April 9, 2025 – Dulguun Batmunkh, a Knowledge Fellow in the 2024 cohort, completed her project titled Impact Investing in Childcare Systems: Contextualizing the Childcare systems Map of ECDAN’s Systems Thinking for ECD Initiative in Mongolia with a Focus on Impact Investing. Through literature reviews and interviews with 18 national and international experts, the project explores how impact investing, defined as mobilizing private capital toward initiatives that deliver measurable social outcomes alongside financial returns, can complement public and donor funding to address systemic gaps in Mongolia’s childcare ecosystem.
Key findings indicate that childcare financing in Mongolia continues to rely heavily on public funds, out-of-pocket expenses by families for service operations, and international development aid for technical support. System-wide reform is constrained by fragmented governance, inequitable access, limited service quality, and a lack of incentives for innovation. However, emerging developments, such as the recent introduction of corporate tax incentives for social investments, present timely opportunities to mobilize blended finance and diversify funding sources.
This paper is intended for policymakers, impact investors, development partners, and advocates working to improve early childhood systems in Mongolia. By contextualizing ECDAN’s Childcare Systems Map and applying it to the Mongolian case, the project aims to provide practical insights and inform future strategies that promote accessible, high-quality, and sustainably financed childcare services.