The Canada Fund for Local Initiatives (CFLI) program is a small grants program that the Government of Canada operates in over one hundred developing countries around the world. Mongolia’s Canada Fund program was initiated in April 1997 after Mongolia’s addition to the eligibility list for Canadian development assistance in April 1997. Since its inception, the Canada Fund in Mongolia has supported over 420 small-scale projects, predominantly in the areas where the most marginalized group resides, including the outskirts of Ulaanbaatar.

Goal
The overall goal of the Canada Fund Program is to enhance the economic, cultural and social life of the people of eligible developing countries. This is to be achieved by financing small projects involving technical, economic, educational, cultural, and/or social development assistance to the local populations in eligible countries of accreditation of the Canadian Mission. Any Canada Fund project approved within a Canada Fund Program must be compatible with Canada’s Official Development Assistance and Official Assistance policies, which state:The purpose of Canada’s Official Development Assistance is to support sustainable development in developing countries in order to reduce poverty and to contribute to a more secure, equitable and prosperous world.

The wording of this statement provides for two-arching policies for Canadian ODA:

- Sustainable development
- Poverty reduction

In addition, Canada in the World indicates six program priorities for Canadian ODA:

1. Basic human needs
2. Women in development (gender equality)
3. Infrastructure services
4. Human rights, democracy, and good governance
5. Private sector development
6. The environment