Ch. Khashchuluun: Economic revival after crisis needs large investment

Ch. Khashchuluun, Chairman of the National Development and Innovation Committee, has said the emphasis in their work plan for economic development in 2011 is on optimal use of financial resources by using local indices, the first time this will be done. Altogether 85 local development indicators have been identified, some of them in the provinces and sub-provinces of a quite complex nature. Ministries have been asked to coordinate the national plan with the regional development policy whenever and wherever necessary.

This plan, Khashchuluun explained to media, is not something that is necessarily a part of the budget or restricted to it. Instead, it will use all national-level resources such as the budget, the private sector, and foreign aid. Approximately MNT3 trillion will be required for its implementation. He explained that economic revival after a deep crisis needs large investment, and the process will be aided in 2011 by increased investment in all electoral districts, which is normal practice in any pre-election year. This will, however, not be a permanent feature of the budget. Apart from increasing deficits, large government expenses also run the risk of marginalizing the private sector which in Mongolia is too small to compete with government domination, he said.