Mongolia economic development. Economy of Mongolia. Administrative division of the state

Test
by discipline
"World economy"
on the topic:
"Analysis of the economy of Mongolia"

Performed:
3rd year FF student
groups 2308
Bukhadeeva E.B.
Checked by: Ph.D.
Avturkhanov E.M.

Moscow
2010
Content.

Stages of economic development……………………………………………...3
Type of economic development………………………………………………………5
Level of economic development………………………………………………6
The social structure of the economy…………………………………………..... 6
Economic strategy and policy. Characteristics of GDP………………7
Industry………………………………………………………………7
Agriculture…………………………………………………………….....9
Mineral resources……………………………………………………………9
Transport……………………………………………………………………...10
Communication……………………………………………………………………….11
Quality and use of labor……………………………….12
Foreign economic relations. The role of the country (region) in international production, international division of labor, economic integration …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
Forecast and development of economic relations with Russia…………………13
Forecast of socio-economic development of the country (region)……..16

Mongolia is a landlocked country in East Central Asia, bordered by Russia to the north and China to the south, west and east. With an area of ​​1,564,116 km? and with a population of about 2.9 million people, Mongolia is the 19th largest country in the world in terms of area, but at the same time it is one of the most sparsely populated countries. About 20% of the entire population of the country live on less than $1.25 a day.
The economy of Mongolia is traditionally based on agriculture and cattle breeding. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, gold, the development of which accounts for most of the industrial production.

Stages of economic development

Type of economic development

Level of economic development

The social structure of the economy.

Economic strategy and policy. Characteristics of GDP

Industry

Agriculture

Mineral resources

Transport

Connection

Quality and use of labor

Foreign economic relations. The role of the country (region) in international production, international division of labor, economic integration

Forecast and development of economic relations with Russia

Forecast of socio-economic development of the country (region)

Agriculture and animal husbandry have historically been considered the basis. The lands of this state, located in the southeastern part of Asia, are rich in vast deposits of natural resources. The Mongols mine copper, coal, tin and gold. The mining industry in Mongolia accounts for a significant state-economic sector, but the extraction of raw materials is not the only industry in which the population of the country is involved.

History of the economy

The history of industry in Mongolia dates back to 1924 - the year of the proclamation of the Mongolian People's Republic. Before this period, there was no industry, no such thing as a working class. All that the population was engaged in was the processing of livestock products, including the dressing of leather, sheepskins, felt rolling, blacksmithing and carpentry. Such types of production had handicraft features and were aimed at serving the on-farm needs of the local population. Manual production was represented by enterprises for the primary processing of wool and leather, carpentry, locksmith, blacksmith and other workshops.

The only industry in Mongolia at that time was the coal mines in the Nalaykha tract. In some regions of the country, foreigners were illegally engaged in the extraction of gold and precious metals.

In the first half of the last century, the Asian state was completely dependent on the import of manufactured goods from abroad. That is why one of the primary tasks of the government of the republic was the creation of its own industrial enterprises. Two problems stood in the way of the young and economically immature state: the lack of qualified personnel and material resources. The Soviet Union provided assistance in resolving these issues.

Period of industrial development

At the first stages, the formation of the light and food industries of Mongolia began. The young republic of that time laid the foundation for the modern energy block of the economy. Back in the 1920s, the widespread construction of processing enterprises began. In 1933, brick, sawmill and mechanical factories began to work in Ulaanbaatar, the first power station was opened.

It is rather difficult to talk briefly about the industry of Mongolia. The progressive development of the light and food sectors of the economy needed a fuel and energy industry that could meet the pace of production growth. A certain leap in development was made by the coal industry of Mongolia. Most of the coal mines in Nalaikha were expanded and mechanized, and the development of new deposits began in the Under-Khane, Yugotszyr, Sain-Shande regions. The Mongolian coal industry to a greater extent met the domestic demand for solid fuels. In particular, local coal was used at the unified power plant of Ulaanbaatar in 1939 and small power plants.

In the same period, another specialization of Mongolian industry arose - metalworking enterprises, including an iron foundry. One by one, printing and paper mills, enterprises specializing in the manufacture of building materials, gold processing, etc. were built.

Mongolia today

After the collapse of the USSR, assistance from the Soviet republics, which accounted for almost a third of external GDP, ceased to arrive, which led to a protracted decline in the Mongolian economy. Industries were in need of fundamental economic reforms.

The government of the country has adopted a new course in the development of the country, aimed at building a market economy. In the course of the reforms, a number of radical decisions were made in most areas of the national economy. The state has ceased to control the pricing process. Through the liberalization of domestic and foreign economic activity, attempts were made to rebuild the banking system, the energy sector, developed and adopted programs for the privatization of land and the implementation of measures to attract foreign investment. Mongolia to participate in international tenders.

However, the reform process was put on hold as a result of the resistance of the communist movement and the political instability that arose due to the frequent change of governments.

The peak in the economic crisis came in 1996 after a series of natural disasters and the fall in world prices for copper and cashmere. But despite this, the next 1997 was recognized as the year of the country's economic growth. In the same year, Mongolia became a full member of the WTO. And although Russia's decision to ban the export of oil and oil products in 1999 had the most adverse effect on the state of the Mongolian economy, the country continued to move forward with confident steps.

Since 1999, by decision of the WTO, this young and promising state has been annually provided with financial assistance by partner countries: China, Russia, South Korea, and Japan. And although the economic indicators and the degree of industrial development in Mongolia can hardly be called advanced, many experts consider the economy of this country to be the most progressive in the world. In their opinion, the potential of the state is huge, given the reserves of mineral raw materials, the development of which is still at an early stage.

The basis of industry: natural and labor resources

Despite the many deposits of valuable mineral raw materials, their development is not carried out to the full extent due to numerous restrictions. In Mongolia, brown coal is being mined at four deposits, and in the southern part of the country, in the region of the Taban-Tolgoi mountain range, coal deposits have been discovered. According to preliminary data, geological reserves amount to billions of tons. Small tungsten subsoils and areas rich in fluorspar are being actively developed. The discovery of copper-molybdenum ores on Mount Erdenetiin-ovoo served as the basis for the creation of a mining and processing plant, around which the industrial town of Erdenet is located.

The oil industry of Mongolia has been actively developing since the middle of the last century. One of the main enterprises in this industry is an oil refinery in Sain-Shanda, a city located near the border with China.

Massive deposits of phosphorites were discovered near Lake Khubsugul. However, today the development of the deposit was suspended, not even allowing it to develop to the full extent due to environmental hazards. It is known about the accumulation of zeolites in the bowels of the earth - Mongolia carried out the search for this material jointly with the USSR. However, today the extraction of these minerals of the aluminosilicate group, used in agriculture for biostimulation processes and adsorption, is practically not carried out due to lack of funding.

The development of any Mongolia depends on labor resources. The population as of 2018 is 3.119 million people, of which about a third are citizens of working age. Part of the population (about 40%) is employed in agriculture, in the industry of Mongolia - about 20%. The rest of the population works in the service sector, is engaged in private business and housekeeping. The unemployment rate is at 9%.

Food production

Briefly about the industry of Mongolia, which provides the needs of the population for food, we can say this: this sector of the economy accounts for about 40% of the total production. In this industry, the production of dairy and meat products is actively developing. Numerous oil refineries and separator points have been built in small settlements (aimags). It is worth noting that just a few decades ago, Mongolia could not count on the production of commercial butter. Today it is one of the major export positions.

The main ingredient for the food industry in Mongolia is milk. A dairy plant operates in Ulaanbaatar, which processes dozens of tons of milk and cream per day. All production processes at this enterprise have long been automated and mechanized. The capital dairy plant produces pasteurized dairy and sour-milk products, butter, cottage cheese, sweet glazed curds, ice cream. This enterprise is the leading food industry plant in Mongolia.

Not far from Ulaanbaatar, there is a large meat processing plant equipped with modern technology, thanks to which the plant's workshops demonstrate high production results. In the complex of the meat processing plant there are shops for the processing of meat products, departments for the production of semi-finished products, sausages, canned food. The predominant part of the goods of the meat processing industry is exported to other countries.

In addition to meat and dairy production, the food industry of Mongolia is represented by butter, confectionery, bakery, liquor, fish and other industries. A few years ago, a new direction in the food industry, flour milling, began to develop rapidly in the republic. Today, the country meets the needs of its citizens in flour at the expense of the products of national producers. In addition to the mill plant in Ulaanbaatar, which produces more than 30,000 tons of flour annually, there are a number of mechanized flour mills in aimaks.

Industrial plant in Ulaanbaatar

Among the light industry plants in Mongolia, it is necessary first of all to note the industrial plant in the capital - this is one of the largest enterprises engaged in the processing of agricultural products. The industrial complex in Ulaanbaatar was built in 1934. Subsequently, this enterprise began to be called the forge of professional industrial personnel from the times of socialism. The industrial complex consists of a complex of plants and factories equipped with modern equipment. There are wool-washing, cloth, worsted, felting, shoe, saddlery and textile workshops. The Ulaanbaatar industrial complex also includes a chevrovy, chrome, sheepskin coat, leather and other factories in its structure. The main products manufactured by the plant are:

• various woolen fabrics;
• felt;
• drape;
• cloth;
• shoes for all seasons;
• felt boots;
• camel wool blankets;
• bags;
• outerwear.

The plant's products are in demand not only within the country, they are exported to other countries. The industrial complex strives to expand the production sphere. With the development of this holding, its individual workshops have long acquired the status of independent enterprises.

Progress in heavy industries

Over the past years, the country has seen a positive trend in the development of energy, coal, oil, metalworking, mining, construction, woodworking and other production areas. Average annual growth rates exceed similar figures in other former socialist republics. Mongolia's industrial growth rate surprises many economic experts, as the country, not so long ago considered the most backward, is steadily moving closer to the level of advanced powers.

In order to develop the main sectors of the national economy, the Mongols are striving to bring industrial production to a new level, corresponding to the world average. The government of the country pays special attention to the creation and establishment of its own chemical-pharmaceutical, biological production, which plays a huge role in expanding the main sector of the economy - livestock and agriculture in Mongolia. In industry, as already noted, approximately 20% of the able-bodied population is involved, while almost 40% of the able-bodied citizens are engaged in livestock breeding, agriculture, and growing crops.

Industrialization of Mongolian cities and development of the coal industry

Briefly about the specializations and industries of Mongolia, which form the basis of the fuel and energy block of the country's economy, we can say that they are fundamental in the development of the national economy. republic occupies the main place in this segment. Today, brown and black coal is being mined in 13 large deposits in Mongolia. The most demanded product for export is coking and high-grade coal, which is mined in the Nalaykha region near Ulaanbaatar.

The coal basin of certain regions of Mongolia, in particular in the aimaks of Uverkhangay and Sukhe-Bator, the operating mines fully meet the demand for solid fuel not only in their own settlements, but also in some neighboring ones. Not so long ago, new coal mines were put into operation and old enterprises were equipped with new equipment. This step naturally led to an increase in average annual production rates by more than 10-15%.

Simultaneously with coal deposits, during the development of deposits, natural reserves of ores, asbestos, limestone and other valuable raw materials are often discovered. Today, Darkhan-Uul is considered one of the rapidly developing industrial centers. Here, within the Sharyn-Gol coal basin, an industrial and energy complex is being built, which will provide coal to all spheres of the national economy and the needs of the population. That is why the Mongols call the city of Darkhan-Uul "the flower of friendship." In the construction of this complex, the countries of the former USSR (Russia, Kazakhstan), China, Japan, Canada provide significant assistance to the republic. The main objects of the complex should be several large coal mining enterprises, a railway transport hub, a high-voltage power line and an elevator. Today, the process of the birth of another economic and cultural center of Mongolia is taking place here.

Oil production, electricity generation

As the fuel base and industrial sectors as a whole grow, the production of electric energy has to be brought to a new level. A few decades ago, electricity was not even heard in remote regions. Today, the need for electrification is explained not only by the household needs of the population, but primarily by the need for mechanization and automation of production in the country and an increase in the performance of finished products. Local power substations operate in aimag centers.

Unlike other industrial sectors, oil refining is a relatively young specialization in the industry of Mongolia. The industry is still in its infancy, but at the same time, the country produces half of the gasoline for its own needs, and imports the rest.

The only major oil refining center is located in the Eastern Gobi. Not so long ago, a young city appeared here - Dzunbayan, which also houses infrastructure and cultural and community facilities. The Eastern Gobi satisfies almost half of Mongolia's fuel needs.

Due to the expansion of the manufacturing and manufacturing industries in Mongolia, electricity costs are increasing every year, which prompts the government to consider building new thermal power plants.

Mining of mineral ores and metals

The mining industry provides Mongolia with:

• gold;
• manganese;
• tungsten;
• magnetic iron ore;
• lead ores;
• rock crystal;
• turquoise and other non-ferrous, precious metals;
• salt.

Mining and processing enterprises are being built near the places of large deposits. Mongolia exports tungsten and certain types of non-ferrous metals to other countries. Ferrous metallurgy in Mongolia is represented by a mechanical processing plant with an iron foundry in Ulaanbaatar. Agricultural equipment, hand tools, and small machinery are produced here for domestic and export sales.

Marble, limestone, asbestos, gypsum, and mineral paints are mined in the republic. The extraction of raw materials of this type allows the development of the industrial sector of building materials. Over the past few years, several dozen enterprises have been put into operation, including a house-building plant in Sukhbaatar. They are engaged in the production of lime, cement, brick, slate and other building products. Special attention deserves a large-panel housing construction plant in the capital of Mongolia, a glass plant in Nalaikha, reinforced concrete and brick factories in Ulaanbaatar. Complex mechanized technologies are used in the workshops. All enterprises are equipped with modern technology.

The production of building materials and their sale to the population at an affordable price is an important aspect for a people who in the recent past were considered nomadic. The transition of the Mongols to settled life is facilitated by the large-scale construction of comfortable houses, infrastructure facilities, and the development of a public transport network in cities and aimaks.

agricultural holding

The Ministry of Agriculture and Light Industry of Mongolia is doing everything to support the agricultural sector of the economy and create the most favorable conditions for its development. Agriculture throughout the history of the existence of this state was at the heart of its economy. In the context of the transition to a market model, the importance of the agricultural sector has not decreased. Almost half of the labor reserve of Mongolia is involved in it, although 50-60 years ago this figure reached 80%. Agriculture provides more than 40% of the total GDP. The Mongols rank third in the world in terms of livestock per capita, behind Australia and New Zealand.

Almost until the middle of the last century, while industry was undergoing the process of formation and transformation into an independent sphere, the agricultural sector remained the only production sector. Back in those days, finished products were exported, which made it possible to receive almost 60% of the national income. Over time, this share has been declining and today is about 35-40%, with more than half of export products being raw materials.

The most important economic indicators in this country depend on the level and pace of agricultural development. In particular, the cost of agricultural raw materials is the main part of the cost of production of light and food industry goods. The Ministry of Agriculture of Mongolia is constantly working on creating new concepts and methods that would make it possible to minimize costs and increase the productivity of finished products.

Pasture animal husbandry is the predominant type of economic activity that the Mongols are engaged in. According to some reports, there are 12 heads of cattle per person. In some aimags, livestock is a conditional monetary unit in transactions of a material nature. Unlike animal husbandry, agriculture in modern Mongolia plays a secondary role.

Completion

The development of industry led to the formation of the working class on the model of the proletariat of the USSR. The participation of the Soviet Union played an important role in the process of training specialized workers. Some of the Mongols gained experience and knowledge by working at their enterprises under the supervision of sent Soviet masters. They were trained in special circles, technical sections, training centers. Others were educated directly in the USSR. Thus, Mongolia is an example of a nationwide desire for the economic prosperity of their country through the development of industry, the rationalization of production processes and the conservation of resources.

Duger Gantuya

Postgraduate student of ESSUTU, Director of Student Development Management Service, Mongolian National University

ECONOMY OF MONGOLIA: STRUCTURAL ANALYSIS

annotation

The article considers with The modern economy of Mongolia, which confidently claims leadership in the Central Asian region.When analyzing the economic structure of Mongolia in the model of a three-sector economy, it can be said that Mongolia is currently an industrial country in terms of the dynamics of the share of sectors of the economy in GDP, and in terms of employment dynamics, it would be noticeablestrong growth in the tertiary sectorin the so-called “service sector”, which indicates the rapid socio-economic development of the country.

Keywords: economic structure, three-sector model of the economy, primary sector of the economy, secondary sector of the economy, tertiary sector of the economy.

Duger Gantuya

Postgraduate student, Director of the office of student development of the Mongolian national University

MONGOLIAN ECONOMY: A STRUCTURAL ANALYSIS

Abstract

The article is claimed themodern economy of Mongolia, that confidently be to leadership in the Central Asian region. The Mongolian economic structure is analyzed by three-sector models. In GDP Mongolia on the dynamics of the share of economic sectors can be presented is an industrial country, and the dynamics of the rapid growth of employment in the tertiary sector in the so-called “service sector”, which tests to the rapid socio- economic development of the country.

keywords: economic structure, three-sector model of the economy, the primary sector, the secondary sector, the tertiary sector of the economy.

Any growing economy is constantly undergoing structural adjustments and economic development differs from simple quantitative economic growth in that it includes progressive changes in the structure of the economy necessary for further economic growth.

When considering the sectoral structure of the economy, the initial base is the theory of three sectors, the foundations of which were laid by Colin Clark in the book “Conditions for Economic Progress”, published in 1940. Changes in sectors in the process of economic development were analyzed and theoretically substantiated by J. Fourastier and S. Kuznets. The authors put forward a hypothesis according to which, in the course of historical development, there is a gradual transition from a society with a predominance of the primary sector in the economy to an industrial one and then to a society with a dominance of the tertiary sector - services.

A society that exists in the conditions of the dominant primary sector of the economy is called pre-industrial or agrarian. A society that exists in the conditions of the dominant secondary sector of the economy is called industrial. A society that exists in the conditions of the dominant tertiary sector of the economy is called post-industrial.

Now the predominance of the primary sector, as a rule, indicates an extremely low level of economic development of a state or region. Many African countries serve as an example of this, where the majority of the population is still employed in agriculture. But there are exceptions. The primary sector (oil production) is the basis of the economy of the rich countries of the Persian Gulf (Saudi Arabia, Qatar). However, according to many experts, this development is not normal and in the end does more harm than good (Dutch disease). In other words: - this is mining (mining industry). This is the reason for the rapid economic growth of Mongolia, that is, the rapidly growing mining industry.

One of the possible approaches to the analysis of the structure of the economy is to find out the relative importance of its three main sectors (agriculture, industry and services) in terms of their share in total output or in total employment.

For many centuries, Mongolia has been an agrarian country with a key industry - agriculture. During the years of socialist construction, the pace of development of the country increased significantly. Over the years, we have founded industry, infrastructure, and created a diversified agricultural sector. Mongolia is ranked among the middle-income countries in terms of GDP per capita.

Currently, the engine of the country's economic growth is the growth of the mining industry and the export of mineral raw materials, which occupies 94% of the country's total exports.

Modern Mongolia occupies a leading position in the Central Asian region in terms of socio-economic development. The main criterion determining this aspiration is the level of economic development. Back in 2004, the Mongolian economy registered growth rates characteristic of the "Asian tigers" - 10.6%. This increase was caused by the growth of world prices for copper and gold - the main export commodities of our country. In 2005, gold mining in our country increased significantly, and the mining industry is increasingly established as the most promising sector of the country's economy. In 2011, a rapid economic recovery began, associated with the growth of the extractive industry, the implementation of large projects, and economic growth amounted to 17.3%, which slowed down in 2014, which is noticeable by many indicators. In the second half of 2013, economic growth reached 11.7%, but today it fell to 7.8%, that is, GDP fell to 3.9%, wholesale and retail trade fell by 12.3%, which proves internal weakening. There was a hole in foreign investment of 32.4%, plus inflation in the first half of 2014. rose to 14.9%.

Table 1 - Dynamics of the share of sectors of the economy in Mongolia's GDP in percent, 2010-2013

Rice. 1 - Dynamics of the share of sectors of the economy in Mongolia's GDP in percent, 2010-2013

From the analysis of statistical data, Mongolia, which has long been called an agrarian and livestock country, has long been classified as an industrial country. Although there are no so-called large industrial enterprises in the country, this is the result of the development of the private sector. As part of a comprehensive industrial policy, more than 1,600 small and medium-sized enterprises began to operate throughout the country, providing jobs and income for hundreds of people.

Over the past 4 years, the country's GDP has undoubtedly been growing, but it is impossible to determine the development of the country only by the volume of GDP. The basic indicators are life expectancy and education of the population. If half of the population is not provided with the necessary opportunities, the development of the country is in question

And also the long-term dynamics of the national economic sectors in general is characterized by the following trends. In the initial period of the country's industrialization, 80% of the population is employed in agriculture, 10% in manufacturing industries (industry and construction) and 10% in the service sector. In the course of industrialization, the share of employment in the secondary sector increases by reducing the share of the primary sector until it reaches a certain limit (approximately 50%) of the total employed population. During this period, the share of the tertiary sector also increases. At the next stage of development, the share of the secondary sector begins to decrease and the tertiary sector progresses, as a result of which its share increases. At the final stage of its development, the service sector should employ 80% of the total economically active population, while the primary and secondary sectors should each account for 10% of the employed.

In our country in 2013, the population was 2930.3 thousand people, the economically active population was 1198.3 thousand people. and of these, 92.1% are employed and 7.9% are unemployed. In 2013, the number of employees in industry increased by 15.5 percent compared to the previous year and amounted to 71,204 people. The number of employees in the mining industry increased by 30.8%, in the manufacturing industry by 12.7%, the production of electrical and thermal energy and water supply by 0.5%. The share of employment of industries is characterized by the following form:

Table 2 - Employment dynamics of the Mongolian economy in %

The data presented confirm the conclusion that the richer the country, the smaller the proportion of workers employed in industry. Based on this, it can be assumed that in 20 years only one out of ten employed in the country's economy will be employed in industry.

Table 3 - Dynamics of employment in the sectors of the Mongolian economy in %

The trends in the development of the structure of the economy of Mongolia correspond to the provisions of the theory of three sectors. The primary sector in Mongolia naturally should have been the leading one, since Mongolia is not only one of the representatives of world nomadism, but unlike other nomadic peoples, nomadic pastoralism is completely preserved in it, respectively, a nomadic way of life, as well as Mongolia is a country rich in natural resources. The mining sector accounts for 18% of the country's GDP and over 90% of total exports.

The rapid absolute and relative growth of employment in the tertiary sector was caused primarily by the progress in the economy, the growth of their volume and such objective circumstances as the need to develop new types of activities associated with the transition to a market economy (for example, the organization of financial institutions), the creation of private enterprises for services to the population, as well as the relative rise in prices for services. Every year, the inflation rate in the country is growing, which in 2013 amounted to 10.5 percent.

As you know, the main structural changes in the sectors are primarily related to two factors - the dynamics of demand and labor productivity.

Labor productivity of industry in 2013 amounted to 40764.4 thousand tugris and increased by 1540.7 thousand tugris or 3.9 percent compared to the previous year. Of these, productivity in the mining industry increased by 1617.1 thousand tug or by 2.3%, in the production of electrical and thermal energy and water supply by 573.9 thousand tug or by 3.3%, and in the manufacturing industry decreased by 740.8 thousand tug or by 2.6%.

The country's economy can be said to be entirely dependent on the mining industry, that is, Mongolia is dependent on its mineral resources, it is always very difficult to predict when prices will rise on world markets and investment in the mining industry will revive. Mineral prices rose rapidly until 2011, but in 2012 they began to fall rapidly.

That is, over the past three years, the Mongolian economy has been under pressure from the accumulated economic imbalance. Industries other than mining are developing poorly. To overcome such short-term obstacles and achieve sustainable, long-term development, it is very important to get out of dependence on the mining industry. To do this, it is necessary to support the development of the private sector. As part of the implementation of state policy in the food, agricultural and light industries, the following seven laws have been approved: “On the legal status of the production and technological park”, “On the exchange of products and raw materials of agricultural origin”, “On exemption from customs duties”, “On exemption from Value Added Tax”, “On Amendment to the Law on Agriculture”, “On Amendment to the Law on Personal Income Tax”, “On Amendment to the Law on Value Added Tax”. The Parliament of the Great People's Khural approved national programs in 2009 "State policy on pastoralists", in 2010 "Mongol - livestock" and the implementation of the program "Support for the development of intensive development of livestock breeding" continues.

Development of basic infrastructure, investment in the health and education sectors, support for private sector development and job creation continue to be important challenges for Mongolia. Today, our government's top priority is to manage resource-based economic growth, protect the traditional way of life of the rural population, and ensure a fair distribution of wealth in society.

Based on the foregoing, the following main conclusions can be drawn about the further development of the sectoral structure of the Mongolian economy:

• depending on the nomadic way of life of the Mongols and the natural wealth, the changes in the employment of the primary sector in Mongolia are stable;
• changes in the sectoral structure of employment and GDP with an increase in the share of the tertiary sector are of an objective nature, not only because this is a global trend, but also due to the fact that services in terms of volume and structure lag behind the needs of society;
• the decrease in the share of the secondary sector in the total number of employees and GDP should be accompanied by an increase in the total output of this sector. To do this, it is necessary to significantly increase labor productivity. In this regard, it will be necessary to radically change the existing sectoral structure of industry and ensure scientific and technological progress;
• the importance of the service sector for the development of the economy is increasing, which is associated with the strengthening of its role in society as the main object for employment of the population. But most importantly, the service sector will become the most important source of GDP growth. It is necessary to expand the scope of services, improve the quality of service and, at the same time, look for ways to increase labor productivity in this sector of the economy.

Literature

1. Free economic encyclopedia Wikipedia
2. Collection of the National Statistical Committee, Ulaanbaatar, 2013
3. National Statistical Committee. Socio-economic situation of Mongolia. Ulaanbaatar, 2013/12.

References

1. Kolin Glark. The conditions of economic progress, 1939.
2. Svobodnaja jekonomicheskaja jenciklopedija Wikipedija
3. Sbornik nacional'nogo statisticheskogo komiteta, Ulan-Bator, 2013 g
4. Nacional'nyj statisticheskij komitet. Social'no jekonomicheskoe polozhenie Mongolii. Ulan Bator, 2013/12.

Today, the Mongolian economy is developing very dynamically, the country is one of the most promising markets in the entire Asia-Pacific region. According to experts from the World Bank, the International Monetary Fund and other authoritative organizations, this country is among those in which the pace of economic development will be one of the highest in the near future. In particular, the World Bank experts believe that over the next ten years, economic indicators will grow by an average of 15% every year.

Main Industries

The economy of Mongolia is concentrated in several industries, these are agriculture and mining. This is even though most people live in cities. A significant part of the country's industrial production is coal, copper, tin, molybdenum, gold and tungsten.

At the same time, a few years ago there were a huge number of poor people in the country. Back in early 2010, almost 40% of the population lived below the poverty line. In recent years, this figure has been declining rapidly.

In the structure of the GDP of the Mongolian economy, the largest part is occupied by mining, accounting for almost 20%. Forestry, agriculture and fisheries account for approximately 17%, with over 10% coming from retail trade and transport. Manufacturing, real estate, communications and information technologies also have their share in GDP.

Most of the able-bodied population is concentrated in agriculture (more than 40%), about a third works in the service sector, almost 15% - in trade. The rest of the people work in production, in the private sector, in the mining industry.

Economy type

To understand the financial structure of this state, it is important to understand what kind of economy is in Mongolia. It is in the process of transition from one socio-economic state to another, while occupying some intermediate position between developing and economically developed countries. Currently, Mongolia belongs to the countries with economies in transition.

At the same time, in the course of the transformation process, the structure of production, property relations, and management tools are transformed.

The Mongolian economy is an example of a transition economy. The collapse of the socialist system at the end of the 20th century also affected this state. In all countries that were previously part of the socialist camp, the transition to market relations began. The need for urgent reforms in the country matured as early as the 1980s. Perestroika, which began in the Soviet Union, only accelerated this process. Large-scale socio-economic transformations began to be carried out after 1991.

Mongolia is a country with a transitional economy that has been actively developing in recent years. Here are all the main criteria for a state that is at a transitional stage of its socio-economic development. These are privatization and reorganization, macroeconomic stabilization, liberalization. Building a market economy in Mongolia is the ultimate goal, which today can be considered partially achieved.

Natural resources

Natural resources are of great importance for the economic development of Mongolia, there are really a lot of them here.

In particular, there are three large deposits of brown coal in the country, high-quality hard coal has been discovered in the south, the geological reserves of which, according to preliminary estimates, amount to several billion tons. Deposits of tungsten, which are considered average in terms of the number of reserves, have been successfully developed for a long time.

In the Treasure Mountain, copper-molybdenum ore is mined. The discovery of this mineral led to the construction of a large mining and processing plant, around which a whole city grew. Today, almost one hundred thousand people live in Erdenet.

An important place in the economic development of Mongolia is occupied by one of the world's largest gold ore deposits, which is called Oyu Tolgoi. Recently, investors' interest in this country has increased, since most of the land here has not yet been studied by geologists, which means that many minerals have not yet been found.

Industry and engineering

The main ones in the economy of Mongolia are textile, cloth, woolen, leather, sheepskin coat, meat processing, building materials production. The country ranks second in the world in the production of cashmere wool.

Mechanical engineering appeared relatively recently, but has already managed to take a certain place in the economy of Mongolia. In the country in 2006, the first trolleybus produced by Mongolian engineers entered the line. Since 2009, the production of duobuses has begun - this is a vehicle that combines a bus and a trolleybus, which can be used both on routes with and without a contact network.

In 2012, Mongolian engineers assembled the first aircraft in the country for the national carrier. In 2013, together with Belarus, it was possible to agree on the joint production of tractors, enterprises also operate for the production of hang-gliders and gyroplanes. Now it is planned to launch a company for the production of trams on rubber wheels. It will be a fundamentally new type of public transport, which will be able to carry from 300 to 450 passengers at a time.

Agriculture

Briefly characterizing the economy of Mongolia, sufficient attention should be paid to agriculture. The country has a harsh continental climate, so the industry remains vulnerable to cold, drought and other natural disasters. There is catastrophically little arable land in the country, while about 80% of the territories are used for pastures.

Most of the rural population is engaged in livestock grazing. Mostly goats, sheep, camels, horses, cattle are bred here. It is worth noting that this is the only modern state in the world in which nomadic animal husbandry is still among the main sectors of the economy.

In terms of the number of livestock per capita, Mongolia ranks first in the world. Potatoes, wheat, watermelons, tomatoes, various vegetables are also grown here. In general, there is little arable land, mainly concentrated around large cities in the north of the country.

In recent times, most of the livestock has been concentrated in the hands of a few influential families. Since 1990, a law on foreign investment has been in force, which allows citizens of other states to own shares in various Mongolian enterprises. New laws were also adopted regarding banking and taxation, debt and credit.

Transport

The country has developed rail, road, air and water transport. The decision to build the railway was made in 1915. Now there are two main highways for trains in the country.

The Mongolian railway connects the country with China, it is the shortest route between Europe and Asia. The total length of roads is approaching two thousand kilometers.

The total length of waterways in the country is only about 600 kilometers. The Orkhon and Selenga rivers, Lake Khubsugul are considered navigable. Mongolia is the second largest country in the world (after Kazakhstan) that has no direct access to any ocean.

But this fact did not prevent her from registering her own shipping register in 2003. Today, about 400 ships sail under the Mongolian flag, and their number is growing rapidly every month.

Car roads

Most of the roads here are unpaved or gravel. Most of the paved roads are in the Ulaanbaatar area and lead to the Chinese and Russian borders.

The total length of roads in the country is almost 50 thousand kilometers. Of these, less than 10 thousand kilometers are paved roads. Currently, the country is actively building new highways and modernizing old ones.

Aviation

Air transport plays an important role in the policy of Mongolia in the economy. In total, there are 80 airports in the country, while only 11 have paved runways.

At the same time, the flight schedule is extremely unstable. Due to strong winds, flights are constantly canceled or rescheduled. There are ten officially registered airlines in Mongolia, which own 30 helicopters and approximately 60 airplanes.

There is an air taxi - a special means of public transport that transports passengers for a fixed fee. Air taxi differs from charter and other commercial flights in its simplicity. For example, there is no lengthy check-in procedure, the waiting time for boarding is minimal. As a rule, it is enough to arrive at the airport a quarter of an hour before departure to go through all the abbreviated customs control and clearance procedures.

There are no stewardesses, kitchens or toilets on such aircraft. In most cases, small aircraft, as well as medium and light-duty helicopters, are used as such taxis.

Tourism

Mongolia is actively seeking to develop tourism. A lot of hotels have been built in the country, and there are more and more travelers who want to come to this exotic country. There are two ski resorts here, in addition to a large number of historical monuments of Buddhist monasteries, untouched nature.

From foreign tourists, most of the guests come to Mongolia from Russia, China, South Korea, and the United States of America. You can also meet quite a lot of travelers from Germany, France and Australia.

There are about 650 tour operators in the country, ready to receive about one million tourists a year.

Export

Export plays an important role in the economic development of the state. The main goods that are sent abroad are molybdenum concentrate and copper, cashmere, fluorite, leather, wool, clothing, and meat. The bowels of the country are rich in mineral resources. In particular, there are many reserves of tin, iron ore, coal, uranium, copper, zinc, oil, phosphorus, molybdenum, gold, tungsten, and semiprecious stones.

At the same time, more than 80% of Mongolian exports go to China. In second place is Canada. From 1 to 4% of the share of exports falls on the countries of the European Union, Russia, South Korea.

This situation began to change after 2012, when Mongolia ceased to be satisfied with export dependence on China. The government began to suspend individual projects of cooperation with China. It is believed that one of the reasons for this was the attempt by a large Chinese aluminum company to obtain a controlling stake in one of the largest Mongolian coal suppliers to the territory of the People's Republic of China.

Import

First of all, industrial and industrial equipment, oil products, and consumer goods are imported into the country.

About a third of imports come from the Russian Federation, with China firmly in second place. Also massively deliver goods to Mongolia from South Korea and Japan.

Mongolia strives to constantly get rid of import dependence. In particular, it is planned to open the first oil refinery on the territory of the state in the near future.

Financial sector

The official monetary unit of Mongolia is called the Mongolian tugrik. Currently, one Russian ruble can buy 38 tugriks. The country's own currency appeared only in 1925. Moreover, banknotes were originally made in the Soviet Union.

You can use credit cards in most banks, there are exchange points in all hotels in the country. Traveler's checks are also accepted as payment here without any problems.

In 1991, the Mongolian Stock Exchange was opened.

Population income

In 2017, the average salary in the country amounted to 240 thousand tugriks per month, that is, less than six and a half thousand rubles.

At the same time, the country introduced a minimum wage. The lowest hourly or monthly wages are set by law by the government. In 2017, the minimum wage amounted to 240 thousand tugriks per month. At the same time, only 7% of the population in Mongolia receives the minimum wage. Compared to 2013, the minimum wage has increased by a quarter.

The situation in the Mongolian capital Ulaanbaatar in March 2000 was horrendous... writes economist Eric Reinert in How Rich Countries Got Rich and Why Poor Countries Stay Poor. and Mongolia became the best student of the World Bank among the former communist countries. She completely opened the economy and followed all the advice of the World Bank and the IMF: she minimized the role of the state and left the market to take care of the rest. Mongolia was supposed to take its place in the global economy by specializing in areas where it has a comparative advantage. However, being an industrial country, it has degraded to the level of a shepherd. It turned out that nomadism could not feed the population, and there was a simultaneous ecological, economic and human catastrophe."

There were two sectors of the economy that continued to grow: the production of alcohol and the collection of bird down. During a parliamentary meeting in Ulaanbaatar, experts from the World Bank (WB) presented three possible scenarios for the development of Mongolia. In their opinion, the country could grow by 3-5-7% per year. Reinert laughs at the surrealism of the forecasts and laments "the deplorable results of the policy that the World Bank and the IMF are preaching."

However, the average annual GDP growth of Mongolia in the period from 2001 to 2013 exceeded 8%, and in recent years the country has become one of the fastest growing economies in the world (IMF forecast for 2014 - 9.1%, for 2015 - 8.4%). The outlook on the future has also changed. "Kuwait-1950. Abu Dhabi-1970. Mongolia-2012? A country with a GDP growth of 17% resembles the territory of a gold rush. Miners, bankers and lawyers landed in Ulaanbaatar, waiting for a new El Dorado," wrote The Financial Times in 2012 year.

At the same time, the top manager of the Mongolian bank "Golomt" John Finigan recalled Qatar. In 1995, its GDP was $8 billion, and in 2012 it exceeded $200 billion (under $100,000 per capita, almost $500,000 per citizen). "Why is Mongolia worse?" Finigan asked. "Only the ten largest deposits contain $2.75 trillion worth of minerals, which makes every Mongolian a millionaire - all 2.75 million." In 2014, President Tsakhiagiin Elbegdorj presented approximately the same formula at a forum in Davos, slightly adapting wealth to population growth: $3 trillion per 3 million people.

Horde Economy

The skeptics are put to shame, but the plans to build Qatar in the steppe seem too optimistic. Ulaanbaatar in autumn 2014 does not resemble the capital of a third world country, where the population is passionate about collecting bird down. Although in some places there is a lot of it - near the Gandan monastery, crowds of believing Buddhists feed huge flocks of pigeons with grain. But even the capital of Mongolia is far from the business centers of the world.

A huge statue of Genghis Khan in the steppe (his cult replaced the socialist ideology in the post-Soviet years) reminds that this land was once the center of the world (although another city, Karakorum, served as the capital). The Mongol Empire, formed in the 13th century as a result of the conquests of Genghis Khan and his heirs, stretched from the Crimea to the Sea of ​​Japan and from Novgorod to southern China. For centuries, Russia became a tributary of one of the Mongol khanates - the Golden Horde.

The word "horde" in Russian is often associated with something chaotic. But the machine of military suppression created by Genghis Khan is a standard of management and logistics, worthy of study in business schools. The division of troops into tens, hundreds, thousands and tens of thousands (tumens, in Russian - darkness) introduced by Genghis Khan was generally preserved in cavalry around the world until the middle of the 20th century. Discipline along with the principle of collective responsibility (all ten were responsible for the misconduct of a warrior) gave the highest controllability.

In addition, the Mongol army was the most innovative of its time. Wall-beating guns and catapults, borrowed from the Chinese and assembled at the site of the siege by engineers (there was no need to carry bulky devices with you on a campaign, like Europeans), made it possible to take cities by storm. The optimal ratio of heavily armed (40%) and light cavalry (60%) gave high mobility (up to 160 km per day). Thousands of fast archers on hardy short-legged steppe horses (four for each warrior - for frequent shifts) bombarded the enemy with arrows (the light composite Mongolian bow is also an innovation, no worse than the modern iPhone). The linen of warriors was made of silk. Genghis Khan once noticed that when an arrow hits the body, silk does not break, but goes inside with it, this helped to remove the tip from the wound.

There were also "psychological" innovations. For example, tiny clay whistles were often attached to the arrows (they can be seen in the historical museum of Ulaanbaatar), and the cloud of arrows that eclipsed the sun also emitted an eerie howl. Rumors that the Tatars (from tartars - hell, or from the name of one of the conquered tribes) are not just invaders, but fiends of hell, were often deliberately spread by "merchants" sent by the Mongols to the not yet conquered lands for reconnaissance. The use of captive civilians as a human shield (kharash) is supposedly also an invention of the Mongols. During his life, Genghis Khan did not conduct even two battles of the same pattern (each was analyzed by the "general staff" - the inner circle of princes-noyons, mistakes were taken into account, the corresponding decisions were brought to the attention of subordinates).

Initially, however, the military business suffered due to the fact that urban civilization was deeply alien to the nomads. In Europe, wars were different: during the capture of the city, the army, as a rule, was limited to petty robbery - it never occurred to anyone to cut the goose that lays golden eggs. Slightly devastated cities quickly revived, traded and paid tribute to the new owners.

In the models of the economist Mankur Olson, this is called the "stationary bandit" strategy, and, by the way, Olson derives the genealogy of the state from it. At first, the cities were not of particular value to the Mongols: the nomads were interested in pastures and robbery (the strategy of the "tour bandit"). Therefore, cities that did not surrender were often burned to the ground, and the population was slaughtered. For example, such a fate befell the medieval Ryazan (the current Ryazan - renamed in 1778 Pereyaslavl-Ryazan, a city 50 km from the destroyed Ryazan).

But time has shown the ineffectiveness of such a strategy. The empire of Genghis Khan did not disintegrate after his death into warring fragments (as happened, for example, with the empire of Alexander the Great), but in some unity (reminiscent of modern confederations) lasted until the end of the 14th century. The invaders moved to more advanced forms of power business and concentrated on taxation. At first, it was carried out by the occupation administration (Baskaks, Darugs), and then it was farmed out to the enterprising local nobility, in Russia - to the Moscow princes.

Taking taxes in hand, they gradually dealt with all competitors (Tver, Novgorod), expanded their zone of influence and eventually threw off the Mongol yoke at the end of the 15th century. (The Battle of Kulikovo in 1380 does not count. Dmitry Donskoy fought the impostor Mamai, who was not a descendant of Genghis Khan, but did not resist the legitimate Genghisid Tokhtamysh, giving Moscow to plunder in 1382.)

Fragments of the great empire survived until modern times. For example, Genghisides-Gireys ruled the Crimea until 1783, Genghisides-Tore ruled the Kazakh Khanate until its final annexation to Russia in 1820-1830. The territory of modern Mongolia was occupied in the 16th century by the Manchus and incorporated into China.

Independence was achieved in 1911, with the collapse of the Qing Empire in China. After the death of the monarch Bogd Gegen VIII in 1924, Mongolia became a republic and completely fell under Soviet influence: collectivization was carried out - cattle were socialized, many Buddhist monasteries and "enemies of the people" were destroyed (in 1920, about a third of the men were monks and lived in 750 monasteries ). Parts of the Soviet army were stationed in Mongolia, Ulaanbaatar sided with the USSR during the Soviet-Chinese conflict. The country received assistance from the USSR and the CMEA and actually became something like the 16th union republic.

In the second half of the 20th century, the USSR helped to diversify the economy: from purely livestock breeding, it became agrarian-industrial. A number of industries were created with the help of Soviet-Mongolian joint-stock companies, so the enterprises "Mongoltrans", "Mongolsherst", "Sovmongolmetall", "Sovmongolpromstroy", the Ulaanbaatar railway, etc. appeared. Until now, the center of Ulaanbaatar is built up with five-story Soviet-style buildings, Cyrillic writing was also inherited from this period of history.

Mountains of rent

Mongolia experienced the collapse of the USSR in much the same way as other ex-republics with large reserves of minerals (Russia, Kazakhstan, Azerbaijan). Until 2000, it was a painful adaptation to new realities; after that, there was a rapid growth on the wave of prices for natural resources. Mongolia turned out to be "on the right side" of China: everything that it exported (electronics, clothing, household appliances) became cheaper in 2000-2010; everything that was imported (coal, ores, oil) became more expensive.

“The Mongols, unlike the Chinese, never went hungry. Animal husbandry has always made them well-fed and relatively rich,” says Yuri Kruchkin, a businessman and owner of the Mongolia Now website. “The same production of cashmere ($60 per kilo) makes individual cattle breeders very rich people. , do not look that they live in yurts - some yurts have an area of ​​1 thousand meters, these are real palaces made of felt." The official GDP per capita figures ($4,000) are misleading, given the large share of the shadow economy, which is characteristic of subsistence farming—40-60% of GDP. There are more than ten heads of cattle per inhabitant, there is more meat in local dishes than a side dish. Nomadic culture is firmly embedded in customs and habits, this even applies to gambling - in many restaurants people still play dice with sheep's ankle bones.

But animal husbandry is good, and resource rent is better. In 1995, the share of the agricultural sector in GDP was 33%, the mining complex - 10%. Now the shares are equal, each segment has about a quarter of GDP. Mongolia was lucky: on its territory there were super-rich deposits of copper (Oyu-Tolgoi, Erdenet), gold (Oyu-Tolgoi, Boru), coal (Tavan-Tolgoi), uranium (Dornod), as well as iron ore, zinc, molybdenum, silver. Now mining is carried out only on a small part of the deposits, but raw materials already provide about 88% of export earnings (cashmere - almost half of the remaining 12%) against 75% in 1995.

The biggest treasure of Mongolia turned out to be Oyu Tolgoi (Turquoise Mountain). This is the world's largest undeveloped copper deposit (1.4 billion tons of ore) with a high admixture of gold and silver, located in the Gobi Desert, near the border with China. Copper was smelted there in the time of Genghis Khan.

Oyu Tolgoi can generate revenue from the sale of an average of 450 thousand tons of copper per year (3% of world production) and a significant amount of gold and silver for 60 years. This, according to the calculations of the National University of Mongolia and BAEconomics, will increase the country's GDP by 36.4% by 2020 relative to the baseline scenario, with a conservative forecast for copper prices ($5.5 thousand per ton, now - $6.8 thousand). And not far from Turquoise Mountain there is also Tavan Tolgoi, one of the world's largest coal deposits (6.5 billion tons, about 40% is high-calorific coking coal).

To develop giant deposits, huge investments are needed, and Mongolia does not have its own money, like technologies. In 2010, the Oyu Tolgoya development project was estimated at $4.6 billion, by 2013 the estimate had grown to $10 billion. Mongolia owns 34% of the project, 66% belongs to Turquoise Hill Resources, the main shareholder of which is the Anglo-Australian mining giant Rio Tinto. Surface mining began in 2013, but underground mining stalled as the government and a foreign investor disagreed over taxes and the cost of the project. Rio Tinto froze further investments - the conflict has not yet been resolved.

Not all is well with other projects either. For example, the Australian mining company Hancock Prospecting recently divested itself of its assets in the country after reviewing a new law that would allow any mine to be declared strategic and the license holder to be disenfranchised at any time. Investors also complain about the growing nationalism. The cult of Genghis Khan and the imperial past, apparently, are not the best companions for development in the modern world.

The Other Side of China

The second problem, which is also the source of growth in the 2000s, is China. Mongolia is sandwiched between Russia and China and has no access to the sea. Now China is practically the only buyer of Mongolian raw materials, it absorbs more than 80% of exports and is the source of 49% of foreign direct investment (FDI).

But the problem is not only geographical, but also price. The surge in demand for raw materials in China has caused investment to rise. In the same copper market, additional volumes of the commodity will come from Brazil, Peru, Chile and Zambia in the coming years, which could lead to an oversupply. If Chinese demand (42% of world copper consumption) cannot absorb it, prices will go down. The likelihood of this is high - China's GDP growth is slowing down, and industrialization can be considered almost complete (more than 90% of the population under the age of 30 from rural areas is already employed in non-agricultural sectors). This means that the pace of urbanization is unlikely to be as high as in the recent past. Meanwhile, the share of construction and infrastructure in copper consumption is more than 50%. An urban dweller in China, according to Nomura, already accounts for 37 square meters. m of living space against 35 in Japan, 33 in the UK and 22 in Russia. In addition, 75.6% of the total housing stock was built quite recently, after 2000. Barclays economists predict that in the event of a sharp slowdown in economic growth in China (to 3% of GDP per year), the price of copper could fall to $2.5 thousand per ton, which puts the Oyu Tolgoi project on the verge of profitability.

Other resource histories of Mongolia are also under threat. For example, Tavan-Tolgoi with huge coal reserves. China needs coking coal to make steel, and steel is taken away mainly by the same construction and infrastructure. If China slows down, coal and iron ore prices, which have now reached the levels of the 2009 crisis, are likely to continue to fall.

Non-resource sectors of the economy do not look brilliant against the background of raw material megaprojects. The country is already experiencing symptoms of the "Dutch disease": the cost of labor in the agricultural sector is growing (the aforementioned cashmere has doubled in price in three years), the labor force is being washed away by mining.

Conditions for small and medium-sized businesses are not ideal - in the Doing Business 2015 ranking, the country ranks 72nd. One of the bottlenecks is international trade: 172nd out of 189. The poor performance of the cost and time of cross-border trade is partly due to geographical location - there is no access to the sea, and is not expected.

The Global Competitiveness Report 2014-2015 ranking from the World Economic Forum WEF notes the low competitiveness of the economy: 98th out of 144 (underdeveloped infrastructure, macroeconomic instability with a high budget deficit, small domestic market). Among the main obstacles, businessmen polled by WEF name inefficient bureaucracy (13.8% of respondents) and insufficiently qualified workforce (9.6%). The level of corruption, according to the survey, is also high (8.5%; for comparison, in Russia - 14.3%), but still this is not the main problem of the economy, it is worth mentioning here that the ex-president of the country Nambaryn Enkhbayar is serving his term just for corruption.

In 2009, Enkhbayar, a protege of the ex-communist Mongolian People's Revolutionary Party, lost the presidential election to oppositionist Elbegdorj, an activist in the 1990 democratic revolution. This was preceded by a split in the coalition government in the summer of 2008, which provoked riots in Ulaanbaatar, in connection with which Nambaryn Enkhbayar considers the trial politically motivated. Nevertheless, in August 2012, the court found the ex-president guilty on a number of episodes (illegal privatization of the Orgoo hotel, the Ulaanbaatar Times newspaper, in which his younger sister received 49% of the shares, etc.). However, Enkhbayar will soon be released - the sentence was eventually reduced, the term was reduced from four years to 2.5.

“Clanism is still very strong,” says Yuri Kruchkin. “Almost every Mongol remembers his ancestry to at least the seventh generation, and if someone gets into power or money, he drags everyone along with him. Former Prime Minister Sukhbaataryn Batbold recently complained : he owns the Genghis Khan Hotel, his numerous relatives work there, the qualifications are not very good, but you can’t fire him - people won’t understand.