For 1970-2018 Mongolia's GDP in current prices increased by $ 12.8 billion (65.6 times) to $ 13.0 billion; the change occurred by $ 0.29 billion due to population growth by 1.8 million, as well as by $ 12.5 billion due to an increase in GDP per capita of $ 4,012.0. Average annual at GDP growth Mongolia was at the level of $ 0.27 billion or 9.1%. Average annual GDP growth of Mongolia in constant prices was at 5.0%. The share in the world increased by 0.0094%. The share in Asia increased by 0.0024%. The minimum of GDP was in 1970 ($ 0.20 billion). The maximum GDP was in 2018 ($ 13.0 billion).

For the period 1970-2018 GDP per capita in Mongolia increased by $ 4,012.0 (26.9 times) to $ 4,167.0. The average annual growth of GDP per capita in current prices amounted to $ 83.6 or 7.1%.

The change in Mongolia's GDP is described by a linear correlation-regression model: y = 0.23x-461.8, where y is the estimated value of Mongolia's GDP, x is a year. Correlation coefficient = 0.815. Determination coefficient = 0.665.

Mongolia GDP, 1970

Mongolia GDP in 1970 it was equal to $ 0.20 billion, ranked 143rd in the world and was at the level of Mauritius' GDP ($ 0.21 billion), Aruba's GDP ($ 0.20 billion). The share of Mongolia's GDP in the world was 0.0058%.

In 1970 it was equal to $ 155.0, ranked 156th in the world and was at the level of GDP per capita in the Comoros ($ 163.0), GDP per capita in Madagascar ($ 160.0), GDP per capita in Palestine ($ 158.0), GDP per capita in Afghanistan ($ 157.0), GDP per capita in Central African Republic ($ 151.0), GDP per capita in Uganda ($ 151.0), GDP per capita in Togo ($ 145.0). Mongolia's GDP per capita was less than the world's GDP per capita ($ 924.0) by $ 769.0.

Comparison of the GDP of Mongolia and its neighbors in 1970. Mongolia's GDP was 99.8% less than China's ($ 92.6 billion). Mongolia's GDP per capita was 38.4% higher than China's GDP per capita ($ 112.0).

Comparison of Mongolia's GDP and leaders in 1970. Mongolia's GDP was less than that of the United States ($ 1,073.3 billion) by 100%, USSR GDP ($ 433.4 billion) by 100%, German GDP ($ 215.8 billion) by 99.9%, Japan's GDP (212.6 billion dollars) by 99.9%, GDP of France (148.5 billion dollars) by 99.9%. GDP per capita in Mongolia was less than GDP per capita in the United States ($ 5,121.0) by 97%, GDP per capita in France ($ 2,853.0) by 94.6%, GDP per capita in Germany ($ 2,747.0) ) by 94.4%, GDP per capita in Japan (2,026.0 dollars) by 92.3%, GDP per capita in the USSR (1,788.0 dollars) by 91.3%.

Potential GDP of Mongolia in 1970. With GDP per capita at the same level as GDP per capita in the United States ($ 5,121.0), Mongolia's GDP would be $ 6.5 billion, 33.0 times the actual level. With GDP per capita at the same level as GDP per capita in the world ($ 924.0), Mongolia's GDP would be $ 1.2 billion, which is 6.0 times the actual level. With GDP per capita at the same level as GDP per capita in East Asia($ 331.0), Mongolia's GDP would be $ 0.42 billion, which is 2.1 times the actual level. With GDP per capita at the same level as GDP per capita in Asia ($ 247.0), Mongolia's GDP would be $ 0.32 billion, which is 59.4% more than the actual level.

Mongolia GDP, 2018

Mongolia GDP in 2018 it was $ 13.0 billion, ranked 136th in the world and was at the level of Madagascar's GDP ($ 13.9 billion), Brunei's GDP ($ 13.6 billion), Equatorial Guinea's GDP ($ 13.3 billion), Nicaragua's GDP ($ 13.1 billion), Niger's GDP ($ 12.8 billion), Armenia's GDP ($ 12.4 billion), Bahamas' GDP ($ 12.4 billion). The share of Mongolia's GDP in the world was 0.015%.

GDP per capita in Mongolia in 2018 it was equal to $ 4,167.0, ranked 129th in the world and was at the level of GDP per capita in Jordan ($ 4,264.0), GDP per capita in Sri Lanka ($ 4,245.0), GDP per capita in Armenia ( $ 4,237.0), GDP per capita in Samoa ($ 4,216.0), GDP per capita in Algeria ($ 4,136.0), GDP per capita in Tuvalu ($ 4,079.0), GDP per capita in El Salvador (4,064.0 dollars), GDP per capita in the Marshall Islands (4,029.0 dollars), GDP per capita in Indonesia (3,906.0 dollars). GDP per capita in Mongolia was less than GDP per capita in the world ($ 11,230.0) by $ 7,063.0.

Comparison of GDP of Mongolia and its neighbors in 2018. Mongolia's GDP was less than China's GDP Russia's GDP ($ 1,660.5 billion) by 99.2%. GDP per capita in Mongolia was less than GDP per capita in Russia (11,534.0 dollars) by 63.9%, GDP per capita in China (9,617.0 dollars) by 56.7%.

Comparison of Mongolia's GDP and leaders in 2018. Mongolia's GDP was less than that of the United States ($ 20,580.2 billion) by 99.9%, China's GDP ($ 13,608.2 billion) by 99.9%, Japan's GDP ($ 4,971.3 billion) by 99.7%, German GDP ($ 3,949.5 billion) by 99.7%, UK GDP ($ 2,855.3 billion) by 99.5%. GDP per capita in Mongolia was less than GDP per capita in the United States ($ 62,981.0) by 93.4%, GDP per capita in Germany ($ 47,993.0) by 91.3%, GDP per capita in the UK ($ 42,889.0 ) by 90.3%, GDP per capita in Japan (39,087.0 dollars) by 89.3%, GDP per capita in China (9,617.0 dollars) by 56.7%.

GDP Potential of Mongolia in 2018. With GDP per capita at the same level as GDP per capita in the United States ($ 62,981.0), Mongolia's GDP would be $ 196.6 billion, which is 15.1 times the actual level. With GDP per capita at the same level as GDP per capita in East Asia ($ 12,914.0), Mongolia's GDP would be $ 40.3 billion, which is 3.1 times the actual level. With GDP per capita at the same level as GDP per capita in Russia ($ 11,534.0), the best neighbor, Mongolia's GDP would be $ 36.0 billion, 2.8 times the actual level. With the GDP per capita at the same level as the GDP per capita in the world ($ 11,230.0), Mongolia's GDP would be $ 35.1 billion, which is 2.7 times the actual level. With GDP per capita at the same level as GDP per capita in Asia ($ 7,006.0), Mongolia's GDP would be $ 21.9 billion, which is 68.1% more than the actual level.

Picture. Mongolia GDP, 1970-2018

Picture. GDP per capita in Mongolia, 1970-2018

Picture. GDP growth in Mongolia, 1970-2018

Mongolia GDP by Expenditure

February 25, 2015

Mongolia

Country Economy :: Mongolia

Economy - short review:
Business activity in Mongolia has traditionally been based on herding and agriculture- Mongolia's vast mineral deposits, however, have attracted foreign investors. The country holds copper, gold, coal, molybdenum, fluorite, uranium, tin, and tungsten deposits, which account for a significant portion of government revenues and foreign direct investment. Soviet aid, at its one-third of the height of the GDP, disappeared almost quickly in 1990 and 1991 during the dismantling of the USSR. The next decade saw Mongolia endure both deep recession, due to political inaction and natural disasters, as well as economic growth, due to the encompassing reform, free market economy and extensive privatization of the formerly public sector of the economy. Severe winters and summer drought in 2000-02 resulted in massive livestock extinction and zero or negative GDP growth. This was compounded by falling prices for Mongolia's core sector exports and widespread opposition to privatization. Growth averaged nearly 9% annually in 2004-08 due in large part to high copper prices and new gold production. In 2008 Mongolia experienced high inflation rates with annual inflation reaching nearly 30% - the highest inflation rate in more than a decade. Towards the end of 2008, as the country began to feel the effects of the global financial crisis, falling commodity prices helped lower inflation, but also reduced government revenues and spurred spending cuts. In early 2009, the International Monetary Fund reached a $ 236 million Reserve Arrangement with Mongolia and the country began to move out of the crisis, although the banking sector remains volatile. In October 2009, the government passed the long-awaited investment agreement law to develop Mongolia's Oyu Tolgoi mine, considered to be one of the world's largest untapped copper deposits. Mongolia's economy continues to be heavily influenced by its neighbors. Mongolia buys 95% of its petroleum products and significant amounts of electricity from Russia, leaving it vulnerable to price increases. Trade with China represents more than half of the total foreign trade Mongolia - China receives about two-thirds of Mongolia's exports. Money transfers from the Mongols working abroad are significant, but have come to an economic crisis; money laundering is a growing concern. Mongolia joined the World trade organization in 1997 and seeks to expand its participation in regional economic and trade regimes.

GDP (purchasing power parity):
$ 9.36 billion (2009 estimate)

Note:

GDP (official exchange rate):
$ 4.203 billion (2009 est.)

GDP - real growth rates (adjusted for inflation):
-1.6% (2009 est.)

GDP - Per Capita (PPP):
$ 3,100 (2009 estimate)

Note:
data are in 2009 USD

Structure of GDP by sectors of the economy:

agricultural:
21.2 %

industry:
29.5 %

services sector:
49.3% (2009 est.)

Labor resources:
1.068 million (2008)

Labor resources by sectors of the economy:

agricultural:
34 %

industry:
5 %

services sector:
61 % (2008)

Unemployment rate:
2.8 % (2008)

Share of population living below the poverty line:
36.1 % (2004)

Household income or share consumption of interest:
10% (1-
decile) of the lowest income households:
2.9 %
10% (10-
decile) of the highest income households:
24.9 % (2005)

Household income distribution - Gini index:
32.8 (2002)

Budget size:

income:
$ 1.38 billion

costs:
$ 1.6 billion (2009)

Inflation growth (retail prices):
4.2% (2009 est.)

Basic loan rate (prime rate) at commercial banks:
21.67% (31 December 2009 est.)

Stock of tight money:
$ 451.4 million (December 31, 2009)
$ 510.7 million (December 31, 2008)

Stock of broad money:
$ 1.996 billion (December 31, 2009)
$ 1.791 billion (December 31, 2008)

Agricultural products:
wheat, barley, vegetables, forage crops; sheep, goats, cattle, camels, horses

Dominant sectors of the industrial economy:
building and construction materials; mining (coal, copper, molybdenum, fluorite, tin, tungsten, and gold); oil; food and drinks; processing animal products, cashmere and natural fiber production

Industrial production growth rates:
3% (2006 estimate)

Electricity - production volume:
4.03 billion kWh (2009)

Electricity - consumption volume:
3.439 billion kWh (2009)

Electricity - export volume:
21.2 million kWh (2009)

Electricity - import volume:
186.1 million kWh (2009)

Oil - production volume:
5,100 bbl / days (2009)

Oil - consumption volume:
16,000 bbl / day (2009 est.)

Oil - export volume:
5,300 bbl / d (2009 est.)

Oil - import volume:
0 bbl / days (2009)

Oil - Proven Reserves:
Barrel NA

Natural gas - production volume:

Natural gas - consumption:
0 cubic meters m (2008 estimate)

Natural gas - export volume:
0 cubic meters m (2008 estimate)

Natural gas - volume of imports:
0 cubic meters m (2008 estimate)

Current account balance:
- $ 228.7 million (2009 estimate)

Export volume:
$ 1.902 billion (2009)

Export volume - commodities:
copper, apparel, livestock, animal products, cashmere, wool, lurking, fluorite, other non-ferrous metals, coal

Export volume - partners:
China 78.52%, Canada 9.46%, Russia 3.02% (2009)

Import volume:
$ 2.131 billion (2009)

Import volume - commodities:
machinery and equipment, fuels, automobiles, foodstuffs, industrial consumer goods, chemicals, building materials, sugar, tea

Import volume - partners:
China 35.99%, Russia 31.56%, South Korea 7.08%, Japan 4.8% (2009)

External debt:
$ 1.86 billion (2009)

Foreign Direct Investment Stock - at home:
$ NA

Stock of foreign direct investment - abroad:
$ NA

Exchange rates:
togrog / tugriks (MNT) per US dollar - 1,442.8 (2009), 1,267.51 (2008), 1,170 (2007), 1,165 (2006), 1,205 (2005)

Money

Suffice it to say that from 2000 to 2014, Mongolia's GDP grew more than 10 times, from $ 1.1 billion to $ 11.7 billion. In the crisis year of 2009, the country's economy fell by 1.1%, and in 2011 it grew by 17.5%. In recent years, growth rates have begun to slow down, but have continued to be impressive. So in 2014 the growth was 9.1%.

Of course, this is not just a low base effect, but an ultra low base effect. For a long time, Mongolia was included in the least honored top of the poorest countries in the world. In 2000 Country GDP per capita purchasing power parity (PPP) was equal to $ 3.3 thousand. For comparison: China in the same year had a GDP per capita in PPP equal to $ 2.8 thousand, South Korea - $ 16.4 thousand, Russia - $ 10.4 thousand, the United States - $ 36.4 thousand.

Mongolia's real neighbors were such "great" countries as Yemen, Bolivia, Congo, Turkmenistan, etc.

By 2014, the GDP of Mongolia at PPP reached $ 11.8 thousand, China - the same $ 11.8 thousand, South Korea - $ 35.2 thousand, Russia - $ 24.8 thousand, the United States - $ 54.6 thousand.

Now Mongolia is adjacent to Tunisia, Egypt, Peru, Jordan.

For 15 years, the nation has opened a window, if not to Europe, then at least to the league of civilized countries. This is a historic achievement. No exaggeration.

The Mongolian economic miracle is of a rental nature. By the middle of the 2000s, the sluggish export of cashmere and leather lost its relevance against the background of a boom in the development of unique mining deposits in the south of the country. Coal, copper, gold, rare earths - all of this went on sale and began to bring an impressive income. With a population of less than three million, Mongolia has only $ 2.75 trillion in proven reserves of valuable resources.

Thus, with a favorable coincidence, the fate of Mongolia awaits Kuwait, OJSC and Qatar, where the small local population is literally drowning in the money received from the export of raw materials.

However, coal and copper are still not oil, and Ulan Bator is far from Dubai. Prices for mining products are volatile and highly dependent on the balance of supply and demand. Now there is an excess of supply on the market, but the problem with demand is that China, which is the main importer of Mongolian coal, is significantly slowing down. The fall in prices has already affected the economy of Mongolia, the forecast for GDP growth for 2015 does not exceed 5-7%.

It should be understood that for Mongolia, China is both a savior and a destroyer rolled into one. Today, 87-89% of Mongolian exports go to the PRC. A monstrous skew. The role of an energy appendage of the Chinese Empire does not suit a significant part of the Mongolian elites. The situation is complicated by the fact that historically the Chinese and Mongols are very cool towards each other - the Chinese have fought for centuries with the nomadic peoples of the northern steppes.

At the same time, China is not only the main sales market for Mongolian products, but also a key investor. The country's authorities are working out plans to build a network of trunk roads and railways, forming a single transport corridor between China, Mongolia, Russia and the countries of Central Asia, which is essentially a modern analogue of the Great Silk Road. Mongolia does not have the tens of billions of dollars needed to build such a road network. But the PRC has them.

Another problem for Mongolia is the lack of access to the world's oceans. And here again one cannot do without China, which provides Mongolia with transit to its own ports in the Yellow Sea.

On the border of Mongolia and China, the Special economic zone... The rise of light industry is observed here.

Here is an example: a bicycle factory is being built on the Mongolian side of the border. Much of the investment is in China, with workers living on the Chinese side and crossing the border every morning to get to the machines. As a result, the Chinese factory produces bicycles labeled "made in Mongolia", which allows them to be sold in Western markets at reduced tax rates. The plant is located in joint ownership Chinese and Mongolian companies, which makes such a business scheme extremely beneficial for all participants in the process.

At the same time, the Mongolian establishment is gradually coming to understand that a rental economy focused on China is not a panacea for all ills. In recent years, attempts have been made to diversify National economy... The real estate market, trade, and the service sector are developing at a galloping pace. Ulaanbaatar of 2015 is like a giant anthill: whole sleeping areas and huge shopping and entertainment malls are being built from scratch in the field.

Local businessmen dream of turning Ulaanbaatar into a global financial center on the level of Singapore, Hong Kong and Shanghai. So far, these are only bold dreams, but certain progress in this direction is already visible. So in the very center of Ulan Bator there is a beautiful skyscraper with a proud sign: "International commercial center". This is not the end of the matter - the country has adopted liberal legislation that maximally protects the right to private property and business in general. Add to this a soft tax and customs regime, and we have the potential of an alluring semi-offshore country in the heart of Asia.

Power

Mongolia is a functioning parliamentary democracy. For such a poor Asian country, this is surprising, given that all of its closest neighbors follow authoritarian models. Free general elections are held in Mongolia, power is regularly changed, and the State Great Khural exercises real control over the executive branch. For understanding: the government of the country is formed by the Khural, who also has the right to veto on all key issues.

The core of political life is the constant confrontation between the two largest political parties: the socialist MPRP and the liberal PDM. From time to time, the country experiences parliamentary crises, sometimes turning into open clashes. Yet somehow the local elite manage to maintain a fragile balance of power. With some reservations, we can conclude that now in power in the country are progressives market-oriented, inclined to decisive reforms and further integration of the country into the river of world capitalism.

And yet, speaking about the development of Mongolia, political risks can hardly be overestimated. General direct elections in a poor agrarian country are fraught with the coming to power of populists, socialists and nationalists. The local descendant of the CPSU, the MPRP, regularly wins elections and claims dominance in the political field.

Today in Mongolia, on the agenda is a large-scale constitutional reform, which, as conceived by the Democrats, should lead the country to some semblance of a German political model with a strong prime minister, nominal president and a de facto bipartisan parliament. The success or failure of these ambitious endeavors will largely determine the political landscape of Mongolia for the coming years.

On the path of reform, Mongol progressives do not try to reinvent the wheel. They simply take the world's best examples and try to implement them, adjusted for Mongolian realities. A fairly successful anti-corruption campaign is underway in the country. In 2014, Mongolia was ranked 80th in Transparency International's international corruption perceptions ranking, ahead of India (85th), China (100th) and, of course, Russia (136th). In the not too distant 2011, Mongolia was in 120th place in the ranking. Feel the difference, as they say.

Mongolia has passed an extremely tough law against illicit enrichment officials. Every servant of the sovereigns is obliged to publish on the Internet not only a declaration of income, but also of expenses. Any purchases worth more than 3 million tugriks (about $ 1.5 thousand) are subject to official declaration.

New government buildings in Mongolia, including the Ulaanbaatar City Hall, for example, are being built of glass. Demonstration of the transparency of the state apparatus.

Although there is still a long way to go to a complete victory over corruption. Clan system and nepotism flourish in Mongolia. The tradition of bribes and "gifts" is rooted and difficult for foreigners to understand.

Nationalism is strong in Mongolia. The obvious and easily explainable cult of Genghis Khan, combined with the still extremely low level life and archaic consciousness of the rural population often gives an explosive effect.

Among other things, Mongolia is experiencing a very peculiar variation of the Weimar Syndrome. In every museum or souvenir shop in the country, a map hangs in a place of honor, where arrows show who, how and in what year the Mongols conquered. In private conversations with Mongolian politicians and businessmen, an unspoken longing for the greatness lost by Timujin's descendants sounds like a refrain.

The myth of Great Mongolia from the Mediterranean to the Pacific Ocean is undoubtedly one of the defining features of the local ethnos and national consciousness.

Future

Mongolia is a country with big problems. The harsh climate, the lack of access to the sea, the illiterate and small local population, the high dependence on rental income and the goodwill of China, invincible corruption, militant nationalism that rears its head ...

It can take a long time to list troubles and threats. But all this retreats before the wind of change, before the sight of a nation that rises from its knees. Not on TV, but in fact.

You come to Ulaanbaatar expecting to see a large village with yurts and flocks of sheep grazing in the city center, but you see a stunningly colorful, rapidly expanding metropolis with high-rise buildings made of glass and concrete, five-star hotels and eight-lane streets.

In Mongolia, one can feel the breath of freedom brought by the life-giving movement of world capital and the political will of local reformers. This is not a figure of speech. A simple example: the budget of Mongolia pays for 100% of tuition if their student enrolled in the TOP-20 world universities, and 50% if in the TOP-100. When allocating a subsidy, only one condition is set, according to which, upon graduation, a citizen of Mongolia must return to his homeland and work here for at least three years. There is an exception to this rule - a student can stay to live abroad if he is offered a high position in a Western company.

This policy is effective. Five to seven years ago, there were only a few dozen students in Mongolia with a postscript to foreign universities, and today there are thousands. So the current Prime Minister of the country, Chimediin Sayhanbilag, was educated at George Washington University in Washington, which in itself speaks volumes.

Education in Mongolia is seen as a profitable investment that serves to increase GDP or increase the country's prestige in the eyes of world powers. Reasonable and very modern approach.

And what about Russia? But nothing. The "Great Northern Neighbor" frankly slept through the Mongolian economic and humanitarian boom.

In the SEZ on the border with China, factories and roads are being built, and in the SEZ in the region of Kyakhta and Altanbulag, the wind drives garbage and desert thorns. The PRC buys everything from Mongolia - from coal to meat, and Russia cannot even start importing mutton into the border regions of Ulan-Ude and Chita. They have a market, and we have import substitution.

The USSR took 98% of Mongolia's exports, today China takes 87%.

The Mongolian generation 40+ polls speak Russian with almost no accent, while the generation 20+ learns English, Chinese, Korean, and looks at Russians as a visiting wonder.

Even at the beginning of the 2000s, the Mongolian army cut through in Soviet caps with Kalashnikov assault rifles, and now special forces units armed and equipped according to the American model are parading across Red Square.

The abolition of the visa regime between Russia and Mongolia is an absolutely necessary and correct measure. But visas should have been canceled not now, but ten years ago. Perhaps then the drift of Mongolia towards China and the Asia-Pacific countries would not be so one-sided.

However, the abolition of visas is fruitful in any case. There is no doubt that in a year or two in Ulaanbaatar there will be no fewer Risans than the same Koreans or Indians. The country's attractiveness for foreign investment is obvious and all the more relevant against the backdrop of an ever worsening economic and political situation within Russia itself. So far, the Russians are still poorly informed about the state of affairs in modern Mongolia, but with an open border, this situation will change rapidly.

The Mongols say that their country lies under the "eternal blue sky." And today this sky is open to everyone.

UDC 339.9 (517.3)

A.P. Sukhodolov, Yu.V. Kuzmin

ECONOMY OF MONGOLIA IN GREATER EURASIA

The article presents the characteristics modern economy Mongolia, its problems and difficulties. The main attention is paid to the analysis of Mongolia's foreign economic relations in East Asia with the main partners in the region. The issues of foreign investment in the Mongolian economy, especially the country's raw materials sector, as well as the formation of China-Mongolia-Russia transport corridors are considered.

Key words: economy of Mongolia; raw materials; foreign investment; Russia; China; "Third neighbor"; transport corridors; national interests.

A.P. Sukhodolov, Yu.V. Kuzmin

ECONOMY OF MONGOLIA IN THE SYSTEM OF GREATER EURASIA

The article presents the characteristics of the current economy of Mongolia, its problems and difficulties. The focus is on the analysis of foreign economic relations of Mongolia with its key partners in East Asia. The authors consider the issues of foreign investments into Mongolian economy, namely the country "s commodities sector and formation of the transport corridor China-Mongolia-Russia.

Keywords: Mongolia "s economy; natural resources; foreign investments; Russia; China; the" third neighbor "; transport corridors; national interests.

Modern world economy entered the zone economic instability and reformatting. Economic data

processes and trends took shape and showed themselves after 2014. Previously, they had a hidden nature and manifested themselves in a very veiled form. For a long time, globalization seemed unshakable and eternal. The processes of globalization have become universal and have captured the economic, political, scientific, informational and cultural spheres. But it turned out that this was not so, and a lot began to change.

A serious structural reformation is taking place in the world, a multipolar economic order is being formed; the attempt by the United States after the collapse of the USSR to create a unipolar world, focused on one country, one currency, one liberal model of the economy, failed. The countries of the world did not accept this system, they explicitly and directly resisted it. Attempts to impose an American order in Western Asia through "color revolutions" also met with stiff resistance and opposition. The countries of Islamic civilization have their own values, which are more ancient and profound than the young American model, which is one of the Western models of the economy, and it does not represent the best part of it. The social market model, which is especially successful in France, Germany, and Sweden, may be more attractive in the world economy. Unfortunately, we have to admit that it is also exhausting its economic potential, needs a serious socio-economic adjustment and, apparently, this will happen in the coming years. In the last decade, the economic experience of Finland, Norway, Denmark has been quite successful, where the interests of the elite and the population are harmoniously combined. Of course, these are very small countries where successful education systems, social assistance and support systems are possible in countries that are small in population and area.

The economy of Mongolia over the past 25 years has gone through a difficult path of transformation of the national economy from a state-planned to a market economy. Mass privatization was carried out in stages state property, now the share of the private sector is 80%. On this path, there were not only achievements, but also losses. The share of industrial production was reduced. In 1990-2003. gross industrial production declined

by about 20%, the lowest point was in 1993 -40%. Volume doubled mining industry and the volume of manufactured goods decreased by 2.5 times (Graivoronskiy, 2007, p. 25). The production of non-ferrous metals (copper), gold, coal and oil is growing rapidly.

The economy of modern Mongolia is going through a difficult period of its development. The global economic crisis and the fall in demand and prices for Mongolia's raw materials (copper, coal, oil, etc.) have led to a sharp decline in company profits, employment and state budget revenues. The lack of competition for raw materials in Mongolia and the purchase only by China led to a sharp decline in prices for copper, coal, agricultural raw materials.

Mongolia's GDP growth in 2014 was 7.9%, in 2015 - 2.3%. Previously, there were years when GDP growth reached 14% per year, when commodity prices were stable and high.

As you know, Mongolia has large world-class deposits of coal (Tavantolgoy), copper (Oyutolgoy, Erdenet), which have been developed and are already being exploited. Export raw materials- the leading item of budget income, more than 60% of budget income. Therefore, the fall in world prices for raw materials immediately affects the economic situation of the country, the income of the population and its employment. This is the weak point of the modern Mongolian economy. This circumstance is aggravated by the fact that the main buyer of this raw material is one buyer - China, which enjoys a monopoly position and dictates the pricing policy on the Mongolian market. In these conditions, the diversification of the Mongolian economy (and above all the rapid development of manufacturing and knowledge-intensive sectors of the economy) and the search for new foreign economic partners in the world market are an urgent need for the stable development of modern Mongolia.

Mongolia is landlocked and this complicates its foreign economic relations. Its location between Russia and China, dependence on economic and political relations with neighboring countries seriously affect the economic situation of the nomadic country. Currently (early September 2017) Mongolia is looking for options for transporting Mongolian-

coal through the seaport of Vladivostok. This will avoid the low price offered by Chinese buyers, as it will allow access to alternative markets in East Asia (South Korea, Japan, etc.). It should also be noted that Mongolia has a fleet that sails under the Mongolian flag (more than 200 ships different countries). Mongolia, within the framework of the Eastern Economic Forum in Vladivostok, resolved the issue of training Mongolian maritime specialists. The most difficult problem is the railway tariffs for the transportation of goods, in in this case preferential rates are required.

Mongolia was already part of the Qing Empire and part of the Soviet bloc, so it wanted to maintain economic and political independence. Mongolia's policy statements of neutrality and the practical implementation of this provision have little agreement. Mongolia's economy is currently under significant economic impact powerful China (investment, foreign trade). During the last presidential campaign, all presidential candidates emphasized the high dependence of the Mongolian economy on its southern neighbor and considered it necessary to expand Russian-Mongolian economic cooperation in order to balance relations in the Russia-Mongolia-China triangle.

Great hopes in Mongolia pinned and are pinning on the so-called. Mongolia's "third neighbor" represented by the United States, Japan, South Korea, and Western European countries. Unfortunately, the scale of economic cooperation and investment is insignificant and does not compensate for the scale of cooperation in the triangle. Modern Mongolia is actively expanding economic cooperation with countries that were not previously its active partners: Iran, the United Arab Emirates, Israel, Turkey, etc. There are significant opportunities for expanding economic and scientific cooperation. For example, more than 400 Mongolian students are already studying in Turkey; in distant Australia - more than 200 students and undergraduates.

The largest and closest economic and political relations link Mongolia with Japan and South Korea. Most Mongolian migrants work and study

in South Korea, significant scientific ties between Mongolia and Japan, investment support for Mongolia also from Japan and South Korea, which are regarded as close and kindred Asian peoples. Mongolian youth also gravitate towards youth Korean culture. Both countries are perceived in Mongolia as Asian countries that have achieved outstanding results.

The main economic problems: lack of investment, small population (3 million people) and its uneven distribution in the center of the country, Ulan Bator (1.4 million people), political instability and frequent changes in Mongolian governments (15 governments over 10 years), corruption and capital export ...

Frequent changes of governments, changes in legislation in the field of mining and taxation in this area lead to an outflow of foreign investors, frequent lawsuits. The corruption component has led to a huge social stratification of Mongolian society and social instability. The Investment Forum in Ulaanbaatar in early September 2017 highlighted the need to develop specific and stable rules for attracting foreign capital, reduction of administrative obstacles.

Active mining leads to the displacement of Mongolian nomads from their traditional places of residence and the destruction of the environment. Desertification processes have also become rampant for Mongolia. Desertification processes in Mongolia have a natural basis associated with a warming world climate and the impact of the development of pastoralists, in connection with the mass breeding of livestock (80 million head of livestock), especially Mongolian goats.

The Mongolian government and the country's scientific elite are interested in the development of the processing industry and high technology production. Mongolian scientists and inventors offer a variety of high-tech technologies that are supported by business and government agencies. Mongolian youth are talented and dynamic, they actively receive education in the best foreign universities, participate in scientific projects and win intellectual competitions. So, in August

In 2017, the Mongols won 73 medals out of 90 possible at the Asian Games. Over time, this can turn into quality. True, this also has a downside - the migration of talented Mongolian scientists abroad.

Mongolia's special position between two major powers, Russia and China, has also acquired its economic advantages in recent years. The transformation of China into a world economic power, which is interested in stable transport corridors China - Europe, the formation of transport corridors "One Belt - One Road", the new Alkaline Road includes Mongolia as one of the important links of these projects. Mongolia's inclusion in the system of international rail, air and road corridors will strengthen the country's economic position in the international economy, especially in Inner Asia. Mongolia is considered one of the six options for transport corridors China - Western Europe... At present, the transport corridor from China through the countries of Central Asia is actively functioning, which allows the Chinese side to successfully maneuver with other options and partners. In August 2017, a working meeting of representatives of transport structures of Russia, Mongolia and China was held in Ulan-Ude and it was decided to form the Tien Jin - Ulan Bator - Ulan-Ude transport corridor in two versions: rail and road. The implementation of this Project is scheduled for early 2018. We are talking about the modernization of existing roads and improvement of border crossings, as well as the creation of modern infrastructure in transit countries.

Mongolia is improving the quality of the country's railways and highways, increasing the speed of transportation, and increasing the number of border checkpoints for passengers and goods. This will improve or re-create modern highways, international airports, and increase the number of modern jobs in the service and tourism sectors. Discussions also continue in Mongolia: what kind of railways to build in Mongolia: Russian or Chinese standards?

Construction of a new railroad from Erdenet to the border with Tuva, its connection with the road along Tuva, which is just being built, is expected in the future. This will sharply shorten the path to Europe and reach the developed regions of Southern Siberia.

As you know, at present, China is actively creating a system of transport corridors to Europe through the countries of Central Asia, partially affecting Russia. This corridor is shorter in time than the Russian Transsib, therefore, it indirectly intensifies competition. China is actively creating hubs in the countries of the world, that is, warehouses of Chinese products, roads, bridges and other transport corridors necessary for the rapid delivery of Chinese goods or their production in a given territory. For example, the world's longest freight rail corridor Harbin-Hamburg was launched. Also, for example, in Belarus, near Minsk, the so-called industrial park "Great Stone" is being created, on an area of ​​80 km2. This entire project is estimated at about $ 80 billion.

High rates of economic growth in the PRC, the emergence of a number of industries of the country's industrial production in leading positions in the world, the formation of a new transport system and logistics in Northeast Asia, including the so-called "New Silk Road", will create significant problems and difficulties for Russian economy, which is losing its economic position in the modern international economy, due to economic sanctions, the outflow of domestic and foreign capital from the country and inadequate to the requirements of the time economic model development of Russia. The serious strengthening of the geopolitical and military status of Russia so far compensates for the economic bloc, but in the future this will manifest itself in an increasingly negative light.

Strategic partnership with China also has its limits, so the very concept of strategic partnership for modern China is generally unacceptable. The state of JunGo (the Middle State or the Middle Empire) did not consider and considers neighboring countries and peoples as strategic partners, but only as temporary allies, and not always with equal rights.

nym. We consider this political, economic and military partnership tactical, on the part of China, until it strengthens its position to the level of equal military-geopolitical potential of the United States or close, for direct competition and confrontation (emphasis added by the author). The Russian side needs to specifically calculate not only positive prospects, but also the difficulties and problems that will arise during the implementation of the Projects initiated and promoted by the Chinese side.

The economic superiority of the PRC in the near future will be supplemented by military-geopolitical superiority and a higher scientific level of world leadership. Expenditures on science and education in China, which exceed Russian ones by times, are already yielding their first fruits, and, in the near future, will show the whole world real scientific achievements of the world level.

Russia declares its economic, political and scientific interest in Russian-Mongolian cooperation, but so far it is incomparable with the size of the Sino-Mongolian economic cooperation, Chinese investments and opportunities. Mongolia's economy is all in to a greater extent becomes dependent on China. The credits received will have to be repaid in the near future, it has not yet been possible to find other buyers of Mongolian raw materials, and prices for it are kept at a low level. The Chinese leadership reacted rather harshly to the visit of the Dalai Lama to Mongolia, and most importantly did not provide the promised loan of $ 4 billion.

In general, the position of Russia and Mongolia in the Russia-Mongolia-China triangle is in a sense quite similar, although not identical. By the structure of their exports to China, they are raw material suppliers for fast growing economy China, a kind of appendages of the economy or periphery Chinese economy, which is rapidly moving towards world leadership. This cooperation is more in line with the national and economic interests of China, and not Russia and Mongolia. Further development in this direction will have Negative consequences for the economies of Russia and Mongolia, especially the Mongolian economy, which is seriously dependent on the PRC.

The Mongolian economy needs to dramatically increase the manufacturing industry, modern technologies in agriculture, energy, communications. Another one to be created and developed Big City to relieve the overpopulation and environmental distress of the Mongolian capital. Investing breakthrough Mongolian technologies in certain areas (medicine, alternative energy, electronics, etc.) will make it possible to use the accumulated intellectual potential Mongolian scientists. Intensive development of regional economic relations Mongolia with Buryatia, Tyva, Irkutsk Oblast and the Trans-Baikal Territory will allow joint efforts to intensify national economy and preserve independence, improve the quality of life of the Mongolian population.

Sukhodolov Alexander Petrovich - doctor economic sciences, professor, rector, Baikal State University, 664003, the Russian Federation, Irkutsk, st. Lenin, 11, e-mail: [email protected]

Kuzmin Yuri Vasilievich - Doctor of Historical Sciences, Professor, Department of World Economy and International Business, Baikal State University, 664003, Irkutsk, st. Lenin, 11, e-mail: [email protected]

Alexander P. Sukhodolov - D.Sc. in Economics, Professor, Rector, Baikal State University, 11 Lenin St., 664003, Irkutsk, the Russian Federation, e-mail: [email protected]

Yuri V. Kuzmin - DSc in History, Professor, Department of World Economy and International Business, Baikal State University, 11 Lenin St., 664003, Irkutsk, Russian Federation, e-mail: [email protected]

Mongolia Economy

Economy - at a glance:

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

Mongolia has extensive mineral deposits.

The country hosts copper, gold, coal, molybdenum, feldspar, uranium, tin, tungsten, mining and processing industries account for most of the foreign direct investment and government revenues.

Severe winters and summer droughts in 2000-2002 resulted in massive livestock deaths and zero or negative GDP growth.

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

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

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

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

Mongolia's economy remains heavily dependent on its neighbors. Mongolia buys 95% of oil and a significant amount of electricity from Russia, which leaves it vulnerable to price increases. Trade with China accounts for over 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 dropped due to 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.

US $ 3,100 (2009)

4,030 million kWh (2009)

5,100 bbl / day (2009)

5,300 bbl / day (2009)

- $ 228.7 million (2009)

Country comparison to the world: 93

- $ 710 million (2008)

Export:

$ 1902 million (2009)

Country comparison to the world: 130

$ 2,539 million (2008)

Export - 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)

Import:

$ 2,131 million (2009)

Country comparison to the world: 150

$ 3,224 million (2008)

Import - goods:

machinery and equipment, fuels, cars, food, industrial consumer goods, chemicals, building materials, sugar, tea