Mongolia Brief July 24, 2014 Part III
‘Her
Presence in Colors-XI’ international art exhibition 2014 opens
July 24 (UB
Post) “Her Presence in Colors-XI 2014” international female artist exhibition,
organized under the auspices of Mongolian President Ts.Elbegdorj, opened at
Mongolian National Art Gallery on Monday.
The 11th “Her Presence in Colors”
exhibition is on view through July 26. The event features 124 female artists
from 18 countries, including England, Australia, Germany, India, Japan, China,
Korea, Singapore, Thailand and the U.S.
The show is the
first international exhibition of female artists held in Mongolia. The
participating artists include well-known local talents and artists who have
exhibited in many countries. The exhibition was organized by the Ministry of
Culture, Sport and Tourism of Mongolia, International Women Artists Council
(INWAC), Mongolian National Art Gallery, and Tenkhleg- Art NGO.
Chief of Staff
of the President of Mongolia P.Tsagaan arrived at the exhibition and expressed
his appreciation for the organizers and attending artists. He also conveyed
President Ts.Elbegdorj’s greetings to the artists and attendees of the opening.
“There is a
saying that art is a visible poem. Even as humans have faced the centuries for
thousands of years, and as time goes by, art stays with humanity and retains
its value. Only women can bear a whole new era to the world, and they fill the
world with love, charity and welfare. I am very thankful for these women
artists who are opening the ‘Her Presence in Colors-XI’ art exhibition in
Mongolia. These women’s artworks are admired for their meanings, new forms,
beauty and even their different customs around the world,” said P.Tsagaan. He
added, “In Western Mongolia, in Altai Mountain crafts, there were around 70,000
cave paintings from 30,000 years ago discovered. It proves that Mongolia is a
place of admirable artists, featuring the craft of art now and in the past. I
hope this exhibition will give you a chance to discover Mongolian tradition and
customs. Also, it will encourage women artists in Mongolia and give them
inspiration to develop their work.”
P.Tsagaan also
mentioned President Ts.Elbegdorj’s interest in art and that he has established
the Elbeg Art gallery. At the end of his speech, he wished success to the
organizers and participating artists.
The
International Women Artist’s Council was founded in 1999 and its
Asian/International Women Artists Exhibition has been held since 1993 around
the world. In 2010, the 10th edition was organized in Ho Chi Minh, Vietnam.
On
the road to the new Eldorado
July 24 (UB
Post) By Amelie ESCHENBRENNER
The steppe that could be as rich as Dubai
Mongolia sits
on vast raw material resources; each resident is theoretically a millionaire.
So why can we still see thousands of gers and small houses built hurriedly,
clumped together on the slopes rising above the capital, where about 60 percent
of the 1.2 million inhabitants of Ulaanbaatar live? There is neither tap water,
nor toilets, nor tarred streets. In the settlements, there are only a few
proper roads and mostly dirt roads instead. The fact that the country is not
rich yet, is an issue left up to the government and some others external
factors. But it could happen fast, with the development of its plentiful
natural resources in the last four years, the country with its 16 percent
growth in 2013 is at a turning point in a strong economic expansion which has resulted
in profound economic and social transformations. If the GDP of Mongolia
still remained modest in 2013 (11.1 billion USD for a nation with less than
three million inhabitants), the dynamics of growth above the world average
should allow it to continue its economic catch-up in the coming years.
Mongolian resources are valuable and numerous, which lead many western
countries to take part in the Mongolian gold rush and consider the country as a
new, but not mythical, Eldorado
Because of the
natural resources (estimated at a value of more than 1 trillion USD) still
largely untapped, the country could quickly become a major energy player. The
mining sector currently accounts for 20 percent of GDP and is expected to
represent 50 percent of GDP in 2016 according to the World Bank.
By which means will Mongolia establish
itself in globalization?
To revive the
economy, Mongolian Prime Minister N.Altankhuyag announced a 100-day action plan
to stimulate economic growth. This plan seeks to promote foreign investment, as
well as encourage the domestic economy with the construction of roads, thermal
power plants, and the development of small and medium-sized businesses etc.
This sprint-plan aims to promote very different economic sectors in the country
and to strengthen Mongolia’s income. “Within these 100 days, we believe we
should reduce bureaucracy, increase mining, and approve the re-issue of
exploration licenses,” said the Prime Minister.
Despite the
strong push to increase the mining sector, Mongolia will also offer concession
projects in the tourism sector, which may increase soon in view of the opening
of direct air service between Paris and Istanbul to Ulaanbaatar. Indeed,
flights between Ulaanbaatar and other world capitals are infrequent and might
be considered uncomfortable for some people due to the long flight and the use
of inappropriate planes. But recently, MIAT Mongolian Airlines announced an
order for 737-800 and 767-300ER jetliners, and marked the first time in more
than two decades that MIAT Mongolian Airlines extended its route network. The
exemption of 30 day entry visas required for citizens of 42 countries,
primarily in South and Central America and Europe, from June 25 until the end
of 2015, reflects the will of Mongolia to open its country to the world.
If we think of
gold or uranium mining, we may first think of Australia or Kazakhstan but
probably not Mongolia. But now, through the development of its abundant natural
resources (including coal, copper, gold, and uranium), the “Blue Sky” country
has entered a phase of expansion without precedent, which has resulted in
profound economic and social transformations since 1991. The economic growth
rate reached 17.3 percent in 2011 (against 6.4 percent in 2010) which is a
world record, but the country is far from having explored its full capacity.
These two numbers in growth attract a lot of foreign investors, especially in
Europe. By courting Mongolia, the major European powers hope to enjoy the
immense natural wealth with which the country abounds.
For example, in
France, where nuclear power continues to occupy a prominent place in the energy
mix, it is vital to ensure the supply of uranium, a key component of this
technology. In view of the richness of Mongolian uranium reserves, it is easy
to understand the interest of France to invest in the country, including Areva,
a company established in Mongolia in 1997. The mining sector is indeed a
central axis of Mongolian strategic policy. The diplomatic strategy known as
the “third neighbor” policy tends to favor Western investors insofar as they
allow Mongolia to fight against its growing dependence on China. The “third
neighbor” policy includes mostly Europe, the U.S, Turkey, South Korea, Japan
and India. However, these countries – especially those of the European Union –
are not present, for the moment, in a large part of the country, although they
could have several companies (Air Liquide, GDF Suez for France) with much to do
there. The main suppliers of the country remain its close neighbors like China.
At the end of 2011, German Chancellor Angela Merkel visited Ulaanbaatar with a
delegation of business leaders to reinforce cooperation between Germany and
Mongolia in the mining sector. At the end of 2013 it was the French Minister of
Foreign Affairs’ turn to visit Mongolia and conclude several agreements in the
fields of energy, tourism, healthcare, and aeronautics. More recently, in 2014,
the Mongolian company Grandline LLC and the Turkish 216 YAPI signed an
agreement for the construction of a residential complex on 124,000 square
meters in Amgalan soum. Mongolia and Turkey truly hope to strengthen their
cooperation in many fields, especially during this year’s 45th anniversary of
the establishment of diplomatic relations between the two countries. The Turkish
government and Turkish companies are willing to invest lots of money in the
country in the near future, particularly in the construction sector.
Since 1989, the
EU has developed and deepened its ties with the birthplace of Chinggis Khaan.
The country maintains diplomatic relations with 41 European countries, as well
as with the European Union. Europe sees this former communist country as an
important partner country and participates in cooperative activities
implemented at the national and regional level. Mongolia became a member of the
World Trade Organization in 1997, which led the EU to becoming Mongolia’s third
largest trading partner (8.4 percent of its external exchanges in 2013) and the
country’s exporters enjoy an almost total exemption from customs taxes when
accessing EU markets through the Generalized Scheme of Preferences. The country
joined the European Bank for Reconstruction and Development in July 2006 and
more recently, in 2012, Mongolia became a member of the Organization for
Security and Co-operation in Europe.
In the coming
years, the exploitation of large deposits at Oyu Tolgoi (copper/gold) and Tavan
Tolgoi (coking coal) will provide significant tax revenue for the Mongolian
government, which has negotiated partnerships with several foreign companies,
including the Canadian/Anglo-Australian Rio Tinto for Oyu Tolgoi. Located in
the Gobi, Oyu Tolgoi is one of the largest open pits and underground mines in
the world and has outstanding reserves. Its production should reach 450,000
tons of copper and 11 tons of gold per year by 2020. It should also represent
by 2020 about 30 percent of the GDP. Its production began in January 2013.
Sixty-six percent of this mine is owned by Rio Tinto and 34 percent by the
Mongolian government. The operation of this mine leaves Canada as Mongolia’s
second biggest trade partner.
What could slow down this expansion?
Of course,
although Mongolia is a democracy and now has a market-led economy like many
western countries, these are pretty new concepts for the landlocked country
heavily influenced by its past under Soviet socialist governance and the
economic dominance of its neighbors: China and Russia. Mongolia remains highly
dependent on demand from China, a country to which nearly 90 percent of its
mining products are exported. China has a virtual monopoly on Mongolian
exports. But due to the slowdown of the Chinese economy, it is essential for
Mongolia to broaden its trade relations and find new partners.
The economic
transition is also one of the weak points for continued expansion. Forced to
advance in the market economy, Mongolians lost their institutions inherited
from the socialist era, such as the planned economy and common goods which were
dismantled along with the cooperatives, the return to a form of private
property, and the stronger role of the market in economic relations. Before,
the USSR supported Mongolia with financial aid and the country became very
reliant on this support. Since Russia does not contribute to the funding of
economic sectors, Mongolia has become dependent on international aid. In
addition, Mongolia has challenging infrastructure, small roads, a difficult
climate, inaccessible natural resources, and land tenure marked by nomadic
traditions. With its almost three million inhabitants, of whom 40 percent live
below the Mongolian poverty line, for now, it seems difficult for Mongolia to
rely on domestic demand to continue its development. But if the country counts
only on mining exports to boost its economic growth, Mongolia could be vulnerable
concerning the changing prices of raw materials.
According to
the World Bank, Mongolia is ranked 76th in its “Doing Business” assessment.
This ranking lists ten criteria for assessing whether or not countries
facilitate business, entrepreneurship, obtaining building permits, loans,
electricity connection, and investor protection. Mongolia ranks ahead of its
neighbors, China and Russia. However, the Soviet influence exerted on the
country for seventy years has contributed to creating a cumbersome bureaucracy
that sometimes hinders investment. Foreign investment peaked in 2011, and in
2012, the flow of money suddenly dried up. Just before the parliamentary
elections, the government passed a new investment law that put strict
conditions on foreign investors. Foreigners would no longer be able to acquire
more than 49 percent of a Mongolian project’s shares. This led to a sharp
decline in foreign investment, about 44 percent, at the end of 2012 which made
other foreigners investors afraid of the future.
These good
macroeconomic performances remain fragile given the challenges of rural
development, environmental issues and the country’s dependence with respect to
the global economy. The poor distribution of wealth may continue to increase
the rapid growth of the country.
On one hand,
thousands of families are gradually driven away from their traditional
environment and fail in the slums of gers that bloom around Ulaanbaatar because
of the harsh winters called “dzud”, such as those in 2002 and 2003 which killed
more than 10 million head of cattle. But there are other causes for this
unprecedented rural exodus. Since 1991, the democratic government has promoted
a de facto form of centralized government: the transition to a market economy
drives some families to cluster near roads because today, the capital
concentrates most of its administrative, social, educational and medical
infrastructure within the city. It provides easier access to many for medical
care, schooling, and the resources to create a small business, but it makes
these richer resources more remote for others. The Mongolian capital was not
the preferred destination for rural residents during the socialist period,
because other cities offered the same services and comparable urban comfort.
Finally, unoccupied residential land on the outskirts of the city promotes the
migration movement. In order to approve the decision to open mines to foreign
companies, Parliament passed a law in June 2002 giving each citizen the right
to appropriate land of their own. In May 2003, land privatization began in
Mongolia with an allowance of 0.07 hectares for each urban family. Rural
households were allotted from up to 0.5 hectares. Mongolian citizens only have
to register to acquire ownership, which costs only a few thousand tugrugs.
On the other
hand, the new Mongolian gilded youth can enjoy cocktails in the bar on the 23rd
floor of Blue Sky Tower, with a view of the more disadvantaged neighborhoods.
Foreign
Minister of Canada starts visit
Ulaanbaatar,
July 24 (MONTSAME) The Minister of Foreign Affairs of Canada Mr John Baird
Thursday began his official visit to Mongolia.
Mr Baird was
invited by his Mongolian counterpart Mr L.Bold. This is the very first visit of
Canada’s Foreign Minister to Mongolia.
The two Foreign
Ministers held negotiations, reaffirmed the bilateral relations for a broad
partnership, and exchanged views on the Mongolia-Canada cooperation at
international and regional arenas.
During the
talks and meeting, Mr Bold underlined that Canada bears an important role in
the foreign policy of Mongolia, and proposed advancing a volume of the
bilateral ties, enriching the cooperation with new contents by a way of
strengthening the ties in mining, legal reform, agriculture, health and
education spheres.
The visit of
the Canada's Minister will continue until Friday.
Mongolian
and Canadian FMs issue joint statement
Ulaanbaatar,
July 24 (MONTSAME) The Ministers of Foreign Affairs of Mongolia and of Canada
Thursday issued a joint statement on the bilateral relations.
Mr Bold and Mr
Baird said they had run the negotiations in a warm and friendly atmosphere and
that they confirm the two countries' "Broad Partnership" that has
been running in a way of close and expanding ties for the last 40
years.
The two
dignitaries highlighted that their countries intend to develop between them the
sustainable and dynamic ties and cooperation which contain the same positions
over regional and international urgent matters and are based on common values
such as democracy, human rights and justice.
They emphasized
that the countries have reached an agreement to bring the present bilateral
relations into a comprehensive partnership level through cooperating in peace,
security and good governance.
Mr Bold
reaffirmed that Canada is one of the important “Third Neighbours” of Mongolia
and is a close partner in North America.
Confirming that
Canada’s government attaches a long-term importance to the relations with
Mongolia, Mr Baird pointed out that the cabinet of Canada decided recently to
include Mongolia in the list of special states to receive a developmental aid.
The bilateral
cooperation will be focusing on ensuring the sustainable economic growth of
Mongolia by fortifying its state service, including a management potential of
minerals, the Ministers said, and expressed the mutual satisfaction with the
collaboration in urban planning, rural development, court reforms and
strengthening the police bodies.
“Trade and
investments issues are still vital for the bilateral relations. Canada is one
of the leading investors for Mongolia, and it has determined Mongolia as a
high-level country in the action programme on world market,” the Ministers
said.
They also
appreciated refreshing of the talks for establishing an agreement on supporting
and saving investments, and hoped that this agreement will be signed soon. The
Ministers share the same opinion that this agreement will contribute to
creating a sustainable environment for the investment cooperation.
At the
international field, Mongolia and Canada are members of a number of
international organizations. Canada decisively supported Mongolia’s efforts to
become a Participating State of the Organization for Security and Co-operation
in Europe (OSCE). They are also partners within the NATO and the Community of
Democracies (CoD), the Ministers said.
Mr Baird
re-emphasized that his country will continue the support to Mongolia in line of
Canada’s military exercises and cooperation programmes with the purpose of
peace and security.
A support to
the inter-citizen ties is vital in developing the long-year relations between
the two countries, the Ministers underlined. They also reaffirmed an importance
of the cooperation in the education sector, and said the countries aspire to
widen this collaboration. Here Mr Bold expressed a willingness to augment a
quota of Mongolian students studying in Canada.
The two
Ministers also expressed a satisfaction with realization of high-level mutual
visits, running in a scope of the 40th anniversary of the diplomatic relations,
and with strengthening of the bilateral cooperation.
Vice
Speaker meets Canadian FM
Ulaanbaatar,
July 24 (MONTSAME) The inter-parliamentary ties between Mongolia and Canada
have been activating recent years with a regularization of high-level visits,
and Mongolia wants to boost the bilateral cooperation in other sectors based on
investments and mining collaboration.
It was said by
the Vice Chairman of the State Great Khural Mr M.Enkhbold on Thursday at a
meeting with visiting Mr John Baird, the Minister of Foreign Affairs of
Canada. He also noted that this official visit is running successfully.
In response,
The Canadian FM Mr Baird expressed his country’s willingness to widen the
cooperation with Mongolia not only in the trade, economy, investments and
mining sectors, but also in the fields of education, agriculture and health.
The two sides
also exchanged views on other matters.
President
meets chair of Friendship Group
Ulaanbaatar,
July 24 (MONTSAME) In frames of the working visit to Japan, the President of
Mongolia Ts.Elbegdorj Wednesday received Mr Satsuki Eda, a leader of the
Mongolia-Japan Parliamentary Friendship Group at the House of Representatives
(lower house), in Tokyo.
Mr Eda said he
will continue to enhance inter-parliamentary ties and emphasized that the
countries reached an agreement in principle to establish the Economic Partnership
Agreement (EPA), Here he added that the Japanese parliament will give its
support to approving it.
After this
meeting, the President received Mr Heita Kawakatsu, the governor of Shizuoka
Prefecture. They discussed such matters as preparing staffers and engineers for
the coal sector of Mongolia, ways to widen ties between Mongolian aimags
and other Prefectures.
President
Elbegdorj receives some officials in Japan
Ulaanbaatar,
July 24 (MONTSAME) The President Elbegdorj Wednesday met with Mr Ito Naohiko, a
vice chairman of Friendship Exchange Council of Japan (FEC), within his working
visit to Japan.
Mr Elbegdorj
said Mongolia and Japan have reached an agreement to sign the Economic
Partnership and there will be ample opportunities for cooperation. “It is very
important to inform the people of the two countries that the opportunities
must be taken. I hope that our cooperation with the Friendship Exchange Council
will be fruitful, on the initiatives of conducting joint research, project and
work,” he said.
FEC undertakes
surveys to enhance economic cooperation in the region, organizes trainings and
meetings with the representatives of public and private sectors of a certain
countries to discuss issues related to economy, cultural relations and
partnership.
The same day,
the President received Mr Tsuneo Kita, a president of the Nikkei Group. Mr Kita
invited the President to the "Future of Asia" annual
conference.
“Domog”
group to perform with Swiss counterpart
Ulaanbaatar, July
24 (MONTSAME) One of the famous folk groups of Mongolia, the “Domog” /Legend/
will give a concert together with the "Jodelchorli alpsteinblick
abtwil" group from Switzerland.
This concert
will be staged only once, on July 26 in the Academic Theatre of Drama on
occasion of the 50th anniversary of the Mongolia-Switzerland diplomatic
relations and 10th anniversary of the Mongolia-SDC (Swiss Agency for
Development and Cooperation) cooperation.
Japan
and Mongolia Signed a Free-Trade Deal to Improve Relations
July 24
(Mongolian Economy) Japan and Mongolia signed a free-trade deal on Tuesday,
July 22, 2014 in an effort to help Japan take a role in Mongolia’s growing
economy and tap into its natural resources. This free-trade deal aims to
further relations between both countries as Mongolia is one of the very few
countries that maintains formal diplomatic ties with Pyongyang, the capital of
North Korea.
Mongolian
President, Ts. Elbegdorj, and Japanese Prime Minister, Shinzo Abe, held talks
this past Tuesday evening to reach an agreement to sign the deal. It calls for
Mongolia to scrap 5% of tariffs on Japanese car imports. In return, Japan will
reduce its levies on Mongolia beef by introducing a quota-based system. These
measures are important as used passenger vehicles make up 45% of Japan’s total
exports to Mongolia.
This trade deal
is important to deepen economic ties, since trade between both nations rested
at USD 307 million as of last year. Last year, all-inclusive exports from Japan
were valued at USD 288 million. Mongolia exports to Japan totals USD 21
million.
Negotiations
began in 2012, with recent rounds of negotiations lasting since Saturday this
past week. There is also an investor-state-dispute settlement clause that
allows businesses to pursue compensation claims if it is believed that
government policy damaged their investment.
Japan also
hopes to receive help from Mongolia in terms of resolving issues with North
Korea. North Korean agents have kidnapped Japanese citizens during the 1970s
and 1980s in order to create more spies, which have darkened relations between
both nations for many years. Stronger relations between Mongolia and Japan can
pave a pathway to improved ties between Japan and North Korea.
Mongolia
on the List of “Development Countries of Focus”
July 24
(Mongolian Economy) Today, John Russell Baird, the Canadian Foreign Affairs
Minister, met with N. Batbayar, the Minister of the Economic Development
Ministry to announce that Mongolia is on the 2014-2019 list called Development
Countries of Focus. Every five years, Canada chooses between 20 and 25
countries to put on this register in order determine which countries to send
foreign aid to.
The list was
confirmed last week. As a part of this five-year development plan, 25 countries
including Mongolia will receive 90% of total foreign development aid. Other
Asian countries include Afghanistan, Bangladesh, Burma, Indonesia, the
Philippines and Vietnam. The last list included 20 countries. Canada sent 80%,
or USD 5.2 billion, in total of foreign aid.
In terms of
economic relations between both countries, Mongolia exported a total of USD
135.5 million worth of products to Canada. In return, Mongolia imported USD
80.3 million worth of equipment and machinery. Since 1990, Canada has invested
in 136 companies that are operating in Mongolia including foreign-invested
Mongolian and Canadian companies and strictly Canadian-owned businesses.
Canadian
investment to Mongolia is equivalent to USD 498 million, or 3.5%. This places
Canada as the 6th country to provide the most investment to Mongolia. Most of
Canada’s capital flow goes to geology, exploration and mining, totaling 89% of
its total. 1.76% goes to financial banking and the other 8.2% goes towards
trade and cafeteria.
Vladimir
Putin Visits to Mongolia
July 24
(infomongolia.com) The Head of Mongolian part of the Mongolia-Russia
Intergovernmental Committee, the Deputy Prime Minister of Mongolia
D.Terbishdagva have met with the preparatory committee people for the 75th
anniversary of the victory of the Battles at the Khalkh River and gave some
instructions while after seeing current conditions and ongoing processes in
there.
Commemoration
of the victory of the Battles of Khalkhyn Gol has its great importance to
introduce immeasurable value of the victory and consolidate historical
longstanding friendship between Mongolia and the Russian Federation in terms of
reshaping the memory of the warriors and veterans to increase loving nature of motherland
to the young generation of Mongolia.
The 75th
anniversary of the victory of the Battles at the Khalkh River will be held
between August 22 and September 04, 2014.
Most notably,
the President of the Russian Federation Vladimir Vladimirovich Putin will also
visit to Mongolia during the first week of coming September 2014.
Mongolia-Canada
roundtable meeting runs
Ulaanbaatar,
July 24 (MONTSAME) The Minister of Foreign Affairs of Mongolia L.Bold and his
visiting Canadian counterpart Mr John Baird held a roundtable meeting on
Thursday together with business delegates of both countries.
The meeting
also brought together O.Erdenebulgan, the Vice Minister of Mining;
Ts.Bayartsetseg, the State Secretary of the Ministry of Justice, and others
from the Ministry of Economic Development.
Mr Bold spoke
about nowadays economic development of Mongolia, its policy and measures in the
mining and investments sectors. After this, the gathered ran a wide
discussion.
The Foreign
Minister of Canada Mr Baird named the roundtable as well-timed, and shared
views with the participants on several matters.
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