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ECONOMY
CENTRAL BANK RAISES POLICY RATE 1 PP TO 13 PCT
B.Lkhagvasuren, Governor of the Bank of Mongolia, reported that the Monetary Policy Council of the Bank of Mongolia held a meeting today and made a decision to raise policy interest rates by 1% to be 13%.
The inflation rate reached 14.5% in November, 2022. Inflation has been falling in recent months, in line with previous projections. Foreign inflation, prices of food and fuel, budget expense and salary tends to increase next quarter.
Economic intensification was relatively stronger than expected in the third quarter of 2022, surpassing pre-Covid-19 levels. In recent months, the mining and transportation sectors have recovered, and the construction sector has grown due to the influence of railway construction. Intensification of non-mining sectors such as trade, services, net product taxes and agricultural sectors continued to increase in the third quarter of 2022. The labor market has reached pre-pandemic level, and household consumption has increased steadily for the last 4 quarters.
Source: GoGo News
View the BoM statement
TRANSPORT CONNECTIVITY AND LOGISTICS CENTER IS TO BE BUILT WITH WORLD BANK
Mongolia Transport Connectivity and Logistics Improvement Project will be implemented in our country with a World Bank loan.
The Minister of Road and Transport Development, S. Byambatsogt, received the World Bank Regional Director for China and Mongolia Mara Warwick, Country Manager for Mongolia Andrey Mikhnev, and related specialists. During the meeting, he stated that this significant project is being launched in Mongolia's road and transport industry in cooperation with the World Bank.
It is planned to establish a model regional logistics hub in Uvurkhangai aimag to improve the physical connectivity and logistics efficiency for meat processing depending on the transport flow, the number of animal heads, and geographical location by the feasibility study prepared by the World Bank. The project agreement was finalized between the World Bank, the Ministry of Finance, the Ministry of Economy and Development, and the Ministry of Road and Transport Development.
Source: Montsame
MONGOLIA'S NOV COAL RAILINGS UP 14.5 PCT MOM; IRON ORE DOWN 19.7 PCT
Mongolia transported 1.38 million tonnes of coal via railway in November, rising 33.94% year on year and 14.47% month on month, marking the fourth straight month of rise, showed data from the National Statistical Office of Mongolia.
In the month, railway shipment of iron ore was 285,000 tonnes, slumping 47.01% from a year ago, and down 19.70% from October.
Coal railings totaled 9.74 million tonnes during the first 11 months of 2022, up 11.49% year on year, and iron ore shipment was 3.61 million tonnes, down 50.80%.
Source: SXCoal.com
NUMBER OF ENTERPRISES EXPORTING MEAT TO UZBEKISTAN INCREASES
In the first 10 months of this year, Mongolia has exported 500 tons of meat and by-products to Uzbekistan. During his virtual meeting with the Minister of Agriculture of Uzbekistan Voitov Aziz Botirovich, the Minister of Food, Agriculture and Light Industry of Mongolia Kh. Bolorchuluun expressed that Mongolia has a breadth of opportunity to increase exports to Uzbekistan in the future.
In December 2022, Uzbekistan granted permission to import meat and meat products to Mongolian nine enterprises. As a result, the number of enterprises that can export to the country has increased to 26.
In 2019, the sides agreed to implement joint projects and programs on the further expansion of cooperation in animal husbandry and veterinary, and relevant veterinary certificates were mutually agreed upon. This opened the possibility of exporting meat and meat products to Uzbekistan.
Source: Montsame
WORLD BANK: MONGOLIA CAN CREATE DYNAMIC AND INCLUSIVE LABOR MARKET, WITH BETTER JOBS FOR MORE CITIZENS
Mongolia’s labor market has expanded significantly during the last two decades, with employment rising by 50 percent. Its labor force has also become increasingly educated: the share of the population aged 25 and over with a college degree now resembles that of high-income countries. Fewer people now work in agriculture, and more and more people are working in the service sector, a sign of development. These changes would suggest that Mongolia has a vibrant and diverse labor market with an abundant supply of good jobs.
However, some indicators show otherwise. Most of the jobs created in recent years were in low-wage sectors. The economy, including exports, has increasingly become dependent on mining, a sector that is not very labor-intensive and employs very few people. Labor force participation has also been declining over the past decade, especially among women, and unemployment is high, particularly among young people.
Source: Montsame
GOVERNMENT AND PRIVATE ORGANIZATIONS JOIN FORCES TO DEVELOP WINTER TOURISM
The government has announced 2023-2025 as “the Years to Visit Mongolia”. Within the framework of this context, with the aim of receiving one million tourists in the coming year, a National Tourism Development Committee was established. Thus, the tourist program "New Year in Mongolia" will be organized from December 25, 2022, to January 10, 2023, to support winter tourism. The program will be jointly organized by the Ministry of Nature, Environment, and Tourism, the Governor’s office of the Capital city, and the Mongolian Tourism Association.
Representatives of the government and private sector organizations participating in the "New Year in Mongolia" program convened on December 22, exchanging information information and discussing suggestions. During the meeting, President of the Mongolian Restaurants’ Association M.Yesunmunkh emphasized that a banner with identification and information will be placed at the entrance of the entities participating in the program, and tourists can enjoy the bonus. “Let's improve and work together to develop winter tourism,” he said.
Source: Mayor's Office, GoGo News
17 TRAINS OR 774 WAGONS DELIVERED TO ERLIAN STATION FOR THE FIRST TIME
Within the framework of the New Revival Policy of the Government of Mongolia, the policy of intensive expansion of the economy is under implementation by increasing the volume of export transportation.
As a result of several requests made by the The Ministry of Road and Transport Development and the management of Ulaanbaatar Railway to the People's Republic of China, 17 trains or a total of 774 wagons or 64,337 tons of cargo were delivered to Erlian station through the broad gauge of Zamiin-Uud station on December 17, which set a historical record.
As classified by the cargo, 17 trains include 200 wagons of coal, 99 open top container coal, 159 wagons of iron ore, 30 wagons of copper, 38 wagons of fluorspar, 46 wagons of cellulose, 123 transit wagons, and 79 export wagons.
Source: GoGo News
ADB GRANT TO BUILD RENEWABLE ENERGY HEATING SYSTEMS IN MONGOLIA
The Asian Development Bank (ADB) and the Government of Mongolia signed a $2 million grant to increase efficient and renewable energy heating systems in remote areas in Mongolia.
ADB will administer the $2 million grant financing from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), which has supported projects in Mongolia in poverty alleviation, livelihood improvement, and environment safeguards over the past 20 years. JFPR is funded by the Government of Japan.
“Adequate heat supply is vital in Mongolia, which can experience extreme low temperatures of -40 degrees Celsius or below,” said ADB Principal Energy Specialist for East Asia Shannon Cowlin. “The project will not only improve air quality with significant impact to public health. It will also demonstrate the viability of renewable heating systems in Mongolia’s rural areas and build capacity among leaders and the community to reduce coal usage."
Source: ADB
CHINA OPENS NEW VEG, FRUIT EXPORT CHANNEL TO MONGOLIA
China has launched a new export channel of vegetables and fruits to Mongolia with 18.5 tonnes of fresh produce transported via Ganqmod Port, north China's Inner Mongolia Autonomous Region, on Monday.
Trucks carrying 18 types of vegetables and fruits, including apples, pears, tomatoes and cucumbers, went through the land port in Bayan Nur City, heading for Mongolia's South Gobi province where the demand for agricultural products keeps rising due to a growing population in its mining area.
In the past, fruits, vegetables, and other daily necessities were transported to Ulan Bator, the capital of Mongolia, via Erenhot, the largest land port on the China-Mongolia border, and then to South Gobi, said Lyu Xiaojun, deputy director of the port management office of Bayan Nur.
The new transportation distance is about 1,500 km shorter, helping reduce costs and keep the freshness of products, Lyu said.
Source: Xinhua
MAKING PUBLIC TRANSPORTATION MORE ACCESSIBLE WITH TECHNOLOGY
A good public transportation system is the backbone of any well-functioning city. It not only benefits the city and residents with its profound environmental benefits but also brings much-needed comfort and convenience to the residents who otherwise would have used their private vehicles crowding the roads and polluting the environment.
According to the survey conducted by UNDP Mongolia Accelerator Lab, despite having a dedicated bus system, only 27% of the Erdenet population, the second-largest metropolitan city in Mongolia, used the services in 2021. Common barriers included bus stops being too far apart and not accessible, drivers skipping stops, and inconveniences including cash-only payment, short working hours, and irregular schedules. So, people increasingly prefer using their private vehicles within the city crowding roads and creating rush hour traffic jams.
App on Apple Store: https://apps.apple.com/ng/app/erdenet-bus/id1629546271
App on Play Store: https://play.google.com/store/apps/details?id=bus.erdenet.bustripplanner
Source: UNDP
CONSTRUCTION OF 83-KM “NEW RING ROAD” TO BE COMPLETED IN A YEAR
On December 17, Prime Minister of Mongolia L. Oyun-Erdene became acquainted with the construction of new roads and structures and works that are being carried out in the light of tackling the issues of Ulaanbaatar city’s traffic congestion and centralization.
In this regard, during today’s Cabinet meeting, Minister of Road and Transport Development S. Byambatsogt was assigned to oversee the works to complete the construction of the 83-km road within the “New Ring Road” project within a year.
The “New Ring Road” project which has been included in the action plan of the Government’s New Revival Policy, will be 83 km long. According to the estimates, traffic congestion will be reduced by 15-20 percent and road capacity will be increased dramatically once the road is commissioned.
Source: Montsame
HAS PEDIATRIC DENTAL DISEASE REACHED SILENT EPIDEMIC LEVEL? - EDITORIAL
Oral health is an essential component of people’s well-being throughout their life. Unfortunately, dental caries in Mongolian children is high due to excessive consumption of sugar, irresponsibility of parents and lack of health education.
According to a survey, 90 percent of the population suffers from dental diseases nationwide and dental caries is the highest in children among all age groups.
In Mongolia, the first national survey on the oral health status of children aged five, 12, 15 and 18 and adults aged between 35 and 44 and between 65 and 74 was conducted in 2013 and again the next year. These surveys showed a dramatic increase in caries among children as well as complications in adults in both urban and rural areas of the country compared to the study conducted by the School of Dentistry of the Mongolian National University of Medical Sciences in 2008.
Source: The UB Post
POLITICS
DEMONSTRATION AT SUKHBAATAR SQUARE CONTINUES FOR THE 17TH DAY
The Mongolian Government revised the regulation on mineral license bidding (April 12, 2022) last month, which was made public this month. Currently, exploration licenses are issued by a bidding process only. The tender has been digitalized to automate application processing, license issuance, submission, and reviews by an online platform, and to ensure transparency and openness of the tender review commission decisions. The reform is in line with the digitization policy and the objectives of intensifying explorations.
The goal is to improve the economic turnover of areas with mineral resources by easing licensing process using the online system. Under the rule approved in 2008, the Mineral Resources and Petroleum Authority (MRPAM) has set out 8.4 million hectares of land coordinates by a resolution from the Government of Mongolia. A total of 276 exploration licenses have been issued for 1.2 million hectares in total as a result of biddings for 470 sites on a total area of 2.8 million hectares.
Source: Mining Insight
‘CORRUPTION CASES WILL NOT BE PROCESSED IN SIMPLIFIED MANNER’
A demonstration that demands to reveal the names of people involved in the coal theft case continues for the 17th day at the Sukhbaatar Square. Four gers were built at the Sukhbaatar Square for demonstrators to provide them with health service and safety.
About 15-16 citizens are staying overnight at the Sukhbaatar Square. The police officially informed the demonstrators to leave the Sukhbaatar square immediately, considering that the health condition of the people who were staying overnight could get worse and their lives could be harmed.
In particular, a 17-year-old woman participating in the demonstration got sick and was taken to the hospital on December 19. Also, there is a risk that the demonstrators don’t agree with each other's opinions and there is a risk of chaos.
Therefore, the police warned that there are risks of degrading human dignity through demonstrations, and a negative impact on society.
Source: GoGo News
CRIMINAL CODE AMENDED TO MAKE SENTENCES STRICTER FOR CORRUPTION
In connection with recent coal theft allegations, Parliament amended the Criminal Code and Criminal Procedure Code with 95.7 percent of votes during its plenary session on December 16.
The amendments include the following new regulations:
• There will be no pardon or forgiveness in cases of corruption and abuse of official positions. The amended laws will prohibit courts from ruling light sentences to cases of corruption and abuse of power or office by state officials and instead, make sentences stricter.
• A person involved in the crime of corruption will not be employed in public service for the remainder of their life and imprisonment for a term of five to 12 years will be imposed.
• Abuse of power and official position will not be let off with a fine.
• Corruption and office cases will not be processed in a simplified manner.
Source: The UB Post
MONGOLIAN GOVERNMENT PROVIDES MAJOR BOOST TO THE COUNTRY'S THRIVING TECH SECTOR WITH LAUNCH OF 'MINDGOLIA' PROCUREMENT PORTAL
The Government of Mongolia is launching today its new online procurement portal – www.mindgolia.mn – reducing costs and bureaucracy related to the procurement of software solutions and providing a major boost to the country's thriving tech sector.
As part of the Mongolian economy's transition 'from mining to mind', 'Mindgolia' will showcase globally the world-class digital solutions that the Mongolian tech industry has been developing for many years. Open to both the private and public sectors, the new marketplace is also designed to strengthen links between the country's tech industry and global investors, as well as providing a level playing field for Mongolian tech start-ups to compete with more established players.
Mongolia's USD 41 billion ICT industry is growing rapidly, a trend due to continue in the years ahead due to the roll-out of public private partnerships such as 'Mindgolia'.
Source: Yahoo
BENEFICIAL OWNERSHIP TRANSPARENCY IN ASIA AND THE PACIFIC
Focusing on countries including Armenia, Mongolia, and the Philippines, it offers a breakdown of relevant international standards and details challenges related to accurate data verification, collection, and disclosure. It highlights best practices, provides practical recommendations, and shows why a multipronged approach to cross-checking ownership information can help reduce money laundering, terrorism financing, tax evasion, and other economic crimes.
Source: ADB
Click here to view the report
YEAR IN REVIEW 2022: UN MONGOLIA HIGHLIGHTS
2022: A look back at the UN Mongolia's key milestones:
- A new phase of cooperation for 2023-2027
- UN Secretary-General’s visit and other high-level visits from the UN
- Prioritizing the SDGs in the national development agenda
- Transforming education in Mongolia
- Global Digital Dialogue
- Developing a multisource information surveillance system for COVID-19
- International women peacekeepers’ conference
- Accelerating climate action and youth engagement
- Promoting gender equality and women’s empowerment
- Completion of two joint programs
Source: UN Mongolia
“EBARILGA” SYSTEM FOR DELIVERING INFORMATION RELATED TO URBAN PLANNING AND CONSTRUCTION PERMITS LAUNCHED
A combination of web and application "eBARILGA" digital system has been launched in order to provide information related to urban planning and construction permits to citizens, to increase citizens' participation in urban planning activities, and to improve government services. Specifically, citizens can obtain information through the www.ebarilga.ub.gov.mn geoportal related to city development master plan, partial master plan, construction project information, architectural planning, and permission in the capital city.
It is also possible to send requests for public services provided by the Urban Planning and Development department of the capital city to citizens and legal entities. Citizens can monitor the processing and requests, view information and notices about the approval period of buildings, report violations related to buildings, get instant information on projects and programs being developed in the field of urban development and planning, and send their requests through the "eBARILGA" mobile phone application.
Source: Mayor's Office
MONGOLIA TRYING TO 'DIVERSIFY' GAS SECTOR TO GET AWAY FROM DEPENDENCE ON RUSSIAN NEIGHBOUR - EDITORIAL
The deputy prime minister of Mongolia has defended his country buying almost 100% of its gas from Russia, saying that its position as a large landlocked country presents "a lot of problems and issues".
Speaking exclusively to Sky News, Sainbuyan Amarsaikhan said that while Russian sources are important to ensure "continued supply with a reasonable price and timely delivery", the country is looking to "diversify" its gas sector and the economy more broadly "as quickly as possible".
He added Mongolia is looking to countries such as Australia to "strengthen cooperation - bilateral and multilateral".
Mongolia is a large landlocked nation sandwiched between China and Russia.
The logistical challenges of its geography as well as its position as a former Soviet outpost and its historical links with China mean it is highly reliant on its two powerful neighbours for trade and supplies.
Source: Sky News
DEFACTO REVIEW, DEC. 22 - VIDEO
Highlights of the week:
1. Protestors camping out in the freezing cold to fight corruption
2. Names of 17 individuals related to coal theft investigation released
3. How mineral royalties are affecting the economy
Source: Jargal Defacto
MONGOLIA FOCUS: DECEMBER 2022 PROTESTS - EDITORIAL
Once again, following protests in April 2022, primarily younger Mongolians took to Sukhbaatar Square in protest in early December.
I initially wrote about these protests for The Diplomat, pointing out the simmering corruption worries connected to state-owned Erdenes Tavan Tolgoi, but also the mounting frustration that younger Mongolians in particular seem to be feeling regarding the lack of delivery on promises made by successive government that also fueled protests in April 2022.
Two weeks after these protests started, they now seem to be petering out. But, they will likely remain significant as an expression of popular frustration on the one hand, but also in pushing for some more concrete action on corruption, at least in the
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