Mongolia Brief January 29, 2015
Performance
agreement signed with heads of agencies
By B.
Amarsaikhan
Ulaanbaatar,
January 29 (MONTSAME) Deputy Prime Minister U.Khurelsukh signed performance
agreement on Wednesday with the heads of six government agencies, included in
his scope of responsibility. It was in light of setting up optimal plans of
activities, thoroughly pursuing the laws and regulations on state services,
conducting state activities fairly without contradiction of interests, and of
determining roles and responsibilities of state budget administrators.
The agreement
was signed by the Deputy PM Mr Khurelsukh, chairman of the General Emergency
Department, Colonel of Emergency T.Badral, chairman of the Department for
Intellectual Properties N.Chinbat, chairman of the Authority for Fair
Competition and Costumers’ Rights T.Ayursaikhan, chairman of the Department for
Standardization and Measurement G.Gantomor, and chairman of Procurement Agency
D.Enkhjargal.
“We have been
presented with the results and observances of the performance agreement for
2014, and the performance plans for 2015 await us” said the deputy PM and noted
that the state organizations are supposed to serve for the people and work for
the sake of them. He also obligated the heads of the agencies to conduct higher
accountability as the country is transmitting to cost-cutting regime, and
wished them success.
Postage
stamp issued for three-millionth citizen
By B. Khuder
Ulaanbaatar,
January 29 (MONTSAME) A ceremony took place Wednesday in the Central Post to
inaugurate a new postage stamp dedicated to birth of the three-million citizen
who was born on January 24, 2015.
A total of
20 thousand copies of the new postage stamp have been issued by the Department
of Mongolian Postage Stamps and the government of Mongolia. The stamp’s
envelope has been made in 150 copies, and all of the envelopes have been sold
on the inauguration day.
Present at the
ceremony were B.Otgonjargal, the State Secretary of the Ministry of Population
Development and Social Welfare; Batsaikhan, an executive director of the Mongol
Post state-run company; I.Narantuya, head of the National Center for Children;
D.Ganbold, chairman of the Department of Mongolian Postage Stamps; P.Tsegmid, a
painter and State Honored Figure of Culture; and philatelists.
Vice
FM meets Ambassador of Belarus
By B. Khuder
Ulaanbaatar,
January 29 (MONTSAME) The Vice Minister of Foreign Affairs N.Oyundari Thursday
received Mr S.V.Chepurnoi, the Ambassador Extraordinary and Plenipotentiary of
the Republic of Belarus, at the latter’s request.
At the meeting,
the sides exchanged views on the bilateral relations and cooperation, and
considered actions to be done in 2015 within the ties.
Union
to promote Internet freedom gains support from Members of Parliament
January 29
(news.mn) Most of the world is critical of the restrictive policy of repressive
countries where the use of the Internet is limited and censored. To stand up
against violations to the rights of citizens and media, the Union of Online
Freedom has been established.
The ideology of
the union is being encouraged and promoted by the following Members of
Parliament who encourage Internet freedom: L.Bold, L.Enkh-Amgalan, S.Oyun,
D.Ganbat, Ts.Oyungerel, and G.Bayarsaikhan. The MPs have initiated the
establishment of a parliamentary group to maintain Internet freedom.
In modern
society, with the development of advanced technology, the main purpose of this
group is to create a legal environment to protect democracy in Mongolia,
and to strengthen and develop it.
The Online
Freedom International Coalition's meeting of Ministers will be organized in May
2014 in Tallinn, Estonia. This year’s meeting will be headed by Mongolia.
Lost
World Mongolia
January 29
(gogo.mn) Russian photographer Denis Frantsouzov made photo expedition to
Mongolia during last summer. His intention was to make short film about this
incredible country and was not disappointed as he encoutered new adventures
every day during his trip.
He came back
from the trip with 100,000 shots worth 1 TB portable hard drive and couple more
SDs.
It took him
three and a half month worth of processing work, one week of editing to make
fascinating video of 23 minutes.
Below is the
short film #LostWorldMongolia and several photos. This is a
must watch and if possible experience it on a wide screen. If you are not able
to do it right now, better postpone the review until you have opportunity to
view it on a wide screen. Believe us, this is worth the wait!
No plagiarism
was intended with reposting this amazing work of a talented photographer. All
the credits go to Denis Frantsouzov. You can visit the original source here.
Fuel
Prices to be Stable
By B. Ireedui
January 29
(gogo.mn) (Ulaanbaatar) January 19th Cabinet session approved taxes on duel to
be MNT 252,000 for A-80 per ton, MNT 259,000 for AI-92 per ton and MNT 265,000
for diesel fuel per ton.
The taxes
should accumulate around MNT 220 billion to the state budget. Retail prices at
the gas stations were comparatively stable over the past two years. According
to the Ministry of Mining the retail prices should be stable for the next year
as well.
As of January
27th Mongolia has the reserves of fuel for 45 days. Out of which, A-80 fuel
reserve is at 65 days, Ai-92 - 53 days, diesel fuel - 46 days, TC-1 or plane
fuel reserves are for 15 days.
Related:
Prices for petroleum
products will stay stable – news.mn,
January 29
Bayangol
Blood Collection Center opens
By G. Ermuun
January 29
(gogo.mn) Bayangol Health Complex opened Bayangol Blood Collection Center.
This is the one
of the first blood collection center that fully complies with international
health standards, directed at increasing the blood reserves, initiate blood
donor movement among the residents and improve the quality and safety of blood
products.
Opening
ceremony was attended by the Deputy Minister of Health and Sports D.Atarmaa, MP
S.Odontuya, Head of Blood Transfusion and Research Center N.Erdenebayar, Head
of the Bayangol Health Complex U.Batjargal and honored blood donors.
Mongolian
Wrestlers to compete in France and Austria
By B. Nyamdari
January 29
(gogo.mn) January 31st is the first day of the Grand Prix competitions in
Paris, France. The contestants are to compete in three different categories.
Mongolian
wrestlers to compete in the Paris Grand Prix with the members International
Sports Master E.Narangerel /Khangarid club, 48 kg/, P.Rokhon /Aldar
club, 55 kg/, S.Byambatseren /Avragch club, 58 kg/ and
State Honored Athlete S.Tserenchimef /Aldar club, 63 kg/.
B.Batbayar,
Female Team General Coach will be acting as coach and L.Nyamchuluun,
International Referee will join the team.
During February
2-6 international gathering will take place after the Paris Grand Prix and team
Mongolia is to take part in the event as well. International Sports Master
G.Naranchimeg won Gold medal in 2006.
Next on the
agenda for team Mongolia is the Flatz Austria Open during February 6-7.
Cultural
Heritage at Gatsuurt Deposit to be saved
By U.
Badamtsetseg
January 29
(gogo.mn) Monday Chinggis Square witnessed the demonstration of group of people
striking against Gatsuurt Deposit with slogan Let's Save Noyon Uul.
In 1999, 2000
History Institute of Science Academy of Mongolia and in 2005 Anthropology and
Archaeological Department of NUM have conducted researches at the mining
license sites of Centerra Gold Mongolia LLC and concluded that there are
findings of Huns.
While the
graves and findings of ancient Huns are located just at 5.8 km South West of
the exploration site.
Huns graves and
findings are located at the Noyon Mountain are sparsed over Sujigt, Zuramt and
Khujirt locations, which are covering the area of Bornuur and Batsumber soums
of Tuv aimag.
R.Jigjid,
Minister of Mining expressed the stances of the Ministry of Mining as it seeks
to preserve and save the historical findings in accordance with legislation.
Further he
clarified that ministry has invited the experts from Archaeological Institute
and Paleontological Institute of Science Academy of Mongolia for the
informative sessions and experts confirmed that the graves are not located at
the mining site.
Also the
Minister added that Boroo Gold mining site is located at 45km distance from the
Gatsuurt and they have laid the road to transport the ores with the
consultation from the Archaeological and Paleontological Department of NUM, to
make sure that historical heritage is not influenced.
VIII
Mongolia-Turkey Economic and Trade Intergovernmental Meeting Arranged to Take
Place in Ulaanbaatar in 2015
January 29
(infomongolia.com) On January 28, 2015, Deputy Minister of Foreign Affairs Mrs.
Navaan-Yunden OYUNDARI received in her office the Ambassador Extraordinary and
Plenipotentiary of the Republic of Turkey to Mongolia, Mr. Murat Karagoz.
At the meeting,
sides touched upon several vital issues concerning bilateral relations
including upcoming visit of the Prime Minister of Mongolia to Turkey and agreed
to host the 8th Mongolia-Turkey Economic and Trade Intergovernmental Meeting in
Ulaanbaatar this year.
During the
meeting, Deputy Foreign Minister N.Oyundari noted the bilateral partnership in
educational sphere has been actively developing and underlined to seek
opportunities of collaboration in boosting the cooperation in trade and
economy, particularly, to enhance communication between entrepreneurs.
Moreover, she
proposed to negotiate on renewing the soft loan conditions to provide by the
Government of Turkey to Mongolia as well as to initiate and implement large
projects under the Turkish International Cooperation and Development Agency
(TIKA).
In response,
the Ambassador Murat Karagoz affirmed the developing cooperation and pledged to
consider issues forwarded and concluding the meeting, he conveyed a letter from
the state head of Turkey Recep Tayyip Erdogan to the President of Mongolia
Ts.Elbegdorj inviting to participate in the ceremonies marking the centenary of
the Battle of Gallipoli in Canakkale in late April of this year.
President of
the Republic of Turkey has sent out invitations to the leaders of 102 countries
with plans to hold massive ceremonies to mark the Commemoration of the 100th
Anniversary of the Battle of Gallipoli on April 23-24, 2015.
The Gallipoli
Campaign, also known as the Dardanelles Campaign or the Battle of Gallipoli was
a campaign of World War I that took place on the Gallipoli peninsula in the
Ottoman Empire between April 25, 1915 and January 09, 1916.
The ANZAC
Troops (Australia-New Zealand Army Corps) disembarked onto the shores of Canakkale
on April 25, 1915 in a bid to destroy Turkish artillery units, but were
defeated in bloody combat that continued until December 1915. Ever since,
Australians and New Zealanders have commemorated the Battle of Gallipoli on
April 25, on the date of the first landing, and on August 06 to August 10, the
second landing of the ANZAC troops.
Marking the
100th anniversary of the battle for Turkey, Australia and New Zealand, the
Turkish Government is set to organize ceremonies with the participation of
8,500 Australians and 2,000 New Zealanders. The U.K.’s Prince Charles and his
two sons, and the Prime Ministers of Australia and New Zealand, are expected to
take part in commemorations.
Vehicles
Ending with Even Numbers Restricted on Saturdays and with Odd Numbers on
Sundays until February 15, 2015
January 29
(infomongolia.com) On January 28, 2015, Governor of the Capital City and Mayor
of Ulaanbaatar E.Bat-Uul issued a Decree No. A/78 on temporary regulation of
restricting the vehicles in Ulaanbaatar depending on their plate numbers
endings due to approaching the National Holiday - Tsagaan Sar Festival.
This year’s
first day of Mongolian Lunar New Year falls on Thursday, February 19, 2015 and
until the holiday there are almost three weeks left and during this period the
number of vehicles from provincial regions is usually increased as well as it
is a peak season for commerce that caused traffic jam on the city road.
Therefore, in
order to reduce the traffic flow, vehicles those plate numbers ending with EVEN
numbers will NOT be participating on SATURDAYS or January 31, February 07 and
February 14 and vehicles ending with ODD numbers are NOT to participate on
SUNDAYS or February 01, February 08 and February 15, 2015. The regulation is
effective from 10 o’clock morning until 08:00 pm.
In conjunction,
it was previously reported that the “Made in Mongolia & Tsagaan Sar 2015”
exhibition and fair trade is being organized in 6 districts of UB welcoming the
holiday, so the fair trade is also arranged to take place at the Chinggis
Square on February 07-15, 2015.
Index
of Economic Freedom 2015: Mongolia
January 29
(infomongolia.com) On January 27, 2015, The Heritage Foundation and The Wall
Street Journal have released the 21st edition of the Index of Economic Freedom
that evaluates economic conditions and government policies in 186 countries.
Since its
inception in 1995, the Index, has tracked the progress of economic freedom
around the globe and measured the impact of advancing economic liberty. Like
its predecessors, the 2015 Index provides ample evidence of dynamic gains from
greater economic freedom, both for individuals and for societies. There is no
single formula for overcoming challenges to economic development and
maintaining prosperity, but one thing is clear: Around the world, governments
that respect and promote economic freedom provide greater opportunities for
innovation, progress, and human flourishing.
As the 2015
Index shows, Hong Kong is the top-rated economy with its economic freedom score
of 89.6. Its overall score has declined by 0.5 point since last year,
reflecting a higher level of perceived corruption that outweighs small
improvements in business freedom, labor freedom, and fiscal freedom.
As of Mongolia,
the economic freedom score is 59.2, making its economy the 96th freest in the
2015 Index. Its overall score has increased by 0.3 point since last year, with
improvements in four of the 10 economic freedoms, led by freedom from
corruption and fiscal freedom, outweighing declines in business freedom, the
management of public spending, and monetary freedom. Mongolia is ranked 19th
out of 42 countries in the Asia–Pacific region, and its overall score is above
the regional average but below the world average.
A massive
investment boom has reshaped Mongolia’s economy into a leading coal exporter.
However, gains in economic freedom made after 2011 have been undermined by a
subsequent decline that revealed underlying structural weaknesses and has
pushed Mongolia into the “mostly unfree” category.
At the root of
this negative development are increasing fiscal indiscipline and weak rule of
law. The government’s direct interest in the coal project has exposed it to
cyclical revenue changes. The budgetary outlook discounts benefits from future
mining windfalls by expanding spending in the short term. The judicial
framework remains vulnerable to political influence, and the perceived level of
corruption is still high.
Background
Mongolia
emerged from the shadow of the former Soviet Union in 1990 with a new
constitution and a multi-party system. Its transition to democracy has been
accompanied by the gradual introduction of free-market reforms. Despite
political tensions exacerbated by the 2009 economic crisis, Mongolia has
enjoyed relative political stability in recent years. President Tsakhia
ELBEGDORJ, whose Democratic Party coalition controls parliament, is serving his
second term and cannot run for re-election. Agriculture and mining are the most
important sectors of the economy, although uncertainty over investment rules
has caused investment in the mineral sector to ebb and flow. While improving
overall relations with the U.S., Japan, and South Korea, Mongolia has
maintained strong ties with Russia and China.
Rule of Law
Corruption is
viewed as pervasive. Graft is endemic, and weak institutions do not enforce
anti-corruption measures effectively. The judiciary is independent but
inefficient and vulnerable to political interference. Corruption persists among
judges. Property and contractual rights are recognized, but enforcement is
weak. The government lacks the capacity to enforce intellectual property rights
laws.
Limited Government
Mongolia’s top
individual income tax rate is 10 percent, and its top corporate tax rate is 25
percent. Other taxes include a value-added tax and an excise tax. The total tax
burden equals 29.8 percent of domestic income, and public spending equals 46.3
percent of domestic production. Public debt has increased to over half the size
of the economy.
Regulatory Efficiency
The minimum
capital requirement for incorporating has been removed, and starting a business
takes only five procedures, but completing licensing requirements still takes
over 130 days. Despite some progress, the labor market still lacks dynamism and
remains segmented. The central bank’s large mortgage subsidy program and
liquidity injection in 2013 distorted markets and ratcheted up inflation.
Open Markets
Mongolia has a
5.1 percent average tariff rate. Importing goods is time-consuming. The 2012
Strategic Entities Foreign Investment Law limits investment in some sectors of
the economy. The financial system, dominated by banks, has undergone
restructuring and modernization. In recent years, the banking sector has had
vulnerabilities arising from highly concentrated loan portfolios and high
loan-to-deposit ratios.
Prime
Ministers and Foreign Ministers of Mongolia and Australia Exchange Letters
Highlighting Growing Bilateral Cooperation
January 29
(infomongolia.com) On January 28, 2015, the Foreign Ministry of Mongolia
reported that the Prime Minister of Mongolia Mr. Chimed SAIKHANBILEG and the
Prime Minister of the Commonwealth of Australia Mr. Tony Abbott have exchanged
letters.
As further
stated, the Prime Ministers noted that the two nations share common values and
strategic interests, and highlighted growing bilateral cooperation, including
people-to-people links.
Australian
Premier welcomed Mongolian Government’s intention to solve the situation around
the second phase of Oyu Tolgoi mine, as well as general investment climate in
Mongolia.
Prime Minister
of Mongolia Ch.Saikhanbileg acknowledged Australia as Mongolia’s major
investor; and that Australian educational scholarships as well as Australian
volunteers play an important role in the development of Mongolia. He also
stressed Mongolian Government’s actions towards attracting and supporting
foreign investment in Mongolia.
Moreover,
Minister for Foreign Affairs of Mongolia Mr. Lundeg PUREVSUREN and Minister for
Foreign Minister of the Commonwealth of Australia Mrs. Julie Bishop have also
exchanged letters.
The two Foreign
Ministers noted the growing aid, trade, investment and people-to-people links
between Mongolia and Australia, emphasizing on the New Colombo Plan, which will
strengthen the growing ties, opening a new chapter in an educational cooperation.
Both Ministers acknowledged the role of foreign investment in Mongolia,
including Australian, as well as strengthening of investment climate in
Mongolia.
Mongolia’s
Foreign Minister expressed his hope that considering the growing interest of
Australian businesses in Mongolia, Australia would open its Embassy in
Ulaanbaatar, Mongolia.
Mongolia and
the Commonwealth of Australia have established the diplomatic relations on
September 15, 1972.
Mongolia
Year in Review 2014
January 29
(Oxford Business Group) Falling mineral prices and a tapering of foreign
investment resulted in slower economic growth in Mongolia in 2014. However, a
commitment by the recently installed coalition government to clear bottlenecks
in the investment pipeline and cut spending could see lower deficit levels and
greater foreign interest in development projects in the year ahead.
Commodity pros and cons
The country
finished the year with a broad-based coalition and a new Prime Minister, as Ch.
Saikhanbileg replaced N. Altankhuyag in November. The incoming leader inherited
a far more sluggish economy than his predecessor, with growth, confidence and
foreign investment all lower year-on-year (y-o-y), as falling demand for
minerals dragged on exports and earnings.
Weak demand for
Mongolian commodities from its main export market, China, also took its toll
during the year. However, one bright spot was an increase in exports of copper
concentrate due to a ramp up in operations at the Oyu Tolgoi mine over the
course of the year. The total figure rose to $2.3bn in the first 11 months of
2014 from $851m in the same period y-o-y according to official data. Coal
exports rose to 16.9m tonnes compared to 16.1m tonnes y-o-y; however this was
offset by a steep decline in prices, with the value of coal exports falling to
$760.1m from $1b a year earlier.
With the value
of exports still well below their peak of a few years ago, the World Bank cut
its 2014 GDP growth forecast from 9.5% to just over 6%. Growth slowed to
an annualised 7% in the first nine months of 2014, well below the 12.8%
witnessed the previous year. Growth projections for 2015 have also been revised
downwards, from 8.8% to 6.2%.
Weaker foreign
investment inflows were largely a result of an economic slowdown and a drop in
global commodity prices. In the first nine months of the year, foreign direct
investment (FDI) amounted to $647.5m, less than one-fifth the level seen in
2012. Investment fell 64% y-o-y in the January to May period alone.
Reopening the investment pipeline
However,
efforts are underway to increase FDI through the easing of investment
regulations and opening of new and previously cancelled or deferred exploration
tenders.
A further boost
to foreign investment could come in the wake of deals struck with China and
Russia in late 2014 that have the potential to increase trade and promote
greater investment in transport, infrastructure and industry. Trade with both
Russia and China is pencilled to reach $10bn under the initial outlines,
facilitated in part by extensive investments in the Mongolian rail network,
giving the country access to wider markets.
On the horizon
for 2015, the new government must conclude an international tender it has
relaunched to develop Erdenes Tavan Tolgoi, the country's largest coal deposit,
after the previous tender collapsed in 2011. At the same time, the authorities
have on their agenda to resolve a dispute with mining giant Rio Tinto over a
$5bn expansion of the Oyu Tolgoi copper mine.
According to
some estimates, a fully operational Oyu Tolgoi mine could contribute up to
one-third of GDP. As such, clearing the way for the second stage of its
development, as well as facilitating the roll out of new projects, will likely
top the agenda in 2015.
Belt tightening ahead
The new
government is taking steps to cut spending ahead of what could be a more
austere year. In late December, it announced plans to trim the already approved
2015 budget to curb spending and reduce the deficit. The proposed measures
include reducing bonuses to state employees and downsizing government
ministries by 15%, as well as redefining public spending programmes to make
child welfare needs-based and to award student grants on merit.
Revenues will
also be buoyed by a broader tax base, now set to include many in the rural
community – herders in particular – who were previously exempt from levies. The
amendments to the budget will cut at least MNT100bn ($60m) from the projected
deficit of MNT439.2bn ($263.5m).
The Mongolian
economy may also benefit from lower oil prices during the year, as it relies on
imports to meet 90% of its oil needs. Although this will help to curb
expenditures, the savings are unlikely to offset lost revenue from lower
commodity prices. Furthermore, some gains will be cannibalised by the
devaluation of the tugrik, which has lost about a quarter of its value against
the US dollar since the start of 2013.
Lower oil
prices could also come with a downside. Cheaper imported hydrocarbons may dampen
investor enthusiasm for the development of domestic oil reserves in the short
to medium term, as well as the country’s oil shale deposits – estimated at more
than 700bn tonnes.
Document
on fostering civic engagement project signed
By B.
Amarsaikhan
Ulaanbaatar,
January 29 (MONTSAME) The document to implement the second phase of the
Fostering Civic Engagement project was signed on January 28 between the Office
of the President, the Cabinet Office of the Government, the Ministry of
Finance, the Governor’s Office of the Capital city and the Swiss Agency for
Development and Cooperation.
After having
signed the document Chief of Staff of the President’s Office P.Tsagaan noted:
“I am truly pleased that this signing ceremony coincides with the event that
Mongolia welcomed the three-millionth citizen”
According to
the agreement, this project will be implemented from April 1, 2015, to April 1,
2017. Mongolia has electoral democracy. President of Mongolia pursues policy
that combines electoral democracy with the direct democracy. “Today we have
signed the document which will give our citizens more power to make decisions
and enhance civic participation”, he added.
Runner
B.Monkhzaya qualified for Olympics
By B. Khuder
Ulaanbaatar,
January 29 (MONTSAME) An international master of sports and long-distance
runner from the “Aldar” sports club B.Monkhzaya took fourth place in the 15th
Marathon Asian Championships held January 25 in Hong Kong, China.
Ran in the
women’s marathon race, and covered the distance in two hours, B.Monkhzaya 38
minutes and 48 second, thus she was qualified to compete in the 2016 Rio De
Janeiro Summer Olympic Games. She also broke the national record of Mongolia
for the women’s marathon. It was held by B.Otgonbayar IMS (two hours, 39
minutes and 47 seconds).
Another runner
J.Olonbayar IMS from the “Avragch” sports club at the National Emergency
Management Agency (NEMA) grabbed a bronze medal in the men’s marathon, covering
the distance in two hours, 22 minutes and 49 seconds.
Centerra
Gold announces extractable riches at Gatsuurt
By B.
Amarsaikhan
Ulaanbaatar,
January 29 (MONTSAME) The Parliament has announced the Gatsuurt mine as a
mineral deposit of strategic importance. This designation allows the Gatsuurt
Project to move forward within the application of the Water and Forest Law and
also allows Mongolia to acquire up to a 34% interest in the Project. Centerra
Gold company is continuing its discussions with the Government relating to the
development of the Project as well as the level of Mongolian state ownership.
Further development of the Project will be subject to, among other things,
receiving Parliamentary approval of the state ownership as well as all required
approvals and regulatory commissioning from the Government.
The Gatsuurt
Project will be developed in accordance with all applicable Mongolian
environmental regulations and international standards, consistent with the
standards adopted by the Boroo Mine. The Gatsuurt Project's estimated mineral
reserves as of December 31, 2013 were 17.1 million tonnes at an average grade
of 2.9 grams of gold per tonne containing 1.6 million ounces of gold using a
cut-off grade of 1.4 grams per tonne.
Provided that
the final approvals and regulatory commissioning is received for the Gatsuurt
Project, the Company plans to mine the ore at Gatsuurt and truck it to the
existing Boroo mill to be processed. Under the current plan for Gatsuurt, the
Company expects to process approximately 3.6 million tonnes of CIP ore with an
average grade of 2.86 grams of gold per tonne through the existing Boroo
facility in the first two and a half operating years of the Gatsuurt Project.
During this time, a BIOX® facility is planned to be added to the existing
Boroo facility which will be used for the processing of the remaining BIOX®
ores totaling approximately 13.5 million tonnes with an average grade of 2.92
grams of gold per tonne, reported Centerra Gold on January 23.
For more information,
go to the Company's web site at www.centerragold.com.
Coal
transport companies ask the state to end truck transportation
January 29
(news.mn) Coal transportation companies are urging state organizations to take
appropriate measures to completely end the transportation of coal by heavy
trucks. The request was made during a meeting on the economically efficient
transportation of mining products by special-use roads.
The meeting was
organized at the initiation of Erdenes Mongol LLC, together with the Mongol
Transport Association, Ministry of Nature, Environment and Tourism, the
State Professional Inspection Agency. More than 50 entities in charge of coal
transportation participated in the meeting and exchanged
views.
World
Bank report on Mongolian and East Asian urbanisation
By G. Orkhon
January 29
(Mongolian Economy) This week the World Bank released a report detailing the
vast extent of urbanisation and migration to urban areas in East Asia from 2000
to 2010. Nearly 200 million people moved to cities throughout the region during
the decade, with total urban population up 29 percent since 2000. With 42
million people, China’s Pearl River Delta region is now the world’s largest
megacity, surpassing Tokyo in both size and population. As for Mongolia, the
report compiled a range of statistics about Mongolia’s and Ulaanbaatar’s unique
urban growth in the first decade of the 20th century.
In a video
conference call, Axel van Trotsenburg, the World Bank East Asia and Pacific
Regional Vice President, and Marisela Montoliu Munoz, Director of the World
Bank Group Social, Urban, Rural and Resilience Global Practice, spoke with
international journalists.
Commenting on
Mongolia’s urbanisation, van Trotsentburg said: "Ulaanbaatar is scarcely
populated compared to other cities, as there are many places still not in use.
For UB, there is big room to use these unused lands and expand its city.”
Mongolia
experienced a 2.6 percent annual rate of urban spatial expansion from 2000 to
2010, the fifth highest in the region and ahead of 10 other countries.
Mongolia’s annual rate of urban population growth was near 4 percent, also
fifth. Ulaanbaatar increased by an average of 411 people per square kilometer
and Mongolia maintained the third least dense urban population density.
As per the
report: “Mongolia has one of the smallest urban populations in the region. For
the purposes of this regional study, only urban areas with more than 100,000
people are included, which means that the entire urban population of Mongolia
lies in Ulaanbaatar, which had 927,000 people in 2010, up from 630,000 in 2000
(an annual growth rate of 4 percent). Despite this small national urban
population, the rate of change was relatively high, 3.9 percent per year.
During this period, the proportion of the country’s population living in
Ulaanbaatar rose from 26 percent to 34 percent.
“Mongolia’s
low-density urban development takes the form of neighborhoods of traditional
ger dwellings on the outskirts of the city, fueled by a policy of distributing
large plots of free land to all citizens. This makes the provision of
infrastructure and services to these areas, including roads and transportation,
prohibitively expensive. The municipality of the capital, Ulaanbaatar, is now
trying to increase density in existing settlements, which involves several
challenges.”
As of 2014,
Mongolia was classified as a lower-middle-income country, similar to Indonesia
and the Philippines. Although they possess many differences, the report
frequently compared Mongolia to Malaysia—likely due to the vast expanses of
land and water, respectively, that separate the countries’ population centres.
The report states: “Malaysia and Mongolia face difficulties typically
associated with low urban density and widely dispersed urban growth. In these
cases, governments may need to create or maintain a certain level of density,
using the location of infrastructure and regulation as levers of influence in
local land markets, to avoid the environmental costs and the inefficiencies in
service provision associated with urban expansion at low density. Low-density
development of Ulaanbaatar, Mongolia, makes the provision of services
difficult. It also makes accessibility to jobs and schools expensive and
time-consuming for the urban poor.”
The report is
the first deep catalogue of East Asian urbanisation statistics, which can be
used by local leaders when tackling the rampant challenges that urbanisation
presents. “We’re releasing this data so urban leaders can get a better picture
and take action to ensure that urban growth benefits the increasing number of
people moving to cities, especially the poor,” stated van Trotsenburg.
State
Policy on Education Renewed
By B.
Amarsaikhan
Ulaanbaatar,
January 29 (MONTSAME) Plenary meeting of the Parliament ran Thursday the final
reading of the draft resolution on renewing the State Policy on Education. The
conclusions by the Standing committee on Social policy, education, culture and
sciences were presented. The draft resolution was approved with 88.7 percent
vote from the attended parliament members.
The renewed
version of the State Policy on Education offers to change the purpose of the
preschool education programs from “preparing children for school” to “providing
lessons on basis of human development”; to determine the primary education as a
phase of school when children are set-up to become true Mongolians, having
mastered the basic skills of Mongolian language and and ability to process creative
knowledge; and to determine the secondary education a phase when children
become a citizen who can independently study and learn new things, having
taught the basics of social and natural sciences.
It also offers
changes of considering the high school a level where pupils have possibility to
get pre-university trainings basing on their fields of interest. The renewed
version of the State Policy on Education defined that higher education and
professional trainings should serve to prepare cadres that are able to
contribute to the national capacity for innovation.
The plenary
meeting of Thursday also held the final readings of and approved the draft
amendments to the laws on Tobacco Control and Health Insurance.
PM
Interviews: "Mongolia Needs to Move from a Welfare System to a Creative
Economy"
By M.
Onorzul/G. Purevsambuu/B. Khuder/B. Amarsaikhan
Ulaanbaatar,
January 29 (MONTSAME) The Prime Minister
granted an interview on January 28 to a correspondent from Mongolia's National
Public Television.
The Prime Minister Ch. Saikhanbileg took
part in a live TV interview called ‘The time-viewpoints’ on the National Public
Television of Mongolia.
Journalist B.Oyunchimeg hosted the live
interview.
- Questions sent by people show that much
is expected from you. It has been over two months since you became Prime
Minister. Let’s begin the interview right away because I have a lot to ask you?
- I would like
to deliver my sincere greetings to Mongolians who are watching the interview
through the National Public Radio and Television. Mongolians say that all
things have their own time. Today has been very auspicious day for Mongolians
because of the birth of Mongolia’s 3-millionth citizen was announced.
Mongolia’s 3-millionth citizen was born on January 24 in Dalanzadgad city of
Umnugobi Aimag. A baby girl named ‘Mongoljin’ was born along with 181 other
age-mates; thus, Mongolians, have become 3 million. I feel this is a good omen
for taking my first-ever interview after becoming Prime Minister.
- Traditionally, Prime Ministers of
generations are interviewed on what will be done within frames of an adopted
state budget and give information to the public after the State Budget and its
adjustment are adopted. Prime Ministers outlined the budgets of those
particular years. What do you outline?
-I did not mind
giving information about this budget. If you want, I can say it is
‘reasonable’. Difficult decisions were made at the plenary meeting of
parliament. Accordingly, I put forward the Budget Bill. It is impossible to fulfill
100 percent of what we wanted. Nevertheless, many things we wanted to do have
come true. Anyway, we could deliver a message to society about how complicated
the current national economy is.
The public
comprehends that every family will suffer. It began with public reactions on
matters regarding child allowance and benefits for mothers with many children.
The Government is very grateful to Parliament for rendering support. On the
other side, I think this year’s State Budget is an expression that the new
government can complete what it has begun. The International Monetary Fund,
World Bank, economists and politicians recommend us to bring all expenditures
of the government and development bank into one budget. We have done it. In
addition, we decided to delay new construction projects and also stopped making
dream lists.
Agreeing that
cost-cutting has to be made from high level organizations, we made a decision
to cut the staff of ministries and agencies by 15 percent. Parliament members
supported the Government’s initiative and reduced their spending on transport.
Moreover, 80 organizations have been restructured and merged into 25 and made them
independent entities. All relevant matters have been solved. State
administrative servants used to get a one-time benefit equaling 36-months of
their salary when they retire. By doing so, the average highest salary among
salaries given in the last months was calculated by 40 percent and calculated
again by 36. It was very wasteful. Further, it will not be calculated by 40
percent. We transferred it to a new method. The term that he/she had worked
will be considered.
We also
arranged for many institutes of the Academy of Sciences. Organizations that
used to spend money on uniforms will no longer spend that money. Students were
very inventive. They are the driving force of society and carry a new ideology.
They supported the government’s cost-saving initiative and expressed their plea
to only give stipends to those who earn excellent grades. We are grateful for
their support. After all these works there should not be criticism such as
“this year’s State Budget is bad" or “the government didn't follow its
policy”. Therefore, it is a reasonable budget.
- The matter regarding salaries makes
people unhappy. Almost no one has salary credit in the country. In despair,
they ask their employer's accountants to phone the banks and explain their
reasons?
- It is
necessary to raise salaries and pensions. The Trade Union made such demands. In
reality, there is no money to raise salaries. It is a headache for the
Government. The Trade Union organized a demonstration and put a demand to raise
salaries by 60 percent. However, one thing must be realized. According to all
economic indices, it is really important they be raised. So, we explained to
representatives of the Trade Union that there is no capability to raise
salaries by 60 percent. The Government consulted with Parliament about
increasing financial sources for urgently needed things by a certain amount and
mobilizing required sources. We informed the public that there is no more
potential for 2015. At last we made a decision. There would be a demonstration every
day if it was perceived to get money after demonstrating on the central square.
- What can you say about people who cannot
get their salaries?
-Discussions of
the budget adjustment caused payday to be delayed by a number of days. As of
today, the full month's salary has been paid to all state workers without any
problem.
-People are reacting against government
resolutions including benefits for mothers with many children.
- People were
very unhappy during that particular time. Now, this issue has been settled by a
certain level. So, we need to get over our emotions. In order to explain why
the benefit for mothers was cut, I need to explain present budget structure.
For instance, salaries, retirement pensions, welfare benefits and allowances
cover 62 percent of the budget. In addition, electricity and heating expenses
take 19 percent. These make up over 80 percent. But just 7 percent is spent on
investment. Therefore, Mongolia needs to move from a welfare system to a
creative economy. Now, I am going to talk about the benefit for mothers with
many children. We submitted a proposal to give benefits to mothers who gave
birth to 4-6 children until their youngest child reaches 18. Such mothers are
awarded with the ‘Glorious Mother’ medal.
When the
youngest children reach 18 and the eldest are over 30-40, children of
‘glorious’ mothers, need to give provide the money which is currently being
given as a benefit by the State to their mothers. Usually, one of the children
who lives better will care for the mother. Regarding the monthly child
allowance, a family with a private house and car and parents with jobs cannot
be compared to those whose children need money. In other words, we considered
that all households need to be classified into 21 levels based on their living
standards and the households belonging to top 5 levels will not be given a
child allowance. The other households in the 1-15th levels will be
given a child allowance. But people want to make it an issue rather than
understand. Now we are beginning to change the total budget and welfare system.
As Prime Minister, I am probably giving it an inadequate explanation. The
Government gave people insufficient information about its activities. We
decided to disburse these benefits fully for this year. Unfortunately, it was
distorted and the misunderstanding was intentionally spread here and there,
instigating people to make society confused. It almost reached the campaign scale
in order to get scores from people. Let’s realize that the foundation of a
house must be built properly in this present time of economic difficulty. More
than being Prime Minister, I am a Mongolian citizen, Ch.Saikhanbileg. The
crisis will not bypass any person, but cover all. Now, is not the time to
politicize and make any plays with people’s problems, but we need to look in
one direction. Within the shortest period, we made many steps.
- What about imposing taxes on Toyota Prius
cars?
- We are
considering this matter. It will be discussed in relation to Ulaanbaatar's
budget. The Government and Finance Minister have no plan to gain any tax income
from it to the master budget. Aimags and rural areas will earn income from
Prius cars. By doing so, rural roads and other infrastructure will improve. I
have thought about how to make it understandable to people. A used Prius car is
sold for Tgs4-5 million at the market. A Prius-30 is sold for Tgs30 million.
There was talk that this tax is to be raised when incapable people are driving
this car. A soccer team is bought. For example, it is said that Ronaldo was
bought with USD80 million. Along with giving him a salary, the team is paid. It
means that additional money is paid to USD80 million. Likewise, a person who
buys the car should think he will have more expenses on petroleum, parking and
a garage. To suppose that to drive a car downtown shall require a fee, a capable
person will have a car. But we reconsidered this matter and agreed to make it
along the first version. It will be reconsidered with the involvement of
economists and others. No car, no pay.
- During your interview in 2011 with
journalist B.Ganchimeg, you said that meaningless populism holds national development
back. Now people got to know about populism. How do you feel about it in the
past 2 months?
- I do not talk
about an individual when talking about populism. It is about action, nature and
principle. But it became like a worthless little thing. If it is discussed,
attacks will begin the next day. Second, the press representatives including
L.Munkhbayasgalan went to Detroit, in the USA where a hysterical man became
mayor of the city by talking about populism. But the city was nicknamed a ghost
town and suffered bankruptcy. Why do we need to suffer the results when we
already have examples in other countries? So I will epithet populism as a poisonous
candy wrapped with shiny and fancy paper. In other words, it's fake love.
Populism has its own cost. One example of populism is the mothers’ benefits and
child allowance.
- Decisions made by the Government are
stringent. It is clear that all of them can’t be received with applause. Are there
any decisions received with applause?
- All decisions
made by the Government can’t be received with applause. I would like to mention
some works having been done for two months after my appointment. For instance,
we revived exploration work that stopped four years ago. I think the investors
and those who work in the mining and business sectors are satisfied in this regard.
We have made a large step regarding the project innovation. I hope that the
related people receive it with applause. Parliament started to forward the
biggest deposit of Gachuurt in collaboration with the Government. I also
believe that the investors receive it with applause. Issues on 106 licenses
apart from the long-named law were completely solved. We decided to build quite
a few schools by concession and assistance. I think that our children will be
happy with that. A tripartite agreement was successfully concluded with the
Confederation of Mongolian Trade Unions and the Mongolian Employers’ Association.
So, elders and those who wish to live in peace and quiet worried about any
demonstrations on Chinggis’s Square also applauded. An agreement on Tavantolgoi
was launched, so a number of people may cheer for it joyfully. Issues on the
debt ceiling have been solved to a definitive extent. The second stage of the
Millennium Challenge Account has started. Thus, quite an amount of investment
will be made to Mongolia and the economy of the country will be extended. It is
also worth applause. We resolved an economic cooperation agreement with Japan.
I think that many investors, entrepreneurs and our citizens will be cheered by
that. A program on fuel has been excluded from the special programs being
financed by Mongol Bank. Now, it is not required to finance the fuel program.
It was also appreciated by a certain amount of people. Thus, I consider that we
have made definitive decisions for the last two months to make an easier a
burden on these people.
- You mentioned building new schools.
Recently, the Government decided to build 21 schools with nonrefundable assistance
rendered by the Chinese Government. How would you explain this decision?
- I said that
just 7 percent of the budget is being projected for investment. We really can’t
start new works. Schools are holding classes in three and sometimes four
shifts. Children of tender ages are frightened when they come home in the
evening on dark streets. So, we urgently needed to resolve the issue of
schools. A lot of problems in the capital have been resolved. We have had two
packages of non-refundable assistance. The first one is being expended to
resolve the issue of schools. Also, the Government gave the related Minister permission
to sign an agreement on building 72 schools and kindergartens by concession
agreement. Thus, the Government will resolve any issues as quick as possible.
Another package of assistance will be assigned for building the gas plant. If
we can resolve issue on building Ulaanbaatar distribution network with help of
this package and build the gas plant, we will be able to make a big step
towards getting rid of Ulaanbaatar's smoke, the most worrying problem for the
capital. It will be one of the significant issues to be solved by our
Government in the near future.
- Your Government often discusses the
policy on privatization of state property. It happens that you highlighted the privatization
of MIAT and the Drama and Opera theatres?
- Rather than
the above objects, the issue is being discussed in terms of the social sector’s
privatization. Look at the Finance and Economics University. Neither the
Government nor the Minister took part in the appointment of its director. They
have their own Ruling Board and resolve their issues by themselves. It means
that they have embraced the proper system. Why not NUM, the University of
Science and Technology or University of Medical Sciences to transfer to this
system? Why should they be dependent on politicians? What happened when directors
of these universities were appointed by the State? There were protest sittings
and strikes everywhere. So, the State should refuse from all these things.
Today, it was possible to establish a ruling board, appoint directors and solve
investment issues independently. This management system is introducing the
company’s management form in the social sector. It would be the biggest issue
to be resolved by our Government in the remaining period. This issue will be
solved with participation of heads of all related organizations starting from the
State Property Committee.
- Is there is too much political
interference in this issue?
- We intend to
eliminate political interference.
- Do politicians have a willingness to
eliminate this tendency?
- The Prime
Minister of Mongolia explains the position of its Government. It is time to do
so. The matter will not be resolved by only changing the management system and
governance. For example, all changes to be implemented in the health sector
should be considered in its complex. As head of the working group, Minister of Health
and Sports G.Shiilegdamba started his activities with the registration of
medicines. Thereafter, issues concerning governance, financing and treatment
will be in focus.
- Should this work start from a mutual
understanding?
- The key is to
be motivated. Those, who implement decisions, need to wish for changes. If we
don’t wish to do so, our deed doesn’t work.
- Before your appointment, there was much
discussion that the ministries don’t work. How much reshuffling is made in the
appointments?
- This kind of
talk is usually common before the change of Government and also after
completion of a new Cabinet. In recent years, the structure of ministries and
Government agencies was enlarged. So, first, we decided to streamline the
ministries and agencies by 15 percent. It is not deniable that a certain amount
of movement occurred at that time. The Government will submit a large draft law
to Parliament at the beginning of next month. It is a draft law on State
service. We are expecting that this issue will able to be resolved because the above-mentioned
issues were included in the draft law.
- You have been serving in politics for
many years. Each time there is a party change, their non-professionals are appointed
to certain positions. When will this practice stop? You put forward considerable
goals. Did you include this issue in these goals?
- We will
discuss more significant issue from the start of the spring session. Even more,
it is possible to consider issues on amendments to be made in the Constitution.
If we can make the fundamental movement, the issue you mentioned won't appear.
Both the state and political services should remain as designated. The practice
of political appointments will continue in team principle. By doing so, the
matters raised today will be put in ways of solution.
- It seems that complaints of people from
the private sector won’t be halted if we can’t improve governance. It is also a
great goal that requires much time. What measures would you take?
- We are
meeting with the business sphere. Recently, we submitted a draft law on
promoting the Act of economic amnesty to Parliament. In addition, there are
laws on permission and supervision. Currently, the law on prohibition is being
implemented under the name of permission. Businessmen are working under closed pressure.
In this regard, the heads of taxation and supervision organizations were
obliged to stop their observations. We are working for the law on permission to
be enacted. By doing so, we can create a business-friendly environment and
abandon the bureaucracy related to permission. As for the law on supervision,
the professional inspection organization will be transferred to a new system
based on risks instead of inspecting for the sake of supervision. Also, in
connection with implementation of law on glass account, the respective web pages
on supervision and inspection will be opened. Thus, both inspecting and being
inspected organizations will be able to keep necessary records.
- We talked about a lot of big issues. You
repeated the word economy three times. It seems that the economy is a priority.
But, what would you highlight to make what you said clear?
- Economy,
economy and economy. It is not just the frequency of a word; it is our approach
to the matter. We can overcome current economic difficulties based on the
private sector. Thus, we should provide them with conditions to work normally.
It is needed to launch the largest projects and programs. The key is to develop
industries. The development of industry begins from small things. I said before
that we made an economic agreement with Japan which will be signed in February.
Just now, we consulted with the Permanent Committee of Parliament.
I brought a
tiny component of a copier. We are assembling this equipment by importing its
raw materials from Japan. After assembly, it will be delivered back to Japan.
With conclusion the related agreement with Japan, the raw materials will be
supplied by Japan without tax, then send it back to this country the same way.
In the future, our industry should to be developed by not exporting raw
materials, but exporting them after producing and assembling them domestically.
This free trade agreement to be made with Japan will also be concluded with many
other countries.
-You took the simple and nearing
opportunity as an example. But, what happened? Flour producers, farmers and the
Ministry are quarrelling about making up sides?
- This is not
an issue where the Ministry sides with someone. Judging from the situation, the
issue is very simple. The farmers have 70 thousand tons of wheat. Flour
producers need 90-100 thousand tons of wheat until the next harvest. They are
lacking gluten. So, the issue is raised about the deficiency for producing
flour and flour products. The point is that the flour producers suggested
importing 20 thousand tons of flour with a high amount of gluten for mixing
with domestically produced wheat. The sides must settle the question by
negotiation. Each person, any group, and every producer have a certain
interest. However, they are required to agree on common interests.
- Columnists have been talking about you a
lot. Some of them said you should be more decisive?
- We want a
specific thing. It is clear the problem will not be tackled when we do not find
a proper solution and do not consider it deeply without seeing it from many
angles. That was proven when we approved our budget, did you see? We have not
solved our problems completely, have not manufactured the right products and
conceived populism as well. It is completely the wrong attitude; so now, we
have to interpret the current problems to the public in the right way. If we
can gather hundreds or thousands of enthusiasts, it is possible to solve the
problem through agreement and the right understanding will be shared in
society.
I thought
carefully about delivering my views on TV to the public before this interview.
I think understanding is vital to being very decisive. I got a view while
discussing the budget after one person called me in frustration and criticized
the cabinet planning to cut the allowance for holders of the Glorious
Motherhood Order. I have never seen a person so frustrated and I suddenly
recognized that the current society is not very good today, so I do not blame
that person. I understood it is vital to be decisive to resolve many more
problems like the above problem. I thought now we have to make more efforts.
- I want to ask one question for you. Do
you think our economy is suffering from a crisis and do you see that is just
going normal?
- Actually, I
do not feel crisis very well because I had a trip abroad. But I heard that the
number of people using taxis has declined dramatically when I got in a taxi
because of the situation. The drivers said they really suffered from the
economic situation.
No one can
avoid a crisis. This affects everyone. Making a debate or controversy on
whether the current economy is suffering from a crisis is a complete waste of
time. I really want to go into the core of matters as I have been elected
Premier and lead the Cabinet. I admit that I thought of resigning after having
seen the economic figures and a group of people had a demonstration on central
square. I really thought about that, and many things came to my head. But what
should we do if we collapse the incumbent Cabinet? It is obvious another person
will succeed the Cabinet and he or she must do the work from the beginning. It
is quite understandable that anyone should continue this work. This is
Mongolia’s path.
The public now
has a biased view on a reason for the problem. It is not easy to tackle it and
unplanned works will give a wrong signal to society. We urgently need to solve
the economic problems and have to start it from determining the reason for the
problem.
We should admit
we scared off our investors, so we have to bring back them in order to make the
first step. It is inevitable to carry on the biggest projects in order to
stabilize the currency rate.
This is one
option for the solution. Another way is to cut our consumption and expenses.
Thus, companies will stop their projects and reduce the wage sizes due to
closing the credit flow of commercial banks. By doing so, the rate of the US
dollar will go down against the Togrog. This is the right way to resolve the
problem. In other words, a discipline of reducing consumption can hold the US
dollar rate. Another side must import US dollars more than the consumer size.
This causes a main debate in our society. It is time to give a proper answer
after consulting it with politicians, decision makers, businessmen, and
domestic and foreign organizations.
I really want
the public to know one thing. We have two options. First, we have to keep the
rate of the national Togrog by implementing the Oyu Tolgoi or other big
construction projects, and second, to reduce consumption by enhancing the
economy.
If people
prefer the first way, the public must not stand against the Oyu Tolgoi project,
and we have to follow this path. Moreover, we do not ignore our interest. Other
issues of the biggest projects such as Tavantolgoi and Eg River hydro-power
station, property privatization, stock exchange, construction of power
stations, and the raising of bonds and investment funds must be tackled
altogether without any obstacles. If any populist person blames them again, I
recommend the public to follow the first option. So, we must decide on it
urgently.
The second
option is not a very bad way. We can raise a specific amount of money in our
bank by attracting donors and reducing consumption under a strict discipline.
In order to do so, we have to take programs from the International Monetary
Fund or other big financial organizations. It is believed to really help
Mongolia augment the US dollar reserves. Plus, we have to cut tolerable
expenses for a specific period.
We only have
these two options. I want the public to give their views on it before Saturday.
An opinion poll will take place on Tuesday evening through phone messages about
choosing the first or second options. This is an inevitable measure we have to
take.
- Is this kind of opinion poll right?
-You might ask
me why you led the public into such problem today in the post of Prime
Minister. I think it is not bad thing to ask the public about solving problems.
The people are actually the decision-makers. They vote and choose the members
of government and parliament. There is no wrong thing to ask the public once. I
want the public to be very active on this poll and the economists must hear
their views. If this measure really works successfully, I am ready to give a
plan of works that shows a list of measures to be taken through the first or second
options. I hope it will help to solve the problem, and will ease the issues for
MPs to make their decisions.
-Some people said you are leading the
coalition government. I suppose these problems are easy to tackle, but it is
understandable the policy difference between the Democratic Party and the Mongolian
People’s Party will not perished very easy. What do you think?
- I have to
sense the reality rather than working out a method. I think there is no need to
blame any political party or faction. This is an inevitable condition. This is
not a matter for the Democratic Party and Mongolian People’s Party only. This
is a matter for all political parties in parliament. In the last two years, we
had problems in politics and blamed each other. I admit it, but now we have to
solve the problem together and it will take some time. Some “unpleasant”
decisions are expected to be made, but it will resolve today’s economic difficulties.
We are sailing on the same boat.
- Many Mongolian youths are being employed
in the biggest companies abroad and they are not willing to return home.
However, they always talk about developing their motherland. How do you propose
we get them to return?
- When I served
as the Minister of Education, I was told by my counterpart in China that his
country projected that one student out of three studying abroad will return
home and two of them stay abroad. But these two students will arrive home
anytime, and they bring money, know-how and technology. This is one of the keys
to development of the country, the Chinese Minister said. It is not fair to
blame them for living abroad, and the state must create a nice condition for
them to live in their motherland. We should provide them with opportunities and
high salaries.
We know that
Mongolia managed to overcome the financial crisis in 2009. Afterwards, many
youths returned home thanks to reviving the national economy after implementing
the Oyu Tolgoi project. All the investors always say that Mongolia has a bright
culture, but Mongolia has been in panic due to poor policy. However, they said Mongolia
will definitely boost, and it is important for Mongolians to accelerate its
potential. Human resource is very important to carry out any works, and it is
vital for us to look differently at our investors. We should not scare them off
as they are really needed for Mongolia. We should not lose our culture,
national ideology and pride. A true Mongolian mind and idea will develop our
country.
We have to
change our mind about investors. Why should we always receive grants from the
state until 18? Why should not we refuse the allowance? People should think
about it twice. A creative group can develop a country with a bright future.
- It seems that the public way of thinking
has to be changed. Unless the Government starts to discuss the problems that
Mongolia faces with social media users, the twisting of State-run works will
continue to go public?
- I also
observe there is a virally negative attitude in the social media towards Government
actions. For instance, I recall a Twitter user’s post saying “I was all smiles
when I was travelling abroad. However, the smiles turned upside down as soon as
I arrived at Buyant-Ukhaa (the old name for Chinggis Khaan airport)”. While
foreign magazines and TVs are censoring the photos of two Japanese victims of
terrorist actions, our daily newspapers publish their photos on the front page
“without any blurriness!.” News websites and TV channels prefer to begin their
programs with negative and sad news rather than providing informative articles
and good news, such as commissioning of new factories, starting exports of
certain domestic value-added products, and new jobs being created and etc. The
social psychology has to be refined given good news more often, and that is not
a job done only by the Government.
The economic
crisis is a temporary issue and has to be given focus on every level. We should
be picturing and debating over what future might await us in 2015-2016, rather
than manipulating each other with negative comments. The Government is ready to
take action pursuing the results of such debates on setting the right direction
for the country’s development. There are not enough hours in a day. We should
be working with more energy, as we have so little time left. We have the
capacity and the aspiration.
- You are the head of a Cabinet that is
called many names, such as the Government for Solutions, or Crises or of a
Grand Coalition. Might this be an indication that all issues will be settled
with overall participation?
- I am not fond
of the definition for any government. However, I view that the name “Cabinet
for solutions” stands for the Cabinet that has ministers who do their jobs, and
make proper decisions for the sake of the nation. The most preferred definition
of this Government is that this is the Government of Mongolia. This seems
appropriate. In order to make decisions, we should discuss, reach an agreement,
and choose between the two options that I am offering. By making this choice,
we will overcome the issues, the solution to what has been asked for by the people
for a long time now. The person who is against implementation of Oyu Tolgoi
project is perceived as a person who is voting for giving the economic
condition time to recover from the troubles. Both of the options are not
subjects of absolute contradiction. We don’t have a third option. If you are
against the realizations of Oyu Tolgoi, Tavan Tolgoi and Gatsuurt projects, I
recommend you to choose the second option. The second option is not a bad path.
For the people who consider the second option as a failure, I want to say
“Excuse me, do not disturb”. It is like a surgeon who is in the middle of a
very difficult operation. No person is allowed to say “Don’t hurt that person
who is already in a lot of pain”. Since the operation has already begun, at
least you can help by not disturbing them.
- Our interview will soon end. You are
appealing to certain users of social networks who already maintain a significant
space in the online world to responsibly participate in this public discussion?
- Twitter users
like to boast about the number of their followers. Their pride can be utilized
throughout the next week in a public discussion by how their followers express
their views using the social networks. Such discussions have to be held more
often via Facebook, websites and daily newspapers.
The Year of the
Sheep is approaching and Mongolia welcomed its three-millionth citizen in the
Year of the Horse. On the verge of the New Year, we have to determine our
direction for further development. As soon as the direction is determined, the
decisions will come easily. Mongolia has a relatively small economy with the
capacity of USD 10 billion flow. Therefore, only two or three
adequately-developed projects and integral polity can lead this country to a
high-level of prosperity within a very short period of time. This can only be
mobilized by the team-work of Mongolians. My Cabinet will pursue realizing such
team-work but need some support from the people.
I don’t want to ask a question after such a
speech. Let’s finish our interview.
- This is my
first interview taken since the appointment to the office of Prime Minister. I
think highly of the fact that I am giving my first interview with a Mongolian National
Broadcaster. The New Year on the Mongolian calendar is approaching so this is
not a time to march and protest against the Government. Our decline and issues
still remain, regardless of which politicians are in charge. The issues will
only be overcome by joint efforts. Thus, I consider that the government was
formed including representatives of all political parties with seats in Parliament.
We should work until some pessimistic person comes and says “You did it!” In
the end, I want to appeal all of you to text '1' or '2' to numbers 15-15 and
11-11. Your messages will be sent free-of-charge, thanks to the support from
our four telephone operator companies. However, one number has only one vote
quota. Our direction of 'tomorrow' will be set wisely, I believe.
Related:
Prime Minister makes an appearance
on 'Time & Viewpoint' – news.mn,
January 29
Stock
Exchange News for January 29
By B. Khuder
Ulaanbaatar,
January 29 (MONTSAME) At the Stock Exchange trades on Thursday, a total of 81
thousand and 269 units of 18 JSCs were traded costing MNT 68 million 269
thousand and 132.00.
"State
Department Store” /47 thousand and 245 units/, “Binse HK” /19 thousand units/,
“Moninjbar” /11 thousand and 142 units/, “APU” /2,805 units/ and "Arig
gal” /401 units/ were the most actively traded in terms of trading volume, in
terms of trading value were "State Department Store” (MNT 25 million 984
thousand and 750), "Binse HK” (MNT 14 million and 991 thousand), “APU”
(MNT 10 million 322 thousand and 500), “Moninjbar” (MNT two million 339
thousand and 820) and "Arig gal” (MNT 942 thousand and 350).
The total
market capitalization was set at MNT one trillion 376 billion 573 million 575
thousand and 518. The Index of Top-20 JSCs was 14,283.03, decreasing 33.40
units or 0.23% against the previous day.
Invitation
to Food and Mining Sector Entrepreneurs for Free Study Tour in Poland
January 29
(Mongolian Economy) Mongolian Economy magazine, M Promotion Agency, and the
Polish Ministry of Economy have joined together to offer Mongolian
entrepreneurs in the mining and food sectors the opportunity to be selected for
a free six-day Study Tour of enterprises in Poland. The tour will be held from
13 to 18 April 2015 in Warsaw and Cracow. Participants are to take part in two
B2B meetings with 24 polish entrepreneurs, visit the headquarters of three
major companies, and become familiar with the Cracow Special Economic zone.
Participants
will also take part in interesting cultural events, enjoy sightseeing tours in
Warsaw and Cracow, and exchange experiences over lunches and dinners in the
best restaurants serving Polish cuisine. The main aim of the Study Tour is to
promote Polish export of selected branches of industries and to encourage trade
between Poland and Mongolia. A detailed programme of the event will be released
soon.
The Study Tour
is completely free. The service includes: air tickets, hotel, transport, meals,
B2B meetings, sightseeing tours, and more. If you are interested in
participating in the Study Tour then inform us soon, as the quantity of places
is limited.
Please send
your CV to:
info@mongolianeconomy.mn
info@mongolianeconomy.mn
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