Mongolia is open for business
The past two years have proven to be a difficult time for countries and citizens around the world. Under the leadership of Prime Minister Luvsannamsrain Oyun-Erdene, Mongolia has mobilized since the beginning of 2021 and is effectively managing the Covid-19 pandemic. He was able to minimize the spread of the virus from outside the country. In addition, the vaccination program has proven to be very effective: 96% of the population has received a dose, 92% are fully vaccinated and more than half have already received a booster dose. Thanks to this impressive performance, Mongolia is safe, secure and now open with minimal restrictions. Thanks to the Covid-19 approach, Mongolia is once again open for business, foreign direct investment (FDI) and tourism. the New recovery policy will enable successful transition from the Covid-19 pandemic to post-pandemic recovery, as well as achieving Vision 2050. This policy is a roadmap to industrialization, higher gross domestic product (GDP) growth and liberalization. As part of Vision 2050, it is a sustainable plan that will secure Mongolia’s cultural and economic future by creating new opportunities for its people and communities.
Over the past 20 years, life expectancy has increased from 62.2 years to 70.33 years. Similarly, gross domestic product per capita has increased by almost 400%. Mongolia is on its way to becoming a leading Asian country in less than 30 years. The Vision 2050 strategy, which begins with the New Recovery The policy will advance social development by expanding the vibrant cultural and arts scene, quality of life and economic growth. This will ensure equal opportunities, solidarity and participation for all Mongolians. The vision includes nine fundamental goals and 50 specific objectives, with expected results for each of the implementation stages over 10 years. By 2050, there will be sustainable economic growth, a better quality of life, smart and sustainable governance, and a predominant and prosperous middle class. Improving the quality of life is one of the main goals of Vision 2050. It is important that the leadership of the country is able to provide clean water, food, technological innovations, affordable housing, quality education and an accessible and efficient healthcare system for citizens. The government will achieve these objectives by improving public services and ensuring their accessibility to all, in addition to creating a balanced and sustainable economy and labor market.
With the New recovery policy, in 10 years, the national income per capita is expected to double, maintain an average growth of 6% in the long term and a participation in the labor market of up to 65%. To do this, the government plans to spend 120-150 trillion Mongolian tugriks (about $40-50 billion) by 2030. New recovery policy consists of six pillars, which respond to the following main economic constraints: border ports, energy, industrialization, urban and rural development, green development and state efficiency. Therefore, the authorities will fully connect the border ports by railway and new roads, improve the management of Mongolia’s airspace and airways to increase the number of transit flights, and establish a transit hub. freight. Thus, in the medium term, it is planned to triple the capacity of the border ports and to double the national rail network.
Energy sources will also double during this period; new ones will be obtained to strengthen the existing energy sector, improve while establishing new transmission and distribution networks, and develop renewable energy facilities. All this with the aim that stored resource stations and water facilities are built to ensure a stable and reliable integrated energy system. In addition, it will stimulate the economy, create jobs, ensure a reliable energy supply and become more sustainable. To continue its growth, Mongolia will transform from a supplier of raw materials to an industrialized state to increase its exports and meet national development needs. This will include the development of value-added heavy industry, digitalization, advanced technology and increasing the volume of new services, products and production. Also, they will introduce blockchain, artificial intelligence and other advanced technologies.
The Mongolian government is committed to improving infrastructure and the quality of life throughout the country. The capital, Ulaanbaatar, is currently too densely populated. Representing only 0.3% of Mongolian territory, the city represents nearly half of the population. As part of the urban and rural revival objectives, they will reduce traffic congestion, improve public transport and intensify the development of new residential areas, satellite towns and free economic zones. Accordingly, they will also carry out regional economic development policies. Thus, making it possible to decongest Ulaanbaatar, to manage the capital more efficiently and to distribute the wealth and resources that are currently concentrated there.
Additionally, they are committed to sustainable development efforts and making progress toward meeting the Paris Climate Agreement. The authorities will strengthen environmental protection by improving and developing new renewable technologies in accordance with new global trends. Likewise, plan to work with public initiatives, businesses and organizations to effectively launch the national Billion Trees movement, which will help rehabilitate severely degraded and deserted areas. In addition, throughout the implementation of the other elements of the New recovery policyit will establish environmentally friendly waste recycling plants, protect water resources, and preserve and guarantee national traditions of environmental protection.
To tackle state efficiency, they will replicate the New Turn policy of 1932. This will be achieved by identifying the optimal structure of government, digitization, strengthening the judicial system and transferring control of state-owned enterprises to that of the public. The Mongolian government will remain committed to ensuring full respect for human rights, fair justice and a country free from corruption. This is an essential element for the success of the country and the achievement of international standards.
While it is vital to maintain good relations with neighboring countries, they are ready and enthusiastic to embrace new deep business partnerships and FDI. At the annual Mongolia Economic Forum, they welcomed stakeholders from all over, participating in the first forum since the pandemic and celebrating their vision and new recovery. The event included keynote addresses from Prime Minister Luvsannamsrain, President Khurelsukh, as well as departmental ministers and stakeholders, including Mr. Marcello Estevão of the World Bank and Michael McAdoo of the Boston Consulting Group. This week, Directors and CEOs were able to see the progress Mongolia has made so far, how it will continue to grow, and the surplus of opportunities present in this promising nation through sessions on the various recovery goals. To facilitate business and attract foreign investment to Mongolia, especially in the leading mining industry, they will digitize the process of issuing mining licenses, increase the number of licenses and reduce the cost of surface mining in the framework of New recovery policy. The country’s main exports include minerals, such as copper and gold, and agricultural products, including cashmere. There are also many opportunities in these sectors, such as in the growing sustainable cashmere industry.
Mongolia is home to a rich cultural history and heritage. It is imperative that, while continuing to progress and open up to foreign investment and tourism, they remain true to their identity with shared national values. It is its deep history and culture, along with its breathtaking landscapes and friendly people, that should make Mongolia so attractive to the world. This nation-state is a welcoming place with unlimited potential and opportunity. It is expected that with Vision 2050 and the New recovery policy, together with the world, the full potential of Mongolia will be discovered. Likewise, watch the country of Mongolia and its people continue to prosper, especially under Prime Minister Luvsannamsrain. The message is short and sweet: after two years of global pandemic, Mongolia is open for business.