Wool Processing and Marketing Project Final Evaluation, April 2008

Om publikasjonen

Utført av:The director of the International School of Ulaanbaatar together with representatives from International Trade Promotion; CHF Mongolia; VSO Mongolia
Bestilt av:Norsk Luthersk Misjonssamband (NLM)
Område:Mongolia
Tema:Næringsutvikling
Antall sider:0
Prosjektnummer:GLO-07/107-48

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Background:
WPMP started in 2001 through a merger of different wool processing activities in two different projects, Bayanzurkh Development Program (BDP) and Selenge Development Project (SDP) in Darkhan and Ulaanbaatar. WPMP builds on the successes achieved through the wool training programs of BDP that started in 1996, and reflected the need to empower existing (trained) wool crafters from the BDP and relevant institutions in the Mongolian community to establish cooperative structures for the sustainable development of the wool craft industry. WPMP formally commenced as a pilot project in 2003-2004, with the aim of gathering the wool production components into one project, to develop a better organizational base for the producers, and provide a coordinated approach for standardizing production and reaching the market. WPMP commenced a 3-year plan in 2005, with the aim of developing a structure of local self-run wool-production cooperatives, a central administration and sourcing arm (CU), a retail and marketing outlet (TA) and a training unit (WCCC).

Purpose/objective:
The main reason for the evaluation is to get an overview of the current situation; how successful the project has been in increasing participants' standard of living; and, whether or not the project has met its planned outcomes and objectives. As the project is in its last stage of phase-out, the evaluation focused on the overall achievements of the project during the project period, recommendations for how things could have been done more effectively and major learnings. The evaluation gives NLM and WPMP an indication of how successful the phase out of the project activities has been together with important indicators of the level of sustainability of the structures set up by the project, after the phase out of the financial support.

Methodology:
The evaluation was undertaken in accordance with the Evaluation Criteria provided in the NORAD Evaluation Policy 2006-2010. Interviews were conducted with current stakeholders, employees and project participants, and project sites were visited. Documents like annual plans, project document, local partner's business plans, previous evaluations, and a project visit report were also considered.

Key findings:
WPMP has made a significant difference to the lives of vulnerable Mongolian families, mainly single-mother households, by creating employment through training in felt production, and establishing successful structures to ensure the continuation of these income generation activities. These structures include Producer Cooperatives, the Cooperative Union, a felt-training NGO (Wool Craft Competence Centre) and retail and marketing outlet - Tsagaan Alt. In doing so, WPMP has also pioneered extensive change and innovation in the Mongolian felt industry.

In addition, WPMP has benchmarked a new level of innovation in business structure and development in Mongolia. It has gained recognition and acceptance within Mongolia, by producers, customers, cooperative experts and national institutions, as a model of excellence and innovation. The WPMP project delivers a complete ‘path-to-market' cooperative business model, from producer to the end consumer, and is well positioned to be used as a potential model for organizing and growing other industries through cooperative structures.

Recommendations:
• Establish an Independent Advisory Board for TA and CU
• Transfer and ownership of Tsagaan Alt Building: A time-line should be finalized, as well as the pay-back amount and the details of the approach together with CU and TA.
• Independent Economic Modeling: An independent pricing analysis could review the pricing chain, including all project inputs and outputs and consider supply-chain efficiencies to ensure current pricing strategy and market position is adequate to ensure the long-term viability of CU and producer cooperatives.
• WCCC Restructure: Redefine the role and purpose of WCCC, to leverage the expertise and reputation established during the project, as a national leader in felt-training.
• Cooperative Advocacy: Collaborate with other Mongolian cooperatives and institutions supporting cooperative development, in order to share experiences and advocate change in legislation in the interest of creating conducive operating conditions for Mongolian cooperatives.

Comments from the organization, if any:
The project has been encouraged to consider the recommendations given in the evaluation report. NLM has emphasized that NLM's role in TA, WCCC and CU is limited now that they are to stand on their own. If a board is established to supervise/advise TA and CU, it should be something TA and CU want. They should also be the ones to select members to the board. The board should furthermore have a clear mandate defined by TA and CU. The follow-up needs to be of a character that strengthens the existing structures of CU, WCCC, and TA. There is also a question of both financial and human resources to the establishment of a board. Our goal for TA is to make it sustainable. If that requires an extended pay-back period, NLM will agree.