Asia

Mongolia Environment and Economy

TERRITORY: ENVIRONMENT

Given the climatic conditions, the Mongolian plateau is covered with steppe formations which provide excellent grazing; the sheltered slopes are home to coniferous and birch forests. In the driest areas the vegetation looks like a discontinuous turf strewn with low xerophilous shrubs. The only wild horse species, the przewalskii, is present, albeit in a small number of specimens. In addition there are wild animals such as the emione, the snow leopard, the argali, the saiga antelope and wild herds of camels, which live in the Gobi. UNESCO declared the Uvs Nuur Basin in 2003 a World Heritage Site, which takes its name from the homonymous salt lake surrounded by steppe, mountains and forests and which is home to many of these endemic species as well as colonies of migratory birds. and exclusive plants of the area. The protected area covers a total of 13.9% of the territory, within which 16 national conservation parks, monuments and nature reserves are identified. Intensive use of land for grazing, agricultural exploitation and deforestation have caused soil erosion; moreover, the areas with high industrial concentration, especially those of the capital, are highly polluted due to the emission in the

ECONOMY: GENERAL INFORMATION

According to itypeusa, the economic situation of Mongolia is the result of a singular mix of different elements: on the one hand, the traditional forms of life and productive activity of a country that has been crystallized for centuries in rigid schemes and dedicated to nomadic pastoralism; on the other hand, Soviet-style socialist planning, practiced until 1990, which aimed to modernize Mongolia through the strengthening of agriculture and the creation of adequate industrial support. Compared to the conditions of the first decades of the twentieth century, the progress made possible only by the technical and financial assistance of the Soviet Union, which has thus guaranteed itself a faithful ally for a long time, has been significant. This planning, whose first attempts date back to the 1930s, in fact, it allowed the achievement of important objectives, even if in the following decades, especially during the 1980s, economic growth showed less lively dynamics. Not only that, but in the face of the increase in the food needs of consumer goods, as well as the lack of currency to be allocated to the purchase of technology, a certain worsening of the terms of trade has also manifested itself in a more pronounced form. The early nineties were marked above all by the political change that took place in the country and the transition to a market economy which meant the end of state control over prices and the start of a vast privatization program. These profound changes initially led to a sharp decline in economy and a lowering of the average standard of living, with a declining GDP, a budget deficit and high inflation. However, starting from 1994 there were timid signs of recovery and a gradual reorganization of the economy: the agricultural and mining sectors – the main productive activities – started to grow again, the pace of inflation slowed, the price of the currency national level stabilized and the budget deficit began to decline. The privatization plans for state-owned enterprises, tax reforms and the banking system have made it possible to open up to foreign investors in key sectors of the economy. Despite its entry into the global market, the country’s economic system is still subject to fluctuations due in part to its dependence on sectors, such as extraction and processing of products deriving from agriculture and livestock, which are considered “seasonal” and partly from the influence of major trading partners (Russian Federation and China). So, for example, in 1998, the fall in the price of copper, gold and cashmere in conjunction with the Asian and Russian crisis had serious repercussions on the Mongolian economy. Similarly, the climate emergency of the period 2000-2002, which hit the primary sector in particular, again caused a decline in growth. Since 2004, however, an increase in GDP has been observed, albeit inconstant, with decreasing inflation (the value per capita recorded in 2008 was US $ 1,981). Mongolia also suffers from the particular geographical position that makes it a closed country and squeezed between two great giants, the Chinese and the Russian; however, the richness of the mineral heritage and the open legislation on the subject make it an interesting market for direct foreign investments, not only in traditional sectors but also in the tertiary sector. To limit the isolation, the authorities have also pursued a policy of widening ties with international organizations – it was in 1997 the entry into the WTO – favoring the signing of bilateral agreements with the European Union, the United States and Japan.

Mongolia Environment and Economy