Mongolian Economic Forum underway


Yesterday, the Mongolian Economic Forum (MEF), held annually in spring, began at the Government House and will conclude today.
This year’s forum is being organized under the slogan “Building Credibility”, and representatives from governmental organizations and business leaders gathered at the forum to review the economic conditions of the previous year, talk about mistakes, and seek new possibilities for improving the nation’s economy.
Prime Minister of Mongolia Ch.Saikhanbileg gave the opening speech on the first day of the two-day forum, while President Ts.Elbegdorj is expected to give today’s opening speech.
Following the PM’s speech, publisher B.Batbayar, more commonly known as Baabar, presented the longest speech at the MEF. When talking about earlier and current economic conditions, he said, “From 2004 to 2012, Mongolia’s GDP increased by ten times, 1,000 percent. It is very rare in history when such a sharp economic recovery occurs in such a short time. It is not because Mongolians suddenly became hard-working, but because of a sudden increase of raw material prices in the global market. Following the increase, foreign direct investment to Mongolia also increased. But we just feasted with our sudden wealth; finishing it.”
Attendees accepted his harsh but true words as a former Minister of Finance, rather than his current role as publisher.
The first day of the forum was titled “Present condition of the macro economy in Mongolia”.
Famous economist and UB Post columnist D.Jargalsaikhan served as moderator of the day’s panel along with Minister of Economy J.Erdenebat, President of Mongol Bank, advisor to the President on economic issues L.Dashdorj, publisher B.Batbayar, and researcher Radnaasuren.
The panel began with a presentation by D.Jargalsaikhan, who introduced the present macro economic situation and statistics in dynamic formats.

Minister of Economy J.Erdenebat introduced the nation’s economic conditions and the state budget.
He said that this year’s budget was created with optimistic assumptions, adding that the Government for Solutions mitigated budget expenses in order to meet reality. The Minister added that everyone knows that revenue from mining, the main sector that creates economic growth in Mongolia, has decreased.
“We won’t deny that further budget amendments will be made,” he continued, adding that 60 percent of state budget revenue is being spent on pensions and salaries, while 12 percent on significant debt interest repayment.
Minister J.Erdenebat added that funding from the state budget on the economy is continuing to decrease.
President of Mongol Bank N.Zoljargal said, “We have no savings and we haven’t adhered to a savings policy in the Mongolian economy. Considering that we have accumulated 400 billion MNT in the stabilization fund, our pockets are thin.”
N.Zoljargal added that looking at experiences from past, and within the framework of a policy to move forward before the Lunar New Year, the Parliament created a list of the changes to be made to macroeconomic policy.
• To substitute integrated budget policy
• To direct monetary policy to maintain the foreign trade balance
• To enhance and improve state loan management
• To increase foreign currency flow and to create a payment balance without losses
• To maintain economic structural revision
The highlight of this year’s MEF was that the speeches presented touched upon issues that haven’t been discussed in previous forums.
A speech titled “Super Cycle: Rich and Poor” was presented by Minister of Mongolia M.Enkhsaikhan and attracted the interest of attendees.
The Minister emphasized, “We should search for the secret of success in taking Mongolia’s economic growth to double-digits through the Oyu Tolgoi project. This project is not a political project, but it’s a real business project.”
Minister Enkhsaikhan added, “Advance payment of 15 million USD taken from OT, and a 350 million USD loan from Chalco were all transferred to people’s pockets. But, people are looking for the money that disappeared in other’s pockets… Revenue from natural wealth is the most unstable kind. First, it finishes up. Second, its use decreases due to the influence of science and technology, and third, its price increases and decreases follow a super cycle.”
The MEF is taking place in the presence of over 1,500 representatives, of which over 200 are from the media. Director of the MEF B.Lakshmi underlined that media is actively participating in the MEF, airing live broadcasts.
Fifty to 60 of the forum attendees were foreigners, and organizers underlined that they didn’t aim to involve many foreign investors because there are issues that need to be discussed domestically. The organizers believe that inviting foreign investors after reaching an internal consensus is a more proper path to pursue.

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Posted by on Apr 3 2015. Filed under Онцлох мэдээлэл. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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