanbaatar 9.7 Neighborhood Relations in Ger Neighborhoods 61 Table 5. Income by Locality Type Table 6. Labor Force Participation Rate in Ulaanbaatar: 2010-14 9.8 Salience of Alcoholism in Ulaanbaatar’s Neighborhoods 62 Table 7. Distribution of Ulaanbaatar's Population by Household Head's Gender and Linkages with Poverty Table 8. Characteristics of Urban Poor by Quintile (percent) Table 9. Deprivation Line Table 10. Key Hotspots of multidimensional poverty MARGINALIZED GROUPS 68-77 Table 11. Poverty Level & Dimensional Contribution to Overall Poverty by Ger & Non-Ger Areas 10.0 Table 12. Absolute dimensional contribution to multidimensional poverty 68 Table 13. Transitional Probabilities comparing Income versus Multidimensional Poor Individuals based on their 10.1 Rural-Urban Migrants: Not Poor but Vulnerable Income Status – Ulaanbaatar, Mongolia: 2012 71 Table 14: Access to water by quintile 10.2 Challenges Related to Obtaining a Plot in the Fringe Table 15. Access to Improved Sanitation Facilities Table 16. Frequency of garbage collection by Income Quintiles and Location in the City Table 17. Distribution of migrants and non-migrants across residential locations 78-79 11.0 COMMUNITY LIVING IN THE DALAN DAVKHAR CEMETERY Table 18. Determinants of (Log) Income in Ulaanbaatar FIGURES OTHER VULNERABLE GROUPS 80-81 Figure 1. Distribution of the poor by location: 2010-14 Figure 2. Average Poverty Headcount per Khoroo 12.0 Figure 3. Relative Contribution of Each Dimension to Multidimensional Poverty 12.1 Disabled 80 Figure 4. Poverty headcount and centralized water access Figure 5: Ulaanchuluut landfill site – in the territory of 26th khoroo, Songinokhairkhan district 12.2Street Children 80 Figure 6: Administrative procedures for obtaining urban residency status 12.3 Apartment Entrance Hall Watchmen 80 MAPS Map 1. Poverty Headcount Map 2. Kindergartens within a 30 minute walking time: 2014 CONCLUSION 82-85 Map 3. School Capacity by Khoroo: 2014 13.0 Map 4. Kindergartens within a 40 minute walking time: 2014 13.1 Extend Infrastructure in Line with Urban Population Growth 83 Map 5. Multidimensional Poverty Clustering Map Map 6. Clustering of Income and Multi-deprivation BI-LISA 13.2 Migrant Registration Reform 83 Map 7. Ulaanbaatar Poverty Headcount and School Accessibility Map 8. Access to Sanitation Services 13.3 Develop Mechanisms for Improving Regulatory Oversight and 84 Map 9. Access to Garbage Pickup Map 10. Internet Access in Ulaanbaatar Enforcement Around Corruption Map 11. Perceived Alcoholism within communities Map 12: Dalan Davkhar cemetery – surrounded by khoroos 7, 10, 11 and 12, Chingeltei district 14.0 REFERENCES 86 15.0 ANNEX 87-97 7 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org 1.0 ACKNOWLEDGEMENTS Some rights reserved This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, The report was authored by Gayatri Singh (Urban Development Specialist, GPSURR) under the AAA on Making denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Cities Inclusive (TTL Judy Baker), with contributions from Gilvan Guedes on multi-dimensional poverty analysis Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World (Professor, Federal University of Minas Gerais) Joseph Mulhausen (Consultant), Battuya Dash (Consultant) and Gauri Bank, all of which are specifically reserved. Gadgil (Consultant). Statistics based on National Household Survey 2014 data was provided by Obert Pimhidzai Rights and Permissions (Economist, GPVDR). Background information on social networks in ger areas was also provided by Sabine Willach (Consultant). The report also benefitted from the overall guidance of Judy Baker, Lead Economist as well as from This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/ inputs during the initial stages from Meskerem Brhane (Practice Manager, GSU19). The report design and layout licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: was done by Seetha Raghupathy with support from Lu Pang. Arailym Murat has been instrumental in facilitating the Attribution—Please cite the work as follows: Singh, Gayatri. 2017. Urban Poverty In Ulaanbaatar: Understanding the Dimensions translation and editing of the Mongolian version of this report. and Addressing the Challenges. World Bank. Washington DC. License: Creative Commons Attribution CC BY 3.0 IGO Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank The team is extremely grateful for the active collaboration from the National Statistical Office (NSO) and the shall not be liable for any content or error in this translation. Master Planning Department (MPD) who provided valuable data inputs. Gayatri Singh also led the survey as Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility well as qualitative data collection. The Mongolia Marketing Consulting Group carried out the household survey of the author or authors of the adaptation and are not endorsed by The World Bank. and focus group discussions. Ethnographic research on vulnerable groups was carried out by Bulgan Enkhbat Third-party content—The World Bank does not necessarily own each component of the content contained within the work. (Consultant). Additional interviews with service providers as well as survey supervision was carried out by Battuya The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with Dash, who also provided invaluable assistance in analyzing FGDs and ethnographic interview recordings. you. If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. The work was carried out under the guidance of Abhas Jha (Practice Manager), Coralie Gevers (former Country All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. Manager for Mongolia), Mark Lundell (former Sector Manager for Sustainable Development for Mongolia and Document design and layout: Seetha Raghupathy China) and James Anderson (Country Manager, Mongolia). Cover design: Seetha Raghupathy Cover photo: © Gayatri Singh/ World Bank The in-depth insights regarding the mechanisms perpetuating urban poverty, which are critical for understanding Pictures. Further permission required for reuse. and addressing the challenges facing Ulaanbaatar, would not have been possible without the information that was p.9 © Gayatri Singh/ World Bank p.