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INTERNATIONAL UNIVERSITY
OF JAPAN, NIIGATA, JAPAN
MONGOLIAN UNIVERSITY OF
SCIENCE and TECHNOLOGY,
ULAANBAATAR, MONGOLIA
MONGOLIA: Emerging economy and its
Human resource, Infrastructure needs
Prof. Ochirbat Baatar
Vice President ,
Mongolian University of Science and Technology
Ass.prof. Ganbat Tsendsuren
School of Computer Science and Management, MUST
GSIM, IUJ, NIIGATA, JAPAN
24-25 May 2012
CONTENT
I.
40 YEARS OF HISTORY
II. DEVELOPMENT OF MONGOLIA
• Current Condition of Development of Mongolia
• Economic future of Mongolia
• Mongolian Development Pillars
III. CURRENT SITUATION OF SCIENCE AND
TECHNOLOGY IN MONGOLIA
40 YEARS OF HISTORY
2012 - The 40th anniversary of Mongolia-Japan
diplomatic relations
The Prime Minister S.BATBOLD spoke at the ceremony
of the anniversary event about Japan’s rich
heritage and their modern transformation to one
of the biggest economic, industrial and cultural
centers in Asia and the world.
He also committed to improving cooperation between
Japan and Mongolia in regards to the strategic
partnership principle.
40 years of history
Politics
Business and economics
Education sector
Sports and Culture
Mongolia
About Mongolia
Territory: 1,566,500 sq.km (almost 7 times bigger than UK land)
Land boundaries: 8.158 km, with Russia ; 3,485 km and with China
4,673 km
Average altitude: 1,580 m above sea-level
Climate: Sharp continental, marked by four seasons.
Average summer temperature +20'C, average winter
temperature -15C, average rainfall 200-220 mm.
Population: 2,754,685 (Nov 2011 est.)
Language: Mongolian
Religion: Buddhism
About Mongolia
Terrain: Vast semi-desert and desert plains, mountains in west and southwest, Gobi Desert in south-east .
Natural resources: Mongolia has one of Asia's largest freshwater lakes –
Hubsugul and river system.
75.1 percent of territory - pasture land and 8.0 percent - forest.
Vegetation cover - 2260 species of vascular plants united in 596
genera and 104 families. Fauna - 127 species of mammals, 360
species of birds and 70 species of fishes.
Mineral resources: More than 6,000 occurrences of about 80 different
minerals such as ferrous, non-ferrous, light and precious metals,
rare metals and rare-earth elements, non-metals, fossil fuels as well
as industrial and building materials. Mongolia is rich in copper,
coal, gold and others.
Climate: Sharp continental, marked by four seasons. Average summer
temperature +20'C, average winter temperature -15C, average
rainfall 200-220 mm.
Central Mongolia
Southern Part of Mongolia
Northern Part of Mongolia
Horse Racing during National Holiday
Capital City - Ulaanbaatar
Current
Development of Mongolia
Current condition of
development of Mongolia
Comparison with the world’s other countries
Per capita GDP
Human Development
Index
• Low middle income country according to the World
Bank’s classification
• 100th place out of 169 countries as per Human
Development report published by UNDP
Competitiveness Index
• 96th place out of 139 countries according to the World
Economic Forum
Quality of Life
• 107th place out of 192 countries according to survey
conducted by the International Living institution
Infrastructure development
Overall
Road
Railway
Seaport * Airway
Energy
production
The world
average
4,30
4,00
3,20
4,30
4,70
4,50
G7
5,71
5,61
5,39
5,44
5,69
6,46
Central Asia
3,98
3,16
3,50
2,96
3,96
3,64
East Asia
5,74
5,60
5,80
5,44
5,52
6,30
South East
Asia
4,48
4,44
3,24
4,54
5,04
4,63
South Asia
3,05
3,10
2,85
3,55
3,98
2,00
Mongolia
2.30
1.70
2.50
3.30
3.00
3.10
Source: World Economic forum, World competitiveness report.
*-possibility to get in seaport
Macroeconomic condition
Economic structure:
Economic
structure
Foreign trade
Inflation
Employment
100%
Agriculture
хөдөө
аж ахуй
90%
80%
Mining
andолдворлох
уул
уурхай,
extractive
үйлдвэр industry
70%
боловсруулах
үйлдвэр
Processing industry
60%
Energy industry
цахилгаан
эрчим хүч
50%
Construction
барилга
industry
40%
Budget
balance
Export
structure
30%
бөөний
Wholeболон
and retail sales
жижиглэн худалдаа
20%
Transportation
тээвэр
холбоо and
Communication
10%
Balance of
payment
0%
2005
Money supply
2006
2007
2008
2009
2010
үйлчилгээний бусад
Other service industry
салбарууд
Macroeconomic condition
Foreign trade
4595
Economic
structure
9000.0
4150.0
3951
8546
8000.0
Foreign trade
3245
3200
3150.0
7000.0
Inflation
2909
2535
Employment
2138
2150.0
5779.0
2062
6000.0
6108.6
1885
1948
1542.0
Budget
balance
1435.0
5000.0
1177.3
1150.0
1063.9
4009.3
4000.0
Export
structure
4023.1
107
150.0
2005
Balance of
payment
Money supply
-113
2977.0
2006
2007
-114
2008
2009
-252.3
2010
2011**
3000.0
-291.6
2241.2
-850.0
export
Экспорт
Гадаад
тэнцэл
Foreignхудалдааны
trade balance
-710
-644
import
Импорт
Нийт
эргэлт
Total бараа
trade balance
2000.0
Macroeconomic condition
Economic
structure
Foreign trade
Inflation
Employment
25
20
17.8
13.0
10.2
10
5
Export
structure
0
Money supply
Inflation
15
Budget
balance
Balance of
payment
22.1
4.2
2007
2008
2009
2010
2011*
Macroeconomic condition
Economic
structure
Foreign trade
2006
2007 2008 2009 2010 2011
Budget
balance
Active population in
economy /per
thousand people/
Work force’
participatory rate
/percent/
Employment level
Export
structure
Registered
unemployment level
3.2
2.8
2.8
3.3
3.3
3.3
Balance of
payment
Unemployment rate
-
-
-
11.6
9.9
7.1
Inflation
Employment
Money supply
1042. 1054 1071 1137 1147
8
.0
.5
.9
.1
64.4
64.2
63.5
66.8
61.6
62.4
62.4
61.7
88.4
90.1
Macroeconomic condition
Economic
structure
Foreign trade
200.0
100.0
41.5
36.6
33.3
38.6
45.0
40.2
35.4
38.6
32.9
140.7
123.4
Inflation
2007
2008
2009
40.0
35.0
41.7
0.0
2006
37.8 37.3
30.0
2010
25.0
Employment
-100.0
20.0
Budget
balance
-200.0
Export
structure
-300.0
Balance of
payment
-400.0
15.0
10.0
-296.5
-342.7
budgetтэнцэл
balance/
billionтөгрөг/
MNT
төсвийн
/тэрбум
Нийт
орлогоrevenue
ба тусламжийн
орлогын
Aggregate
and GDP
ratio ДНБ-д эзлэх хувь
Нийт
зарлагаexpenditure
ба цэвэр зээлийн
дүнratio
ДНБ-д эзлэх хувь
Aggregate
and GDP
Money supply
5.0
0.0
Macroeconomic condition
Economic
structure
2500.0
Foreign trade
1500.0
2000.0
1000.0
Inflation
389.2
555.5
906.4
287.9
500.0
0.0
Employment
Budget
balance
Export
structure
Balance of
payment
Money supply
-500.0
-351.3
-1000.0
-1500.0
2006
2007
2008
2009
Currentдансны
accountтэнцэл
balance
I. Урсгал
(албан ёсны шилжүүлгийг оролцуулаад)
and capital
account данс
II.Fiscal
Санхүүгийн
ба хөрөнгийн
Нийт
төлбөрийн
Total
balance ofтэнцэл
payment
2010
Economic development trend of
Mongolia
23
Development core indicators of Mongolia
until 2032
Economic real growth
30.0
25.0
20.0
15.0
10.0
5.0
0.0
-5.0
80000.0
30000.0
20000.0
10000.0
0.0
Per capita GDP
/ in thousand USD/
Total population, in thousand
5000.0
4000.0
60000.0
GDP, in Mln USD ( base year of
2005)
3000.0
40000.0
2000.0
20000.0
1000.0
0.0
0.0
GDP by core sectors in billion MNT
agriculture
manufacture
service
GDP in price of year
• Core sectors that mostly contribute to GDP growth:
• 2012-2016: iron ore exploration in line with Oyu tolgoi
mining project
• 2012-2017: coal exploration
• 2012-2023: construction in line with mining and
infrastructure creative development
• 2012-2021: transportation and warehouses
• 2015-2020: coking coal and refined oil production
• 2018-2031: manufactures of computer and electronics
items and electrical equipments
Development challenges
Economic issues
• Inappropriate economic structure
• Capacity of domestic market is low
• Less development of infrastructure
Social issues
• Small population and limited work forces
• Lack of highly skilled work force
• Social psychology
• Unemployment level, poverty, income unequal distribution, disparity
between rich and poor
Development challenges
Governance issues
• Higher government expenditure
• Lack of capacity in public service; less consistency between
government organizations, weaker system of accountability
Politics issues
• Weak fiscal discipline
• Lack of stable and coherent macroeconomic policy
• Political influence
Environmental issues
• Harsh weather condition, high dependent on weather changes, rapid
desertification , sensitive ecosystem
• Isolated and no direct access to sea
Mongolian development trend up to 2030
30000.0
25000.0
ДНБ, 2005 оны зэрэгцүүлэх үнээр,
тэрбум төгрөг
20000.0
15000.0
10000.0
5000.0
0.0
2012**2013**2014**2015**2016**2017**2018**2019**2020**2021**2022**2023**2024**2025**2026**2027**2028**2029**2030**2031**
I. Stage: 2012-2016: Improved governance and infrastructure, built
foundation of heavy industries, and final products of mineral resources will
start to dominate in export.
II. Stage: 2017-2021: Increased products of heavy industries, built
foundation of chemical industries, and will starts to put initial effort into the
knowledge based economy.
III. Stage: 2022-2031: Increased products of chemical industries, to
concentrate in knowledge based economy and products made by using of
high technology and innovation will dominate in market.
Objective
Strategy
2012-2016
2017-2021
2022-2026
2027-2031
•Improved
•Improved
governance
governance
•Improved
•Improved
infrastructure,
infrastructure,
•Build
•Build foundation
foundation of
of
heavy
heavy industries,
industries,
•Final
•Final products
products of
of
mineral
mineral resources
resources
will
will start
start to
to dominate
dominate
in
in export.
export.
•Increased
•Increased products
products
of
of heavy
heavy industries,
industries,
•build
•build foundation
foundation of
of
chemical
chemical industries,
industries,
•Put
•Put initial
initial effort
effort into
into
the
the knowledge
knowledge based
based
economy.
economy.
•Increased
•Increased products
products
of
of chemical
chemical industries,
industries,
•to
•to concentrate
concentrate in
in
knowledge
knowledge based
based
economy
economy
•Build
•Build foundation
foundation of
of
green
green economy
economy
•products
•products made
made by
by
using
using of
of high
high
technology
technology and
and
innovation
innovation will
will
dominate
dominate in
in market.
market.
•Fully
•Fully shift
shift to
to
knowledge
knowledge and
and green
green
economy
economy
•Economic
•Economic sustainable
sustainable
growth
growth
•Real
•Real GDP
GDPgrowth
growth in
in
average
average isis 15.8%.
15.8%.
•• Per
Per capita
capita GDP
GDPisis
12,000
12,000 USD
USD
•Real
•Real GDP
GDPgrowth
growth in
in
average
average isis 8%.
8%.
•• Per
Per capita
capita GDP
GDPisis
23,000
23,000 USD
USD
•Real
•Real GDP
GDPgrowth
growth in
in
average
average isis 6%.
6%.
•• Per
Per capita
capita GDP
GDPisis
39,000
39,000 USD
USD
•Real GDP growth in
average is 5.5%.
• Per capita GDP is
60,000 USD
•Economic structure will
be similar to the
advanced economies
Assumption of economic structure
120.0
Advanced economy by
2030:
100.0
80.0
46.3
47.9
49.5
46.4
48.6
51.3
53.6
55.3
56.9
–
–
–
–
58.4
60.0
40.0
41.9
39.8
44.0
44.6
42.9
41.3
40.1
20.0
11.6
11.1
9.7
0.0
Services
Үйлчилгээ
8.0
7.0
Manufactures
Үйлдвэрлэл
6.1 5.8 5.4
39.1
4.8 4.5
Agriculture
Хөдөө
аж ахуй
38.1
36.5
4.0 3.5
Service sector 60%,
Industry sector 37%,
Agricultural sector 3%.
Transit transport,
banking and finance,
trade and tourism sectors
will intensively grow .
III. Current situation of Science
and Technology in Mongolia:
32
Current situation of science and
technology in Mongolia
During the transition period, the Government of Mongolia has made
numerous attempts to attain a policy on S&T development,
utilizing R&D results, enhancing industy’s role in S&T, and
establishing a structure and legal environment that meets the
global demand. Some of the major laws and regulations are:
1. S&T Masterplan 2007-2020,
2. National innovation system development program 2008-2015,
3. Millenium Development Goals-based Comprehensive National
Development Strategy of Mongolia (2008-2021),
4. Research program of MUST (2007-2015),
5. Master plan of MUST (2008-2015),
6. Hightech industry policy of Mongolia (2010),
7. Innovation law (2012),
8. Venture capital law (in progress),
9. Technology program of Mongolia (in progress),
Science and Technology in Mongolia
• Mongolia has a tradition of respect for knowledge and
wisdom. In great Chinggis Khaan's times people with
knowledge and experience were summoned to "The counsel
of sages". Later, in 1264, Chinggis's grandson Khubilai
Khaan, founded the so-called "Institute of learned scholars",
by which the concept of "Academy" was given to the world.
• In 1921 "The Literary Committee" was established. It was
the predecessor of the Mongolian Academy of Sciences
(MAS) which was established in 1961. First university, the
National University of Mongolia, founded in 1942 at
Ulaanbaatar.
Science and Technology in Mongolia
• Today, external relations and cooperation with Mongolian science
are expanding. Mongolia now cooperates with science and
academic organisations in 20 countries such as the USA, Russia,
Britain, China, Germany and Korea.
• Since 1998 the Mongolian Parliament has been developing its
own policy towards science by approving and implementing the
Laws on Science and Technology and the Law on Transfer of
Technology.
• Mongolian scholars have achieved a big success in studying its
history, language and culture, identifying peculiarities of its nature
and climate, and investigating natural resources of the country, as
well as in bringing new types of plants and new breeds of
animals, diagnosing, treating and preventing different kinds of
human and animal diseases.
THE MONGOLIAN UNIVERSITY OF SCIENCE
AND TECHNOLOGY: Main research fields and
some examples
• Research activities in Mining and Geology,
• Textile (nanopowder coated textile) and
cashmere technology,
• Food engineering and Biotechnology (dairy
and meat products),
• Environmental studies (water research,
water processing),
• Information, communication technology,
• Ecotechnology (using solar and wind
energy).
Nanotextile
A) Coated with nanoparticles
B) Normal textile
Dairy technology research
Coal-water suspension
Ecofriendly house
Issues in S&T sector of Mongolia
We are trying to find out the right way to develop
Governance-Research-Business cooperation.
Main problems of our S&T sector are:
- Research lack laboratory facilities, lack of funding for
equipment, and tools,
- Due to high concentration on purchase of imported
technologies and equipment, industry is ignoring the
knowledge and technologies of domestic R&D sector,
- Mongolia is rich in natural and agricultural resources S&T
sector plays little role in utilizing them,
- The amount of funding for S&T sector is insufficient.
- The policies of socio-economic and S&T development are
not coordinated.
We have strong wishes and duty of
success in academic and cultural links
to continue our 40 years of relationship
between countries, institutions and
people for longer time!
Thank you for your attention!