Economy and industry of Mongolia. Mongolia in the world economy

Several events of the last week have again drawn attention to Mongolia. Most recently, German President Joachim Gauck visited Ulaanbaatar. He was followed by Japanese Prime Minister Shinzo Abe. In the same days, a bill on the country's permanent neutrality was submitted to the Mongolian parliament on behalf of the country's president. According to its initiators, this should become "the basis for maintaining balanced relations with other countries."

Mongolia is a small country with only 3.2 million people. 1.2 million live in the capital, Ulaanbaatar. But this is a very rich country - rich in copper, gold, uranium, rare earth metals and other resources. Experts even claim that Mongolia is the world's largest and fastest growing commodity market. And since the beginning of the 21st century, the mining industry has become the locomotive that led the economy of the once agrarian country.

The total value of the top 10 largest deposits of coal, copper, gold, uranium and rare earth metals in Mongolia is approximately 2.75 trillion dollars. The most attractive for foreign companies are such large deposits in Mongolia as Oyu Tolgoi (copper, gold), Tavan- Tolgoi (coal) and Dornod (uranium). The reserves of the world's largest Tavan-Tolgoiskoye deposit amount to 7.4 billion tons of coal. Rio Tinto Corporation experts estimate the reserves of the Oyu Tolgoi deposit, located in the South Gobi, 80 km from the border with China, at 25 million tons of copper for fifty years of operation.

The rich, not yet fully explored natural resources of Mongolia are a tasty morsel of the “global raw material pie” for many countries. It is no coincidence that the Anglo-Australian company Rio Tinto, Chinese Shenhua, Chalco, American Peabody Energy, Japanese Itochu, Mitsui, Mitsubishi, Sumitomo, Marubeni are actively introduced into Mongolia. and others.

Thanks to the industry, the average annual growth of the economy is 14%, and the country's GDP grew 10 times only from 2001 to 2011. According to World Bank forecasts, Mongolia's economy will grow by an average of 15 percent per year over the next 10 years. However, given the country's dependence on the export of mining products, the prices of which are very volatile, Mongolia's GDP growth will also experience noticeable fluctuations.

Under these conditions, it becomes clear that today Ulaanbaatar is facing a very difficult choice of the optimal algorithm for extracting the maximum benefit from the unique natural resources.

Since the beginning of the new century, the Mongolian economy has received very decent investments. Canadian investment in the extractive industry has exceeded $1.5 billion. Chinese investment is almost $2.5 billion. Over the past twenty-five years, more than 5,500 enterprises with Chinese capital have been opened in Mongolia, which is almost half of all enterprises with foreign participation. Japan also does not stand aside. By 2010, the amount of total Japanese support for the Mongolian economy exceeded $3.6 billion. USA. Moreover, half of these funds were provided free of charge, and the rest - in the form of soft loans. South Korea looks good, ranking third in a string of Mongolian investors.

At the same time, Ulaanbaatar today seeks to build its policy by combining new trends with traditional motives. To a certain extent, this was reflected in the development and implementation of the concept of the “steppe path”.

The concept of the "steppe path" is based on the understanding of the Eurasian integration processes that have begun and the need to determine the place of the country in this process. Therefore, the active development of the mining industry and the expanded supply of mineral resources abroad are forcing Ulaanbaatar to improve the transport and logistics infrastructure, which today exists in its infancy and depends on the transport arteries of China and Russia.

Having no direct access to the sea, and, consequently, to world consumers, Mongolia found itself sandwiched between two giants - Russia and China. Therefore, it is extremely important for Ulaanbaatar to use the Russian and Chinese factors in its economic development. China and the Russian Federation are the first and second most important foreign trade partners of Mongolia, three-quarters of all import flows come from China and Russia. And China is also one of the main investors in its economy.

Thus, it is Russia and China that become the partners with which Mongolia intends to build a "steppe road" and match its own project with the Russian Eurasian Economic Union and the Chinese "Silk Road Economic Belt".

The Steppe Road project has already received the approval of the Chinese side during the visit of Chinese President Xi Jinping to Mongolia (August 2014). The declaration, signed following the state visit of the head of the PRC, outlines the need to organize tripartite negotiations with the Russian leadership specifically in this area.

Moscow also received with interest the Steppe Way project presented to Vladimir Putin (September 2014) by the President of Mongolia, Tsakhiagiin Elbegdorj, which can completely renew the structure of traffic flows between China, Mongolia and Russia. Russian-Mongolian relations are a natural and important component of the eastern vector of Russia's foreign policy. This is emphasized in the "Foreign Policy Concept of the Russian Federation", which focuses on strengthening the political and economic development of the country based on the opportunities and advantages of its eastern regions.

Today, the so-called "second track" is being built - the work of a tripartite expert community, designed precisely to determine the ways to link the three programs.

This autumn, a Russian-Mongolian-Chinese trilateral research association was established in Ulaanbaatar, which at the expert level will study the prospects for interaction between the three countries within the framework of these three projects. The founder of the Association from the Russian side was the Institute of the Far East of the Russian Academy of Sciences. And its Russian members are the Institute of Oriental Studies RAS, Institute of World Economy and International Relations, Baikal University of Economics and Law (Irkutsk), IPREC SB RAS (Chita), Institute of Economic Research FEB RAS (Khabarovsk), Institute of Mongolian Studies, Buddhology and Tibetology SB RAS ( Ulan-Ude), Institute for the Study of Lake Baikal Resources SB RAS (Ulan-Ude), OREI BSC SB RAS (Ulan-Ude).

The scientists of the three countries declared their intention to concentrate their efforts on determining the most effective opportunities for economic and logistical and transport cooperation, which, in addition to Mongolia, will primarily involve the Baikal and Far Eastern regions of Russia and the territories of northeastern and northern China.

During the discussions, experts discussed issues of practical cooperation in the road transport industry. The Mongolian partners spoke about the modernization of the Mongolian railways, as well as the construction of a high-speed highway hi-way, more than 1000 km long, crossing Mongolia from south to north to the Russian-Mongolian border. A trilateral transport agreement has been prepared for signing. The idea of ​​creating a large transport and logistics center is being discussed.

At the same time, it is quite obvious that Ulaanbaatar will try to balance the emerging dependence and, perhaps, even find a "third neighbor" - theoretically, it could be the USA, South Korea, Japan, Canada. Perhaps this is the reason for the introduction of a bill on the neutrality of Mongolia to the country's parliament.

The choice of a place for education by Mongolian youth can also testify to the priorities for the future. Today, for example, more than 2,000 Mongolian students study in Japan. Over 1,000 young Mongolians have received Chinese government scholarships to study at universities in the PRC. Mongolian boys and girls willingly go to study in South Korea.

The flow of students from this Asian country to Russia is gradually decreasing. And the main language of international communication in Ulaanbaatar today is increasingly becoming English, displacing Russian from the everyday life of the Mongolian intelligentsia.

Mongolia is a country that is located in East Asia, borders on Russia, China and has no access to the sea. Vast territories of the country, some of which are not very suitable for life, are unevenly populated. At the same time, Mongolia boasts a rapid pace of economic development and a fairly high standard of living for the population. Mongolia has observer status in most international organizations.

Brief history of the state

The first attempts to establish the Mongolian state were made by disunited tribes that settled the territory of modern Mongolia 850 thousand years ago, in the 4th century BC. The Huns then united to fight the Chinese tribes and ruled over the Mongolian steppe until 93 BC. Later, the Hunnic Empire was replaced by several Kirghiz, Turkic and Mongol khanates. None of them managed to gain a foothold in the Mongolian lands for a long time: a nomadic lifestyle, militancy and insufficiently authoritative power - all this caused disunity.

A more stable union of tribes went down in history under the name Khamag Mongol and became the basis of the future Mongol Empire led by Genghis Khan. But already from the end of the 13th century, cultural differences, the death of the strongest ruler, the endless redistribution of power and the heterogeneity of the population of the state caused the beginning of the collapse of the Golden Horde.

For the next few centuries, the Mongolian steppes were occupied by various rulers, empires and nationalities: the Yuan Empire, the Northern Yuan dynasty, the Chinese Qing Empire, ruled by the Manchu dynasty, until 1911. When the Xinhai Revolution thundered in China, which put an end to the empire, and a national revolution arose in Mongolia itself, statehood as such did not exist on the territory of modern Mongolia.

New Mongolia in 1915 was recognized as an autonomous part of the Republic of China, and nine years later, the independence of the state was proclaimed again (for the first time in 1911). However, until the end of World War II, the independence of Mongolia was recognized only by the USSR.

The Mongolian People's Republic was characterized by some features of Soviet power: repression, collectivization, destruction of monasteries, and later perestroika. The aggression of Japan was reflected by the joint actions of the USSR and Mongolia. The modern history of Mongolia began with the adoption of a new Constitution in 1992 and a change in political course.

State structure and politics

Mongolia is a parliamentary republic with a diverse population. The head of state is the president, the executive power is represented by the government, the legislative power is represented by the parliament, which is called the State Great Khural. In the localities, power remains in the hands of local governments, which are elected for a term of four years.

In 2008, a domestic political crisis occurred in Mongolia, which provoked riots in the capital of the state (Ulaanbaatar) and caused a change of government and presidential re-elections. The current president of the state is Tsakhiagiin Elbegdorj, and the ruling party is the Mongolian People's Party (MNP).

Geography of Mongolia

In terms of territory, the state occupies the nineteenth place in the world, being quite large. The area of ​​Mongolia is 1,564,116 km², which is commensurate, for example, with half of Yakutia. Most of the country (in terms of geographical features) is occupied by a plain with several towering ridges and mountain ranges. The Gobi Desert is located in the southern part of Mongolia.

All sources of fresh water originate in the mountains and are fed by several large tributaries. There are a large number of lakes in Mongolia, many of which are temporary, that is, they form during the rainy season and disappear during the drought.

The area of ​​Mongolia and the location of the state make the climate sharply continental. The average temperature in the winter season ranges from -25 to -35 degrees, in summer it is within the same values ​​with a plus sign. Precipitation decreases from northwest to south.

Administrative division of the state

Mongolia, whose population is unevenly distributed over the territory of the state, is divided into 21 aimaks, with a total of 329 somons, and the capital Ulaanbaatar. The largest city is expectedly the capital, with one and a half million permanent residents. The administrative center is followed in terms of population by the aimag Khuvsgel (114 thousand people), Dornogovi (109 thousand people) and Uverkhangay (100 thousand people).

A characteristic feature of Mongolia is the presence of temporary settlements, in connection with which an address system different from the standard is used. So, in Mongolia there are no usual names of cities, streets, numbers of houses and apartments, and addresses are replaced by digital codes that allow you to locate an object on the ground with an accuracy of one meter. Moreover, the longer the code, the more accurately you can determine the location of the object. The system is suitable for use on a global scale, and is actively used in digital cartography and navigation systems.

Economy of Mongolia

The economy of Mongolia is developing extremely dynamically, and the state itself is the largest sales market in the entire Asia-Pacific region. According to the latest forecasts, the state's economy will grow at least 15% per year in the short term.

The main industries of Mongolia are represented by:

  • mining (20% of GDP) and mineral resources;
  • agriculture (16% of GDP);
  • transport (13%);
  • trade (also 13%).

Considering the employment of the population, it can be noted that most of the able-bodied citizens are employed in agriculture (41%), slightly less in the service sector.(29%) and trade (14%).

Mongolia sends oil products, equipment (both industrial and industrial) and consumer goods for import (the population is provided with everything necessary). The main partners in international trade are Russia, China, Japan and South Korea.

Financial sector

The Central Bank has the same functions as similar institutions in other states. The currency of Mongolia is the Mongolian tugrik, which was put into circulation in 1925. To date, the average exchange rate is: 2405 tugriks = 1 US dollar. Despite the fact that there is a national currency of Mongolia, the American dollar is also in circulation (it is used in almost all areas, except for paying for public services) and the Russian ruble or euro, which are accepted in small shops (mainly in the capital) and markets.

By the way, prices in Mongolia pleasantly surprise tourists. You can buy memorable souvenirs, products made of natural wool and leather, carpets in the capital at a lower cost than in Russia. Food prices are moderate. So, lunch will cost an average of 6-7 dollars.

State population: general characteristics

The population of Mongolia is characterized by mono-ethnicity, the predominant number of urban population (even despite the large employment in agriculture), positive natural growth, a large number of dialects in the language of the population and a diverse religious composition.

State population

The population of Mongolia according to the data for 2015 is 3 million 57 thousand people. The inhabitants of the capital account for one third of the total number of citizens. The nature of the resettlement of citizens across the territory of the state will be discussed in more detail below.

The natural increase of the population is 28 persons per 1000 citizens per year. This fact allowed the population of Mongolia to quadruple between 1950 and 2007. Back in 1918, the population of Mongolia was only 647 thousand people, and by 1969 it was already twice as many. Any correct data on the number of inhabitants until 1918 was not preserved due to the difficult history of the formation of statehood, when the territories of Mongolia were part of other countries, and the indigenous population was oppressed.

Density and population distribution

The average population density in Mongolia is almost 2 people per square kilometer. This indicator was the reason for placing the state in last place (195th line) in the list of world population density. The most densely populated (5-6 people per square kilometer) in Mongolia are the valley of the Orkhon River and the mountainous regions of Khangai - the most livable areas to the west of the capital.

Vast territories (40%) of the state are unsuitable for a comfortable life due to natural features. The population density is a record one person per 10-15 square kilometers, part of the territories remains completely uninhabited.

Ethnic and national composition

Mongolia (the population is predominantly representatives of the Mongolian group) is a mono-ethnic state. The dominant ethnic group is divided into several clans of Turkic origin, sub-ethnic groups and close ethnographic groups.

In addition to the indigenous population, which makes up just over 82% in total, Turks, Russians and Chinese live in the country. There are only 1,500 Russians in Mongolia, while as many as 20,000 lived in the late 1980s. Mostly Old Believers fled to the neighboring state, fleeing religious persecution in their homeland. There are currently several hundred Chinese living in Mongolia, while in the 60s the number of immigrants from China in Mongolia reached 25 thousand people.

Language and writing in Mongolia

The diversity of closely related ethnic groups predetermines minor, but still pronounced linguistic differences. The state (Mongolian) includes several dialects:

  • Oirat;
  • directly Mongolian;
  • Buryat;
  • hamnigan.

Turkic dialects are also widespread:

  • Kazakh;
  • Tuvan;
  • Tsaatan-Soyot.

Teaching in the capital of the state is also conducted in Kazakh.

In 1945, the Mongolian language was translated into Cyrillic with the addition of two more distinct letters. Old Mongolian is not used today, although attempts to restore the language have been repeatedly made. To this day, Tibetan is widely used in religious practices, in which works of art, religious and scientific treatises were written in past centuries.

Religious affiliation of the population

The main religion in Mongolia is modified Buddhism (53%). At the same time, in the capital, the majority of Christian, not Buddhist temples (197 versus 63). Most of the population are atheists (38%). Religious diversity is also represented by Islam, shamanism, Christianity and some other religions.

Standards of living

Mongolia, whose standard of living in most sources remains beyond the scope of the narrative, is a fairly developed state with a stable economy. Until now, people leading a nomadic lifestyle have remained in the country, but their existence is facilitated by the numerous benefits of civilization. The capital is similar to most modern cities. So, today Mongolia is confidently opening a “window to the big world” for itself.

Economy of Mongolia

Economics at a Glance:

Economic activity in Mongolia has traditionally been based on pastoralism and agriculture.

Mongolia has extensive mineral deposits.

The country conducts copper, gold, coal, molybdenum, spar, uranium, tin, tungsten, the mining and processing industry accounts for most of foreign direct investment and government revenue.

Severe winters and summer droughts in 2000-2002 led to massive loss of livestock and zero or negative GDP growth.

In 2004-2008, GDP growth was around 9%, largely due to high copper prices and the discovery of new gold.

In 2008, an inflation rate of nearly 30% was recorded, the highest inflation rate in a decade.

In early 2009, the International Monetary Fund provided $236 million in a stand-by program and the country began to emerge from the crisis, although some instability remains in the banking sector.

In October 2009, the government passed long-awaited legislation to develop Oyu Tolgoi, one of the world's largest copper deposits.

Mongolia's economy is still heavily dependent on its neighbors. Mongolia buys 95% of its oil and a significant amount of electricity from Russia, leaving it vulnerable to rising prices. Trade with China accounts for more than half of Mongolia's total foreign trade—China receives about two-thirds of Mongolia's exports.

Remittances from Mongolians working abroad are significant but have fallen due to the economic crisis; money laundering is a growing concern.

Mongolia joined the World Trade Organization in 1997 and is seeking to expand its participation in regional economic and trade regimes.

$3,100 (2009)

4030 million kWh (2009)

5100 bbl/day (2009)

5300 bbl/day (2009)

- $228,700,000 (2009)

Place of the country in the world: 93

- $710 million (2008)

Export:

$1902 million (2009)

Place of the country in the world: 130

$2539 million (2008)

Export - goods:

copper, clothing, livestock, animal products, cashmere, wool, hides, spar, non-ferrous metals, coal

Export - partners:

China 78.52%, Canada 9.46%, Russia 3.02% (2009)

Import:

$2,131 million (2009)

Place of the country in the world: 150

$3224 million (2008)

Import - goods:

machinery and equipment, fuels, automobiles, foodstuffs, industrial consumer goods, chemicals, building materials, sugar, tea

Mongolia is an agro-industrial country. Mongolia today trades with more than 80 countries of the world. The trade turnover is more than 2 billion US dollars. If until the 1990s, 90% of Mongolia's foreign trade was occupied by trade with the USSR, today more than 40% is trade with the Russian Federation and the People's Republic of China, and the rest is occupied by trade with such highly developed countries as Japan, the USA, South Korea, Switzerland.

Although more people live in cities, Mongolia's economy is still centered on industries such as agriculture and mining. Mineral resources such as copper, coal, molybdenum, tin, tungsten and gold make up a significant part of the country's industrial production.

Between 1924 and 1991 The MPR received large financial and economic assistance from the USSR. At its peak, this assistance accounts for one third of its GDP. In the early 1990s and the following decade, the Mongolian economy experienced a severe recession followed by stagnation. Extensive droughts in the summer and winter of 2001 and 2002 had a severe impact on agriculture and led to a marked slowdown in the country's GDP growth. Mongolia has a high inflation rate. The global financial crisis has caused a recession in many industries dependent on exports and investment from abroad.

Due to Mongolia's harsh continental climate, agriculture remains vulnerable to natural disasters in the form of severe drought and cold. The country consists of small arable land, but about 80% of the territory is used as pasture. Most of the rural population is engaged in grazing livestock consisting of sheep, goats, cattle, horses and camels. Mongolia has more livestock per capita than any other country in the world. Wheat, potatoes and other vegetables are also grown, in addition to tomatoes and watermelons. GDP PPP: $9.48 billion (2008) GDP per capita PPP (2008): $3,200 Unemployment rate: 2.8% (2008).

Industry of Mongolia

Industrial growth - 4.1% in 2002. Electricity production in 2005 - 3.24 billion kWh. Electricity consumption - 3.37 billion kWh. Electricity export - 18 million kWh. Electricity import - 130 million kWh.

Statistical indicators of Mongolia
(as of 2012)

Mining industry. Despite the abundance of mineral deposits, their development is still limited. There are 4 brown coal deposits in Mongolia (Nalaikha, Sharyngol, Darkhan, Baganur). In the south of the country, in the region of the Taban-Tolgoi mountain range, hard coal was discovered, the geological reserves of which amount to billions of tons. Medium deposits of tungsten and fluorspar have long been known and are being developed. Copper-molybdenum ore found in Treasure Mountain (Erdenetiin ovoo) led to the creation of a mining and processing plant, around which the city of Erdenet was built. Oil was discovered in Mongolia in 1951, after which an oil refinery was built in Sain-Shanda, a city southeast of Ulaanbaatar, near the border with China (oil production ceased in the 1970s). Near Lake Khuvsgul, giant deposits of phosphorites were discovered and even their mining began, but soon, due to environmental considerations, all work was reduced to a minimum. Even before the start of reforms in Mongolia, with the help of the USSR, zeolites, minerals of the aluminosilicate group, were successfully searched for, which are used in animal husbandry and agriculture as adsorbents and biostimulants.

Currently, the main branch of the extractive industry is coal (mainly lignite). Most of the coal production is concentrated at the Sharyn-Gol open-pit mine (annual production of over 1 million tons), near the city of Darkhan, as well as at the Nalaya mine (with a capacity of over 600 million tons). There are a number of smaller cuts in the area of ​​Under-Khan and others. Electricity production - at thermal power plants (the largest thermal power plant in Darkhan). Manufacturing industry. The sectoral light and food industries account for more than one second of gross industrial output and more than one second of employed workers. The largest enterprises are: an industrial complex with 8 factories and plants in Ulaanbaatar, Choibalsanei, etc. In the building materials industry, an important place among enterprises is occupied by a house-building plant in Ulaanbaatar, cement and brick factories in Darkhan.

Initially, the local industry was based almost exclusively on the processing of livestock raw materials, and the main types of manufactured products were woolen fabrics, felt, leather goods, and food products. Many new industrial enterprises appeared in Mongolia after the end of World War II - especially in the 1950s and early 1960s, when the country received significant financial assistance from the Soviet Union and China. In the 1980s, local industry provided approximately 1/3 of the national product of Mongolia, while in 1940 it was only 17%. After the end of World War II, the share of heavy industry in the total volume of industrial production increased significantly. There are more than two dozen cities with enterprises of national importance: in addition to the already named Ulaanbaatar and Darkhan, the largest are Erdenet, Sukhebaatar, Baganur, Choibalsan. Mongolia produces more than a thousand types of industrial and agricultural products, most of which are consumed domestically; furs, wool, leather, leather and fur products, livestock and livestock products, phosphorites, fluorites, molybdenum ore are exported.

Agriculture in Mongolia

Agriculture has always been the backbone of the Mongolian economy. In the context of the transition to the market, its importance has increased. It employs 50% of the country's population (in 1950 - about 80%), it provides more than 40% of GDP. In terms of livestock per capita, we rank third in the world, second only to Australia and New Zealand. Until the beginning of the 1940s, when industry formed into an independent sphere, agriculture was the only branch of material production in the country. Back in 1950, it produced 60% of the national income. Further, its share was reduced: in 1970 - to 25%, in 1975 - to 22.4%. Currently, it has increased slightly - up to almost 30%. At the same time, over 50% of export products are accounted for by agricultural raw materials, and taking into account products from it - over 70%.

The level and pace of development of agriculture largely determine the most important economic proportions. Traditional industries such as light and food industries completely depend on its condition, since the cost of agricultural raw materials constitutes the main part of their production costs. Pasture animal husbandry still remains the main type of economic activity. To date, Mongolia is among the leading countries in the world in terms of livestock per capita (approximately 12 heads per person).

On the basis of the law on foreign investment adopted in 1990, citizens of other states were given the opportunity to own shares of various types of enterprises - from firms with 100 percent foreign capital to joint companies. New laws were passed regarding taxation and banking, credit and debt. In May 1991, a law on privatization came into force, according to which state property could pass into the hands of "law-abiding" citizens (that is, those who had not previously committed serious crimes) permanently residing in the country. Each citizen was given a special investment coupon that could be bought, sold or given to any other person. Holders of such coupons became active participants in special auctions, with the help of which state property was privatized. Later, in 1991, "state farms" and cooperative livestock associations were liquidated, and the transfer of land and livestock to private ownership began.

Foreign trade of Mongolia

Mongolia as a member of the World Trade Organization in March 2005 submitted its trade policy to the members of this organization for discussion, which is quite liberal. In 2002, the Government of Mongolia established uniform 5% customs rates for most imported goods. For the further development of Mongolia's foreign trade, the decision of the European Union to include Mongolia, as a developing country with a vulnerable economy and as a landlocked country, in the GSP + program is of great importance. Thus, from July 1, 2005, Mongolian goods began to be imported into the European market without customs duties.

The total turnover in foreign trade for the first half of 2008 amounted to 2 971.3 million US dollars, including export 1 276.3 million dollars, import - 1 695.0 million dollars. The deficit amounted to 418.7 million US dollars, which is more by 386.5 million US dollars compared to the same period last year. The total trade turnover in comparison with the same period of 2007 increased by 74.3%, export - by 52.6%, import - by 95.2%. The negative balance of foreign trade was significantly affected by the growth of imports, which is 42.6 points higher than the volume of exports.

Imports are mainly oil products, equipment and spare parts, vehicles, metals, chemicals, building materials, food and consumer goods. In 2004, imports amounted to $1 billion.

In 2005, imported goods came from: Russia - 34.5%, China - 27.4%, Japan - 7.1%, South Korea - 5.3%. In the total volume of imports, mineral products increased by 196.4 million dollars, pulp, paper, cardboard and products from them - by 189.2 million dollars, vehicles - by 133.7 million dollars, cars, electrical equipment, televisions, spare parts - by 92.3 million. dollars, metallurgical products - by 68.1 million dollars, foodstuffs - by 37.2 million dollars.

Mongolian exports are: minerals (copper, molybdenum, tin, spar concentrate), raw materials of animal origin (wool, cashmere, leather, fur), consumer goods (leather, sheepskin, leather goods, carpets, cashmere, camel knitwear, wool blankets and cashmere). The subsoil of the country is rich in mineral resources, including vast deposits of coal, iron ore, tin, copper, uranium, oil, zinc, molybdenum, phosphorus, tungsten, gold, fluorite and semi-precious stones.

Export: (2.5 billion dollars in 2008) - copper, molybdenum concentrate, meat, livestock, livestock products, goat down, wool, skins, coal. The main buyers in 2008 are China (76%), Canada (9%), Russia (3%). Imports: ($3.6 billion in 2008) - fuels, machinery, automobiles, food, industrial consumer goods, chemicals, building materials, sugar, tea. The main suppliers in 2008 are Russia (35%), China (29%), Japan (8%). External debt - 1.6 billion dollars (in 2008).

Mongolia is a member of the World Trade Organization (since 1997). The main trading partners of the country are China and Russia, and Mongolia's economy is largely dependent on these countries. In 2006, 68.4% of Mongolia's exports went to China, while imports accounted for only 29.8%. Mongolia imports about 95% of oil products, and a significant share of electricity from Russia, which makes the country extremely dependent economically.

Transport Mongolia

The main types of transport in Mongolia are: rail, road, air, water. The Mongolian Railway is a railway in the territory of Mongolia. The official name is the Russian-Mongolian Joint-Stock Company "Ulaanbaatar Railway". Rail transport accounts for 80% of all freight and 30% of all passenger traffic in Mongolia. After the democratic revolution in the 1990s, there was a decline in freight and passenger traffic in Mongolia. But already in 2001, passenger traffic indicators recovered to the previous level and amounted to 4.1 million passengers per year. By 2005, the volume of freight traffic also recovered.

Train of the Trans-Mongolian Railway in the Gobi Desert Today, the Mongolian Railway is one of the leading sectors of the economy of Mongolia, on the work of which the economic development of the whole country largely depends. At the beginning of 2005, the technology of operational work of the Mongolian Railway was fundamentally changed, as a result of which the qualitative and quantitative indicators of the road were improved: the turnover of wagons was doubled and the average weight of trains was increased. The total length of railways for 2004 is 1810 km.

Automobile transport. There are 75 thousand km of motor roads in Mongolia, according to state records, but they are almost entirely unpaved, that is, in any direction there are half a dozen rolled paths, some of them lead to a yaila, a watering hole, a somon or a settlement that has not yet migrated from these places And as a result, you can not travel without a guide! Cattle breeders only know directions. No one cares where any of these roads will lead. The driver of a truck, a UAZ jeep, a guide in an off-road minibus know their roads by signs. There are no pointers. Road culture in the pre-conception period. A map is often a source of misinformation. Mountain rivers have demolished bridges, there is no one to restore them now, they have rolled new roads on the desert plain, where it is possible to ford the rivers.

The asphalt pavement of roads starts from Erdene, which is 72 km east of Ulaanbaatar, the road is paved to the first capital of Genghis Khan Kharkhorin and continues for 300 km to the aimag center Arvaikheer. The soils in Mongolia are stony, in the mountains the road is made of large rubble and small cobblestones, and in the desert it is made of coarse sand and fine gravel. Transitional form from one state of the road to another "washboard" wave wheel modulation of the soil by heavy machines.

Air Transport. As of 2006, there were 44 airports in Mongolia. Of these, 12 had runways with artificial turf. Ten of these bands had a length in the area from 2438 to 3047 meters, and the other two - between 1524-2437 meters.

Chinggis Khaan International Airport, located in the suburbs of Ulaanbaatar, is the only international airport in Mongolia. Direct flights are operated to Berlin, Moscow, Beijing, Hohhot, Seoul, Yekaterinburg, Irkutsk, Ulan-Ude and Tokyo.

The remaining 32 airports have unpaved runways. On two of them, the runway is over 3047 meters, on three - between 2438-3047 meters, on twenty-four - between 1524-2437 meters, on two more - between 914-1523 meters, and one airport, the runway of which has a length less than 914 meters. There is also one heliport in Mongolia.

As of June 2007, the airlines operating in Mongolia are: MIAT (Mongolyn Irgeniy Agaaryn Teever), Aero Mongolia, and Izinis Airways. They operate both domestic and international flights. Water transport. In Mongolia, 580 km of rivers and lakes are available for navigation, but more or less water transport is developed only on Lake Khubsugul. The Selenga and Orkhon are also navigable (the length of the navigable sections is 270 and 175 km, respectively), but water transport is not well developed on them, although a border boat on the Selenga River patrols the Russian-Mongolian border. Lakes and rivers freeze in winter; navigation usually opens in May and ends in September.

Marine fleet. Mongolia is the second (after Kazakhstan) country in the world in terms of territory, which does not have access to any sea. However, this did not prevent her from registering her ship register (The Mongolia Ship Registry Pte Ltd) in February 2003. Starting from the moment of registration, Mongolia has been steadily increasing the number of ships flying its flag. And in 2003, revenues to the treasury amounted to about $20,000,000.

Banking system of Mongolia

Back in the early 90s, they began to restructure the banking system, as a result, it became a two-tier one - the Central Bank ceased to engage in ordinary banking activities, while banks with private and state capital got the opportunity to work. The prerequisites for such a transition were created only with the adoption in mid-1991 of the Law on Banks and the Law on the Mongolian Bank (on the central bank). The main direction of the transformations was the rejection of the state monopoly, the formation of a banking system that meets the requirements of market relations and meets generally accepted standards and norms.

At present, the main factors determining the place of the Central Bank in the Mongolian economy are the system of existing laws, the relationship of its measures with economic policy, and the principles of interaction with the banking system. The Law on the Central Bank fixes its complete independence in the field of direct activity.

So, in a short period of time, a new monetary system has been created in the country, which is one of the key elements of the economic mechanism and the driving force of the market economy. Commercial banks have become the main creditors and investment subjects. Today, there are 16 commercial banks in Mongolia, their total declared authorized capital as of January 1, 1999 amounted to 24.4 billion tugriks, i.e. 40% more than in 1994. Naturally, the Central Bank (Mongolbank) occupies a leading place in the country's banking system. It develops the main directions of monetary policy and determines the specific tasks that must be addressed in the coming year.

During the entire period of transition to a market economy, financial stabilization is a priority of monetary policy. If before 1996 the achievement of this goal was associated mainly with anti-inflationary measures, then at the present stage, the problems of maintaining economic growth and creating conditions for investment activity are coming to the fore. At the same time, thanks to a relatively tight monetary and budgetary policy, it was possible to reverse the negative trends in the economy and keep inflation and the exchange rate under control. As a result, after a sharp decline in production, which lasted four years, in 1994 the recovery resumed. In particular, an increase in GDP began, which in 1995 amounted to 6.3%, in 1996 - 2.6%, in 1997 - 3.3%, in 1998 - 3.5%. At the same time, there was a tendency to reduce the rate of price growth. If in 1992, at the very peak of inflation, its index reached 325%, then in the following years this sphere was brought under control, and in 1998 it amounted to only 6%.

Despite the generally positive nature of economic development, there is still, in my opinion, the threat of inflationary surges in Mongolia due to a decline in production in some industries, dependence on imports, a large budget deficit, as well as an increase in unresolved social problems in society. Because of this, Mongolbank continues to face the challenges of ensuring the stability of the national currency, restructuring the banking system and maintaining macroeconomic stability.

The most difficult elements of the reforms were the reorganization of the monetary system and the liberalization of foreign trade. The small size and excessive dependence on imports made the Mongolian economy particularly sensitive to changes in the exchange rate of the Tugrik. In this area, the Central Bank and the government faced a dilemma: to accept a flexible or fixed exchange rate.

Source - http://www.legendtour.ru/
http://ru.wikipedia.org/

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 plant 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 industries. 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 - animal husbandry 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 need 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.