Economy of Mongolia. Fundamentals of Economics. Import

UDC 338(571.3) BAZAR BOLDBAATAR

BBK 65(5Mo) candidate of economic sciences,

Senior Desk Officer of the Administration of the President of Mongolia, Ulaanbaatar e-mail: [email protected]

FEATURES OF SOCIO-ECONOMIC DEVELOPMENT OF MONGOLIA IN THE TRANSITION PERIOD

The features of the socio-economic development of Mongolia in the post-socialist period, as well as the development trends of the country's economy in the new millennium are considered. The social and demographic problems facing the Mongolian society are characterized.

Key words: socio-economic development, economic growth, economic structure, standard of living, death rate, birth rate.

A characteristic feature of Mongolia, which must always be taken into account, is its geographical location between Russia and China - two great powers that have historically had a decisive influence on the development of economic and political processes in our country.

The area of the country is almost 1.560 million km2, and in terms of its size, Mongolia ranks 17th in the world. The country's population is over

2.6 million people.

Insufficient infrastructure development; a relatively large area combined with a low population density; harsh sharply continental climate, adversely affecting the development of agricultural production; the dependence of the state of one of the key sectors of the economy - animal husbandry - on natural disasters; technological backwardness of the processing industries - all these factors had a negative impact on the overall course of market reforms, increasing tension in the national economy. The specifics of market reforms are related to the narrow specialization of the economy and exports, the rather high energy and material intensity of production, and the relatively low competitiveness of finished products on the world market.

During the implementation of market reforms, the government of the country for the stabilization

In the course of economic development, macroeconomic regulation measures such as privatization, liberalization of foreign trade, devaluation of the national currency - the tugrik - and encouragement of foreign investment were applied.

The level of economic development is determined by the volume of production of GDP per capita. In order to be able to make a comparative analysis of the level of development of different countries, this indicator is calculated in US dollars. The conversion of the national currency into US dollars is carried out taking into account both the prevailing exchange rate and the purchasing power parity of the monetary unit of the given country. The use of the purchasing power parity indicator allows one to obtain comparable characteristics of the achieved economic level, while the comparison obtained taking into account the exchange rate also reflects the influence of market factors on the value of the exchange rate. At the same time, as a rule, the currency of less developed countries is weaker against the US dollar.

Although real GDP growth averaged 7.3% over the past five years, Mongolia ranks 150th according to the World Bank1, which compared the level of economic development of 209 countries. For 2006, the volume of production of GDP per capita in Mongolia, when calculated

BAZAR BOLDBAATAR

at the exchange rate amounted to about 1 thousand dollars. USA, and HDI - 0.6912, and our country is on the last indicator in 117th place among 175 countries. According to the competitiveness index, Mongolia is gaining

3.6 points 3 out of 7 possible and ranks 92nd among 125 countries.

In the early 1990s the gross domestic product has dropped significantly. The dynamics of GDP in the new millennium is characterized in the table.

During the period of transformation, the transition from a centrally planned economy to a market economy, the economy of Mongolia, like other post-socialist countries, experienced a serious decline. But, unlike the CIS countries, this decline lasted only four years - from 1990 to 1993. The gross domestic product of Mongolia decreased by about 25%, while in the CIS countries - by 40-60%. In Russia, for example, the period during which there was a decrease in the volume of GDP production lasted nine years - from 1990 to 1998.

Since 1994, economic growth began in Mongolia, and by 2002, the pre-crisis level of GDP production was restored. To date, it has been exceeded by more than 30%. From this point of view, economic

The development of Mongolia in the last decade can be considered quite satisfactory. The average annual rate of economic growth, which has been going on for 14 years, is more than 4%, and in 2003-2007. this figure reached 7%. If this trend continues, Mongolia will slightly improve its economic and social position compared to other poor and developing countries, whose average economic growth rates are 3.5-4.5% per year.

In industry, for the first time in 2001, real production growth of 15.5% was achieved. The reasons for this were the increase in the production of non-ferrous metals due to the successful operation of the Mongolian-Russian joint venture Erdenet and favorable weather conditions that did not cause a massive drop in livestock, as happened in 2000-2002.

The structure of the economy leaves much to be desired. For example, agriculture produces about 20% of GDP, although more than 40% of the employed work in agriculture. In the gross domestic product, the share of industrial and agricultural products is approximately the same, and the share of trade and services is constantly increasing and averages 49-54%.

Dynamics of Mongolian GDP in 2000-2005

Indicator Year

2000 2001 2002 2003 2004 2005

GDP (in current year prices), billion tugr. 1,018.9 1,115.6 1,240.8 1,461.2 1,910.9 2,266.5

Growth, % 10.1 9.5 11.2 17.8 30.8 18.6

GDP (in 2000 prices), billion tugr. 1018.9 1029.5 1070.7 1130.3 1251.4 1329.5

Real economic growth, % 1.1 1.0 4.0 5.6 10.7 6.2

Agriculture -15.9 -18.3 -12.4 +4.9 +17.7 +7.7

Industry +0.3 +15.5 +3.8 +4.8 +15.0 -0.9

Trade and services 15.3 6.1 11.6 6.1 6.3 9.1

GDP (in current year prices), mln USD USA 946.6 1016.3 1117.5 1274.5 1612.1 1880.4

GDP deflator 9.0 8.4 6.9 11.6 18.1 11.6

GDP per capita, thousand tugr. 462.2 460.1 504.6 586.9 758.7 888.4

GDP per capita, USD USA 396.0 419.1 454.5 511.9 640.1 737.0

Structure of GDP, % 100.0 100.0 100.0 100.0 100.0 100.0

Agriculture 37.0 29.1 24.9 20.7 20.1 20.9

Industry 20.7 21.9 22.0 22.5 25.3 29.9

Trade and services 42.3 49.0 53.1 56.8 54.6 49.2

Source: Mongolian economy and society in 2006: statistical office of Mongolia. Ulaanbaatar, 2007.

Izvestiya IGEA. 2008. No. 3 (59)

It should be noted that economic growth was largely achieved due to extensive factors. In connection with the increase in the population, the number of employed people has also increased by almost a quarter from 800 to 900 thousand people, although the share of employed people in the total working-age population has decreased from 71% in 1989 to 60% at present. So the productivity of social labor has hardly risen in recent years. If we consider changes in the structure of production, we can see that economic growth was largely due to an increase in the volume of raw materials extraction in industry.

Another source of economic development was the accelerated expansion of the sphere of trade and services, whose contribution to GDP increased over the past years from 138 billion tugriks to 169. At the same time, the share of trade and services in the country's GDP increased from 19% in 1989 to approximately 49%. currently.

The economic growth that has taken place in recent years has been accompanied by a low level of real per capita income, which characterizes the consumption of goods and services by the population. The main social problem of Mongolia is the poverty of the population. According to many experts, with the growth of the average income of the population, the number of the poor has not been decreasing in recent years. The poorest segments of the population include families with a low salary (income) of the breadwinner, pensioners and the unemployed. The largest group of the poor are families with many children. To a certain extent, poverty is generated by low employment of the population. Of the 1.5 million working-age people, only 900,000 work. Although there are over 40,000 officially registered unemployed, there is a large hidden unemployment, and many are employed in the informal sector.

The problem of declining living standards of the population is also aggravated under the influence of the consequences of the population explosion of the 60-80s. 20th century Taking into account the continuing rate of population growth in 2006, the real

The production of GDP per capita in Mongolia doubled compared to 2001.

Another important indicator of the standard of living is the indicator of average life expectancy. This figure is relatively low at 65 years, mainly due to extremely high infant mortality. Out of 1,000 live births in Mongolia, 29 die under the age of one year; 4-5 times more than in developed countries.

Attention is drawn to the negative trend in the dynamics of mortality in Mongolia. The mortality rate is reduced only in the children's age group - up to 14 years. In the youth group - from 15 to 24 years old - it has basically not changed over the past decade. At the same time, in the group of people of working age - from 25 to 50 years old - this figure increased. The death rate of people of retirement age has especially increased.

In Mongolia, a relatively high birth rate remains, and therefore the share of a youth group with a lower mortality rate, which is also declining, is growing in the population. As a result, the overall mortality of the population is reduced. The number of deaths per 1 thousand inhabitants of the country has decreased from 8.2 in 1989 to 6.4 people at the present time. The birth rate decreased more significantly: from 35.5 to 19.1 per 1,000 population. But, as you can see, the birth rate is three times faster than the death rate, and thanks to this, the population of Mongolia is increasing annually by 30 or more thousand people due to its own growth. If in 1989 the population of the country was 2.1 million people, then at present it has exceeded 2.6 million people.

Notes

1 http://worldbank.org/website/external/datastatistics/.

2 United Nations Development Program. Human Development Report 2006

3 Competitiveness Report 2005-2006 US International Development Agency.

Izvestiya IGEA 2008. No. 3 (59)

Several events of the last week have again drawn attention to Mongolia. Most recently, German President Joachim Gauck visited Ulaanbaatar. He was followed by Japanese Prime Minister Shinzo Abe. In the same days, a bill on the country's permanent neutrality was submitted to the Mongolian parliament on behalf of the country's president. According to its initiators, this should become "the basis for maintaining balanced relations with other countries."

Mongolia is a small country with only 3.2 million people. 1.2 million live in the capital, Ulaanbaatar. But this is a very rich country - rich in copper, gold, uranium, rare earth metals and other resources. Experts even claim that Mongolia is the world's largest and fastest growing commodity market. And since the beginning of the 21st century, the mining industry has become the locomotive that led the economy of the once agrarian country.

The total value of the top 10 largest deposits of coal, copper, gold, uranium and rare earth metals in Mongolia is approximately 2.75 trillion dollars. The most attractive for foreign companies are such large deposits in Mongolia as Oyu-Tolgoi (copper, gold), Tolgoi (coal) and Dornod (uranium). The reserves of the world's largest Tavan-Tolgoiskoye deposit amount to 7.4 billion tons of coal. Rio Tinto Corporation experts estimate the reserves of the Oyu Tolgoi deposit, located in the South Gobi, 80 km from the border with China, at 25 million tons of copper for fifty years of operation.

The rich, not yet fully explored natural resources of Mongolia are a tasty morsel of the “global raw material pie” for many countries. It is no coincidence that the Anglo-Australian company Rio Tinto, Chinese Shenhua, Chalco, American Peabody Energy, Japanese Itochu, Mitsui, Mitsubishi, Sumitomo, Marubeni are actively introduced into Mongolia. and others.

Thanks to the industry, the average annual growth of the economy is 14%, and the country's GDP grew 10 times only from 2001 to 2011. According to World Bank forecasts, Mongolia's economy will grow by an average of 15 percent per year over the next 10 years. However, given the country's dependence on the export of mining products, the prices of which are very volatile, Mongolia's GDP growth will also experience noticeable fluctuations.

Under these conditions, it becomes clear that today Ulaanbaatar faces a very difficult choice of the optimal algorithm for extracting the maximum benefit from the unique natural resources.

Since the beginning of the new century, the Mongolian economy has received very decent investments. Canadian investment in the extractive industry has exceeded $1.5 billion. China's investment is almost $2.5 billion. Over the past twenty-five years, more than 5,500 enterprises with Chinese capital have been opened in Mongolia, which is almost half of all enterprises with foreign participation. Japan also does not stand aside. By 2010, the amount of total Japanese support for the Mongolian economy exceeded $3.6 billion. USA. Moreover, half of these funds were provided free of charge, and the rest - in the form of soft loans. South Korea looks good, ranking third in a string of Mongolian investors.

At the same time, Ulaanbaatar today seeks to build its policy by combining new trends with traditional motives. To a certain extent, this was reflected in the development and implementation of the concept of the “steppe path”.

The concept of the "steppe path" is based on the understanding of the Eurasian integration processes that have begun and the need to determine the place of the country in this process. Therefore, the active development of the mining industry and the expanded supply of mineral resources abroad are forcing Ulaanbaatar to improve the transport and logistics infrastructure, which today exists in its infancy and depends on the transport arteries of China and Russia.

Having no direct access to the sea, and, consequently, to world consumers, Mongolia found itself sandwiched between two giants - Russia and China. Therefore, it is extremely important for Ulaanbaatar to use the Russian and Chinese factors in its economic development. China and the Russian Federation are the first and second most important foreign trade partners of Mongolia, three-quarters of all import flows come from China and Russia. And China is also one of the main investors in its economy.

Thus, it is Russia and China that become the partners with which Mongolia intends to build a "steppe road" and match its own project with the Russian Eurasian Economic Union and the Chinese "Silk Road Economic Belt".

The Steppe Road project has already received the approval of the Chinese side during the visit of Chinese President Xi Jinping to Mongolia (August 2014). The declaration, signed following the state visit of the head of the PRC, outlined the need to organize tripartite negotiations with the Russian leadership specifically in this area.

Moscow also received with interest the Steppe Way project presented to Vladimir Putin (September 2014) by the President of Mongolia, Tsakhiagiin Elbegdorj, which can completely renew the structure of traffic flows between China, Mongolia and Russia. Russian-Mongolian relations are a natural and important component of the eastern vector of Russia's foreign policy. This is emphasized in the "Foreign Policy Concept of the Russian Federation", which focuses on strengthening the political and economic development of the country based on the opportunities and advantages of its eastern regions.

Today, the so-called "second track" is being built - the work of a tripartite expert community, designed precisely to determine the ways to link the three programs.

This autumn, a Russian-Mongolian-Chinese trilateral research association was established in Ulaanbaatar, which will study at the expert level the prospects for interaction between the three countries within the framework of these three projects. The founder of the Association from the Russian side was the Institute of the Far East of the Russian Academy of Sciences. And its Russian members are the Institute of Oriental Studies RAS, Institute of World Economy and International Relations, Baikal University of Economics and Law (Irkutsk), IPREC SB RAS (Chita), Institute of Economic Research FEB RAS (Khabarovsk), Institute of Mongolian Studies, Buddhology and Tibetology SB RAS ( Ulan-Ude), Institute for the Study of Lake Baikal Resources SB RAS (Ulan-Ude), OREI BSC SB RAS (Ulan-Ude).

Scientists from the three countries declared their intention to concentrate their efforts on determining the most effective opportunities for economic and logistical and transport cooperation, which, in addition to Mongolia, will primarily involve the Baikal and Far Eastern regions of Russia and the territories of northeastern and northern China.

During the discussions, experts discussed issues of practical cooperation in the road transport industry. The Mongolian partners spoke about the modernization of the Mongolian railways, as well as the construction of a high-speed highway hi-way, more than 1000 km long, crossing Mongolia from south to north to the Russian-Mongolian border. A trilateral transport agreement has been prepared for signing. The idea of creating a large transport and logistics center is being discussed.

At the same time, it is quite obvious that Ulaanbaatar will try to balance the emerging dependence and, perhaps, even find a "third neighbor" - theoretically, it could be the USA, South Korea, Japan, Canada. Perhaps this is the reason for the introduction of a bill on the neutrality of Mongolia to the country's parliament.

The choice of a place for education by Mongolian youth can also testify to the priorities for the future. Today, for example, more than 2,000 Mongolian students study in Japan. Over 1,000 young Mongolians have received Chinese government scholarships to study at universities in the PRC. Mongolian boys and girls willingly go to study in South Korea.

The flow of students from this Asian country to Russia is gradually decreasing. And the main language of international communication in Ulaanbaatar today is increasingly becoming English, which is replacing the Russian language from the everyday life of the Mongolian intelligentsia.

Mongolia is a country that is located in East Asia, borders on Russia, China and has no access to the sea. Vast territories of the country, some of which are not very suitable for life, are unevenly populated. At the same time, Mongolia boasts a rapid pace of economic development and a fairly high standard of living for the population. Mongolia has observer status in most international organizations.

Brief history of the state

The first attempts to establish the Mongolian state were made by disunited tribes that settled the territory of modern Mongolia 850 thousand years ago, in the 4th century BC. The Huns then united to fight the Chinese tribes and ruled over the Mongolian steppe until 93 BC. Later, the Hunnic Empire was replaced by several Kirghiz, Turkic and Mongol khanates. None of them managed to gain a foothold in the Mongolian lands for a long time: a nomadic lifestyle, militancy and insufficiently authoritative power - all this caused disunity.

A more stable union of tribes went down in history under the name Khamag Mongol and became the basis of the future Mongol Empire led by Genghis Khan. But already from the end of the 13th century, cultural differences, the death of the strongest ruler, the endless redistribution of power and the heterogeneity of the population of the state caused the beginning of the collapse of the Golden Horde.

For the next several centuries, the Mongolian steppes were occupied by various rulers, empires and nationalities: the Yuan Empire, the Northern Yuan dynasty, the Chinese Qing Empire, ruled by the Manchu dynasty, until 1911. When the Xinhai Revolution thundered in China, which put an end to the empire, and a national revolution arose in Mongolia itself, statehood as such did not exist on the territory of modern Mongolia.

New Mongolia in 1915 was recognized as an autonomous part of the Republic of China, and nine years later, the independence of the state was proclaimed again (for the first time in 1911). However, until the end of World War II, the independence of Mongolia was recognized only by the USSR.

The Mongolian People's Republic was characterized by some features of Soviet power: repression, collectivization, destruction of monasteries, and later perestroika. The aggression of Japan was reflected by the joint actions of the USSR and Mongolia. The modern history of Mongolia began with the adoption of a new Constitution in 1992 and a change in political course.

State structure and politics

Mongolia is a parliamentary republic with a diverse population. The head of state is the president, the executive power is represented by the government, the legislative power is represented by the parliament, which is called the State Great Khural. In the localities, power remains in the hands of local governments, which are elected for a term of four years.

In 2008, a domestic political crisis occurred in Mongolia, which provoked riots in the capital of the state (Ulaanbaatar) and caused a change of government and re-election of the president. The current president of the state is Tsakhiagiin Elbegdorj, and the ruling party is the Mongolian People's Party (MNP).

Geography of Mongolia

In terms of territory, the state occupies the nineteenth place in the world, being quite large. The area of Mongolia is 1,564,116 km², which is commensurate, for example, with half of Yakutia. Most of the country (in terms of geographical features) is occupied by a plain with several towering ridges and mountain ranges. The Gobi Desert is located in the southern part of Mongolia.

All sources of fresh water originate in the mountains and are fed by several large tributaries. There are a large number of lakes in Mongolia, many of which are temporary, that is, they form during the rainy season and disappear during the drought.

The area of Mongolia and the location of the state make the climate sharply continental. The average temperature in the winter season ranges from -25 to -35 degrees, in summer it is within the same values with a plus sign. Precipitation decreases from northwest to south.

Administrative division of the state

Mongolia, whose population is unevenly distributed over the territory of the state, is divided into 21 aimaks, with a total of 329 somons, and the capital Ulaanbaatar. The largest city is expectedly the capital, with one and a half million permanent residents. The administrative center is followed in terms of population by the aimag Khuvsgel (114 thousand people), Dornogovi (109 thousand people) and Uverkhangay (100 thousand people).

A characteristic feature of Mongolia is the presence of temporary settlements, in connection with which an address system different from the standard one is used. So, in Mongolia there are no usual names of cities, streets, numbers of houses and apartments, and addresses are replaced by digital codes that allow you to locate an object on the ground with an accuracy of one meter. Moreover, the longer the code, the more accurately you can determine the location of the object. The system is suitable for use on a global scale, and is actively used in digital cartography and navigation systems.

Economy of Mongolia

The economy of Mongolia is developing extremely dynamically, and the state itself is the largest sales market in the entire Asia-Pacific region. According to the latest forecasts, the state's economy will grow at least 15% per year in the short term.

The main industries of Mongolia are represented by:

mining (20% of GDP) and mineral resources;
agriculture (16% of GDP);
transport (13%);
trade (also 13%).

Considering the employment of the population, it can be noted that most of the able-bodied citizens are employed in agriculture (41%), slightly less in the service sector.(29%) and trade (14%).

Mongolia sends oil products, equipment (both industrial and industrial) and consumer goods for import (the population is provided with everything necessary). The main partners in international trade are Russia, China, Japan and South Korea.

Financial sector

The Central Bank has the same functions as similar institutions in other states. The currency of Mongolia is the Mongolian tugrik, which was put into circulation in 1925. To date, the average exchange rate is: 2405 tugriks = 1 US dollar. Despite the fact that there is a national currency of Mongolia, the US dollar is also in circulation (it is used in almost all areas, except for paying for public services) and the Russian ruble or euro, which are accepted in small shops (mainly in the capital) and markets.

By the way, prices in Mongolia pleasantly surprise tourists. You can buy memorable souvenirs, products made of natural wool and leather, carpets in the capital at a lower cost than in Russia. Food prices are moderate. So, lunch will cost an average of 6-7 dollars.

State population: general characteristics

The population of Mongolia is characterized by mono-ethnicity, the predominant number of urban population (even despite the large employment in agriculture), positive natural growth, a large number of dialects in the language of the population and a diverse religious composition.

State population

The population of Mongolia according to the data for 2015 is 3 million 57 thousand people. The inhabitants of the capital account for one third of the total number of citizens. The nature of the resettlement of citizens across the territory of the state will be discussed in more detail below.

The natural increase of the population is 28 persons per 1000 citizens per year. This fact allowed the population of Mongolia to quadruple between 1950 and 2007. Back in 1918, the population of Mongolia was only 647 thousand people, and by 1969 it was already twice as many. Any correct data on the number of inhabitants until 1918 was not preserved due to the difficult history of the formation of statehood, when the territories of Mongolia were part of other countries, and the indigenous population was oppressed.

Density and population distribution

The average population density in Mongolia is almost 2 people per square kilometer. This indicator was the reason for placing the state in last place (195th line) in the list of world population density. The most densely populated (5-6 people per square kilometer) in Mongolia are the valley of the Orkhon River and the mountainous regions of Khangai - the most livable areas to the west of the capital.

Vast territories (40%) of the state are unsuitable for a comfortable life due to natural features. The population density is a record one person per 10-15 square kilometers, part of the territories remains completely uninhabited.

Ethnic and national composition

Mongolia (the population is predominantly representatives of the Mongolian group) is a mono-ethnic state. The dominant ethnic group is divided into several clans of Turkic origin, sub-ethnic groups and close ethnographic groups.

In addition to the indigenous population, which makes up just over 82% in total, Turks, Russians and Chinese live in the country. There are only 1,500 Russians in Mongolia, while as many as 20,000 lived in the late 1980s. Mostly Old Believers fled to the neighboring state, fleeing religious persecution in their homeland. There are currently several hundred Chinese living in Mongolia, while in the 60s the number of immigrants from China in Mongolia reached 25 thousand people.

Language and writing in Mongolia

The diversity of closely related ethnic groups predetermines minor, but still pronounced linguistic differences. The state (Mongolian) includes several dialects:

Oirat;
directly Mongolian;
Buryat;
hamnigan.

Turkic dialects are also widespread:

Kazakh;
Tuvan;
Tsaatan-Soyot.

Teaching in the capital of the state is also conducted in Kazakh.

In 1945, the Mongolian language was translated into Cyrillic with the addition of two more distinct letters. Old Mongolian is not used today, although attempts to restore the language have been repeatedly made. To this day, Tibetan is widely used in religious practices, in which works of art, religious and scientific treatises were written in past centuries.

Religious affiliation of the population

The main religion in Mongolia is modified Buddhism (53%). At the same time, in the capital, the majority of Christian, not Buddhist temples (197 versus 63). Most of the population are atheists (38%). Religious diversity is also represented by Islam, shamanism, Christianity and some other religions.

Standards of living

Mongolia, whose standard of living in most sources remains beyond the scope of the narrative, is a fairly developed state with a stable economy. Until now, people leading a nomadic lifestyle have remained in the country, but their existence is facilitated by the numerous benefits of civilization. The capital is similar to most modern cities. So, today Mongolia is confidently opening a “window to the big world” for itself.

INFORMATION FOR TOURISTS

ECONOMY OF MONGOLIA

Mongolia is an agro-industrial country. Mongolia today trades with more than 80 countries of the world. The trade turnover is more than 2 billion US dollars. If until the 1990s 90% of Mongolian foreign trade was occupied by trade with the USSR, today more than 40% is trade with the Russian Federation and the People's Republic of China, and the rest is occupied by trade with such highly developed countries as Japan, the USA, South Korea, Switzerland.

According to the results of the III quarter of 2005, the total foreign trade turnover of Mongolia is 1.27 billion US dollars, which is 11.6% more than in the same period of 2004. Imports increased by 150.6 million US dollars.
Mongolia exports goods and raw materials to 60 countries of the world, of which 50.8% - to China, 13.8% - to Canada, 10.1% - to the USA. 45.2% of all exports are minerals and mining products, 21.5% are garments and knitwear, 25.6% are precious and semi-precious metals, 3.7% are raw hides and products from it.
Mongolia imports more than 90% of oil products from Russia, and the rest from China and Kazakhstan.

Mongolia as a member of the World Trade Organization in March 2005 submitted its trade policy to the members of this organization for discussion, which is quite liberal. In 2002, the Government of Mongolia established uniform 5% customs rates for most imported goods. For the further development of Mongolia's foreign trade, the decision of the European Union to include Mongolia, as a developing country with a vulnerable economy and as a landlocked country, in the GSP + program is of great importance. Thus, from July 1, 2005, Mongolian goods began to be imported into the European market without customs duties.

GENERAL CHARACTERISTICS OF THE ECONOMY OF MONGOLIA

The economic activity of Mongolia has traditionally been based on agriculture and animal husbandry. Mongolia also has extensive mineral deposits - the extraction of copper, coal, molybdenum, tin, tungsten and gold makes up a significant part of industrial production. Soviet aid, which previously amounted to up to a third of GDP, ceased after the collapse of the USSR. The Mongolian economy fell into a long recession, exacerbated by the unwillingness of the Mongolian People's Revolutionary Party (MPRP) to pursue drastic economic reforms. The Democratic Coalition government embarked on the path of a market economy, relaxed price controls, liberalized domestic and foreign trade, and attempted to rebuild the banking system in the energy sector. Major privatization programs were undertaken, measures were implemented to stimulate foreign investment (international tenders for the sale of an oil products trading company, the largest cashmere company and banks). The progress of the reforms was slowed down as a result of the resistance of the former communist MPRP and the political instability generated by the frequent change of governments of the Democratic Coalition (four governments changed). After the crisis in 1996, caused by a series of natural disasters and a decline in world prices for copper and cashmere, in 1997-99. followed by economic growth. In August and September 1999, the Mongolian economy suffered from Russia's temporary ban on the export of oil and petroleum products. In 1997, Mongolia joined the World Trade Organization (WTO). At the last meeting of the Advisory Group in Ulaanbaatar in June 1999, foreign donors decided to allocate $300 million a year to Mongolia.

Meanwhile, experts at Renaissance Capital called Mongolia's economy the fastest growing in the world. Thanks to the huge reserves of mineral raw materials, the development of which is just beginning, and the development of the banking system. Mongolia's GDP in dollar terms will double by 2014, analysts believe. They noted that Mongolia is preparing to become the new Asian tiger, and not another source of raw materials in Central Asia," writes the CA NEWS news agency. (12.22.2009)

Natural resources of Mongolia. Despite the abundance of mineral deposits, their development is still limited. There are 4 brown coal deposits in Mongolia (Nalaikha, Sharyngol, Darkhan, Baganur). In the south of the country, in the region of the Taban-Tolgoi mountain range, hard coal was discovered, the geological reserves of which amount to billions of tons. Medium deposits of tungsten and fluorspar have long been known and are being developed. Copper-molybdenum ore found in Treasure Mountain (Erdenetiin ovoo) led to the creation of a mining and processing plant, around which the city of Erdenet was built. Oil was discovered in Mongolia in 1951, after which an oil refinery was built in Sain-Shanda, a city southeast of Ulaanbaatar, near the border with China (oil production ceased in the 1970s). Near Lake Khuvsgul, giant deposits of phosphorites were discovered and even their mining began, but soon, due to environmental considerations, all work was reduced to a minimum. Even before the start of reforms in Mongolia, with the help of the USSR, the search for zeolites, minerals of the aluminosilicate group, which are used in animal husbandry and agriculture as adsorbents and biostimulants, was not without success.

Labor resources of Mongolia. The working-age population in 2003 - 1.488 million people. Employment structure: agriculture / livestock - 42%, mining - 4%, production - 6%, trade - 14%, services - 29%, private sector - 5%, other -3.7%.

As of November 2009, about 40,000 unemployed people were registered in Mongolia. This is 10 thousand more than last year. And a record figure for the last 5 years. These data were announced by employees of the Department of Employment and Social Services of Mongolia. According to the data of the Office, employers put up more than 50,000 jobs on the labor exchange, of which 57 percent are vacancies that do not require specialization, mainly of an auxiliary kind.

Market transformations in the economy in the 1990s–2000s

The economic system of Mongolia on the eve of the start of market reforms. Choice of "shock" reform model. The main directions of economic transformations. Liberalization of economic activity, release of prices. institutional transformations; privatization of state and cooperative property. financial stabilization. The role of the state in the economy of modern Mongolia. The first results of the reforms, their impact on the economy and the social sphere. Prospects for deepening market reforms.

AGRICULTURE OF MONGOLIA

Agriculture has always been the backbone of the Mongolian economy. In the context of the transition to the market, its importance has increased. It employs 50% of the country's population (in 1950 - about 80%), it provides more than 40% of GDP. In terms of livestock per capita, we rank third in the world, second only to Australia and New Zealand.

Until the beginning of the 1940s, when industry formed into an independent sphere, agriculture was the only branch of material production in the country. Back in 1950, it produced 60% of the national income. Further, its share was reduced: in 1970 - to 25%, in 1975 - to 22.4%. Currently, it has increased slightly - up to almost 30%. At the same time, over 50% of export products are accounted for by agricultural raw materials, and taking into account products from it - over 70%.

The level and pace of development of agriculture largely determine the most important economic proportions. Traditional industries such as light and food industries completely depend on its condition, since the cost of agricultural raw materials constitutes the main part of their production costs.

Pasture animal husbandry still remains the main type of economic activity. To date, Mongolia is among the leading countries in the world in terms of livestock per capita (approximately 12 heads per person).

Agriculture plays a secondary role in the economic life of Mongolia. To remedy the situation, the government developed and began implementing the programs "Revival of agricultural production" (Tselina-3) and "Green Revolution".

INDUSTRY OF MONGOLIA

General characteristics of the industry. Specific features of the industrialization of Mongolia. Stages of industrial development. Industry cadres. The ratio of mining and manufacturing industries. Dynamics of the main indicators of industrial development. The efficiency of industrial production.
Sectoral structure of industry. The current state and development trends of the main industries.
Impact of market reforms on Mongolian industry. The role of foreign aid in the development of industry. Prospects for the development of industry.

Industrial growth - 4.1% in 2002.

Electricity production in 2005 - 3.24 billion kWh.
Electricity consumption - 3.37 billion kWh.
Electricity export - 18 million kWh.
Electricity import - 130 million kWh.

A significant number of manufacturing enterprises are concentrated in Ulaanbaatar, and in the city of Darkhan, to the north of the capital, there is a coal mining, iron foundry and steelmaking complex. Initially, the local industry was based almost exclusively on the processing of animal raw materials, and the main types of manufactured products were woolen fabrics, felt, leather goods, and food products. Many new industrial enterprises appeared in Mongolia after the end of World War II - especially in the 1950s and early 1960s, when the country received significant financial assistance from the Soviet Union and China. In the 1980s, local industry provided approximately 1/3 of the national product of Mongolia, while in 1940 it was only 17%. After the end of World War II, the share of heavy industry in the total volume of industrial production increased significantly. There are more than two dozen cities with enterprises of national importance: in addition to the already named Ulan Bator and Darkhan, the largest are Erdenet, Sukhe Bator, Baganur, Choibalsan. Mongolia produces more than a thousand types of industrial and agricultural products, most of which are consumed domestically; furs, wool, leather, leather and fur products, livestock and livestock products, phosphorites, fluorites, molybdenum ore are exported.

CAPITAL CONSTRUCTION

Dynamics of capital investments in the economy of Mongolia. The structure of capital investments by sectors of the economy. Material base and construction personnel. The role of foreign aid in the development of capital construction. Basic forms of assistance.

TRANSPORT AND COMMUNICATION

In 1915, the Mongol emperor Bogd VIII Zhavzandamba for the first time issued a decree addressed to the minister of the Great Khural and members of the Khural on the development of the mining industry and the construction of the railway.

Creation of modern modes of transport after the revolution of 1921. Dynamics of cargo turnover and passenger turnover of transport. Status and development trends of the main types of transport (railway, road, air, water). Prospects for the development of transport. Millennium Road. The main types of communication in modern Mongolia (postal, telephone, telegraph, radio and television communications). Development of mobile communications and the Internet.

FINANCIAL SYSTEM OF MONGOLIA

The main links of the financial system of modern Mongolia and its role in the development of the economy. The state budget, the ratio of the central and local budgets. The structure of budget revenues and expenditures.
Monetary system. The national currency - Tugrik - and its exchange rate against other currencies. Currency regulation.
credit system. Formation and development of a two-tier banking system. The role and functions of the Central Bank. Development of a network of commercial banks. Credit and deposit operations of banks. Formation of the insurance system. Problems and difficulties in the development of the credit system during the period of market reforms.

DOMESTIC TRADE

The main forms of domestic trade. State, cooperative and private trade, their correlation. Wholesale and retail trade. Domestic trade prices, the problem of inflation. Dynamics and structure of domestic trade.

TERRITORIAL STRUCTURE OF THE ECONOMY

Diversity of approaches to the economic zoning of Mongolia. The concept of zonal development of Mongolia (2002). Main economic zones and their industrial specialization. The relationship between the sectoral and territorial structure of the economy.

LIVING STANDARD OF THE POPULATION

Living standard and social security in socialist Mongolia. A sharp drop in living standards in the initial period of market reforms. Dynamics of real incomes of the population in recent years. Social differentiation of the population. The problem of poverty and attempts to solve it. Employment problem; dynamics and structure of unemployment. The role of the state in solving social problems.

FOREIGN ECONOMIC RELATIONS

The total turnover in foreign trade for the first half of 2008 amounted to 2 971.3 million US dollars, including export 1 276.3 million dollars, import - 1 695.0 million dollars. The deficit amounted to 418.7 million US dollars, which is more by 386.5 million US dollars compared to the same period last year. The total trade turnover in comparison with the same period of 2007 increased by 74.3%, export - by 52.6%, import - by 95.2%. The negative balance of foreign trade was significantly affected by the growth of imports, which is 42.6 points higher than the volume of exports.

Main import. Imports are mainly oil products, equipment and spare parts, vehicles, metals, chemicals, building materials, food and consumer goods.

In 2004, imports amounted to $1 billion.
In 2005, imported goods came from: Russia - 34.5%, China - 27.4%, Japan - 7.1%, South Korea - 5.3%.

In the total volume of imports, mineral products increased by $196.4 million, pulp, paper, cardboard and products from them - by $189.2 million, vehicles - by $133.7 million, cars, electrical equipment, televisions, spare parts - by $92.3 million. dollars, metallurgical products - by 68.1 million dollars, foodstuffs - by 37.2 million dollars.

Main export. The main Mongolian exports are: minerals (copper, molybdenum, tin, spar concentrate), raw materials of animal origin (wool, cashmere, leather, fur), consumer goods (leather, sheepskin, leather goods, carpets, cashmere, camel knitwear, blankets from wool and cashmere). The subsoil of the country is rich in mineral resources, including vast deposits of coal, iron ore, tin, copper, uranium, oil, zinc, molybdenum, phosphorus, tungsten, gold, fluorite and semi-precious stones.

In 2004, exports amounted to $853 million.
In 2005, exports went to: China - 48.1%, USA - 14.2%, Canada - 11.6%, Great Britain - 8.3%, South Korea - 6.2%.

The export of mineral raw materials, which is the main export item, increased by 245.9 million US dollars compared to the same period in 2007, precious and semi-precious stones, metals and jewelry - by 175.4 million dollars, products of chemical enterprises - by 22.1 million US dollars, raw materials, processed leather, furs and products from them - by 1.9 million dollars. However, export deliveries of knitted products decreased by $7.8 million, metallurgical products - by $3.4 million.

The actual export volume of copper concentrate decreased by 0.6 percent or by 8.2 thousand tons compared to 2007, while in terms of prices it increased by 27.1%.

The main forms of foreign economic relations of modern Mongolia. Dynamics, structure and geography of foreign trade. Export and import of individual goods. Organization of foreign trade.

Credit and gratuitous assistance from the outside world of Mongolia. Distribution of foreign aid by sectors of the economy. Organization of donor countries of Mongolia and its activities. The role of foreign aid in the development of the economy and the social sphere.

Cooperation of Mongolia with the main foreign economic partners. The most important directions of the Mongolian-Russian economic cooperation and its role in the development of the Mongolian economy. Participation of Mongolia in international economic organizations (IMF, World Bank, ADB, etc.).

Ulaanbaatar, Mongolia, /MONTSAME/ For 11 months since the beginning of 2010, Mongolia has carried out foreign trade operations with 130 countries of the world. The total trade turnover amounted to 5 421.8 million US dollars. dollars, of which the volume of exports is 2 550.6 million dollars, imports - 2 871.1 million dollars.
Compared to the same period last year, the volume of foreign trade turnover increased by 1,831.4 million dollars, or 51.0%, of which the volume of exports increased by 872.3 million dollars, or 52.0%, and the volume of imports - by 959.0 million dollars, that is, by 50.2%.
The negative balance of foreign trade in January-November 2010 reached 320.5 million dollars, which is an increase of 86.8 million dollars or 37.1% against the same period last year.
Mineral resources, knitwear and knitwear, precious and semi-precious metals and jewelry account for 94.8 percent of all types of export products.
G. Battsetseg

GDP

Purchasing power parity $5.781 billion in 2006. GDP growth 7.5%.

Agriculture - 20.6%.
Industry - 21.4%.
Services - 58%.
Inflation - 9.5% (2005).

BUDGET 2010

Mongolia's budget for 2010 has been adopted. Budget revenues will amount to 2 trillion 426.8 billion tugriks. Expenses - 2 trillion 785.4 billion tugriks. The deficit of the main financial document of the country is more than 385 billion tugriks. Losses could not be avoided, despite the reduction in social costs. (27.11.2009)

Last year, Mongolia's gross national product fell by 1.6%.

As reported by MONTSAME, according to preliminary data for 2009, the country's gross national product amounted to 6055.8 billion tugriks (47-50 tugriks = 1 ruble) in annual terms, or 3564.3 billion tugriks in 2005 prices. Compared to last year, this indicator decreased by 1.6% in comparable prices.

The official index of consumer goods and services at the end of 2009 increased by 4.2% compared to the end of 2008.

In 2009, during 255 trading sessions on the stock exchange of Mongolia, the turnover of securities trading amounted to 23.2 billion tugriks. Compared to the previous year 2008, the volume of trade decreased by 62.8% or 39.2 billion tugriks, the report says.

Economy of Mongolia

Economics at a Glance:

Economic activity in Mongolia has traditionally been based on pastoralism and agriculture.

Mongolia has extensive mineral deposits.

The country conducts copper, gold, coal, molybdenum, spar, uranium, tin, tungsten, the mining and processing industry accounts for most of the foreign direct investment and government revenue.

Severe winters and summer droughts in 2000-2002 led to massive loss of livestock and zero or negative GDP growth.

In 2004-2008, GDP growth was around 9%, largely due to high copper prices and the discovery of new gold.

In 2008, an inflation rate of nearly 30% was recorded, the highest inflation rate in a decade.

In early 2009, the International Monetary Fund provided $236 million in a stand-by program and the country began to emerge from the crisis, although some instability remains in the banking sector.

In October 2009, the government passed long-awaited legislation to develop Oyu Tolgoi, one of the world's largest copper deposits.

Mongolia's economy is still heavily dependent on its neighbors. Mongolia buys 95% of its oil and a significant amount of electricity from Russia, leaving it vulnerable to rising prices. Trade with China accounts for more than half of Mongolia's total foreign trade—China receives about two-thirds of Mongolia's exports.

Remittances from Mongolians working abroad are significant but have fallen due to the economic crisis; money laundering is a growing concern.

Mongolia joined the World Trade Organization in 1997 and is committed to expanding its participation in regional economic and trade regimes.

$3,100 (2009)

4030 million kWh (2009)

5100 bbl/day (2009)

5300 bbl/day (2009)

- $228,700,000 (2009)

Place of the country in the world: 93

- $710 million (2008)

Export:

$1902 million (2009)

Place of the country in the world: 130