Mongolia highlights ‘new recovery policy’ at economic forum
On April 7 and 8, Mongolia held its economic forum, which has been canceled for the last two years due to COVID-19. Partial privatization of some state-owned enterprises is one of the key measures to attract foreign direct investment in various sectors.
2022 The Mongolian Economic Forum publishes a new recovery policy for the current administration following the country’s long-term development plan, Vision 2050. The recovery policy is a roadmap to accelerate Mongolia’s industrialization, which aims to increase GDP and livelihoods by reducing the country’s landlocked vulnerabilities. Its citizens.
The forum was attended by 1,200 organizations including government agencies, representatives of foreign embassies, private and public sector and media. The two-day event was opened by Prime Minister Owen-Arden Luvsannamasarai, World Bank’s Marcelo Estevao and Boston Consulting Group’s Michael McAdu.
The Mongolian Economic Forum is an opportunity for the government to disclose investment opportunities to significant stakeholders and interested parties, both domestic and foreign. This is especially important for Mongolia’s infrastructure sector as the country aims to become a more export-oriented nation.
In December 2021, Owen-Arden’s cabinet proposed a new recovery policy in the Mongolian parliament, and it was approved in March. Critics of the current administration have highlighted government spending and social programs reflected in the policy. Since the outbreak of COVID-19, government spending on social programs has reached 10 trillion Mongolian Tugrik (3.3 billion), including government support for 64,400 businesses. The Mongolian government says the support has saved about 360,000 jobs.
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Mongolia’s new recovery policy aims to address six major economic barriers: trade ports, energy, industrialization, urban and rural development, green development and efficient governance. One of the key features of the recovery scheme emphasizes the partial privatization of state-owned enterprises to attract domestic and foreign investment.
Speaking at the forum, Owen-Arden said, “We invite local businesses, foreign partners and international organizations to cooperate on the 150 trillion MNT investment target aimed at doubling GDP by removing barriers in six priority areas: energy, border ports. ., Industrialization, urban and rural recovery, green development and public sector efficiency. ”
The two-day economic forum touched on the current state of international relations and the impact of the Russia-Ukraine war on global food security, as well as the continuing economic downturn, as countries begin to rebuild only from epidemic-induced losses. Mongolia is equally affected.
On the second day of the Economic Forum, panel members discussed emerging issues such as climate change, Mongolia’s environmental issues and digital governance.
During the Glasgow Climate Change Summit in October 2021, Mongolian President Khurelsukh Ukhana discussed Mongolia’s approach to tackling environmental issues, such as deforestation and deforestation through tree planting. One billion treesA nationwide campaign that has already begun.
Discussions at the Economic Forum addressed immediate economic concerns, including inflation, rising oil prices, and shortages of sugar and other commodities that Mongolia has been importing from Russia for decades. To meet these sudden challenges, the government announced plans to implement a price-capping mechanism to stabilize the prices of basic supplies such as meat, flour and petroleum.
Mongolia has long planned to meet local needs while increasing exports to its neighbors and beyond. To achieve this goal, Mongolia intends to transform itself from a supplier of raw materials into an industrial state. This will require significant structural connectivity. To that end, the new economic recovery policy is advancing the strategic integration of free economic zones and province-to-province business development.
In addition to its long-term objectives, Mongolia is struggling with short-term barriers to trade arising from the epidemic. For example, China-Mongolia border trade ports are still closed due to Kovid-19. During the Economic Forum, Mongolian Foreign Minister Buttseseg Batman spoke with Chinese Foreign Minister Wang Yi and stressed the importance of joint efforts by both sides to open borders and boost trade.
In an interview with S&P Global, Mongolia’s Deputy Minister of Mines and Heavy Industries, Batnayarmadal Otagonsher, said: “Mongolia is accelerating its efforts to supply China with raw materials such as coking coal and copper by 2022. 2021, as it expands its mining sector and accelerates its transportation network. “In 2021, the Ministry of Mines and Heavy Industries reported, Mongolia exported 15.9 million tons of coal in 2021, down 44.3 percent from the previous year.
Mongolia’s vast natural resources are the gateway to the country’s economic prosperity. However, for these raw materials and commodities to fully accelerate Mongolia’s growth, Mongolia will need other countries to actually buy its coal and copper – and Mongolia is pinning its hopes on China, assuming it plans to increase cross-border trade. Railway projects can be completed. .
Given the current economic instability, it is important for Mongolia to maintain good economic relations with its neighbors, while Mongolia is ready to accept a third neighbor to further strengthen trade and trade partnership. In order to attract foreign investment and do business in Mongolia, especially in the mining industry, government agencies have turned to digitized services for processing and issuing licenses.
In his final remarks to the Mongolian Economic Forum, Owen-Arden highlighted the forum’s dual role as a place for consultation with industry and as a platform for generating accessible and shared development by each Mongolian. He also praised the Mongolian youth for their activism, which allows for recent protests by young Mongolians who feel their country has left them behind.