Political environment risk to Mongolian development
Mongolia ranked in the 15th position for its economic performance with similar 15 developing countries in the region for the last three years.
The main reasons for the slowing economic growth are the political environment, infrastructure weakness, and education and health sector failures.
The Mongolia Economic Forum 2013 continued for the second day in the Government Palace. The President of Mongolia, Elbegdorj Tsakhia, opened the second day`s forum with a speech.
The President stated that he is disappointed that there is no progress with political pressure on business and society even though the issue had been raised during the previous forum last year.
President Elbegdorj Tsakhia said that “the economic and social environment changes whenever the Government is newly formed. Civilians obviously think that the state is the boss. The thing is, the state is not in charge. It is actually the law that rules.”
The President also warned that Mongolian economic growth that was at 17.5 fell to 12 this year. He said it could be a sign of economic slowdown.
The President commented on the Chinggis bond saying that “issuing the Chinggis bond was evidence that Mongolia is reputable in the world market. But the bond is risking debt in the country. Mongolian wealth is distributed with 65 percent of wealth in Ulaanbaatar, 10 percent in Orkhon aimag and 25 percent in Umnugobi and other aimags”.
The President explained that the unfair distribution of wealth is because local governors have no power. He stated that development in aimags except Ulaanbaatar, Erdenet and Umnugobi have became failures.
He further commented that the legal environment should be convenient for local economic development.
He also suggested to offer to decrease tax charges for establishing a better business environment in the countryside.
When the President discussed the investment environment for mining, he said “Mongolia is a free country. The country is based on wide respected for law and rights of civilians. Hence, we are ready to have an open discussion if there is a problem. It is said that there is a mining boom in Mongolia. But actually the real boom has not yet arrived.”
The President finished with some good news; that the next Davos Economic Forum will discuss and analyse the Mongolian economic environment at the Forum.
The main reasons for the slowing economic growth are the political environment, infrastructure weakness, and education and health sector failures.
The Mongolia Economic Forum 2013 continued for the second day in the Government Palace. The President of Mongolia, Elbegdorj Tsakhia, opened the second day`s forum with a speech.
The President stated that he is disappointed that there is no progress with political pressure on business and society even though the issue had been raised during the previous forum last year.
President Elbegdorj Tsakhia said that “the economic and social environment changes whenever the Government is newly formed. Civilians obviously think that the state is the boss. The thing is, the state is not in charge. It is actually the law that rules.”
The President also warned that Mongolian economic growth that was at 17.5 fell to 12 this year. He said it could be a sign of economic slowdown.
The President commented on the Chinggis bond saying that “issuing the Chinggis bond was evidence that Mongolia is reputable in the world market. But the bond is risking debt in the country. Mongolian wealth is distributed with 65 percent of wealth in Ulaanbaatar, 10 percent in Orkhon aimag and 25 percent in Umnugobi and other aimags”.
The President explained that the unfair distribution of wealth is because local governors have no power. He stated that development in aimags except Ulaanbaatar, Erdenet and Umnugobi have became failures.
He further commented that the legal environment should be convenient for local economic development.
He also suggested to offer to decrease tax charges for establishing a better business environment in the countryside.
When the President discussed the investment environment for mining, he said “Mongolia is a free country. The country is based on wide respected for law and rights of civilians. Hence, we are ready to have an open discussion if there is a problem. It is said that there is a mining boom in Mongolia. But actually the real boom has not yet arrived.”
The President finished with some good news; that the next Davos Economic Forum will discuss and analyse the Mongolian economic environment at the Forum.
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