6 Develop a global partnership for development

Where we are?

TARGET 18. Create favourable condition for achieving MDGs through developing trade and financial system

* Difficult toachieve
Achievable with more effort
Fully achieved

In 2012, Mongolia engaged in trade with 146 countries, up from 126 countries that it traded with in 2010. Its exports amounted to USD 4.4 billion US$, or about 51 percent of the country’s GDP and is likely to reach its target by 2015.

Mongolia’s exports have increased enormously in recent years. Exports in 2012 were more than 4.1 times compared to the 2005 level. Much of it is because of the increase in export of primary products such as coal, copper, iron ore, and crude oil. Although Mongolia’s export is predicted to increase in terms of value, it is unlikely to increase in terms of diversity.

Mongolia imported goods and services worth USD 6.7 billion from 139 countries in 2012. Mineral products were dominant with oil products constituting more than 88 percent. The proportion of ODA to Mongolia to help build trade capacity, reached 0.13 percent of GDP, the highest level compared with previous years.

The target to increase the proportion of ODA to 10 percent by 2015 is unlikely to be achieved. In contrast, the proportion of ODA to basic social services equals to 26.3 percent in 2012 and the target has already been achieved.

There are 13 banks operating in Mongolia. The financial sector is represented mainly by the commercial banks, which is a common criterion in most developing countries. In recent years the number of entities listed at the Stock Exchange has increased, and the overall envelop has expanded. However, due to its small size the secondary market is not yet visible.

TARGET 19. Address special needs of Mongolia as landlocked country through negotiation for favourable terms

* Difficult to achieve
Achievable with more effort
Fully achieved

Railways carry 90 percent of all freight transport of the country. In recent times, the share of transit transportation in the total railway transportation has been constantly declining and in 2010, it had dropped to 14 percent.

The negotiations on transit transportation through territories of Russian Federation, Mongolia and People’s Republic of China, which had started some ten years ago with support of the UN Trade and Transportation Facilitation Council, has not reached yet an agreement. Upon conclusion of this agreement, as a landlocked country Mongolia could enjoy transportation tariff concessions.

To transport goods and products, Mongolia pays high tariff and transportation fee. To transport goods to South Asia and European countries, goods go for 4000 km over Russian territory and to transport goods to South East Asia and other countries, the goods go for 1700 km to reach Tianjin port. The Government, through its Action Plan 2012-16, is keen to undertake modernization of its border posts and has made border management a priority. It is restructuring the national structures related to border management (such as border guards, police, customs, drug enforcement, etc.), and investing in infrastructure at key border crossing points that will also support economic diversification and local economic activity along the borders. The main purpose is to enable trade and transit and in this way to make Mongolia a ‘land-linked’ country, rather than a ‘landlocked’ one.

The government has prepared a draft law for improved border management and supporting foreign trade. One of the objectives of the law is to establish a new single-window administrative body that will help reduce bureaucratic procedures. The draft law is currently under discussion in the national Parliament.

Mongolia is a member of regional initiatives such as the Central Asia Regional Economic Cooperation (CAREC) programme and the Great Tumen Initiative (GTI). The main emphasis is on trade facilitation and improving collaboration among border agencies to ensure trade flows through borders faster and more efficiently.

Government of Mongolia is keen to develop a border port policy and strengthen national capacity for integrated border management that will help reduce the constraints on trade imposed by Mongolia’s landlocked status.

TARGET 20. Develop a debt strategy to ensure sustainability of external and internal debts

Difficult to achieve
* Achievable with more effort
Fully achieved

In 2012, the proportion of Government external debt in GDP equaled 32 percent (including the US$ 1.5 billion available from the sale of the Bond) which exceeds the target of 30 percent. However, overall the rate is still within acceptable range, and it falls under “low risk country” according to the IMF/World Bank ratings. The interest on the US$ 1.5 billion Chinggis Bond and other payments create additional burden to the budget. The system of on-line payments of government bond was introduced, which enabled the shareholders to obtain information immediately about the transactions.

TARGET 21. Development of new ICT and build an information society

Difficult to achieve
Achievable with more effort
*Fully achieved

The information and communication technology sector in Mongolia is very active and introduces new technologies at a relatively fast rate. It can be seen from fast growth of numbers of internet users and cellular subscribers. The number of internet users per 1.000 population achieved its target 2009, and in 2012 there were nearly 700,000 internet users. This is likely to continue to increase. The number of cellular subscribers has been increasing year by year, and in 2012 there were 3.4 million accumulated cellular subscribers out of a total population of around 2.8 million. The cellular network has an extended coverage over 90 percent of Mongolia.

‘Triple play’ service has been expanding widely in the world and this package service based on internet protocol was introduced in Mongolia in 2011. At the beginning there were 14,000 users of this package service. By 2012 the number had nearly doubled to 27,700.

Because of this intense penetration, the target to increase the number of internet users and cellular subscribers has been achieved much before the target date and contributes greatly to developing an information society.

For more information: Full report

Targets for MDG8
  1. Target 18: Create favorable condition for achieving MDG through developing trade and financial system
  2. Target 19: Address special needs of Mongolia as landlocked country through negotiation for favorable terms for access to the sea, improve the efficiency of transit transportation through the territories of foreign countries and increase transit transportation through the territory of Mongolia
  3. Target 20: Develop a debt strategy to ensure sustainability of external and internal debts for long time, study methods applied nationally and internationally to coordinate and resolve debt issues without negative effects on the state budget and economy of Mongolia.
  4. Target 21: Development of new information communications technologies and build of an information society