Agriculture and livestock farming have historically been considered the basis. The lands of this state, located in the south-eastern part of Asia, are rich in vast deposits of natural resources. The Mongols mine copper, coal, tin and gold. The mining industry in Mongolia accounts for a significant government economic sector, but the extraction of raw materials is not the only industry in which the country's population is involved.
Economic history
The history of industry in Mongolia dates back to 1924, the year of the proclamation of the Mongolian People's Republic. Before this period, there was neither industry nor such a thing as a working class. All the population did was processing livestock products, including tanning leather, sheepskin, felt rolling, blacksmithing and carpentry. These types of production had artisanal features and were aimed at serving the on-farm needs of the local population. Handmade production was represented by enterprises primary processing wool and leather, carpentry, metalworking, blacksmithing and other workshops.
The only industry in Mongolia at that time was the coal mines in the Nalaikha tract. In some regions of the country, foreigners were illegally mining gold and precious metals.
In the first half of the last century, the Asian state was completely dependent on the import of industrial goods from abroad. That is why one of the primary tasks of the government of the republic was the creation of its own industrial enterprises. The young and economically immature state faced two problems: the lack of qualified personnel and material resources. The Soviet Union provided assistance in resolving these issues.
Industrial Development Period
At the first stages, the formation of the light and food industries of Mongolia began. The foundation of the modern energy sector of the economy was laid by the young republic of that time. Back in the 20s, widespread construction of processing plants began. In 1933, a brick, sawmill and mechanical plant began operating in Ulaanbaatar, and the first power plant was opened.
It is quite difficult to briefly describe the industry of Mongolia. The progressive development of the light and food sectors of the economy required a fuel and energy industry that could meet the pace of production growth. The coal industry of Mongolia has made a certain leap in development. Most of the coal mines in Nalaikha were expanded and mechanized, and the development of new deposits began in the area of Under-Khane, Yugotzyrya, and Sain-Shande. Mongolia's coal industry to a greater extent satisfied domestic demand for solid fuel. In particular, local coal was used at the unified power plant of Ulaanbaatar in 1939 and at small power plants.
During the same period, another specialization of Mongolian industry arose - metalworking enterprises, including an iron foundry. One by one, printing and paper factories and enterprises specializing in the production of building materials, gold processing, etc. were built.
Mongolia today
After the collapse of the USSR, aid from the Soviet republics, which accounted for almost a third of external GDP, stopped flowing, leading to a prolonged decline in Mongolia's economy. Industries needed radical economic reforms.
The government of the country has adopted a new course in the development of the country, aimed at building market economy. During the reforms, a number of radical decisions were made in most areas of the national economy. The state has ceased to control the pricing process. By liberalizing domestic and foreign economic activity Attempts were made to rebuild the banking system and the energy sector; programs for the privatization of land and the implementation of measures to attract foreign investment were developed and adopted. Mongolia participate in international tenders.
However, the reform process was stalled as a result of resistance from the communist movement and political instability caused by frequent changes of governments.
The peak of the economic crisis came in 1996 after a series of natural disasters and a fall in world prices for copper and cashmere. But despite this, the very next year 1997 is recognized as the year economic growth countries. That same year, Mongolia became a full member of the WTO. And although Russia’s decision to ban the export of oil and petroleum products in 1999 had the most unfavorable impact on the state of Mongolia’s economy, the country continued to move forward with confident steps.
Since 1999, by decision of the WTO, partner countries have annually provided financial assistance to this young and promising state: China, Russia, South Korea, Japan. And although economic indicators and the degree of industrial development in Mongolia can hardly be called advanced, many experts consider the economy of this country to be the most progressive in the whole world. In their opinion, the state’s potential is enormous, given the reserves of mineral raw materials, the development of which is still at an early stage.
The basis of industry: natural and labor resources
Despite the many deposits of valuable mineral raw materials, their development is not being fully developed due to numerous restrictions. In Mongolia, brown coal is mined in four deposits, and in the southern part of the country, in the Taban Tolgoi mountain range, hard coal deposits have been discovered. According to preliminary data, geological reserves amount to billions of tons. Active development of small tungsten subsoil and areas rich in fluorspar is underway. The discovery of copper-molybdenum ores on Mount Erdenetiin-ovoo served as the basis for the creation of a mining and processing plant, around which the industrial town of Erdenet is located.
The oil industry of Mongolia has been actively developing since the middle of the last century. One of the main enterprises in this industry is the oil refinery in Sain Shanda, a city located near the border with China.
Massive deposits of phosphorites were discovered near Lake Khubsugul. However, today the development of the field was suspended, without even allowing it to develop fully due to environmental hazards. It is known that zeolites accumulate in the bowels of the earth; Mongolia searched for this material jointly with the USSR. However, today the extraction of these aluminosilicate group minerals, used in agriculture for biostimulation processes and adsorption, is practically not carried out due to lack of funding.
The development of any Mongolia depends on labor resources. The population as of 2018 is 3.119 million people, of which approximately a third are citizens of working age. Part of the population (about 40%) is employed in agriculture, in industry in Mongolia - about 20%. The rest of the population works in the service sector, is engaged in private entrepreneurship and housekeeping. The unemployment rate is at 9%.
Food production
Briefly about the industry of Mongolia, which meets the food needs of the population, we can say this: this sector of the economy accounts for about 40% of total production. The production of dairy and meat products is actively developing in this industry. Numerous oil factories and separator stations were built in small settlements (aimags). It is worth noting that just a few decades ago Mongolia could not even count on the production of commercial butter. Today it is one of the major export positions.
The main ingredient for the food industry in Mongolia is milk. There is a dairy plant in Ulaanbaatar that processes tens of tons of milk and cream per day. All production processes at this enterprise have long been automated and mechanized. The capital's dairy plant produces pasteurized dairy and fermented milk products, butter, cottage cheese, sweet glazed cheese curds, and ice cream. This enterprise is a leading food processing plant in Mongolia.
Not far from Ulaanbaatar there is a large meat processing plant equipped with modern technology, thanks to which the plant’s workshops demonstrate high production results. The meat processing plant complex includes workshops for processing meat products, departments for the production of semi-finished products, sausages, and canned food. The majority of goods from the meat processing industry are exported to other countries.
In addition to meat and dairy production, the food industry in Mongolia is represented by dairy, confectionery, bakery, alcoholic beverages, fishing and other industries. Several years ago, a new direction in the food industry began to rapidly develop in the republic - flour milling. Today, the country meets the needs of its citizens for flour through the products of national producers. In addition to the mill plant in Ulaanbaatar, which produces more than 30 thousand tons of flour annually, there are a number of mechanized flour mills in aimags.
Industrial plant in Ulaanbaatar
Among the light industry factories in Mongolia, it is necessary first of all to note the industrial plant in the capital - this is one of the largest enterprises engaged in processing agricultural products. The industrial plant in Ulaanbaatar was built in 1934. Subsequently this enterprise began to be called the forge of professional industrial personnel of the times of socialism. The industrial complex consists of a complex of plants and factories equipped with modern equipment. There are wool washing, cloth, worsted, fulling and felt, shoe, saddlery and textile workshops. The Ulaanbaatar industrial plant also includes in its structure cherry, chrome, sheepskin and fur, tanning and other factories. The main products produced by the plant:
- various woolen fabrics;
- felt;
- drape;
- cloth;
- shoes for all seasons;
- felt boots;
- camel wool blankets;
- bags;
- outerwear.
The plant’s products are in demand not only within the country, they are exported to other countries. The industrial plant strives to expand its production area. As this holding developed, its individual workshops long ago acquired the status of independent enterprises.
Progress in heavy industries
Over the past years, the country has seen positive dynamics in the development of energy, coal, oil, metalworking, mining, construction, woodworking and other production sectors. Average annual growth rates exceed similar figures in other former socialist republics. The rate of industrial growth in Mongolia surprises many economic experts, since this country, which was not so long ago considered the most backward, is steadily approaching the level of advanced powers.
In order to develop the main industries National economy Mongols strive to bring industrial production to new level, corresponding to the world average. The government of the country pays special attention to the creation and establishment of its own chemical, pharmaceutical, biological production, which plays a huge role in expanding the main sector of the economy - livestock and Agriculture Mongolia. Industry, as already noted, employs approximately 20% of the working population, while almost 40% of the working population is engaged in raising livestock, farming, and growing crops.
Industrialization of Mongolian cities and development of the coal industry
Briefly about the specializations and industries of Mongolia, which form the basis of the fuel and energy block of the country's economy, we can say that they are fundamental in the development of the national economy. Republic occupies the main place in this segment. Today, brown and hard coal are mined in Mongolia at 13 large deposits. The most popular products for export are coking and high-grade coal, which is mined in the Nalaykha region near Ulaanbaatar.
In the coal basin of certain regions of Mongolia, in particular in the aimags of Uverkhangai and Sukhbaatar, operating mines fully satisfy the need for solid fuel not only in their settlements, but also in some neighboring ones. Not long ago, new coal mines were put into operation and equipped with new technology old enterprises. This step naturally led to an increase in average annual production rates by more than 10-15%.
Along with coal deposits, during the development of deposits, natural reserves of ores, asbestos, limestone and other valuable raw materials are often discovered. Darkhan-Uul is considered one of the rapidly developing industrial centers today. Here, within the Sharyn-Gol coal basin, an industrial and energy complex is being built that will provide coal to all areas of the national economy and the needs of the population. That is why the city of Darkhan-Uul is called the “flower of friendship” by the Mongols. In the construction of this complex, significant assistance to the republic is provided by the countries of the former USSR (Russia, Kazakhstan), China, Japan, and Canada. The main objects of the complex should be several large coal mining enterprises, a railway transport hub, a high-voltage power line and an elevator. Today, the process of the emergence of another economic and cultural center of Mongolia is taking place here.
Oil production, electricity production
As the fuel base and industrial sectors in general grow, the production of electrical energy has to be taken to a new level. Just a few decades ago, electricity was not even heard of in remote regions. Today, the need for electrification is explained not only by the domestic needs of the population, but primarily by the need to mechanize and automate production in the country and increase performance indicators finished products. Local power substations operate in aimak centers.
Unlike other industrial sectors, oil refining is a relatively young specialization in the industry of Mongolia. The industry is still in its infancy, but the country produces half of the gasoline for its own needs, and imports the rest.
The only major oil refining center is in the Eastern Gobi. Not long ago, a young city appeared here - Dzunbayan, which also houses infrastructure and cultural facilities. The Eastern Gobi meets almost half of Mongolia's fuel needs.
Due to the expansion of the manufacturing and manufacturing industries, electricity costs in Mongolia are increasing every year, which prompts the government to consider the construction of new thermal power plants.
Mining of mineral ores and metals
Mining industry provides Mongolia:
- gold;
- manganese;
- tungsten;
- magnetic iron ore;
- lead ores;
- rock crystal;
- turquoise and other colors, precious metals;
- salt.
Close to places large deposits they are building mining and processing enterprises. Mongolia exports tungsten and certain types of non-ferrous metals to other countries. Ferrous metallurgy in Mongolia is represented by a mechanical processing plant with an iron foundry in Ulaanbaatar. Agricultural equipment, hand tools, and small equipment are produced here for domestic and export sale.
Marble, limestone, asbestos, gypsum, and mineral paints are mined in the republic. Extraction of raw materials of this type allows for the development of the industrial building materials industry. Over the past few years, several dozen enterprises have been commissioned, including a house-building plant in Sukhbaatar. They are engaged in the production of lime, cement, bricks, slate and other construction products. The large-panel house-building plant in the capital of Mongolia, the glass factory in Nalaikh, and the reinforced concrete and brick factories in Ulaanbaatar deserve special attention. The workshops use complex mechanized technologies. All enterprises are equipped with modern technology.
The production of building materials and their sale to the public at an affordable price is an important aspect for a people who in the recent past were considered nomadic. The transition of the Mongols to sedentism is facilitated by the large-scale construction of comfortable houses, infrastructure facilities, and network development public transport in cities and aimags.
Agricultural economy
The Ministry of Agriculture and Light Industry of Mongolia is doing everything to support the agricultural sector of the economy and create the most favorable conditions for its development. Agriculture has been the basis of its economy throughout the history of this state. In the context of the transition to a market model, the importance of the agricultural sector has not decreased. Almost half of Mongolia’s labor reserve is involved in it, although 50-60 years ago this figure reached 80%. Agriculture provides more than 40% of total GDP. The Mongols rank third in the world in terms of livestock per capita, behind Australia and New Zealand.
Almost until the middle of the last century, while industry was going through the process of formation and transformation into an independent sphere, agriculture remained the only production sector. Even in those days, finished products were exported, which made it possible to obtain almost 60% of the total national income. Over time, this share has decreased and today is about 35-40%, with more than half of export products being raw materials.
The most important economic indicators in this country depend on the level and pace of development of agriculture. In particular, the costs of agricultural raw materials are the main part of the costs of producing goods in the light and food industries. The Ministry of Agriculture of Mongolia is constantly working to create new concepts and techniques that would minimize costs and increase the productivity of finished products.
Pastoralism is the predominant economic activity practiced by Mongols. According to some reports, there are 12 heads of livestock per person here. In some aimags, livestock is a conventional monetary unit in transactions of a material nature. Unlike livestock raising, agriculture plays a secondary role in modern Mongolia.
Completion
The development of industry led to the formation of the working class according to the model of the USSR proletariat. In the process of training specialized workers, the participation of the Soviet Union played an important role. Some Mongols gained experience and knowledge by working at their enterprises under the supervision of sent Soviet craftsmen. They were trained in special clubs, technical sections, and training centers. Others received their education directly in the USSR. Thus, Mongolia is an example of a national desire for the economic prosperity of its country through industrial development, rationalization of production processes and conservation of resources.
UDC 338(571.3) BAZAR BOLDBAATAR
BBK 65(5Mo) Candidate of Economic Sciences,
senior assistant at 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 trends in the development of the country's economy in the new millennium are considered. The socio-demographic problems facing Mongolian society are characterized.
Key words: socio-economic development, economic growth, economic structure, standard of living, mortality rate, birth rate.
Characteristic feature 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 country's territory is almost 1.560 million km2, and in terms of its size, Mongolia ranks 17th in the world. The country's population is more than
2.6 million people.
Insufficient development of infrastructure; relatively large territory combined with low population density; harsh, sharply continental climate, adversely affecting the development of agricultural production; dependence of the state of one of the key sectors of the economy - livestock farming - on natural disasters; technological backwardness of 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 carrying out market reforms are associated with 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 stabilization
economic lization applied such measures macroeconomic regulation, such as privatization, liberalization of foreign trade, devaluation national currency- tugrik - and encouragement of foreign investment.
The level of economic development is determined by the volume of GDP per capita. In order to be able to make a comparative analysis of the level of development different countries, this figure is calculated in US dollars. Conversion of national currency into US dollars is carried out taking into account both the current exchange rate and purchasing power parity monetary unit of this country. Using the purchasing power parity indicator allows one to obtain comparable characteristics of the achieved economic level, while a comparison obtained taking into account the exchange rate also reflects the influence of market factors on the exchange rate. However, as a rule, the currencies of less developed countries are weaker against the US dollar.
Although over the past five years the average growth in real GDP production has been 7.3%, Mongolia ranks 150th according to the World Bank1, which compared the level of economic development of 209 countries. In 2006, the volume of GDP per capita production in Mongolia, when calculated
© Boldbaatar Bazaar, 2008
BAZAR BOLDBAATAR
at the exchange rate amounted to about 1 thousand dollars. USA, and the HDI is 0.6912, and our country is in 117th place among 175 countries according to the latest indicator. According to the competitiveness index, Mongolia scores
3.6 points 3 out of 7 possible and ranks 92nd among 125 countries.
In the early 1990s. Gross domestic product decreased significantly. The dynamics of GDP in the new millennium are described 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. Mongolia's gross domestic product decreased by about 25%, while in the CIS countries it decreased by 40-60%. In Russia, for example, the period during which there was a decrease in 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
Mongolia's development 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 was achieved by 15.5%. The reasons for this were an increase in the production of non-ferrous metals due to the successful activities of the Mongolian-Russian joint venture Erdenet and favorable weather conditions that did not cause a massive loss of 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 agriculture employs more than 40% of people employed. 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 Mongolia's GDP in 2000-2005.
Indicator Year
2000 2001 2002 2003 2004 2005
GDP (in prices of a given year), billion MNT. 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. 1,018.9 1,029.5 1,070.7 1,130.3 1,251.4 1,329.5
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 prices of a given year), million dollars. USA 946.6 1,016.3 1,117.5 1,274.5 1,612.1 1,880.4
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
GDP structure, % 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.
News of IGEA. 2008. No. 3 (59)
It should be noted that economic growth was largely achieved due to extensive factors. Due to the increase in population by almost a quarter, the number of employed people also increased from 800 to 900 thousand people, although the share of employed people in the total working-age population decreased from 71% in 1989 to 60% currently. So the productivity of social labor has hardly increased in recent years. If we consider changes in the structure of production, we see that economic growth was largely due to an increase in the volume of raw materials produced in industry.
Another source of economic development was the accelerated expansion of the trade and services sector, the contribution of which to GDP increased over the past years from 1.38 billion tugriks to 169. At the same time, the share of the trade and services sector in the country’s GDP increased from 19% in 1989 to approximately 49%. currently.
Taking place in last years economic growth is accompanied low level real income per capita, characterizing the population's consumption of goods and services. The main social problem of Mongolia is the poverty of the population. According to many experts, with the growth average size income of the population in Lately the number of poor people is not decreasing. The poorest segments of the population include families with low wages (income) of the breadwinner, pensioners and the unemployed. The largest group of poor are large families. To a certain extent, poverty is generated by low employment of the population. Of the 1.5 million people of working age, only 900 thousand are working. Although there are just over 40 thousand officially registered as unemployed, there is a large hidden unemployment rate, and many are employed in the informal sector.
The problem of a decline in the population's living standards is also aggravated by the consequences of the demographic explosion of the 60-80s. XX century Taking into account the continuing rate of population growth in 2006, the real
The new GDP production per capita in Mongolia has doubled compared to 2001.
Another important indicator of living standards is the average life expectancy. This figure is relatively low at 65 years, mainly due to the extremely high infant mortality rate. Out of 1 thousand children born alive in Mongolia, 29 die before the age of one year, i.e. 4-5 times more than in developed countries.
The negative trend in mortality dynamics in Mongolia is noteworthy. The mortality rate is reduced only in the children's age group - up to 14 years. In the youth group - 15 to 24 years old - it has remained largely unchanged over the past decade. At the same time, in the group of people of working age - from 25 to 50 years - this figure increased. The mortality rate of people of retirement age has increased especially.
In Mongolia, the birth rate remains relatively high, and therefore the proportion of the youth group in the population is growing, with a lower mortality rate, which is also declining. Because of this, the overall mortality rate 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 currently. The birth rate decreased more significantly: from 35.5 to 19.1 people per 1 thousand population. But, as you can see, the birth rate is three times higher than the death rate, and thanks to this, the population of Mongolia increases annually by 30 thousand or more people due to its own growth. If in 1989 the country's population was 2.1 million people, now 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 International agency USA Development.
News of IGEA 2008. No. 3 (59)
Mongolia is a state located in East Asia, bordered by Russia, China and landlocked. Vast areas of the country, some of which are unsuitable for life, are unevenly populated. At the same time, Mongolia boasts a fast pace of economic development and a fairly high standard of living of the population. In the majority international organizations Mongolia has observer status.
Brief history of the state
The first attempts to establish a 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 the Mongolian steppe until 93 BC. Later, the Hunnic Empire was replaced by several Kyrgyz, Turkic and Mongol khanates. None of them managed to gain a foothold in the Mongol lands for a long time: a nomadic lifestyle, militancy and insufficiently authoritative power - all this became the cause of disunity.
A more stable union of tribes went down in history as 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 became the reason for the beginning of the collapse of the Golden Horde.
Over the next few centuries, the Mongolian steppes were occupied by various rulers, empires and peoples: 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, putting 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 was recognized as an autonomous part of the Republic of China in 1915, 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. Japan's aggression was reflected by the joint actions of the USSR and Mongolia. Modern history Mongolia began with the adoption of a new Constitution in 1992 and a change in political course.
Government and politics
Mongolia, which has a diverse population, is a parliamentary republic. The head of state is the president, the executive branch is represented by the government, and the legislative branch is represented by the parliament, which is called the State Great Khural. Locally, power remains in the hands of local governments, which are elected for a term of four years.
In 2008, there was a internal political crisis, which provoked mass unrest in the capital of the state (Ulaanbaatar) and caused a change of government and re-election of the president. Currently, the president of the state is Tsakhiagiin Elbegdorj, the ruling party is the Mongolian People's Party (MPP).
Geography of Mongolia
In terms of territory, the state ranks nineteenth in the world, being quite large. The area of Mongolia is 1,564,116 km², which is comparable, for example, to half of Yakutia. Most of the country (by geographical features) occupies a plain with several towering ridges and mountain ranges. The Gobi Desert is located in the southern part of Mongolia.
All fresh water sources originate in the mountains and are fed by several large tributaries. Mongolia has a large number of lakes, many of which are temporary, that is, they form during the rainy season and disappear during 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 the summer it is within the same values with a plus sign. The amount of precipitation decreases from northwest to south.
Administrative division of the state
Mongolia, whose population is unevenly distributed throughout the state, is divided into 21 aimags, with a total of 329 soums, and the capital Ulaanbaatar. Largest city expectedly is the capital, numbering one and a half million permanent residents. The administrative center is followed in terms of population by aimag Khuvsgel (114 thousand people), Dornogovi (109 thousand people) and Uverkhangai (100 thousand people).
A characteristic feature of Mongolia is the presence of temporary settlements, and therefore a different address system is used than the standard one. Thus, in Mongolia there are no usual names of cities, streets, house and apartment numbers, and addresses are replaced by digital codes that allow you to determine the location of an object on the ground with an accuracy of one meter. Moreover, the longer the code, the more accurately the location of the object can be determined. The system is suitable for use on a global scale and is actively used in digital cartography and navigation systems.
Economy of Mongolia
Mongolia's economy is developing unusually dynamically, and the state itself is the largest 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 the majority of able-bodied citizens are employed in agriculture (41%), slightly less in the service sector(29%) and trade (14%).
Mongolia imports petroleum products, equipment (both industrial and industrial) and consumer goods (the population is provided with everything necessary). Main partners in international trade are Russia, China, Japan and South Korea.
Financial sector
central bank has the same functions as similar institutions in other states. The currency of Mongolia is the Mongolian tugrik, which was introduced into circulation back in 1925. To date exchange rate the average is: 2405 tugriks = 1 US dollar. Despite the fact that there is a national currency of Mongolia, the American dollar is also in circulation (used in almost all areas except for payment of government services) and Russian ruble or euros, which are accepted in small shops (mainly in the capital) and markets.
By the way, prices in Mongolia pleasantly surprise tourists. You can purchase memorable souvenirs, products made from natural wool and leather, and carpets in the capital at a cost lower than in Russia. Food prices are moderate. So, lunch will cost an average of 6-7 dollars.
Population of the state: general characteristics
The population of Mongolia is characterized by monoethnicity, a predominant urban population (even despite large employment in agriculture), positive natural growth, a large number of dialects in the linguistic affiliation of the population and a diverse religious composition.
State population
The population of Mongolia as of 2015 is 3 million 57 thousand people. Residents of the capital account for one third of the total number of citizens. The nature of the settlement of citizens throughout the state will be discussed in more detail below.
Natural population growth is 28 people 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 that. No reliable data on the number of inhabitants before 1918 has been 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 settlement of residents
The average population density of Mongolia is almost 2 people per square kilometer. This indicator caused the state to be placed in last place (195th line) in the list of population density of countries in the world. The most densely populated areas in Mongolia (5-6 people per square kilometer) are the Orkhon River valley and the mountainous areas of Khangai - the most livable areas to the west of the capital.
Vast territories (40%) of the state are unsuitable for comfortable life due to natural features. The population density is a record one person per 10-15 square kilometers, and some of the territories remain completely uninhabited.
Ethnic and national composition
Mongolia (the population is predominantly made up of representatives of the Mongolian group) is a mono-ethnic state. The dominant ethnic group is divided into several clans of Turkic origin, subethnic groups and close ethnographic groups.
In addition to the indigenous population, which totals just over 82%, the country is home to Turks, Russians and Chinese. There are only one and a half thousand Russians in Mongolia, while back in the late 80s there were as many as 20 thousand. Mostly Old Believers fled to the neighboring state to escape religious persecution in their homeland. Chinese on this moment Several hundred live in Mongolia; 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. State (Mongolian) includes several dialects:
- Oirat;
- directly Mongolian;
- Buryat;
- Hamnigansky.
Turkic dialects are also common:
- 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 made several times. In religious practices, Tibetan is still widely used to this day, 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%). Moreover, in the capital the majority are Christian rather than Buddhist temples (197 versus 63). The majority of the population are atheists (38%). Religious diversity is also represented by Islam, shamanism, Christianity and some other religions.
Standards of living
Mongolia, the standard of living of the population of which in most sources remains beyond the scope of the narrative, is quite developed state with a stable economy. There are still people in the country who lead a nomadic lifestyle, but their existence is made easier by the numerous benefits of civilization. The capital is similar to most modern cities. Thus, today Mongolia is confidently opening a “window to the big world.”
Mongolia is an agrarian-industrial country. Mongolia currently trades with more than 80 countries around the world. Trade turnover is more than 2 billion US dollars. If until the 1990s, 90% of Mongolia’s 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 remainder is occupied by trade with such highly developed countries as Japan, the USA, South Korea, Switzerland.
Although more people live in cities, Mongolia's economy remains centered on industries such as agriculture and mining. Mineral resources such as copper, coal, molybdenum, tin, tungsten and gold make up a significant part industrial production countries.
In the period from 1924 to 1991. The MPR received large financial and economic assistance from the USSR. At its peak, this aid accounts for one third of its GDP. In the early 1990s and into the next decade, Mongolia's economy experienced a severe recession followed by stagnation. Extensive droughts in the summer and winter of 2001 and 2002 had a serious impact on agriculture and led to a marked slowdown GDP growth countries. In Mongolia high level inflation. World financial crisis caused a decline in many industries dependent on exports and investment from abroad.
Due to Mongolia's harsh continental climate, agriculture remains vulnerable to natural disasters such as severe drought and cold. The country consists of small arable lands, but about 80% of the territory is used as pasture. The majority of the rural population is engaged in herding livestock, consisting of sheep, goats, cattle, horses and camels. Mongolia has more livestock per capita than any other country in the world. Wheat, potatoes and other vegetables are also grown, in addition to tomatoes and watermelons. GDP at PPP: $9.48 billion (2008). GDP per capita PPP (2008): $3,200. Unemployment rate: 2.8% (2008).
Industry of Mongolia
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. Import of electricity - 130 million kWh.
Statistical indicators of Mongolia
(as of 2012)
Extractive industry. 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 area of the Taban Tolgoi mountain range, coal was discovered, the geological reserves of which amount to billions of tons. Average reserves of tungsten and fluorspar deposits 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 Khubsugul, gigantic deposits of phosphorites were discovered and their mining even 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 carried out unsuccessfully.
Currently, the main branch of the mining industry is coal (mainly lignite). Most of the coal production is concentrated at the Sharyn-Gol coal mine (annual production of over 1 million tons), near the city of Darkhan, as well as at the Nalaya mine (with a capacity of over 600 million tons). There are a number of smaller sections in the Under Khan area and others. Electricity production is at thermal power plants (the largest thermal power plant in Darkhan). Manufacturing industry. The light and food industry accounts for more than one second of gross industrial output and more than one second of employed workers. The largest enterprises are: an industrial plant with 8 factories and factories in Ulaanbaatar, Choibalsanei, etc. In the building materials industry, an important place among the enterprises is occupied by a house-building plant in Ulaanbaatar, a cement and brick factory in Darkhan.
Initially, local industry was based almost exclusively on the processing of livestock raw materials, and the main types of 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 Mongolia's national product, while in 1940 it was only 17%. After the end of World War II, the share of heavy industry in total industrial production increased significantly. There are over two dozen cities with enterprises of national importance: in addition to the already mentioned Ulaanbaatar and Darkhan, the largest are Erdenet, Sukhbaatar, 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 animal products, phosphorites, fluorites, and molybdenum ore are exported.
Agriculture of Mongolia
Agriculture has always been the basis of Mongolia's 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%), and produces 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 early 40s, when industry formed into an independent sphere, agriculture was the only branch of material production in the country. As recently as 1950, it produced 60% of national income. Then its share decreased: in 1970 - to 25%, in 1975 - to 22.4%. Currently, it has increased slightly – to almost 30%. At the same time, over 50% of export products are agricultural raw materials, and taking into account products made from them - over 70%.
The level and pace of agricultural development largely determine the most important national economic proportions. Such traditional industries as light and food industries completely depend on its condition, since the costs of agricultural raw materials constitute the bulk of their production costs. Pasture farming continues to be the main economic activity. Today, Mongolia is among the leading countries in the world in terms of livestock per capita (approximately 12 heads per person).
Based on the Foreign Investment Law adopted in 1990, citizens of other countries were given the opportunity to own shares various types enterprises - from firms with 100% foreign capital to joint ventures. New laws were passed regarding taxation and banking operations, credit and debt obligations. In May 1991, the privatization law came into force, according to which state property could pass into the hands of “law-abiding” citizens (that is, those who have not previously committed serious crimes) permanently residing in the country. Each citizen was given a special investment coupon that could be bought, sold or given to any other person. Holders of such coupons became active participants in special auctions through which state property was privatized. Later, in 1991, “state farms” and cooperative livestock associations were liquidated, and transfer to private property land and livestock.
Foreign trade of Mongolia
Mongolia, as a member of the World Trade Organization, in March 2005 presented its trade policy, which is quite liberal, for discussion by members of this organization. In 2002, the Government of Mongolia established uniform five percent customs rates on most imported goods. For the further development of Mongolia’s foreign trade, the decision of the European Union on the inclusion of Mongolia is important, as developing country With vulnerable economy and as a landlocked country into the GSP+ program. Thus, from July 1, 2005, Mongolian goods began to be imported into the European market without customs duties.
The total turnover in foreign trade for the first half of 2008 amounted to 2,971.3 million US dollars, including exports of 1,276.3 million dollars, imports of 1,695.0 million dollars. The deficit amounted to 418.7 million US dollars, which is 386.5 million US dollars more compared to the same period last year. The total trade turnover compared to the same period in 2007 increased by 74.3%, exports - by 52.6%, imports - by 95.2%. The negative balance of foreign trade was significantly affected by the growth of imports, which is 42.6 points more than the volume of exports.
Imports mainly consist of petroleum products, equipment and spare parts, vehicles, metals, chemicals, building materials, food and consumption. 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 made 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, food products - by 37.2 million dollars.
Mongolian exports include: minerals (copper, molybdenum, tin, spar concentrate), raw materials of animal origin (wool, cashmere, leather, fur), consumer goods (leather, sheepskin, leather products, carpets, cashmere, camel knitwear, wool blankets and cashmere). The country's interior is rich in mineral resources, including vast deposits of coal, iron ore, tin, copper, uranium, petroleum, zinc, molybdenum, phosphorus, tungsten, gold, fluorite and semi-precious stones.
Exports: ($2.5 billion in 2008) - copper, molybdenum concentrate, meat, live cattle, animal products, goat fluff, wool, hides, coal. The main buyers in 2008 are China (76%), Canada (9%), Russia (3%). Imports: ($3.6 billion in 2008) - fuel, machinery, cars, food, industrial consumer goods, chemicals, building materials, sugar, tea. The main suppliers in 2008 are Russia (35%), China (29%), Japan (8%). External debt- $1.6 billion (in 2008).
Mongolia is a member of the World trade organization(since 1997). The country's main trading partners are China and Russia, and Mongolia's economy largely depends on these countries. In 2006, 68.4% of Mongolia's exports went to China, while imports accounted for only 29.8%. Mongolia imports about 95% of its petroleum products and a significant share of its electricity from Russia, making the country extremely economically dependent.
Transport of Mongolia
The main modes of transport in Mongolia are: railway, road, air, water. The Mongolian Railway is a railway on the territory of Mongolia. Official name - Russian-Mongolian Joint-Stock Company"Ulaanbaatar Railway". Railway transport accounts for 80% of all freight and 30% of all passenger traffic in Mongolia. Following the democratic revolution in the 1990s, Mongolia experienced a decline in freight and passenger traffic. But already in 2001, passenger traffic indicators recovered to their previous level and amounted to 4.1 million passengers per year. By 2005, the volume of freight traffic had also recovered.
Train of the Trans-Mongolian Railway in the Gobi DesertToday, the Mongolian Railway is one of the leading sectors of the economy of Mongolia, on the work of which the economic development of the entire country largely depends. At the beginning of 2005, the operational technology of the Mongolian Railway was radically changed, as a result of which the qualitative and quantitative indicators of the road were improved: the turnover of cars was doubled and the average weight of trains was increased. The total length of railways in 2004 is 1810 km.
Automobile transport. There are 75 thousand km of highways in Mongolia, according to state records, but they are almost entirely unpaved, that is, in any direction there are half a dozen well-trodden paths, some of them lead to a yayla, a watering hole, a somon or a settlement that has not yet migrated from these places And as a result, you cannot travel without a guide! Herders only know directions. Nobody cares where any of these roads lead. The driver of a truck, UAZ jeep, and a guide in an SUV minibus know their roads by signs. There are no signs. Road culture in the pre-conception period. The map is often a source of misinformation. Mountain rivers have demolished bridges, now there is no one to restore them, new roads have been built on the plain in the desert, where rivers can be forded.
The asphalt road surface starts from Erdene, which is 72 km east of Ulaanbaatar, the road to the first capital of Genghis Khan, Kharkhorin, is paved and continues 300 km to the aimak center of Arvaikheer. The soil in Mongolia is rocky, in the mountains the road is made of coarse crushed stone and small cobblestones, and in the desert it is made of coarse sand and small gravel. Transitional form from one road condition to another “washboard” wave wheel modulation of the soil by heavy machines.
Air Transport. As of 2006, there were 44 airports in Mongolia. Of these, 12 had runways with artificial turf. Ten of these stripes had lengths in the region from 2438 to 3047 meters, and the other two were between 1524-2437 meters.
Chinggis Khan International Airport, located in the suburbs of Ulaanbaatar, is the only international airport in Mongolia. Direct flights are available to Berlin, Moscow, Beijing, Hohhot, Seoul, Yekaterinburg, Irkutsk, Ulan-Ude and Tokyo.
The remaining 32 airports have unpaved runways. On two of them the runway is over 3047 meters, on three - between 2438-3047 meters, on twenty-four - between 1524-2437 meters, on two more - between 914-1523 meters, and one airport whose runway is as long as less than 914 meters. Mongolia also has one heliport.
According to information as of June 2007, airlines operating in Mongolia are: MIAT (Mongolian Irgeniy Agaaryn Teever), Aero Mongolia, and Isinis Airways. They operate both domestic and international flights. Water transport. In Mongolia, 580 km of rivers and lakes are accessible for navigation, but water transport is more or less developed only on Lake Khovsgul. Selenga and Orkhon are also navigable (the length of the navigable sections is 270 and 175 km, respectively), but water transport on them is insignificantly developed, although a border boat on the Selenga River patrols the Russian-Mongolian border. Lakes and rivers freeze in winter; navigation usually opens in May and ends in September.
Marine fleet. Mongolia is the second largest landlocked country in the world (after Kazakhstan). However, this did not stop her from registering her ship registry (The Mongolia Ship Registry Pte Ltd) in February 2003. Since registration, Mongolia has been systematically increasing the number of ships flying its flag. And in 2003, revenues to the treasury amounted to about $20,000,000.
Banking system of Mongolia
Back in the early 90s, they began to rebuild the banking system, as a result it became two-tier - the Central Bank stopped dealing with the usual banking activities, at the same time, banks got the opportunity to work with private and state capital. The prerequisites for such a transition were created only with the adoption in mid-1991 of the Law on Banks and the Law on the Mongol Bank (on the central bank). The main direction of the reforms was the abandonment of the state monopoly, the formation of a banking system that meets the requirements market relations and complying with generally accepted standards and norms.
Currently, the main factors determining the place of the Central Bank in the economy of Mongolia are the system of existing laws, the relationship of the measures it takes with economic policy, principles of interaction with the banking system. The Law on the Central Bank stipulates its complete independence in the sphere of direct activities.
So, in a short period of time, a new monetary system was created in the country, which is one of the key elements of the economic mechanism and the driving force of the market economy. Commercial banks became the main lenders and investors. Today there are 16 commercial banks operating in Mongolia, their total declared authorized capital as of January 1, 1999 amounted to 24.4 billion tugriks, i.e. 40% more than in 1994. Naturally, the Central Bank (Mongolbank) occupies a leading position in the country's banking system. He develops the main directions monetary policy and determines the specific tasks that must be solved in the coming year.
Throughout the entire period of transition to a market economy, financial stabilization is a priority of monetary policy. If before 1996 the achievement of this goal was associated primarily with anti-inflationary measures, then at the present stage the problems of maintaining economic growth and creating conditions for investment activity are coming to the fore. At the same time, thanks to the implementation of relatively tight monetary and budget policies, it was possible to reverse the negative trends in the economy and keep inflation and exchange rate. As a result, after a sharp decline in production that lasted four years, growth resumed in 1994. In particular, GDP began to increase, which amounted to 6.3% in 1995, 2.6% in 1996, 3.3% in 1997, and 3.5% in 1998. At the same time, there was a tendency to reduce the rate of price growth. If in 1992, at the very peak of inflation, its index reached 325%, then in the following years this area was brought under control, and in 1998 it was only 6%.
Despite the generally positive nature of economic development, in Mongolia there is still, in my opinion, the threat of inflationary surges due to the decline in production in some industries, dependence on imports, large budget deficit, as well as the growth of unresolved social problems in society. Because of this, Mongolbank continues to face the challenges of ensuring the stability of the national currency, restructuring the banking system and maintaining macroeconomic stability.
The most difficult elements of the reforms were the reorganization of the currency system and the liberalization of foreign trade. Its small size and over-reliance on imports made the Mongolian economy particularly sensitive to changes in the value of the tugrik. In this area, the Central Bank and the government were faced with a dilemma: to accept a flexible or fixed exchange rate.
Source - http://www.legendtour.ru/
http://ru.wikipedia.org/
GOU VPO "REA im. G. V. Plekhanov"
Department of World Economy
Test
by discipline
"World economy"
on the topic of:
"Analysis of the Mongolia Economy"
Performed:
3rd year student FF
groups 2308
Bukhadeeva E.B.
Checked by: Ph.D.
Avturkhanov E.M.
Moscow
2010
Content.
- Stages of economic development………………………………………………………...3
Type of economic development……………………………………………………………5
Level of economic development………………………………………………………6
Social structure of the economy……………………………………………………..... 6
Economic strategy and policy. Characteristics of GDP………………7
Industry……………………………………………………………………7
Agriculture……………………………………………………… ….....9
Mineral resources………………………………………………………9
Transport……………………………………………………………………...10
Communication………………………………………………………………………………… …….11
Quality and use of labor…………………………….12
Foreign economic relations. The role of the country (region) in international production, international division of labor, economic integration ………………………………………………………………………………… ……12
Forecast and development economic ties with Russia…………………13
Forecast of socio-economic development of the country (region)……..16
List of references……………………………………………………………... 18
Mongolia is a landlocked country located in East-Central Asia, bordered by Russia to the north and China to the south, west and east. With an area of 1,564,116 km? and a population of about 2.9 million people, Mongolia is a country occupying 19th place in the world in terms of area, but at the same time it is one of the most sparsely populated countries. About 20% of the country's total population lives on less than $1.25 a day.
Mongolia's economy is traditionally based on agriculture and pastoralism. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, gold, the development of which accounts for the majority of industrial production.
- Stages of economic development
Transition to a market economy. Between 1990 and 1993, Mongolia suffered from triple inflation, rising unemployment, shortages of basic goods and a rationing system. During this period, production fell by one third. Following reforms and a change in government policy towards promoting private enterprise, economic growth began again in 1994-95. Unfortunately, because this growth was driven in large part by a glut of bank credit, especially for the remaining state-owned enterprises, economic growth was accompanied by a severe weakening of the banking sector. GDP grew 6% in 1995, largely due to a boom in copper prices.
The DUC (Democratic Union Coalition) government of 1996-2000 set out to move towards a free market economy, loosening price controls, liberalizing domestic and international trade, and attempting to restructure the banking system and the energy sector. National privatization programs were carried out, and the process of attracting foreign direct investment in oil production, cashmere companies and banks began. Reforms carried out by the ex-communist opposition MPRP and political instability associated with constant changes in government left the country in crisis until the DSK government came to power. Economic growth continued in 1997-99 after stopping in 1996 due to a series of natural disasters and increasing world prices for copper and cashmere. Government revenues and exports, average real economic growth stabilized at 3.5% in 1996-99 due to the Asian financial crisis, the 1998 Russian financial crisis and deteriorating commodity markets, especially copper and gold. In August and September 1999, the economy suffered from a temporary ban by Russia on the export of oil and petroleum products. Mongolia joined the World Trade Organization (WTO) in 1997.
Present tense. Mongolia's dependence on trade relations with China means that the global financial crisis will impact the Mongolian economy, with a serious setback in economic growth. However, while all countries are in the process of post-crisis economic recovery, Mongolia suffers from the winter itch of 2009-2010, resulting in a decline in livestock numbers, which seriously affects cashmere production, which accounts for approx. 7% of the country's export earnings.
According to the World Bank and IMF estimates, real GDP growth fell from 8% to 2.7% in 2009, and exports fell 26% from $2.5 billion to $1.9 billion after promising steady growth until 2008 of the year. Because of this, it is predicted that from 20,000 to 40,000 people. (0.7% and 1.4% of the population, respectively) will die due to poverty, which would not have happened if not for the crisis.
At the end of 2009 and beginning of 2010, however, the market began to recover again. Having identified problems and learned from its previous economic failures, the government is carrying out legislative reform and tightening fiscal policy, which implies the development of the economy only in a positive direction. In February 2010, foreign assets were calculated at US$1,569,449 million, new trade agreements are currently being formed, and foreign investors are keeping a close eye on the “Asian wolf,” the code name for the Mongolian economy. The term was coined by Renaissance Capital in its Blue Sky Opportunity report. They claim that Mongolia could become the new Asian tiger or the non-stop "Mongolian wolf", as they prefer to call Mongolia's economy. Recent developments in the mining industry and the quantitative growth of foreign investors confirm that the “Mongolian wolf” is ready to take the leap. The aggressive name of the term reflects development opportunities in the capital market, as well as good prospects in the industry mineral resources. The Mongolian economy has a chance to retain its title as a fast-growing and developing economy.
- Type of economic development
- Level of economic development
GDP per capita at purchasing power parity for 2009 was $3,100, the country’s place in the world: 166.
The GDP amounted to 1.457 trillion dollars. compared to $1.362 trillion. in 2009. Inflation rate 4.2% (2009), the country’s place in the world: 137 decreased by 23.8% compared to 2008.
In general, we can say that in terms of the level of economic development the country belongs to the countries with a transition economy.
- Social structure of the economy.
Secondary sector The economy represented by industry is 29.5%. The most significant contribution is made by the electrical and thermal power industry, the coal industry, the mining and beneficiation of non-ferrous metal ores, metalworking, microbiological production, the building materials industry, woodworking, textile and knitwear, leather and footwear, printing, food, glass and porcelain and other industries. Only 5% of the population is employed in industry.
Tertiary sector is the most extensive, as in many countries. Here the service sector accounts for 49.3%. It employs 61% of the employed population.
- Economic strategy and policy. Characteristics of GDP
GDP at the official rate was $4,203 million (2009)
The real GDP growth rate decreased by 1% (2009), the country’s place in the world: 130, compared to 2008 -0.14%.
GDP per capita was $3,100 (2009), the country’s place in the world: 166
GDP by economic sector according to 2009 data was:
Agriculture: 21.2%
industry: 29.5%
Services: 49.3% (2009)
- Industry
Although the industry accounts for 29.5% of GDP, Mongolia actually has high potential. Mongolia has a huge reserve of untapped mineral deposits, particularly copper and gold. Thus, a slight shift in focus can help a country raise its industrial productivity.
The main branch of the mining industry is coal (mainly lignite). Most of the coal production is concentrated at the Sharyn-Gol coal mine (annual production of over 1 million tons), near the city of Darkhan, as well as at the Nalaya mine (with a capacity of over 600 million tons). There are a number of smaller sections in the Under Khan area and others. Electricity production is at thermal power plants (the largest thermal power plant in Darkhan).
The light and food industry accounts for more than one second of gross industrial output and more than one second of employed workers. The largest enterprises are: an industrial plant with 8 factories and factories in Ulaanbaatar, Choibalsanei, etc. In the building materials industry, an important place among the enterprises is occupied by a house-building plant in Ulaanbaatar, a cement and brick factory in Darkhan.
Industry – manufactured products:
construction and building materials; mining industry (coal, copper, molybdenum, spar, tin, tungsten, gold); oil; food and drinks; processing of animal products, cashmere and natural fibres.
Cashmere is one of the three main exports, with wool and cashmere production exceeding 10% of total industrial production.
Industrial growth - 3% (2006), country's place in the world: 44
- Agriculture
Pasture farming continues to be the main economic activity. Today, Mongolia is among the leading countries in the world in terms of livestock per capita (approximately 12 heads per person). The livestock population is approximately 39.68 million (a decrease of 10-12% compared to the previous year). Severe winters and summer droughts in 2008-2009 led to massive livestock losses and zero or negative GDP growth. Agriculture as an independent branch of the national economy began to develop in 1959 with the development of virgin lands with technical and economic assistance from the USSR. Due to Mongolia's harsh continental climate, agriculture remains vulnerable to natural disasters such as severe drought and cold. The country consists of small arable lands, but about 80% of the territory is used as pasture. Wheat, potatoes and other vegetables are also grown, in addition to tomatoes and watermelons. In 2008-2009 agriculture experienced a noticeable decline. Enormous damage to the economy was caused as a result of global changes in weather conditions, which resulted in natural disasters. In 2008-2009 Grain harvest was reduced due to drought.
Agriculture – manufactured products:
wheat, barley, vegetables, forage crops, sheep, goats, cattle, camels, horses
- Mineral resources
Electricity production in 2009 - 4030 million kWh
Electricity consumption - 3439 million kWh
Electricity export - 21,200 thousand kWh
Import of electricity - 186100 thousand kWh
Oil - production: 5,100 barrels/day (2009)
Oil - consumption: 16,000 barrels/day (2009)
Oil - export: 5,300 barrels/day (2009)
- Transport
Railway transport. Mongolia has two main railway lines: the Choibalsan-Borzya Railway connects Mongolia with Russia, and the Trans-Mongolian Railway starts from the Trans-Siberian Railway in Russia in the city of Ulan-Ude, crosses Mongolia, passes through Ulaanbaatar, and then goes to China via Yerenhot, where it joins the Chinese railway system. The total length of railways in Mongolia is 1810 km.
Car roads. Most land roads in Mongolia are gravel or dirt roads. There are paved roads from Ulaanbaatar to the Russian and Chinese border, and from Darkhan. There are some road construction projects currently underway, such as the east-west construction of the so-called Millennium Road. The total length of roads is 49,256 km. Of these: With hard surface - 8874 km, Without hard surface - 40,376 km.
Aviation transport. Mongolia has a number of domestic airports. The only international airport is Chinggis Khan International Airport near Ulaanbaatar. Direct air connections exist between Mongolia and South Korea, China, Japan, Russia and Germany. MIAT Mongolian Airlines is the largest carrier in Mongolia, and provides both domestic and international flights. As of 2010, there are 46 airports in the country. Of these, 14 have a paved runway, 32 have unpaved runways. Flights are carried out by such national companies as: Ulgiy-Trans, Aero Mongolia, Mongolian airline MIAT
Water systems. The length of waterways is 580 km. The rivers Selenga, Orkhon and Lake Khubsugul are accessible for navigation. Navigation from May to September. Mongolia is the second largest country in the world (after Kazakhstan) in terms of territory that does not have access to any ocean. However, this did not stop her from registering her ship registry (The Mongolia Ship Registry Pte Ltd) in February 2003. Since registration, Mongolia has been systematically increasing the number of ships flying its flag.
- Connection
The general assessment of the telephone system is that the quality of networks with international direct dialing is improving and access is increasing in many areas. In addition, a fiber optic network has been installed, improving broadband and communication services between major urban centers and the companies providing these services. Internal lines are characterized by very low telephone coverage and the availability of mobile communications. There were 188,900 landline telephone lines in 2009. Cellular subscribers - about 2.249 million people. 4 cellular operators: MobiCom (GSM), SkyTel (CDMA), UniTel (GSM), and G Mobile (CDMA).
MASS MEDIA. Due to a law passed in 2005, Mongolian state radio and TV are becoming publicly accessible, and there are also private radio and television broadcasters, multi-channel satellite and cable television. There are more than 100 radio stations, including about 20 through repeaters for public broadcasting.
Internet users - 330,000 people.
- Quality and labor utilization
The labor force is distributed across economic sectors in the following ratio: agriculture: 34%, industry: 5%, services: 61% (2008).
Unemployment rate is 2.8% (2008)
The population living below the poverty line is 36.1% (2004). 80% of families involved in livestock farming are poor.
There continues to be a tendency towards differentiation in the property and living standards of residents of aimags, cities and individual regions, which is the main reason for migration flows from remote areas to the capital. Often, migrants who move with their families to cities join the ranks of the unemployed, since, as a rule, they have neither education nor labor qualifications, while in cities there is an oversupply in the labor market.
Budget: revenues: $1.38 billion, expenses: $1.6 billion (2009).
- Foreign economic relations. The role of the country (region) in international production, international division of labor, economic integration
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 has sought to expand its participation in regional economic and trade regimes.
Exports amounted to $1902 million (2009). Exports - goods: copper, clothing, livestock, animal products, cashmere, wool, hides, spar, non-ferrous metals, coal. Export partners: China 78.52%, Canada 9.46%, Russia 3.02% (2009)
Imports amounted to $2,131 million (2009). Import - goods: machinery and equipment, fuel, cars, food, industrial consumer goods, chemicals, construction materials, sugar, tea. Import - partners: China 35.99%, Russia 31.56%, South Korea 7.08%, Japan 4.8% (2009).
Mongolia pays Special attention cooperation with Buryatia, the Altai Republic, Irkutsk, Chita, Kemerovo and Novosibirsk regions.
Debt - external: $1860 million (2009).
- Forecast and development of economic relations with Russia
At the same time, Mongolian supplies to Russia increased by 87.5% and reached a level of 84.6 million US dollars. Russia's bilateral trade surplus amounted to $1.1 billion.
However, for certain product items that are very important for Mongolia, the share of supplies from Russia was significantly higher. In particular, Russia was the leader in oil supplies – 92.0%. Recently, the importance of imports from Russia of food and other agricultural machinery and other products has increased.
Russia accounts for about 3% of Mongolian exports. It is limited to the products of the joint venture Mongolrostsvetmet LLC (fluorspar-45%), light industry products (42%). Meat and meat products are imported in small quantities.
The volume of Russian investments and the Mongolian economy is growing at a low rate (by the end of 2008, accumulated capital investments exceeded 2 million US dollars).
425 Russian and Russian-Mongolian companies are registered in Mongolia (including 51 in geological exploration, mining and processing industries, 55 in construction and production of building materials, 106 in light industry, 40 in energy, 21 in transport, 12 in tourism), but only 50-60 actually work. The main burden of economic interaction still falls on the Erdenet and Mongolrostsvetmet enterprises, as well as the Ulaanbaatar Railway joint-stock company, which together produce about 20% of Mongolian GDP.
Recently, Russian financial and industrial groups and companies (Basic Element, Rusal, Renova, Severstal, Polymetal, Gazprombank, Russian Railways, ROSATOM) have shown interest in participating in large projects in Mongolia (development, including on a multilateral basis, of the Tavantolgoi and Ulaan-Ovoo coal deposits, modernization of the Ulaanbaatar railway, reconstruction of electric power facilities, transit of energy from Russia to China, gasification of Mongolia, road construction, etc.) P.). Representative offices of Gazprombank have been opened in Ulaanbaatar, as well as of the consertium (Basic Element, Renova, Severstal), formed for the development of Tavan Tolgoi. Cooperation between Mongolia and Russian Federation is becoming more active in the uranium industry. The Mongolian government is interested in cooperating with Russia in this industry on mutually beneficial and equal terms.
The Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation plays a coordinating role in the promotion and development of bilateral trade and economic cooperation. On March 6, 2009, the XIII meeting of the Russian-Mongolian Intergovernmental Commission took place in Moscow. The co-chairman of the IPC on the Russian side is the Minister of Transport of the Russian Federation Igor Leviten and the co-chairman of the Mongolian side is the First Deputy Prime Minister of the Government of Mongolia Norvyn Altanhuyag.
Relations between Mongolia and the Russian Federation are stable, long-term in nature and are carried out on a solid business basis. Mongolia is a traditional partner of the Russian Federation and views the development of our relations as a strategically important direction for Russia. At the same time, the economic component of relations is becoming increasingly important both in the context of strengthening bilateral Russian-Mongolian ties and the development of neighboring regions of the two countries, and from the point of view of strengthening integration processes in Northeast Asia.
Russia and Mongolia agreed to settle the Mongolian debt to the Russian side. The corresponding agreement was signed by the parties following negotiations between the Prime Ministers of Russia and Mongolia Vladimir Putin and Sukhbaataryn Batbold. Mongolia's debt to Russia amounts to $180 million. It was formed in the post-Soviet period, when Moscow provided Ulaanbaatar with a loan to pay for the participation of the Mongolian side in the Mongolrostsvetmet joint venture. As Russian Finance Minister Alexei Kudrin explained, most of the debt (97.8 percent) was simply written off. The remaining $3.8 million will be repaid in one tranche. According to Kudrin, after settling the debt, Russia can issue a new loan to Mongolia - for $125 million. On December 14, Russia and Mongolia also signed an agreement on the fundamental conditions for the creation of a joint uranium mining company, Dornod Uran. In principle, the parties agreed on the joint venture last year.
- Forecast of socio-economic development of the country (region)
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