A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/2300/

Mongolian Foreign Policy: The story of seeking the third neighbor

The initial third neighbor policy was misrepresented as a betrayal to Japan

 0 сэтгэгдэл

A

Жижиг

A

Дунд

A

Том
http://zgm.mn/post/2300/


Mongols are the nationality that introduced Europeans to Asia and Asia to Europeans. When I say Asia, I mean both Central and East Asia. The Mongols conquered the vast Eurasian territories in the XIII-XIV century and played a major role in culture, humanity, civilization, and information.

The Chinese Silk Road was developing during the Great Mongolian Empire. Mongolians maintained its safety, order and trading culture along the way. In the history of Iran, the Ilkhanate of Mongolia gave the hand of salvation to Iran's Persian culture and it preserved without fading. Mongolia's Golden Horde had a tremendous role in Russian culture, which has a unique Eurasian culture and heritage. In particular, Mongolia helped Russia to merge into a single state. In China's history, Mongolia led Chinese kingdoms to unify and make Beijing the capital of the Yuan Dynasty as the capital of Ming, Qing, Dynasty, and China. In this way, the Mongols and their ancestors started the great migrations of Eurasian transcendental nations and tribes.

The geographical location of Mongolia is rather unique as it stretches from west to east. The horizontal position of Mongolia is the link to Central Asia and Northeast Asia and in the broad sense, it is a bridge for the West-East connection. The location of the north and south are considered unique and spectacular within Russia and China. From this perspective, this unique location urges Mongolian politicians to search for third neighbors.

Historically, Mongolia was regarded as a buffer zone in the first half of the 20th century by Russia-Japan, then Soviet Union-Japan, Russia-China, Soviet Union-China, and Soviet-Chinese buffer zone in the second half. In that sense, Mongolia's external environment was created in the twentieth century, with the revolution in Mongolia. Mongolia has had a great history, including the struggle, the outcome of the Khalkhyn Gol war, the status of Mongolia's acceptance of the status quo, the socialist construction, the 30-year conflict of Soviet-China, and the 20-year conflict of Mongolia-China during the war, and the eastern side of the communist bloc headed by the Soviet Union.

The aspiration to have third neighbors became one of the most important things among the leaders of the Mongolian society in the midst of the revolutionary national liberation of 1911. The new objective of Bogd Khan was the priority of Mongolia's diplomatic service, which was to persuade the two neighbors into accepting the independence, as well as other larger states, to unite Inner Mongolia in Khalkh.

Mongolian Ministry of Foreign Affairs made an official note to nine countries including France, England, Germany, the United States, Belgium, Japan, Denmark, Holland, and Austria on November 18, 1912. The exchange of diplomatic missions between the governments mentioned in the note indicated that the agreement between Russia and Mongolia stated: "The friendship of the two countries should be extended and to start trading by signing the contract".

After the separation from Manchus and receiving the approval of other countries (excluding Tibet), our patriarchs have entered St. Petersburg and went into the locked doors of foreign countries' embassies.

It was the first step of Mongolia's third neighbor policy and the proof of the ability to be a legal subject in international relations. Limiting the diplomatic efforts of a third neighbor was basically restricted under the three treaty agreements of Khyagt, which was the first major evidence that both sides did not support the third neighbor policy.

After the victory of the People's Revolution, Tseveen Jamsran (who had been invited by the Foreign Ministry to be a Cultural Affairs Officer from Buryatia at the beginning of 1912), called for the establishment of a neutral state as the country was waiting for some government support. "Mongolia is a country that has been approved by both the Soviet Union and China and has to be a neutral state approved by many other countries. It is like Switzerland, " he said in 1926.

At the time, the people of MPRP opposed Tseveen Jamsran as a Western ideologist and believed in maintaining neutrality between the socialist (CCCP) and capitalist (China) conditions in the capitalist  environment, which would cause Mongolia to become prey for imperialists and threaten its liberation  and independence. It was another proof that both neighbors did not support the two neighbors' policy.

The views and attempts to secure independence by getting approved by third neighbors in Central Asia, as well as becoming a neutral state like Switzerland, were misrepresented into taking side with Japan and betraying to the Japanese imperialists during the 1937 repression. There is evidence that Prime Minister Genden Peljid reported this to Stalin.

Genden. I would like to ask you for explanations on the Independence of the People's Republic of Mongolia.

Stalin. In regard to Independence, your country is, in fact, an independent state. As I know, only the Soviet Union has accepted your sovereignty. Is that so? Your country inofficially separated from China, and did not declare it. Really?

Genden. Yes, That’s true. No one except the Soviet Union accepted us, nor did we officially separated from China.

Stalin. Is there any official representative of your country in China? Would you like other countries to accept the independence of your country? Do you want to have a formal relationship with them? Have you ever talked to other subjects on this topic somewhere?

Genden. Chinese delegation does not exist. Not to be accepted by foreigners. I have not discussed this subject with any foreign delegates.

Stalin. Do not. Do you want to be recognized by foreigners? Did you not discuss this subject with other foreign delegates?

Genden. Yes. I did not negotiate with anyone. You know that we have punished the people who requested Japan’s approval. You would know better how would be recognized by foreigners. The issue of acceptance of the People's Republic of Mongolia is not a domestic matter, it is an international issue.

A

Жижиг

A

Дунд

A

Том

Construction of Tavantolgoi power plant to begin in 2020

 0 сэтгэгдэл


The Government of Mongolia and Oyu Tolgoi (OT) LLC have signed “Energy Regulatory Coordination” on 31 December 2018. According to the agreement, the construction of the Tavan Tolgoi power plant will start from March 2020 and be completed by 2023.

When the Tavan Tolgoi power plant with a capacity of 300 mWh commences, the power supply of OT will be improved along with the integrated power supply system of Mongolia. As of 2018, the OT mine project has paid approximately USD 150 million for generating electricity from Inner Mongolia's energy system annually. Tavan Tolgoi thermal power station will keep the invest in Mongolia. Furthermore, when the OT underground mine is commissioned, energy consumption will increase by 30-40 percent from current levels.

The plant will provide water from the Naiman valley and will use minimize water consumption via using an air cooling system for power plants. The Tavan Tolgoi power plant planned to use 1.2 million tons of coal annually and will use the thermal coal, which does not be exported and left at the  mines. The remaining coal will be in circulation in the economy, according to the spokesman.

Also, 200 permanent jobs will be created, following the increased housing and social buildings and improved urban development.

A

Жижиг

A

Дунд

A

Том

World Bank report underscores importance of strong fiscal foundation

Mongolia’s capital expenditure has been among the highest in the world in 2010-2016

 0 сэтгэгдэл


According to the World Bank’s report on public expenditure, Mongolia’s over-expanded budget policy altered fiscal discipline. Therefore, the World Bank highlights the need for adequate fiscal resources by accumulating savings during economic growth.

“With high public debt, low tax rates and high exemptions, the Mongolian economy remains extremely vulnerable to external factors, including shifts in global demand, commodity prices, and exchange rate and interest rate shocks. There is a clear need to strengthen fiscal buffers through increased savings during years of prosperity,” said Andrei Mikhnev, World Bank Country Manager for Mongolia.

At an average of about 11 percent of GDP in 2010-2016, Mongolia’s capital expenditure has been among the highest in the world. However, the returns of this spending have been low due to poor project selection, long delays in implementation, high-cost overruns, and low maintenance budgets.

“The report lays out key actions the country can take to enhance the efficiency of public investment. Development and implementation of a national road map to improve the efficiency of these investments is the top priority,” said Jean-Pascal Nganou, Senior Country Economist and a lead author of the report.

Given Mongolia’s highly volatile revenue performance, the report also recommends reducing the dependence of government revenue on the mineral sector by embarking on a gradual reform of the tax system. This includes measures to increase low statutory tax rates, revise the number and size of tax exemptions, and broaden the tax base. The report illustrates that VAT and excise taxes in Mongolia are regressive in nature as their burden is larger among the poor than among the non-poor.

It also highlights special spending needs in health and education – key sectors that play an essential  role in the country’s long-term development and the fight against poverty.

The report highlights the urgent need to strengthen the pension system to meet the needs of Mongolia’s aging population. The government set the target for a maximum state subsidy for pensions of 2 percent of GDP by 2030. However, due to measures allowing many workers to purchase a pension for life at retirement age at a fraction of the cost that other workers have paid during their work lives, reducing herders’ retirement ages, and others, the current subsidy of 2 percent of GDP is projected to rise to 6 percent in 2030 and 11 percent in 2050 unless reforms are undertaken.

A

Жижиг

A

Дунд

A

Том

World Bank: One in three people remain poor in Mongolia

Poverty rate fell by 1.2 percentage point since 2016

 0 сэтгэгдэл


The poverty rate in Mongolia, which was 29.6 percent in 2016, lowered to 28.4 percent in 2018, declining 1.2 percentage point. The National Statistical Office (NSO) biannually conducts the poverty indicators of Mongolia in cooperation with the World Bank. The two organizations have collaborated on poverty assessments through the Household Income and Expenditure Survey and the Living Standard Measurement Survey since 2002.

In 2018, the poverty gap was estimated at 7.2 percent, a decrease of 0.5 percentage points from 2016. Poverty severity has decreased to 2.7 percent from 2.9 percent in 2016. During the period between 2016 and 2018, the poverty rate declined by 4.1 percentage points in rural areas but increased by 0.1 percentage points in urban areas. While the poverty rate remains high in rural areas, with two-thirds of the total population of Mongolia living in urban cities, poverty has become more concentrated in urban areas. The percentage of the poor population in urban areas has increased from 62.1 percent to 63.5 percent in 2018. Also, more than 40 percent of the poor lived in Ulaanbaatar in 2018.

As of 2016, 29.6 percent of Mongolian citizens were living below the poverty line, indicating that one in three people or roughly one million people live in poverty. The rate, which was 21.6 percent in 2014, increased by 8 percent in 2016, showing 275,000 povertystruck people over this period.

The poverty line that indicates the amount of money required to provide the basic needs was MNT 146,000. In 2014, those who have moved above the line were back in poverty due to the negative impacts of the economy and society. The economy grew by 20 percent between 2012 and 2014, while the economy grew by 3.6 percent in 2015 and 2016. As a result of 2016, the GDP growth slowed by 1 percent. At the time, the deficit reached MNT 3.6 trillion due to the collapse of commodity markets in the world.



A

Жижиг

A

Дунд

A

Том

World’s top innovation company leaders meet Mongolian innovators

 0 сэтгэгдэл


During the Innovation and Investment forum organized by the Parliament Speaker Zandanshatar Gombojav, the leaders of the world’s top innovation companies came and viewed Mongolia's innovation project and product launches. Participants in the forum exchanged views on how to exchange international experiences in order to strengthen startup firms and to support innovation products with banking and financial institutions.

Mr. Zandanshatar initiated the forum in May, after visiting academic institutions of some universities and the Mongolian Academy of Sciences to discuss innovative projects and products with competitiveness and seek solutions. The forum also intended to exchange experience in innovation projects and products successfully implemented in the market.

The Parliament Speaker highlighted in his opening speech, “According to the World Economic Forum in 2017, Mongolia is ranked 11th in the Global Human Capital Report by intellectual property, while ranking 111th in the knowledge of exported products out of 130 countries worldwide. This indicator shows that Mongolians have a high intellectual capacity, but we are left behind on using the knowledge and value-added products. The forum aimed to push the dissemination of innovation, as well as the possibility of involving scientists and private entrepreneurs to science-based development.”