Negative perspective

Laikhan.N  Negative perspective in Mongolian government policy

Above mentioned mining is the biggest economic sector in Mongolia, contributing more than half of the country’s gross domestic product (GDP). Oil, copper, coal, and gold are the major resources. Mongolia is at the entrance of a major transformation driven by the exploration of its vast mineral resources and share of mining in GDP today stands at 20 percent. Our government glad to announcement the economy grew by 17.3 percent in 2011, compared to 6.4 percent GDP growth in 2010,  We know that amount depends  mining continues to attract the largest portion of foreign investment , contributing to strong economic growth but also increasing exactor and corrupt. Do not forget still arise corruption Mongolian ranked 94^th out of 174 countries around the world. Corruption index shows our citizen consciousness especially governments ranking.  I want to treat some point in negative perspective the Mongolian government policy in mining.  In Mongolia at twenty one province have  currently specific about  30 countries mining companies being granted licenses to exploratory activities , such as China – 232, Russia-248 , Japan -141, USA -12, UK – 443, South Korea – 70 , Canada -76, German-16, Ukraine -3, Australia  -28. France- 14 , total about active license  number at least 3000 piece , also can’t countless unlawful companies still working and earn money and unfortunately Mongolian government already loose amount in license.  Our government cannot control and grip whole exploratory companies. Of course In Mongolia have strength thinks excellent mineral resources of coal, copper, gold, and energy-related also land link between two large economies, developing  of free trade zones/special, economic zones, which invariably raises, industry demand for logistics services but weaknesses dependence on People's Republic of China energy and minerals exports, dependence on foreign direct investments, huge geography with low population density, generally poor accessibility (marked by low road and rail density) underdeveloped infrastructure in power supply and water an economy that is not well diversified, relying on three main sectors high interest rates, resulting in high costs of borrowing and financing for business, lack of industry knowledge it is actual facts. In the future coming to us volatile commodity prices which may deter investments from miners .Our government more need to focus that threat. In Mongolian government earning benefit from minerals such as copper and coal it is  contributing  GDP and development but  mineral price depends worlds market price , let is imaging on mind , if  on  worlds  market in mineral prices to fall into a decline What we can do ? We can protect and stop that  the prices shock of fall? Actually our government can’t protect us. Our government haven’t funds outrival and haven’t good strategy. Mining is not only our exit , we need learn from other mining exports countries in actual way with failure and success. We above mentioned about government corruption ,  Mongolian people  know and  saw many beauty promise from politician at election time fourfold. They always had told about  good future in our country especially mining. In the politician has still cheated people.

The “Turquoise head” mine is not only first hot news and not only first big mine (deposit ), in Mongolian people already saw countless sorrowful issue from at mid of 1990.

Let me see experience in Chile and Bolivia. That two country have similar  mineral resource but governments chosen way is totally different such as specially  long term strategy, government’s severe discipline policy. Chile is government innovated new policy for protect own countries economy from worlds market copper price wave. They keeping most of value from mining exports from 2000 also trained so many experts analyze in copper price wave  in future and also that experts analyze good strategy. The Chile is 100 years right policy experience become  at time the Chile has charging and exporting 30 percent market share in copper of world.

Our government need to learn others way with successful.  If we has still  step wrong a way, result will  obviously waiting us like Bolivia sorrowful history. In Mongolian government policy to have an extreme view to mining , it is not just our words , most of leading economic  experts tell to governments but result is not well , reason is I above mentioned  Mongolian ranked 94^th out of 174 countries around the world.  Every politicians knows about mining resources better us but they are still pretend unknown.  “mining exportation is not only our way to success”, we need learn and copy from which is country  decided cleaver and going to arise with right way. Example traveling ? just look at Hawaii  small island , GDP including  gathering 70-90 percent from traveling. One of Mongolia’s strengths compared with other Asian countries would appear to be its relatively pristine steppe areas. Our government is negation is too foolish and unfair such as about “Turquoise head” case foreign company charging about 60% it is too foolish agreement. The economics of processing involves a comparison between the net value addition (and any transport cost saving) and the extra capital and related costs of processing. Processing of some, or all, of the minerals may be justifiable but the case needs to be made  carefully and not simply assumed. Mongolia must encourage and support its agricultural sector to ensure continued market balance. Mining just part of industries , we need more attend to our economy specific capability such as we need encourage livestock and husbandry , processed products, also we need sector focus domestic transport , small – middle industries , free trade zone. We need right clever spend and treat in  foreign investment.  The governments need to use its wealth to encourage business growth and entrepreneurial  investment as oppose to welfare support.

Online resource

 http://www.worldbank.org/en/country/mongolia/overview

http://www.nso.mn/v3/index.php?page=news_more&id=824

Journal

1.    1Strategic Directions on Industrial Policy in Mongolia , United Nations Industrial Development Organization 2011

2.       Mongolia Environment and Social Development  East Asia and Pacific Region

3.       Mongolia Trade Facilitation and Logistics Development Strategy Report,2009 Asian Development Bank

O’Conner.D (2012)”Crazy Monkey,Published,Retrived feom wwww.wwww

UNIDO. (2011). Strategic Directions on Industrial Policy in Mongolia. In Strategic directions on industrial policy in Mongolia. United Nations Industrial Development Organization, (available from http://goo.gl/dFME8).

Mongolian Meat Association (2010), “Consolidated Report on Meat Production and Export”, March

2010, Ulaanbaatar.

Mongolia National Chamber of Commerce and Industry (2009), Snapshots of the Mongolian

Economy: The Tool for Policymakers and Business Leaders, August.

National Statistics Office of Mongolia, NSO, (2009), Mongolian Statistical Yearbook 2008,

(Ulaanbaatar: NSO).

World Bank. (2006).Environment and Social Development – East Asia and Pacific Region Discussion paper A Review of Environmental and Social Impacts in the Mining Sector. In 1818 H Street,  N.W.Washington , D.C. 20433, USA.