In Ulaanbaatar’s Ger districts, residents like Bat-Erdene face harsh winter conditions in structurally fragile homes, relying on coal stoves that struggle to heat poorly insulated spaces. These informal settlements, home to over half of the city’s population, suffer from inadequate services, severe air pollution, and substandard housing. The resulting health impacts reduce productivity and workforce participation, highlighting that poor housing is both a social and an economic issue.
The World Bank Group is addressing this challenge by linking housing improvements to job creation through a three-pillar approach: investing in infrastructure, fostering a business-friendly construction sector, and mobilizing private capital. Upgrading homes is labor-intensive, providing work for local masons, carpenters, electricians, and other skilled tradespeople, while reducing fuel use, emissions, and healthcare costs. These retrofits strengthen both living conditions and local workforce capacity.
Developing a sustainable construction sector requires formal standards, certification, and training pathways. Most Ger district homes are self-built, so programs like the BestGER certification and resilient construction workshops demonstrate demand for improved practices and help formalize skills. By connecting training, quality assurance, and market incentives, these efforts create long-term opportunities for higher-quality, well-paid jobs in construction.
Mobilizing private capital is essential to scale housing improvements. IFC-supported initiatives, such as Mongolia’s first social bond with Khan Bank, channel private investment into affordable housing, complementing public programs. Targeted financing allows practical upgrades—like improved foundations, insulation, and structural reinforcements—to reach large numbers of homes without full neighborhood replacements.
Scaling resilient housing is urgent as Mongolia urbanizes. Improved housing directly benefits residents through cleaner air, safer homes, and better health, while supporting a productive workforce. At the city level, a stronger construction sector, skilled labor, and private investment help build urban economies capable of sustained growth. Mongolia’s experience illustrates how housing upgrades can simultaneously enhance livelihoods, public health, and employment.
