Child money for every child

UNICEF Mongolia country office led advocacy yield to reinstate the Universal Child Money programme (CMP) in Mongolia.

History of Child Money Programme (CMP)

Mongolia’s CMP first introduced in 2005 has served as an exemplary and progressive programme in Asia undergoing several policy changes, transitioning from targeted to universal coverage.

During the pandemic, the Government made a historic decision to increase the child money five-fold - from MNT 20 000 to MNT100,000 (equivalent to US$35,5 based on the rate at the time ) - to reach all children, effectively mitigating the anticipated increase in poverty rates. Various surveys and studies conducted by Asian Development Bank, Workld Bank and United Nation agencies in the past months showed that CMP has the most positive impact on poverty and inequality reduction, help families with their food security and meet their basic needs.

The decision to increase child money during the pandemic stems from the pilot programme that UNICEF successfully implemented with the Government in 2019 in few provinces in Mongolia.  The so-called shock-responsive social protection programme was designed to provide cash support to children through the existing universal Child Money Program in response to climate-driven shocks like dzud (severe winter) or other emergencies.

Thanks to the CMP implementation system, which reaches 98% of households with children, the government was able to support the households with cash support in a most effective way. It prevented nearly 80% of households from using negative coping strategies such as reduced food consumption, reduced spending for education and health, and getting additional loans.

Back to targeted approach

At the beginning of the 2023, the government decided to provide child money to 91% of children due to budget constraints, while keeping the size of the monthly CMP at MNT 100,000. Half year after the implementation, it was found that many children were excluded for various reasons.  

UNICEF reached out to all the duty bearers in Mongolia by June, 2023 and provided solid anlaysis on how targeted approach can exclude children otherwise eligible due to inaccurate registry information and dysfunctionality of identification of the ineligibiles.

Due to UNICEF’s persistent advocacy efforts, in July 2023, the Government revoked the decision on targeted approach and resumed the universal CMP.

And finally, the decision

A decision to give child money to every child by the Government of Mongolia is received with high appreciation by parents, caregivers and child rights organizations, including UNICEF. Globally and regionally, UNICEF supports the Universal Child Benefit because it is a rights-based approach to social protection for children and prevents any discrimination against children.

“This was the best decision of the year for the children in Mongolia. Child Money is back for all which is the right decision because it is a rights-based approach” said Eva Kouassi-Komlan, UNICEF Representative in Mongolia in his media interview.

Why universal?

Universal child benefit ensures the principle of equality and non-discrimination. It is a righs based social protection measure for children, providing dignity and avoiding stigma.

Regular and predictable monthly income for households with children helps to ensure income security and enables them to plan their consumption. Providing cash gives the possibility to buy the households what they need.

Cash benefits to households stimulates economy. Study shows that every dollar transferred to households  brings back 1.3- 2.5 dollars return to the economy.

Universal child benefits are powerful tools for reducing poverty. In Mongolia, the CMP plays a crucial role in monetary poverty reduction. According to the ADB simulation, the CMP top-up implemented in response to COVID-19 pandemic has the most positive impact on poverty and inequality even compared to the equally costly measures by the Government in response to COVID-19.

Concerns that universal or large-scale cash transfers increase welfare dependency and laziness, offset progress in poverty reduction by reducing participation in paid work are not supported by the available evidence.

Myths around use of cash assistance for alcohol and tobacco is not supported by evidence. Global evidence shows that alcohol and tobacco represent 1-2% of food expenditure. The MLSP and UNICEF joint study shows that 0.2 % of CMP top-up implemented in response to COVID-19 pandemic was use for purchasing alcohol.

The availability of quality services (such as schools and health services) and of complementary programming is also critical in ensuring that cash transfers lead to improvements in non-monetary outcomes such as education, health status and nutrition.

Further strengthening Child Money Programme in Mongolia

The integration of the Child Money Program into the unified database for social protection systems, known as the ehalamj platform, has significantly improved its registration processes and payment systems. The platform's accessibility through web and smartphone applications has been simplified beneficiary access, particularly benefiting herders living in remote areas.

Even so, some challenges remain in ensuring that every last child can access child benefits. According to Ministry of Labor and Social protection, there are few cases where children are not directly benefitting from child money. These include children in care facilities, protection centers or children whose parents are going through a divorce. Efforts are underway to address these issues, and UNICEF will continue its support to further strengthen the child money programme and esure that no child is left behind.

Children’s right to social protection is universal and must be ensured and protected for all children equally.