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Work group for “Developing Long Term Development

Policy and Submission to State Great Khural” created
by the resolution 60 of the Speaker of the State Great
Khural (Parliament) of Mongolia as of April 15, 2014.
Sub-working group of methodology and research
chaired by National Development Institute, submitted
in April, 2015

LONG-TERM DEVELOPMENT POLICY OF
MONGOLIA

2015-2040
THE CONCEPT OF THE LONG-TERM DEVELOPMENT POLICY
The concept of the long-term development policy lies in the conceptual understanding that based on
the universal well-being of human development policy, intensive social and economic development
policy, development conducive to ecologically balanced environmental policy, and internal and
external circumstances, regional and global development trends.
The development concept, policy trends and priorities are defined in this long-term development
policy till 2040.

ONE. GENERAL
1. The long-term development policy of Mongolia frames the mid and short term planning of
political parties, government, national, regional, sectoral and administrative bodies, and it
consolidates them into this long-term development policy. The core issues of the long-term
development policy are maintaining development opportunities and striving for them,
improving the capacity to overcome crisis and difficulties, and strengthening security and
economy.
2. Building an independent and solid foundation for economic development will be achieved
through diversifying the economy, producing final goods, improving inter-sectoral
collaboration, increasing economic efficiency and effectiveness.
3. The main criteria for development are citizens’ happiness (contentment), well-being of their
lives, and increase in creativeness. The core policy of social development aims at improving
the inclusiveness of development, quality of life and living environment, balanced nature of
development, providing equal opportunities for present and future generations, securing the
future, and preserving the culture.
4. One of the development challenges is adapting to climate changes, overcoming natural
disasters with less possible consequences. Public policy of Mongolia for environment and
ecology is to provide a healthy and secure living environment, avoiding serious risk
consequences, and utilizing sources in most efficient way and in accordance to ecological
carrying capacity.
5. It is the key functional task of the state to provide policy and coordinating for pursuing this
development path in a well-balanced way for economic and social development with proper
environmental consciousness in its territory, people, and policy and judicial system. For
achieving this, it is required to improve the quality of policy coordination and institutional
capacity in order for the state to guarantee its sovereignty and security, lead the country in a
right direction, improve the livelihood of its citizens and provide future assurance.

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1.1.

THE CURRENT CIRCUMSTANCES AND DISTINCTIVE FEATURES OF
DEVELOPMENT

1.1.1. Mongolia is a developing nation with a population of 3 million, 1.5 million kilometer square
territory and rich in natural resources. The distinctive features of the country are:

The ability of national economy to recover itself is low, independence is not yet
strengthened, inter-sectoral coordination, and value adding chain are weak;

Very low national labor productivity (5-7 times lower than its neighboring
countries);

Capability of economy to create accumulation is weak, lags far behind the level
of neighboring countries;

Structure of economy is solely based on mining sector, therefore vulnerable to
fluctuations in overseas market;

National ability to create is low, specialized workforces are not sufficient;

Besides vulnerable ecological system, a growing impact of global climate
changes, there are increases in centralization of population, and negative impacts
from excessive mining activities.

1.1.2. In the last 25 years, the political and economic systems of the country have been drastically
transformed, pursued goal of developing democratic, inclusive and humanitarian society.
Such changes offer political and economic foundations of a positive and non-conflicting
nature for adopting contemporary development objectives. However, the current situation
does not allow the effective implementation of strong development policy due to the following
reasons:

The scope of private sector activities is limited, development level is low, and it is
impossible to implement market regulation relying on free competition principles;

Structure of market is not balanced, therefore environment is not suitable for
development of small and medium enterprises. A few players dominate in the
fields of mining, banking, construction, and oil fields; and these players rather
impose their conditions on the government policy and regulations;

Development of infrastructure of market economy, (including stock exchange,
banking, insurance, information and mediating) is weak, and vulnerable, not
assured;

Macroeconomic regulations are easily subjective to the interests of businesspolitical factions within political parties; and the capacity for effective utilization of
resources and overcoming crisis has become more problematic;

Experience and capability in managing foreign investment and making relevant
deals are relatively low. While utilizing one of the largest mining deposits in the
world, it fails to accumulate for intensive national development start, leading to
increasing government debts and debt costs;

The budget expenditure has expanded enormously; the government ineffective
intervention in economy has grown. Foreign trade balance resulted in deficit and
overall debt volume has surpassed GDP and the government debt has grown;

The role of the government in effectively implementing economic policies was not
institutionalized;

The national level governance and structure for economic life energy, for
developing economy based on new solutions of innovation, research and
development, technology and knowledge have not been formed effectively;

Population density has grown drastically, especially in the capital city; the urban
and rural development has not been even; and there are trends that density will
grow more, overall population growth is to slow down in the future;
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1.2.

EXTERNAL FACTORS FOR MONGOLIA’S DEVELOPMENT
The following external factors have been the solid trends in defining Mongolia’s development
policy in the last 25 years:

As the locomotive of the world’s economy shifts to Asia, Russia-China economic,
military and political ties have been strengthening and gaining more weight in
global affairs. The Chinese currency RMB has been gaining as a more
competitive global currency and at the same time the Russian currency Ruble has
been strengthened in the region. Such external factors have created favorable
environment for Mongolia’s economy to have a good access to the markets of the
two immediate neighbors.

Instability in Muslim world and the Middle East, deteriorating relations between
EU and the Russian Federation, therefore for European manufacturers to move
their factories to Mongolia as to intend to access to the northeast Asian market
might become profitable option.

The growing Russia-China relations and cooperation enable Mongolia’s
economic infrastructure to further develop, especially in exporting grocery and
light industrial products to the Russian market.

Mongolia has established consistent partnership with the countries in East and
Southeast Asia so it allows us to promote the exchange of unprocessed materials
and technology in a more optimistic way.

Advanced scientific and technological findings of the developed nations in the
past 30 years will enter into economic circulation strongly, and will serve as the
locomotive for development. This will determine new order of regions and
countries in future world.

There will be a more increasing gap in national revenues, accumulations, and
investment capability in technology among countries. As well as disparity in the
prices of high tech products and low tech products.

There will be tendency of increase in role of state, shift to strategic regulation
(decentralized) in order to industrialize, allocate resources effectively, utilizing
them efficiently, catching up development of economy of other countries,
especially among developing countries.

In some regions of the world, clash of civilizations based on conflict of religious,
culture, system of values and beliefs can be seen. These phenomena will
negatively affect the world economy. Cultural influence will serve as the powerful
commercial means in global trade.

The world architecture post World War II, political and international relations has
come to a critical stage. A new world order resulted in the interests of the super
powers is likely to emerge leading to a more competitive and conflictual
engagement among nation-states as they agree or disagree with the order.

The competition over clean water, territory and rare earth elements will grow
fierce. The demand for foods and ecological products will increase. The strategic
interests of transnational corporations in controlling strategic natural resources,
economic and political affairs of developing countries will be more intense.

As irreversible the global climate change continues, Mongolia is likely to become
a more turbulent climate region with extreme harsh climates and desertification
process.

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1.3.

THE POTENTIALS, OPPORTUNITIES AND SOURCES FOR
DEVELOPMENT

The above mentioned factors require necessary changes to take place within the economic and
social context of the country in a new geopolitical situation and it is timely to implement relevant
social and political policy for the comprehensive economic and social development of the country.

1.4.

The consolidated political and economic system has been established as the
social and economic transition of the country has been ending. The preliminary
development provisions based on democratic and market economy principles
have been realized. At the same time the negative consequences of the new
system have been perceived.

Based on its close and effective relations with developed countries in Asia and
Europe, it is a valuable opportunity for the country to reach and adopt
contemporary technological advancement. Favorable progress in the relations
with two neighboring countries achieving in strategic level, opens a wide-open
market to Mongolia.

The population has reached three million, 50 thousand youth join the national
workforce every year, and it is required to increase employment by 80 thousand
jobs every year. It is one of the preliminary conditions for establishing
comprehensive national major complexes processing raw materials.

Based on such a relatively young and economically active population, current
capacity of higher or technical educational, research laboratories, and institutions,
and their supportive economic factors may further contribute to the national
creativeness and productivity based on innovation.

83% of the export consists of the mineral ores as primarily processed or
unprocessed products; so therefore, there is a great potential to develop
processing industry to improve economic efficiency.

Soums and local communities in rural areas have been provided with sufficient
power (energy) sources, it gives opportunities to develop small and medium size
enterprises based on technological advancement in rural areas.

The country has the full potential to develop the exchange of knowledge,
information, and technology and further promote innovation as information
technology advances.

The public has been building a stronger awareness to protect the environment
and has been producing effective initiatives to prevent from ecological
degradation.

The country has already built national managerial capacity to develop business in
a contemporary global economic context.

POSSIBLE RISKS INVOLVED IN DEVELOPMENT TILL THE 2040.

The following risks, attributed to both internal and external factors, in defining the national
development concept can be noted:

The incapacity of creating wealth and supporting social wellbeing, as comparative
disadvantage, may lead to the “cavity of delay”, leads to imports of old technology,
uneducated labor and inferior quality products in the country.

The poverty level lower than world and region, unequal distribution of wealth may
lead to social conflict; weakening of national capacity to create wealth,
encouraging consumer mentality in society to use more than its capacity to
produce may further affect negatively national political and economic wellbeing.

More and more specialized labor force are drawn to foreign countries for better
salaries and benefits, leaving the country with a less national productivity
competence.
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Due to reliance on mining sector export economy is getting more vulnerable
fluctuations and competition and conflict between core players in international
market. Relying on export of low value added and few resources will make
economy more increases the dependence on limited number of buyers, and
negatively affects the independence of development policy and its
implementation.

The current system for coordinating and managing monetary policy is becoming
more ineffective, which may further lead to a series of economic and financial
crisis. Current system financing projects unable to cover costs in short term, and
financing budget deficit with domestic and foreign loan might lead to a more
serious debt-crisis and a total collapse of economic growth.

Foreign investment is evaluated through the filtration of taxation and budget
income only and the continuation of such policy will result in making country as a
platform of consumption of raw materials, causing instability in society, economic
and political conflict.

The number of livestock exceeds pastoral capacity of the country. In such a
condition, desertification, extreme climate changes, harshness and natural
disasters might have strong negative impact on nomads’ life and further
worsening the economic stability for many years.

The government lacks institutional capacity to effectively define and efficiently
implement its development policy. In the meantime, the whole economy is being
victimized by the fierce competitions of business-political fractions for power and
wealth. As it continues furthermore it will be the main factor of delayed
development, conflicts and worsening of economic situation of country.

TWO. THE POLICY OBJECTIVES
1. The main objective of the long-term development policy is “To Build Mongolia, as a nation
state with an active role in regional and international development, with rich accumulation of
knowledge and culture, stronger technological and innovation capacity, through promoting
human development and strengthening the specialized workforce with intellectual capacity,
happy and content citizens with the capacity to produce and create, and healthy living
environment, efficient utilization of resources”.
2. The key objectives for development from 2015 to 2040.

Improving the quality of life, promoting human development and increasing
creativity and productivity levels to a world level,

Building a strong and diversified economy and making distribution of wealth more
balanced,

Creating a valuable accumulation of knowledge and culture, and combining them
effectively with technological and innovation capability,

Utilizing human, time and capital, technology and natural resources in most
effective and efficient ways,

Conserving the environment in ecologically healthy ways,

Cooperating with outer environment in mutually beneficial ways.

THREE. THE FIVE MAIN FOCUS AREAS OF THE LONG-TERM
DEVELOPMENT POLICY
The followings are the five main focuses of long-term development policy:

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Primary priority:

Diversifying economy, accessing to international market, and utilizing
resources efficiently,

Policy focus one:

Promoting human development, building highly qualified workforce and
increasing productivity capacity,

Policy focus two:

Improving quality of institutional capacity, quality of policy and coordination
of the state.

Policy focus three:

Introducing contemporary technological and innovational advancement to all
sectors; and adapting climate and environmental changes.

Policy focus four:

Expanding the middle class among population spheres, providing citizens
with secure and healthy environment for healthiness and wellness,

FOUR. PRIMARY PRIORITY OF ECONOMIC DIVERSIFICATION,
ASSESSMENT TO INTERNATIONAL MARKET STRONGLY, AND
EFFECTIVE UTILIZATION OF RESOURCES
Contributing to economic growth through vigorous access, supported by long-term, solid,
consolidated policy, to international markets is an important part the policy. It further aims at building
the economy with less loan pressure, more diversification, efficient and productive capacity.
Promoting the working principles such as financial accountability, research oriented approaches,
and effective utilization of resources are crucial. Transition from consumer economy to productive
economy is inevitable. A balanced growth and, just and equal distribution of wealth are the
foundation of economic development.
Policy 1.

Strengthening the economic self-sufficiency through providing and securing the basic
needs of energy, fuel and food commodities.

Policy 2.

Building inter and intra-sectorial economic cohesiveness by increasing the national
productivity capacity and economic efficiency in a thorough planning.

Policy 3.

Diversifying the economy through the efficient and effective use of resources and
producing final products by deep processing.

Policy 4.

Following path of balanced economic development building strong private sector
through the principle of balanced and fair distribution of wealth.

Policy 5.

Achieving the best standard of planning, performance, evaluation and monitoring of
budget, finance, monetary policy, and loan.

Policy 6.

Using ecofriendly innovation and technology by considering restoration capabilities
and its returns.

FIVE. POLICY FOCUS FOR HUMAN DEVELOPMENT, SPECIALIZED
LABOR FORCE, AND PRODUCTIVITY GROWTH
The foundation for the country’s development lies in human development. Educating citizens of
Mongolia in a way that they intend to have creative skills, to be knowledgeable in history and culture,
proud of the country, to have a healthy way of life, be skilled in learning, have full of intentions, be
responsible, ethical, and to contribute to the country’s development.
The pace of development is defined by the pace of creative and productive capacity and every citizen
is obliged to contribute to the country’s development.
Policy 1.

Promoting the creativity, productivity, positive views, and harmony through building a
pride in culture, history, statehood and motherland.

Policy 2.

Providing quality education to citizens, kindergarten through life-long learning, and
aiming at the world level creativity.
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Policy 3.

Building highly qualified and skilled workforce in accordance with contemporary
industrialization and development trends.

Policy 4.

Increasing productivity level through promoting knowledge, management and
collaborative spirit.

Policy 5.

Creating a conducive environment and capability for learning technology and
developing innovation.

SIX. POLICY FOCUS FOR BUILDING EFFECTIVE INSTITUTIONAL,
POLICY AND REGULATORY CAPACITY
The government of Mongolia is responsible for strengthening its sovereignty, protecting the national
interests, and promoting human rights, freedom, justice and rule of law. It is also compelled to lead
the country in building a creative, productive, responsible, progressive society. In the given context
of a small population, limited market and economic capacity, large territory with rich resources, a
smart government can only play an important role in building such a society.
Policy 1.

Strengthening policy and regulatory capacity through shifting to more consolidated,
comprehensive and programmed development planning.

Policy 2.

Creating a more responsible and effective structure based on the comprehensive
development policy.

Policy 3.

Strengthening the knowledge and skills of public institutions and achieve in
international level.

Policy 4.

Making public institutions management and capacity one of the main driver of
development continuously strengthening with contemporary technology and
innovation

Policy 5.

Improving responsibility, transparency and equality of service access in operations of
the government institutions.

SEVEN. FOCUS ON THE EFFECTIVE APPLICATION OF
CONTEMPORARY TECHNOLOGICAL AND INNOVATIONAL
ADVANCEMENT AND THE ADAPTATION OF CLIMATE CHANGES
The foundational source of economic efficiency, access to international market, and increased
competitiveness and productivity is the continuous application of innovation and technological
advancement and constructive creativity. The national accumulation of technology, innovation,
constructive creativity and management capacity are the paved roadmap for achieving the
sustainable industrial development, stable growth of export, and reaching the international standard.
These can also be considered as valuable assets for the future growth.
The effective adaptation of climate changes is based on the proper utilization, conservation and
rehabilitation of environment and natural resources, using ecologically friendly and advanced
technology.
Policy 1.

Increasing the pace of economic efficiency growth and foreign market access through
developing the national innovation system.

Policy 2.

Enhancing cooperation for entering the regional and international markets, developing
capacity to learn and adopt advanced technology and innovation in accordance with
the prioritized industrial development policy.

Policy 3.

Creating national capacity, enriched with contemporary technological advancement,
to adapt climate changes and prevent from involved risks.

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Policy 4.

Developing both the traditional and modern technology conducive to the ecological
wellbeing, promoting it in all sectors and advancing national measurement and
standard system.

Policy 5.

Accumulating water resource in accordance with the ecological carrying capacity, and
reuse water.

EIGHT. EXPANDING THE MIDDLE CLASS AND SECURING
HEALTHY ENVIRONMENT FOR LIVING
Increasing the role of middle class in the pursuit of social and economic development, improving the
equal and just distribution of wealth, promoting the healthy and proper way of life, and securing the
peaceful environment for life.
Policy 1.

Increasing the percentage of middle class in the population and expanding the scope
of their position in the society.

Policy 2.

Creating the secure environment for living, especially healthy and quality living.

Policy 3.

Supporting to preserve, study, promote and apply Mongolian culture, heritage and
values to development in a way enriched with the new technological advancement
and making it one of the keys for future development.

Policy 4.

Supporting births, decreasing the outward directed migration of workforce, and
promoting population growth in long-run.

Policy 5.

Decentralizing the centralization oriented policy and promoting a balanced urban and
rural development.

Policy 6.

Introducing ecologically friendly technology in diminishing the environmental
degradation and pollution, and providing precautionary measures for environmental
protection.

NINE. THE CRITERIA FOR THE LONG-TERM DEVELOPMENT
POLICY
The core content of the country’s development lies in the universal concept and values of wellbeing
of human life and social development. It is the nation’s interest to grow its economy, accelerate social
development process, and strengthen the foundational principles of the nation-state as it further
builds a more humane, democratic and civil society based on the traditional culture and heritage,
and modern development combined.
The development progress should be inclusive of priority policies to protect the environment, provide
a secure and healthy environment for life, promote modern technological and innovational
advancement, and increase the productivity capacity of the country. The criteria for the development
policy are:
1. The increased level of the nation’s sovereignty, security and wellbeing.
2. Increasing the creativity and productivity level of Mongolian citizens. 3.5% of the GDP to be
spent on research and development on technology and innovation.
3. Promoting economic diversification and self-sufficiency in the fields of grocery products, fuel,
and energy and increase the percentage of the value added processed products to 30
percent in the total export. Triple growth of annual wealth creation and consumption in
comparison with population growth is needed. The majority of the households should belong
to the middle and upper income class category in social spheres.
4. The increased restoration capacity of the national economy and finance through the positive
stabilization of macroeconomic balances. The national gold and foreign currency reserves
are to reach the level for securing and maintaining balance in cases of international market
fluctuations, financial crisis and natural disasters.
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5. Increasing competitive capability of the economy in the regional and international markets
and becoming an important component of the Asian economic and financial network.
6. Improving national economic efficiency based on the technological and innovational
advancement, reaching the quality manufacturing and service oriented sectors by reaching
international standards, and introducing the most efficient system for energy and resource
usage.
7. The creation and distribution of wealth should be based on both the national and adopted
technology for creating the advanced structures of creative research and development,
experimenting, and manufacturing. People gain more from intellectual property rights as it
reaches international standards.
8. Enabling the banking and financial systems to reach an international standard through the
effective introduction of advanced structural, operational and secure technology.
9. The national labor distribution, location will be more compatible with industrial clusters. Khovd
and Choibalsan cities are to become the centers of intensive regional development. Urban
and rural development will be more balanced and centralization of population will be reduced
10. Improving the quality of life and living environment and increasing opportunities of choices of
people in the future as it aims at reaching the 30th place in the global (gross) happiness
indexes.
11. The government institutions will become more developed, the research and development
capacity will increase, and efficiency of public policy and performance of state reaches the
level of developed nations.
12. Increasing the life expectancy, improving the public health system and the quality of
education through achieving international standards.
13. Decreasing the risks of disaster, effectively adapting climate changes through the successful
application of knowledge and technology.
14. Transforming the urban ecology into a safe and secure environment for living and creating
special ecological zones for up to 35 percent of public land and territories.
15. Preserving the ecological system as to maintain its restoration capacity and remain as a
healthy living environment. Protecting and preserving water and promoting its ecological
wellbeing and efficient use.
These criteria’s can be measured as following:
Development of Economy
1.

Size of total economy
(Gross National Product)

2.
3.
4.

GNI per capita
Percentage of Households with the
Average and above Average Income
Average Household Savings
(not less than)

5.

Unit

2014

2020

2030
53
640
14200

2040

USD/ capita

4 062

23
000
6200

Percentage

25

28

35

50<

2100
Average savings
of household

3200
At least

7200
At least

15000
At least

index

36.5

35

32

28

0
2
-0.7

positive

Billion US$

21.9
-11
-0.4711

% of GNP

19.5%

25%

30%

40%

%

0

5-10

10-20

20-30

million USD

USD/household

12,066

132,400
29500

GINI Coefficient
(Inequality of income, 0 indicates equality of
100%)

6.

Balance of Foreign Trade

% of GDP

7.
8.
9.

Balanced Budget
Balance of Payments
Gold and Currency Reserve Level

% of GDP

(for sustaining main balances of economy and
social stability during recession, natural disaster
and instability)

10. Budget share to be managed according
to development program

positive
positive

positive
positive
positive

9

11. Capital Accumulation Capacity
12. Small and Medium Enterprises’ Revenue
in overall private sector revenue
13. Proportion of industry in total GDP
(other than mining)

14. Exports of High Technology Products
15. Exports of unprocessed mineral ores
16. Research and development, and
innovation cost as percentage of GNI
17. Food supply
Vegetables
Whole grain products
Potatoes
Meat
Milk and Dairy products
18. Energy supply
19. Renewable energy use
(including solar, wind, and hydro power sources)

20. Energy distribution

%

30

33

40

45

%

10

15

25

40

%

10.6

14

20

25

USD million

22.066

88

220

330

After 2025, only processed products
will be exported

% in total export

84

%

0.27

1.5

2.5

%

102

104

104

%

118

131

149

%
%
Export/tons

167

168

164

3000

50000

80000

140000<
100

Million KW/hour

6215

7283

14279

19628

% of total energy
production

7.6%

20 %

30%

40%

%

(urban 98,
rural 73)

94

100

100

Thousand tons

1158

1704

(zero
imports of
oil)

3679

Unit

2014

2020

2030

2040

Index

0.69

0.75

0.80

0.90

index

0.320

0.3

0.23

0.19

USD per year

7260

11080

25380

52725

Index

37.5

45

50

54

61.52
81 in rank

64.08

68.6

73.67

58.36
64.49
61.71

62.5
65.99
63.75

67.37
69.67
68.75

73.37
73.9
73.75

4.8

5.5

6.0

Age

70.2
65.4
75.0
9.6

73
68
76
8

75
73
77
4

80
78
82
4

%

0.54

0.33

0.25

0.15

%

34.93

53

70

80

% in urban settlement
Ulaanbaatar

43%

49%

45%

43%

90

21. Fuel supply

Social Development
22. Human development index
23. Gender inequality index
(including reproductive health, educational level,
participation in decision making, workforce
partaking by gender)

24. Workforce productivity
25. Global Innovation Index

3.5

2625

(7 groups, 81 indicators)

-

Governance institution, human development,
research, infrastructure, market and business
environment, knowledge, technology and creativity

26. Social Progress Index
-

(3 groups, 12 indicators)
Basic human needs, measures of human
wellbeing, opportunities

27. Gross National Happiness Index
Average life expectancy, freedom of choices, GDP
per capita, social welfare, corruption, and societal
wellbeing

28.
29.

Average Life Expectancy
Male
Female
Variation
Decreasing Top 10 Deadliest Diseases
(Chronic artery diseases, cancer, accidents,
chronic obstructive pulmonary diseases, heart,
cancer, accidents and others)

Index

Index

(100 in rank)

7.0
(30 in
rank)

30. Government Effectiveness in Worldwide
Governance Index


Public Service Index
Public Service Capacity
Independent nature of it on politics


Quality policy making
31. Urban, Rural Population Ratio

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32. Ratio of Students Specializing in Highly
Skilled professions
33. Number of employees in the field of
Research and Development

Aimag centers
Soum Centers
Хөдөө нутаг

22%
13%
22%

21%
12%
18%

23%
12%
20%

24%
12%
21%

Manufacturing,
Engineering,
technology, Natural
sciences

18.5

30

40

50

Number of
researchers

2795

3500

5500

8000

Unit

2014

2020

2030

2040

%

0.12

1

2

3.5

$

17.4

20

30

35

4.5

4.3

4.1

3.9

50

55

60

(with academic degrees)

Environment Related Criteria’s of
Development
1. Allocation Ratio of GDP for
Environmental Protection
2. Size of National Parks and Protected
Areas
3. Ecological footprint
Pastoral land, forest, fishing, CO2 levels,

Index

(27in rank)

urbanization, land management, etc.)

4.
-

Environmental Performance Index
Impact on health, air quality, clean water,
water reserve, agriculture, forest reserve,
fishing, biological conservation, living
environment, climate, energy, etc.

44.67
Index

(111 in rank)

TEN. IMPLEMENTING THE LONG-TERM DEVELOPMENT POLICY
Implementing the long-term national development policy requires to implement prioritized successive
steps based on in accordance to the socio-economic dynamics, mutually dependent factors and
realistic capacity and potential of nation for development. Thus, the following priorities have been
set for gaining time in implementing development policies, using resources and potentials effectively
in order to participating actively in the regional and international integration, strengthening economic
sustainability:
1. The period for establishing the foundation for successfully implementing the long terms
policy. (Issues to be resolved within the first half of 2016)

making the balance of (foreign) trade and balance of payment positive;

Announcing projects to be supported by government, substitute imports and increase
export in short term, and start developing projects

Accessing to the markets of light industrial products (food products) in both the Russian
Federation and the People’s Republic of China through separate agreements and
enabling the domestic manufacturers to make use of it;

Perfecting the existing legal acts/documents through advanced professional analysis on
economic relations and regulations in accordance with the long-term development
concept and prioritized planning;

Creating and implementing a program on preparing and educating engineers in urgently
needed fields domestically and internationally;

Reforming the existing higher education system, especially for preparing experts and
professionals in the field of engineering and natural sciences;

Creating a government institution that is responsible for effectively consolidating
development policy and concept, implementing and monitoring them, and conducting
development study and research;

Producing a national program that aims at enabling every local government to come up
with a long-term development program based on human and natural resources, and
favorable to its uniqueness and environment.

2. The following related policy tasks to be implemented from 2016 to 2025:
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Exporting unprocessed materials must meet the principles of “the exchange of raw
material and technology”, and excessive exports should be oriented towards the markets
beyond the two neighbors. Building a national information network for technology,
creative research and development, marketing and creating a national measuring and
standardization system.

Certifying quality of design and technology able to compete in regional and international
market, expanding the exports of light industrial goods for international markets.
Supporting manufacturing of processed materials using high technology and enabling its
access to the regional market.

Building the regional development attraction centers in Khovd and Choibalsan Cities as
investment zones.

Reforming the current banking system in accordance with the European banking
standard, taking necessary measures to build Asian financial center in Mongolia. Banking
services should be diversified as venture capital, investment and commercial activities.

Expanding the energy production based on coal and renewable energy resource;
becoming a part of the regional energy network and exporting excessive energy to
neighboring and other countries.

Improving the national system for preparing highly qualified and skilled labor force and
reducing migration of labor abroad. Creating a national innovation system that promotes
the mutually beneficial relations of training, research and manufacturing.

Creating a civilized infrastructure that connects urban and rural market, enabling local
manufacturers to remain active and become competitive in domestic market.

3. Development stage from 2025 and on. Based on the successful implementation of the
development policies of the previous two stages, Mongolia will have a production and service
sectors competitive in region and international market. In order to achieve goal of becoming
developed nation-state with a capable and competitive economy in the region, further
development policy should be created in accordance with the global and regional
development at that time.

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