Capacity Building for Mongolian Development Strategy

International Conference.
Capacity Building for Mongolian Development Strategy.
held (23-24 March, 2000)

The Conference was held in the Government House of Mongolia on 23-24 March in Ulaanbaatar. There were about 38-40 participants including Parliament members, Advisers to the President, Advisers to Prime-Minister, government officials, professors and researchers, invited guest speakers, and staff of International and Bilateral organizations, represented in Mongolia, like UNDP, USAID, JICA, and World Bank.

Opening speeches were made by Ms. R. Narangerel, Parliament member, Chairman, Standing Committee on Social Policy, and by Mr. S. Kubota, Director of Program, Sasakawa Peace Foundation. The morning session was chaired by Dr. B. Bathishig, Economic Adviser to the President of Mongolia.

Dr.Ts.Batbayar, Chairman of Board, Mongolian Development Research Center, made an Activity Report on 2 year project on . Mongolian Development Strategy Research Project. financed by Nippon Foundation. He described important activities, including seminars, research programs, study tours, conferences, publications, and summarized key research findings made by that project.

Dr.Ts.Batsukh, teacher of Institute of Finance and Economics, made a presentation on . Brief Empirical Macroeconomic Model Mongolia. developed by Mongolian Development Research Center. Model was based on the country. s macroeconomic indicators correlation specifics with an objective to forecast a macroeconomy in the medium run and developed by young Mongolian specialists working in this field.

The next session was on Government perspectives on Mongolian mid-term development. There were 3 speakers from the Government. Dr. Nergui, Economic Adviser to the Prime-Minister, did a paper on Government concept on Mid-term economic strategy and told about Privatization of large SOEs, Banking sector reform and Private sector development. Mr. Chimeddagva, Head of Economic Policy Department, Ministry of Finance, told about economic reform measures done in 1990s and presented Mid-term economic projections up to 2020 based on World Bank methodology. He described 3 scenarios: high, medium and low case. Third speaker Mr. R. Bud, Head of Strategic Planning Department, Ministry of Infrastructure Development, told about current situation in the country. s infrastructure and about near-term planning in transport, energy, and other sectors.

The afternoon session started from . Local Think Tank, Business, NGO perspectives on Mongolian development. . Afternoon session was chaired by Prof. Gemma, Waseda University. There were 4 speakers at that session. Prof. P. Ochirbat, Former President of Mongolia, made a paper on . Minerals factor for Mongolian Economic Development. . His opinion was that mineral factors to play a priority role in development strategy of Mongolia at least for first 2 decades of the 21st century. In his report, high case scenario envisages share of mineral sector in GDP as 30 percent, low case scenario . as 10 percent. Prof. D. Byambasuren, Former Prime-Minister of Mongolia, made a paper . National factors affecting the Development Strategy. . In his paper, he analyzed 5 factors, namely, national memory heritage, energetic capability to produce development, national self-organization, creative capability, and adjustment capability. His conclusion is that clear concept is needed to enrich national values and state policy directions with an essence of world development in the new millenium. Mr. S. Demberel, Chairman, Mongolian Chamber of Commerce and Industry, told about Private Sector perspective on Mongolian development. Ms. O. Oyuntsetseg, Director, Gender Center for Sustainable Development, did a paper on social issues affecting woman and economics, woman and poverty, woman and education.

The next session was on . International Organization. s perspective on Mongolian Development. . We had 4 speakers in this session. Mr. Bill Bikales, expert from USAID, did a paper . Development strategy for Mongolia: some issues. . In his paper, Mr. Bikales mentioned following basic characteristics:
a. It must be oriented toward the future, not the past.
b. It must be based on integration into the world economy.
c. It must be sustained in three dimensions, that is, it must be broad, deep and long.
d. It must be rooted in fostering a dynamic private sector, which will be the engine of growth.

Mr.A.Fujimoto, JICA expert, did a presentation . What Mongolia should do now for her Mid-term and Long-term economic development. . In his paper, he suggested that the Mongolian government in collaboration with the private sector formulate a concrete and detailed strategy for developing manufacturing/ processing industries, identify strategic industries and provide them with appropriate assistance. Ms. Uyanga, from World Bank Office in Ulaanbaatar, did a paper . Economic and Social Development of Mongolia: Contribution of the World Bank. Mr.Tserendorj, UNDP office in Ulaanbaatar, told what UNDP is doing to support Mongolian government efforts to formulate the Concept of sustainable development of Mongolia.

The second day of the Conference started from the session where guest-speakers were invited to talk. Prof. Erik Reinert, Centre for Development and Environment, University of Oslo, did a paper . The Role of the State in Economic Growth. . In his paper, he talked mostly on 3 roles of the state: as a provider of institutions, sharing of the pie and distributing risk, the role of state in increasing national wealth. He emphasized that most important thing is to create a comparative advantage in the . right business. , which means skill-based, not resource-based. Prof. Masahiko Gemma, Waseda University, made a presentation on . Industrial policy and small and medium sized enterprises in transition economies. . His conclusion is that for transition economies, tax policy and regulations, inflation, lack of financial services, corruption, non-competitive behavior and lack of infrastructure , which have been considered as the barriers to business activities, should be lowered or removed as much as possible.

Prof. Sumio Kuribayashi, Tokyo International University, did a paper . Mongolian agriculture and the role of ODA. . Among other things, he recommended following measures:
a. to promote production of fodder for the survival of the livestock in winter season.
b. To improve the capacity of processing industries related to the agriulture and to strengthen investigation of the goods for its export promotion.
c. To reconstruct the procurement system of the raw materials.
d. To reconstruct rural financial system and new financial system to distribute working capital to the processing industries concerned.

The closing speeches were made by Mr. S. Badamdamdin, MP, Chairman, Standing Committee on Budget, and by Dr. Ts. Batbayar, Chairman of Board, Mongolian Development Research Center.

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