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 city
2010
Content.
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 a country that ranks 19th in the world in terms of area, but at the same time 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.
UDK 338(571.3) BAZAR BOLDBAATAR
BBK 65(5Mo) candidate economic sciences,
Senior Desk Officer of the Administration of the President of Mongolia, Ulaanbaatar e-mail: [email protected]
FEATURES OF SOCIO-ECONOMIC DEVELOPMENT OF MONGOLIA IN THE TRANSITION PERIOD
The features of the socio-economic development of Mongolia in the post-socialist period, as well as the development trends of the country's economy in the new millennium are considered. The social and demographic problems facing the Mongolian society are characterized.
Key words: socio-economic development, economic growth, economic structure, standard of living, death rate, birth rate.
A characteristic feature of Mongolia, which must always be taken into account, is its geographical location between Russia and China - two great powers that have historically had a decisive influence on the development of economic and political processes in our country.
The area of the country is almost 1.560 million km2, and in terms of its size, Mongolia ranks 17th in the world. The country's population is over
2.6 million people.
Insufficient infrastructure development; a relatively large area combined with a low population density; harsh sharply continental climate, adversely affecting the development of agricultural production; the dependence of the state of one of the key sectors of the economy - animal husbandry - on natural disasters; technological backwardness of the processing industries - all these factors had a negative impact on the overall course of market reforms, increasing tension in national economy. The specifics of market reforms are associated with the narrow specialization of the economy and exports, rather high energy and material intensity of production, and relatively low competitiveness. finished products on the world market.
During the implementation of market reforms, the government of the country for the stabilization
the economy has applied such measures of macroeconomic regulation as privatization, liberalization of foreign trade, devaluation national currency- Tugrik - and encouragement of foreign investment.
The level of economic development is determined by the volume of production of GDP per capita. In order to be able to make a comparative analysis of the level of development of different countries, this indicator is calculated in US dollars. The conversion of the national currency into US dollars is carried out taking into account both the prevailing exchange rate and the purchasing power parity of the monetary unit of the given country. The use of the purchasing power parity indicator makes it possible to obtain comparable characteristics of the achieved economic level, while the exchange rate comparison also reflects the influence of market factors on the value exchange rate. At the same time, as a rule, the currency of less developed countries is weaker against the US dollar.
Although real GDP growth averaged 7.3% over the past five years, Mongolia ranks 150th according to the World Bank1, which compared the level of economic development of 209 countries. For 2006, the volume of production of GDP per capita in Mongolia, when calculated
© Bazaar Boldbaatar, 2008
BAZAR BOLDBAATAR
according to exchange rate amounted to about 1 thousand dollars. USA, and HDI - 0.6912, and our country is on the last indicator in 117th place among 175 countries. According to the competitiveness index, Mongolia is gaining
3.6 points 3 out of 7 possible and ranks 92nd among 125 countries.
In the early 1990s gross domestic product has fallen significantly. The dynamics of GDP in the new millennium is characterized in the table.
During the period of transformation, the transition from a centrally planned economy to a market economy, the economy of Mongolia, like other post-socialist countries, experienced a serious decline. But, unlike the CIS countries, this decline lasted only four years - from 1990 to 1993. The gross domestic product of Mongolia at the same time decreased by about 25%, while in the CIS countries - by 40-60%. In Russia, for example, the period during which there was a decrease in the volume of GDP production lasted nine years - from 1990 to 1998.
Since 1994, economic growth began in Mongolia, and by 2002, the pre-crisis level of GDP production was restored. To date, it has been exceeded by more than 30%. From this point of view, economic
The development of Mongolia in the last decade can be considered quite satisfactory. The average annual rate of economic growth, which has been going on for 14 years, is more than 4%, and in 2003-2007. this figure reached 7%. If this trend continues, Mongolia will slightly improve its economic and social position compared to other poor and developing countries, the average growth rate of the economy in which is 3.5-4.5% per year.
In industry, for the first time in 2001, real production growth of 15.5% was achieved. The reasons for this were the increase in the production of non-ferrous metals due to the successful operation of the Mongolian-Russian joint venture Erdenet and favorable weather conditions that did not cause a massive drop in livestock, as happened in 2000-2002.
The structure of the economy leaves much to be desired. For example, agriculture produces about 20% of GDP, although more than 40% of the employed work in agriculture. In gross domestic product specific gravity industrial products and Agriculture is approximately the same, and the share of trade and services is constantly increasing and averages 49-54%.
Dynamics of Mongolian GDP in 2000-2005
Indicator Year
2000 2001 2002 2003 2004 2005
GDP (in current year prices), billion tugr. 1,018.9 1,115.6 1,240.8 1,461.2 1,910.9 2,266.5
Growth, % 10.1 9.5 11.2 17.8 30.8 18.6
GDP (in 2000 prices), billion tugr. 1018.9 1029.5 1070.7 1130.3 1251.4 1329.5
Real economic growth, % 1.1 1.0 4.0 5.6 10.7 6.2
Agriculture -15.9 -18.3 -12.4 +4.9 +17.7 +7.7
Industry +0.3 +15.5 +3.8 +4.8 +15.0 -0.9
Trade and services 15.3 6.1 11.6 6.1 6.3 9.1
GDP (in current year prices), mln USD USA 946.6 1016.3 1117.5 1274.5 1612.1 1880.4
GDP deflator 9.0 8.4 6.9 11.6 18.1 11.6
GDP per capita, thousand tugr. 462.2 460.1 504.6 586.9 758.7 888.4
GDP per capita, USD USA 396.0 419.1 454.5 511.9 640.1 737.0
Structure of GDP, % 100.0 100.0 100.0 100.0 100.0 100.0
Agriculture 37.0 29.1 24.9 20.7 20.1 20.9
Industry 20.7 21.9 22.0 22.5 25.3 29.9
Trade and services 42.3 49.0 53.1 56.8 54.6 49.2
Source: Mongolian economy and society in 2006: statistical office of Mongolia. Ulaanbaatar, 2007.
Izvestiya IGEA. 2008. No. 3 (59)
It should be noted that economic growth was largely achieved due to extensive factors. In connection with the increase in the population, the number of employed people has also increased by almost a quarter from 800 to 900 thousand people, although the share of employed in the total number of able-bodied population has decreased from 71% in 1989 to 60% at present. So the productivity of social labor has hardly risen in recent years. If we consider changes in the structure of production, we can see that economic growth was largely due to an increase in the volume of raw materials extraction in industry.
Another source of economic development was the accelerated expansion of trade and services, whose contribution to GDP increased over the past years from 138 billion tugriks to 169. At the same time, the share of trade and services in country's GDP increased from 19% in 1989 to about 49% today.
The economic growth in recent years has been accompanied by low level real income per capita, characterizing the consumption of goods and services by the population. The main social problem of Mongolia is the poverty of the population. According to many experts, with the growth of the average income of the population, the number of the poor has not been decreasing in recent years. The poorest segments of the population include families with a low salary (income) of the breadwinner, pensioners and the unemployed. The largest group of the poor large families. To a certain extent, poverty is generated by low employment of the population. Of the 1.5 million working-age people, only 900,000 work. Although there are over 40,000 officially registered unemployed, there is a large hidden unemployment, and many are employed in the informal sector.
The problem of declining living standards of the population is also aggravated under the influence of the consequences of the population explosion of the 60-80s. 20th century Taking into account the continuing rate of population growth in 2006, the real
The production of GDP per capita in Mongolia doubled compared to 2001.
Others important indicator standard of living is an indicator of average life expectancy. This figure is relatively low at 65 years, mainly due to extremely high infant mortality. Out of 1,000 live births in Mongolia, 29 die under the age of one year; 4-5 times more than in developed countries.
Attention is drawn to the negative trend in the dynamics of mortality in Mongolia. The death rate is declining only in children's age group- up to 14 years. In the youth group - from 15 to 24 years old - it has basically not changed over the past decade. At the same time, in the group of people of working age - from 25 to 50 years old - this figure increased. The death rate of people of retirement age has especially increased.
In Mongolia, the birth rate remains relatively high, and therefore the proportion of the youth group with a lower mortality rate, which is also declining, is growing in the population. As a result, the overall mortality of the population is reduced. The number of deaths per 1 thousand inhabitants of the country has decreased from 8.2 in 1989 to 6.4 people at the present time. The birth rate decreased more significantly: from 35.5 to 19.1 per 1,000 population. But, as you can see, the birth rate is three times faster than the death rate, and thanks to this, the population of Mongolia is increasing annually by 30 thousand or more people due to its own growth. If in 1989 the population of the country was 2.1 million people, then at present it has exceeded 2.6 million people.
Notes
1 http://worldbank.org/website/external/datastatistics/.
2 United Nations Development Program. Human Development Report 2006
3 Competitiveness Report 2005-2006 International agency United States for Development.
Izvestiya IGEA 2008. No. 3 (59)
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% each year.
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.
To understand the financial structure of this state, it is important to understand what kind of economy is in Mongolia. It is in the stage of transition from one socio-economic state to another, while occupying an 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 economy of Mongolia is an example of an economy transitional type. 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. All the main criteria for a state that is at the transitional stage of its socio-economic development are present here. 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.
For the economic development of Mongolia Natural resources are of great importance, there are really a lot of them.
In particular, there are three large deposits of brown coal in the country, high-quality 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 amount 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.
important place in economic development Mongolia occupies one of the world's largest gold ore deposits, 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.
The main ones in the Mongolian economy 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 brand new look. public transport, which can carry from 300 to 450 passengers at a time.
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 livestock grazing rural population. 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, the law on foreign investment, which allows citizens of other states to own shares in various Mongolian enterprises. New laws have also been passed regarding banking operations and taxation, debt obligations and loans.
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.
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.
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.
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, moreover 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 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 countries 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.
First of all, industrial and industrial equipment, oil products, and consumer goods are imported into the country.
Approximately one third of imports come from the Russian Federation, China firmly occupies the 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.
Official currency unit Mongolian is called the Mongolian tugrik. Currently for one Russian ruble you can buy 38 tugriks. The country's own currency appeared only in 1925. And banknotes were originally made in the Soviet Union.
Most banks can use credit cards, there are exchange points in all hotels of the country. Traveler's checks are also accepted as payment here without any problems.
In 1991, the Mongolian stock Exchange.
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 minimum size wages. The government sets the lowest hourly or monthly wages by law. In 2017, the minimum wage was just 240 thousand tugriks per month. At the same time, in Mongolia, only 7% of the population receives the minimum wages. Compared to 2013, the minimum wage has increased by a quarter.
Mongolia is one of the countries of the former eastern bloc with economies in transition. EconomyMongolia is mainly agricultural.
After a long stagnation (from 1990 to 2002, economic growth was from +3 to -3% per year), today the country is experiencing economic growth, the rates of which range from 5.3% to 10% per year; while the main growth is in the services sector, whose share has increased to almost 40% of GDP, and in the mining of copper and gold due to an increase in world market prices for them. True, growth recent years did not affect the poor part of the population: about 40% of the population of Mongolia lives below the poverty line, as in 1990. The difficult years of reforms, although they led to an increase in the share of the private sector of the economy to 80%, but further exacerbated social differences and the difference in living standards between the city and the countryside.
According to the UN World Nutrition Programme, the proportion of chronically undernourished people in Mongolia is on average 43%. The infant mortality rate is very high. 58 newborns out of a thousand die in infancy. During the cold season, many children and teenagers huddle in the tunnels of heating pipelines under Ulaanbaatar. The bottom of these tunnels is covered with excrement and inhabited by rats. Humanitarian organizations estimate that there are between 4,000 and 10,000 people living in the tunnels.
Due to very infertile lands, long winters, low rainfall, the nomadic tradition of the population and a short growing season (only 95-100 days a year), agriculture in Mongolia is very poorly developed. However, against its background, a highly specialized animal husbandry arose. At the same time, 5 types of livestock are bred here. Livestock production and the use of the physical strength of farm animals are an integral part of the nomadic lifestyle. local population. So, sheep are bred for wool, milk, meat, goats - for skins and milk, yaks - for the production of milk, skins, meat, and horses and camels are used as vehicle, to transport goods and to obtain milk.
The traditional agricultural products of Mongolia are meat, milk, sheep's wool and cashmere, as well as a small amount of grain, potatoes and vegetables.
Modern agriculture developed slowly in this country. The era of socialism was marked by collectivization, which began in the 1930s. By 1959, 100% of agriculture was collectivized. In 1960, its share in the national income was reduced to 22.9%, but it still employed 60.8% of the working population of Mongolia. After the country joined the Council for Mutual Economic Assistance in 1962, the volume of assistance to its agriculture from the USSR and other CMEA members, primarily Czechoslovakia and Hungary, increased.
In the late 1980s, agriculture was still a significant part of the Mongolian People's Republic's economy. In 1985, it employed 33.8% of the working population, but brought only 18.3% of the national income. The country's industry mainly processed food and timber for domestic use, as well as livestock products such as hides and skins for export. In 1986, almost 60% of Mongolia's exports were agricultural products.
After the end of the socialist economic system there have been profound changes regarding the ownership structure in the country's agriculture. However, its economic focus remains dependent on natural conditions and traditions. So, in 2006, 80% of the income from agriculture fell on the share of animal husbandry. But now 97% of animal husbandry was already in private hands. In the future, the share of agriculture and animal husbandry continued to decline and in 2011 it was already less than 20% of the gross national product (in 1995 it was 38%). However, the agricultural sector still employs a third of the country's population.
Mongolia is one of the 10 countries in the world with the largest mineral reserves, but only a third of them have been fully explored to date, and this is almost 6,000 deposits of various minerals, including coal, copper, uranium (about 2% of world reserves) , oil, gold, silver, fluorite, molybdenum, zinc and diamonds.
Deposits of copper and coal are still mined mainly by open pit mining. This leads to large-scale changes in the landscape and the corresponding consequences for the flora and fauna of the country.
The official unemployment rate in the country is 2.8%, although it is likely to be greatly underestimated. High inflation was successfully contained after 1996, since then its level has been about 4%. External debt Mongolia is about 1.86 billion US dollars.
In 2007, the value of merchandise exports amounted to USD 1.95 billion, of which 41.6% was copper concentrate, 12.1% gold, 9% zinc concentrate, 9% cashmere and 6% stone. coal. Oil products, machines and machine tools, various installations, automobiles, electronics and foodstuffs were mainly imported. In 2007, 72% of all exports went to China, followed by Canada, which accounted for 9% of Mongolia's exports.
The country's largest suppliers in the same year were Russia (34%), China (31%), Japan (6%) and South Korea (5.5%). To reduce dependence on its two immediate neighbors, Mongolia is implementing a so-called "third neighbor" policy.
Thus, the volume of trade with Germany reached 82 million euros in 2008, and there is a clear upward trend. Exports to Germany amounted to 15.4 million euros, while imports from this Western European country amounted to 66.6 million euros.
There are also several agreements with the EU on trade policy, customs and textiles. In addition, Mongolia is a member of important international organizations such as the WTO, The World Bank, and the Asian Development Bank.
Expenses state budget countries in 2009 amounted to US$1.6 billion and revenues to US$1.4 billion. Thus, we can talk about a budget deficit of 4.6% of GDP.
The state debt of Mongolia in 2008 amounted to 1.6 billion US dollars, or 33.1% of GDP.
GOU VPO "REA them. G.V. Plekhanov»
Department of World Economy
Test
by discipline
"World economy"
"Analysis of the economy of Mongolia"
Performed:
3rd year FF student
groups 2308
Bukhadeeva E.B.
Checked by: Ph.D.
Avturkhanov E.M.
Moscow city
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
Conclusion……………………………………………………………………… 17
List of used literature…………………………………………...18
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 km² and a population of about 2.9 million, Mongolia is the 19th largest country in the world in terms of area, but at the same time 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.
communist era. The country depended on the USSR in terms of fuel, medicines, auxiliary raw materials for factories and power plants. The former USSR was also the main consumer of the Mongolian industry. At the end of 1980, the government began to improve ties with non-communist Asia and the West, and tourism was launched. Soviet assistance, about one third of GDP, 80% of all international relations, disappeared almost overnight in 1990-91 during the collapse of the Soviet Union (1985-1991). Mongolia was in a deep recession, which was prolonged (MPRP) by the unwillingness of the Mongolian People's Revolutionary Party to undertake major economic reforms.
Transition to a market economy. Between 1990 and 1993, Mongolia suffered from three-dimensional inflation, rising unemployment, shortages of basic goods and a rationing system. During this period, the volume of production decreased by one third. After the reforms and the government's change of course to promote private enterprise, economic growth began again in 1994-95. Unfortunately, since this growth was driven in large part by a glut of bank loans, especially to the remaining state-owned enterprises, economic growth was accompanied by a severe weakening of the banking sector. GDP grew by 6% in 1995, mainly due to the boom in copper prices.
The government of the DUC (Democratic Union Coalition) in 1996-2000 began a course towards a free market economy, the weakening of price controls, the liberalization of domestic and international trade and also tried to restructure the banking system and the energy sector. National privatization programs were carried out, and the process of attracting foreign direct investment in oil production, cashmere companies and banks began. Reforms carried out by the ex-communist MPRP opposition and political instability associated with constant change of government left the country in crisis until the DSK government came to power Economic growth continued in 1997-99 after a halt in 1996 due to a series of natural disasters and an increase in world prices for copper and cashmere. Government revenues and export volumes, average real economic growth stabilized at 3.5% in 1996-99 due to the Asian financial crisis, the 1998 Russian financial crisis and the deteriorating commodity market, especially copper and gold. In August and September 1999, the economy suffered from a temporary Russian ban on the export of oil and petroleum products. Mongolia joined the World Trade Organization (WTO) in 1997.
Present tense. Mongolia's dependence on trade relations with China means that the global financial crisis will affect the Mongolian economy, which is characterized by a serious delay in the growth rate of the economy. However, while all countries are in the process of post-crisis economic recovery, Mongolia is suffering from itching in the winter (freezing livestock) of 2009-2010, resulting in a decrease in the number of livestock, which seriously affects the production of cashmere, which accounts for about 7% of the country's export earnings.
According to the World Bank and IMF estimates, real GDP growth fell from 8% to 2.7% in 2009, and exports fell 26% from $2.5 billion to $1.9 billion after a promising sustained growth through 2008 of the year. Because of this, it is predicted that from 20,000 to 40,000 people. (0.7% and 1.4% of the population, respectively) will die due to poverty, which would not have happened if not for the crisis.
In late 2009 and early 2010, however, the market began to recover again. Having identified the problems and learned from its previous economic failures, the government is pursuing legislative reform and tightening fiscal policy, which suggests that the economy will develop only in a positive direction. In February 2010, foreign assets were estimated at $1,569,449 million. New trade agreements are being formed, and foreign investors are keeping a close eye on the "Asian wolf", the code name for the Mongolian economy. The term was coined by Renaissance Capital in its Blue Sky Opportunity report. They say that Mongolia could become the new Asian tiger or non-stop "Mongolian wolf", as they prefer to call the economy of Mongolia. Recent developments in the mining industry and the growth of foreign investors confirm that the "Mongolian wolf" is ready to jump. The aggressive name of the term reflects development opportunities in the capital market, as well as good prospects in the mineral resources industry. The Mongolian economy has a chance to maintain its title of fast growing and developing economy.
