Mongolia possesses large deposits of coal and fluorite (fluorspar) and of

copper, gold, silver, and other metallic ores. The chief mineral produced
is coal, which is primarily for domestic use, although the newer coalfields
of Khöshööt near Khovd in the west and Tavantolgoi in the southern
Gobi have begun exporting their coal to China. Fluorite, gold, and
copper and molybdenum ores are exported. Iron, zinc, and tin deposits
are also worked. Mongolia’s electrical power is generated almost entirely
by coal-fired thermal stations, which, in addition to providing power, also
supply hot water for residential and commercial heating. Mongolia is
ranked 81 among 190 economies in the ease of doing business,
according to the latest World Bank annual ratings. The rank of Mongolia
deteriorated to 81 in 2019 from 74 in 2018. Mongolia scored 35 points
out of 100 on the 2019 Corruption Perceptions Index reported by
Transparency International. The legislation lacks a clear definition of
anti-corruption offenses and is inconsistently enforced. Political stability
index (-2.5 weak; 2.5 strong), The average value for Mongolia during
the period (1996 – 2019) was 0.71 points with a minimum of 0.35 points
in 1998 and a maximum of 1.17 points in 2002. According to the ‘Human
Development Index-2019’ released by the United Nations Development
Programme, Mongolia has been ranked 92nd among 189 countries. In
the Human Development Index -2019 under the theme ‘Beyond income,
beyond averages, beyond today: Inequalities in human development in
the 21st century’, Mongolia has been ranked 107 th with its life
expectancy, 103rd with its education indicator and 120 th with its per capita
income indicator.

The Global Competitiveness Report series released by the World

Economic Forum (WEF) introduced this year’s Global Competitiveness
Index (GCI), in which Mongolia scored 52.6 point and stood at 102nd out
of 141 countries.

In macroeconomic stability, Mongolia ranks at 120th, with lowered

financial indicator of small and medium enterprises in the financial sector
compared with the previous year. Moreover, the bad loans indicator in
the entire market has lowered than that before.
In its 2019 Global Competitiveness Report, the WEF measured the
strength of 103 key indicators, such as inflation, digital skills and trade
tariffs, across 141 countries.

Mongolia’s foreign relations are driven by a desire to preserve its

autonomy by balancing relations between major partners, including the
United States, China, and Russia, and also Japan and South Korea. Its
economy is supported by extensive mineral resources, but growth
remains uneven, driven by fluctuations in mineral and petroleum prices.

Since the 1980s minerals and ore concentrates have been Mongolia’s
principal export, with copper concentrates and gold accounting for the
largest share of export value. The traditional exports of livestock and
their by-products have come to account for only a small proportion of the
overall value. The main imports are fuels, machinery, food and
agricultural products, and motor vehicles.
China and Russia are Mongolia’s largest trading partners, together
accounting for some two-thirds of the value of imports. China also
receives more than four-fifths of Mongolia’s exports. Mongolia has
sought to increase trade with other countries, but this has been
hampered by a lack of direct access to the sea, the need to use Russian
and Chinese transport systems and ports, long distances and high
transport costs, and the difficulties of competing in international markets.
Mongolia has run a relatively modest trade deficit in most years, though
the value of exports occasionally has exceeded that of imports.

The Republic of China recognized Mongolia in January 1946, and the

two countries signed a friendship treaty in February. Mongolia and China
signed a treaty of friendship and mutual assistance in 1960, and the two
countries amicably redemarcated the long frontier between them.
However, the ideological dispute that developed between the Soviet
Union and China over the unity and leadership of the communist
movement soured Mongolia’s relations with China.

A vast endowment of a range of mineral resources, of which most are

untapped, and ample room for further economic development make that
Mongolia’s growth potential is big. Development of colossal mining
resources (coal, copper, gold) with investment reaching 40% of GDP.

Mongolia’s most important transportation artery is the Trans-Mongolian

Railway (officially, the Ulaanbaatar Railway), which runs north-south
through the central part of the country. It links Mongolia to Russia and
China and provides the shortest overland route between Moscow
and Beijing.
•