BCM NewsWire 714 - 14 January 2022

 


NewsWire

Issue 714 –  14 January 2022


BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.


Economy

Politics

Business

Global and Regional Trends

BCM Updates

Economic Indicators

 
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ECONOMY

MONGOLIA’S 2020 POVERTY RATE ESTIMATED AT 27.8 PERCENT

The National Statistics Office (NSO) of Mongolia and the World Bank today announced their joint official poverty rate estimation for 2020. The two organizations have collaborated on poverty measurement based on household consumption surveys since 2002.
According to the 2020 Household Socio-Economic Survey (HSES), the national official poverty rate in 2020 was 27.8 percent[1], 0.6 percentage points lower than in 2018. This translates to about 903.4 thousand people of Mongolia living in poverty in 2020.
Compared to 2018, the urban poverty rate dropped by 0.7 percentage points to 26.5 percent, while the rural poverty rate fell by 0.3 percentage points to 30.5 percent. Among the poor, 64 percent lived in the urban areas in 2020, with 43 percent living in Ulaanbaatar.
While estimates show that poverty in 2020 was slightly lower than it was in 2018, the COVID-19 pandemic has sharply slowed down the pace of poverty reduction.

Source: World Bank

TRANSPORT RESUMES FOR CONTAINERS WITH IMPORT GOODS AND PRODUCTS

Transportation has resumed for containers with imported goods and products that accumulated at the Erlian border checkpoint of China for three months. 
In order to create the conditions to have uninterrupted transport of goods under pandemic circumstances, a ‘Zero Point’ was established between the borders of Mongolia and China. The Government of Mongolia is carrying out certain works to ensure the continuous transport of export and import goods, and to reduce and stabilize the prices of goods.
Headed by the Deputy Prime Minister, a working group in charge of enhancing the operations of border checkpoints and accelerating the transport of export and import products are currently working at Zamiin-Uud border checkpoint.
Yesterday on January 11, officials led by Deputy Prime Minister S.Amarsaikhan and Minister of Road and Transport L.Khaltar held meetings with authorities of Dornogobi aimag and Zamiin-Uud soum as well as representatives of truck drivers, and became acquainted with the current state of the situation.

Source: Montsame
See also: Views exchanged on operations of Mongolia-China border checkpoints
Works for renewing border checkpoints to complete in 2022
Military personnel to transport goods and freight to Zamiin-Uud

BOM PURCHASES 21 TONS OF PRECIOUS METAL IN 2021

In December 2021, the gold purchase of the Bank of Mongolia (BoM) was 780 kg, raising the BoM’s total precious metal purchase of 2021 to 21 tons.
In December, the BoM branches in Darkhan-Uul and Bayankhongor aimags bought 8.2 kg and 46.4 kg of precious metals respectively.
The average price of BoM’s purchase of 1 gram of gold was MNT 163,695.6 last month.

Source: Montsame

MONGOLIA EXPORTS ALL IRON ORE TO CHINA IN 2021

Mongolia exported 7.11 million tonnes of iron ore in 2021, down 13.36% or 1.1 million tonnes year on year, showed latest data from the Mongolian Customs General Administration (MCGA).
The total export value surged 48.85% on the year to $952 million during the year, data showed.
China was the only destination of Mongolian iron ore during the period.
MCGA didn't release the specific figure for last month, and Sxcoal calculated the exports at 14,300 tonnes based on the overall exports published by the customs authority, falling 97.55% year on year and 97.31% on the month.
The iron ore exports amounted to $1.65 million in December, with average price at $114.86/t, up $22.63/t from a year ago and $31.92/t from a month earlier, data showed.

Source: SXcoal.com

“LOAN INTEREST RATES DECREASED BY 2.5 PERCENT”

On January 11, the State Great Khural’s Standing Committee on Economy heard a progress report for the implementation of the parliamentary resolution on the strategy to reduce loan interest rates, which was approved by the parliament on August 28, 2020.
Governor of the Bank of Mongolia B.Lkhagvasuren said, “A working group consisting of representatives from corresponding organizations was in charge of the implementation of the strategy. As a result, loan interest rates have continuously decreased so far. By the end of 2021, average loan interest rates decreased by 2.5 percent compared to when the strategy was approved in August 2020. Compared to the same period of the previous year, it has also decreased by 1.3 percent - and it currently stands at an annual rate of 14.5 percent. 
As according to the plans drafted for the strategy’s implementation, an objective has been set to have annual loan interest rates be brought down to an average of 12 percent by the end of 2023.”

Source: Montsame

TURKISH AMBASSADOR PUTS FORTH REQUEST FOR FLIGHTS TO OTHER ASIAN COUNTRIES THROUGH ULAANBAATAR

On January 11, Minister of Road and Transport L.Khaltar received Ambassador of the Republic of Turkey to Mongolia Zafer Ateş to exchange views on bilateral relations and cooperation in the transportation sector.
Minister L.Khaltar congratulated the Ambassador on his appointment in Mongolia in May 2021, and expressed willingness to actively cooperate in developing sectoral cooperation aimed at expanding the two countries’ trade, economic, and business relations.
He then highlighted that aviation and road transport makes up a significant portion of sectoral cooperation between Mongolia and Turkey, and underlined the increasing responsibility of transport during the pandemic.
Thus, he put forth a suggestion to organize meetings between corresponding professional organizations in order to further improve relations in air transport, and establish railway connections based on mutually-beneficial, fair principles.
In turn, Ambassador Zafer Ateş expressed his satisfaction with the resumption of flights en route Ulaanbaatar - Istanbul from April 2021, and noted…

Source: Montsame

TWO MINISTERS WORKING TO FIND REASONS BEHIND SMOKE INCREASE IN ULAANBAATAR

Recently, air pollution in Ulaanbaatar city increased sharply. Thus, N.Tavinbekh, the Minister of Energy, and N.Urtnasan, the Minister of Nature, Environment and Tourism, are working at refined coal sales points in Bayankhoshuu.
There is a complaint that elders and children who stay home purchase refined coal during the day time, but other residents who don’t stay at home during the day cannot find the refined coal in the evening. 
Sales points give orders to Tavan Tolgoi Tulsh LLC. According to that, it is supplied from the factory and 5 tons of fuel is delivered to the sales points every day. 
There are a total of 600 sales points in Ulaanbaatar. If orders are not placed at the point, there is a risk that citizens are unable to purchase the refined coal. The sales staff explained to the Ministers that the refined coal at the sales points which are located along the road runs out very quickly. 

Source: GoGo News

HOLDING UP MORE THAN HALF THE SKY: WOMEN AND CHILDCARE IN MONGOLIA - EDITORIAL

Even before the COVID-19 pandemic, social norms in Mongolia have long dictated that women shoulder the heavier burden of childcare and domestic work. COVID-19 has not only laid bare this reality, but has exacerbated it.
As the pandemic struck, the Government of Mongolia responded quickly by shutting schools as early as January 2020, leaving many parents in a difficult predicament. The additional work of home schooling saw the care burden increase significantly, for both men and women. However, deeply entrenched patriarchal norms and structures meant that this had a disproportionate impact on women. Recent qualitative research by The Asia Foundation revealed that working mothers had to make major changes to adapt, such as closing their businesses, reducing operations, and quitting their jobs.
Many working mothers, however, did not have the option of leaving work to care for their children, either full- or part-time. 

Source: DevPolicy.org

THIRTY YEARS OF ERROR MUST BE CORRECTED IN THREE YEARS... - EDITORIAL

There is a saying that goes “It is harder to renovate an old house than to build a new one”. Ulaanbaatar city is the same as an old house. It would be hard to renovate this house that has been damaged by many years of exposure to the sun, wind, rain, and storms. But we need to repair old possessions and replace them with new ones to improve our living environment.
According to the Law on the Legal Status of Ulaanbaatar City, every person living in the capital city has the right to be provided a healthy and safe environment and a well-established infrastructure and demand the authorities to ensure this right. 
First, ger districts will be redeveloped. The redevelopment will require the construction of roads, bridges, electricity, and heat networks. 
The funding source of MNT 420 billion - taxes paid by the city residents the Government of Mongolia has decided not to take away - will be available until 2024.

Source: GoGo News

POLITICS

TODAY MARKS 30TH ANNIVERSARY OF THE ADOPTION OF DEMOCRATIC CONSTITUTION OF MONGOLIA

Today (January 13) marks the 30th anniversary of the adoption of the democratic Constitution of Mongolia.
Mongolia has had four constitutions in its history with each of its discussions held in 1924, 1940, 1960, and 1992 respectively. While the earlier constitutions were revolved around the Marxist ideology, the new 1992 Constitution is considered democratic as it protects the common interest of the citizens of Mongolia without discrimination of social class and ideology. Thus, the day of January 13 came to be marked as Constitution Day each year.
For the new democratic Constitution of Mongolia, discussion took place among over 430 deputies of the People’s Great Khural, and over 50 members of the State Baga Khural over the course of 75 days. A public discussion was also held for the new Constitution, which involved about 75 percent of 1.2 million citizens, the total population of Mongolia at the time, and over 200 thousand suggestions were received on the matter.

Source: Montsame
See also: Constitutional Law Institute established at NUM School of Law
Exhibition for the 30th anniversary of adoption of democratic constitution opens

MINISTRY OF ECONOMY AND DEVELOPMENT ESTABLISHED

At its meeting on January 6, the Cabinet approved the structure and strategy of the Ministry of Economy and Development and appointed Minister of Finance B.Javkhlan as its acting minister and Kh.Batjargal as acting state secretary.
Deputy Chief of the Cabinet Secretariat U.Byambasuren and other officials visited the National Development Agency to present the Cabinet’s decision.
Afterwards, Minister B.Javkhlan held a meeting with the employees of the now-dissolved National Development Agency and gave instructions, emphasizing that he was pleased to collaborate with NDA on development policy documents, particularly the New Revival Policy, as the Finance Minister and that it is fully possible for the Ministry of Economy and Development to begin its activities promptly as the NDA has been dissolved and its functions have been transferred to the new ministry at the Cabinet’s meeting.

Source: Montsame

MINISTRY OF DIGITAL DEVELOPMENT AND COMMUNICATIONS ESTABLISHED

During its irregular meeting on January 6, the Cabinet dissolved the Communications and Information Technology Authority of Mongolia (CITA) and approved the structure and strategy of the Ministry of Digital Development and Communications.
Minister of Education and Science L.Enkh-Amgalan will serve as the Acting Minister of Digital Development and Communications and B.Bolor-Erdene as the ministry’s Acting State Secretary. Officials led by Deputy Chief of the Cabinet Secretariat U.Byambasuren worked at CITA to announce the Cabinet’s decision.
“The State Great Khural and the Government have identified information and communications technology as a key economic sector. Moreover, Mongolia’s long-term, development policy ‘Vision 2050’ and the Government’s action program for 2020-2024 include a goal to become a digital nation and plans are afoot to  digitize 90 percent of government services by 2024,” said Minister L.Enkh-Amgalan. 

Source: Montsame

PARLIAMENT TO REVIEW BILL ON MINING PRODUCT EXCHANGE

Minister of Mining and Heavy Industry G.Yondon handed over the first bill on Mining Product Exchange to Speaker of Parliament G.Zandanshatar on January 5.
In accordance with Article 23 of the Law on Legislation, the bill on Mining Product Exchange was developed with seven chapters to organize fair, open and transparent mining trade in Mongolia, provide the opportunity to set real market prices, increase investment in the mining sector by regulating exports through a unified policy. It is also expected to expand the sector’s contribution to the country’s economic growth.
The bill defines the legal and organizational form of the mining exchange, reflects its specific functions and activities, sets standards, and defines the types of trading, payments and negotiations.
It also provides for detailed relations for ensuring guarantees, granting the right to participate in stock exchange trading, ensuring transparency and fairness of trading, creating a public database, and disseminating information to the public.

Source: The UB Post

BILL TO SUSPEND SCHEDULED INSPECTIONS FOR THREE YEARS

At its regular meeting today, the Cabinet decided to submit to the Parliament a Bill on temporary suspension of some types of state inspections.
"Annual scheduled inspections carried out under the Law on State Inspection cause significant problems to businesses and enterprises. Therefore, the Bill states to suspend the scheduled inspections for three years," said Minister of Justice and Internal Affairs Kh. Nyambaatar at the press conference today.
"However, inspections to the Bank of Mongolia, Financial Regulatory Committee, customs, taxation, health, social insurance, and child protection fields will be conducted as usual. Citizens’ complaints related to human life, health and food safety will be inspected as well," added the Minister.
If the Bill is approved, it will be effective from February 1, 2022 to December 21, 2024.

Source: Montsame

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

Source: Various

LEGAL STATUS OF ASSOCIATIONS DISCUSSED

During its plenary session on January 6, Parliament reviewed a bill on the Legal Status of Associations, which was submitted by the government on November 24, 2021.
Speaker of Parliament G.Zandanshatar gave a five-day break for the discussion of the bill afterthe Mongolian People’s Party (MPP) caucus in Parliament requested it.
Chairman of the caucus D.Togtokhsuren said that due to a large number of comments and proposals made by lawmakers, the MPP caucus needs more time to review them.
Professional associations with official membership and public legal entities performing public functions shall be separated from the unified organizations on a voluntary basis in accordance with the bill. The bill stipulates that in addition to clearly defining their purposes in their rules, associations should explain the direction of their activities in accordance with the International Classification of Nonprofit Organizations, and specify their funds.

Source: The UB Post

PRIME MINISTER OF MONGOLIA LOOKS FORWARD TO BEIJING OLYMPIC GAMES

As many western countries led by the US diplomatically boycotting the Beijing Olympic games Prime Minister Oyun-Erdene is expected to attend the opening ceremony along with President Putin and the UN Secretary-General.
Indeed, Mongolians will be cheering the Olympic games in Beijing and will be mum about human rights issues in Xingjian.
Any utter on the matter can cost Mongolia dearly. No politician wants to provoke Beijing's anger.
Oyun-Erdene will try to use the Olympic occasion to resolve cross-border transport disruptions that the country is continuing to experience. Whether China would allow exceptions to Mongolia as it pursues aggressive COVID zero is questionable.

Source: Mongolia Weekly

DEPUTY PRIME MINISTER TO LEAD THE WORKING GROUP AT THE ZAMIIN-UUD ERLIAN BORDER PORT

On January 5, the Prime Minister of Mongolia issued Decree No. 196 on the establishment of a working group to improve the operation of border crossings and intensify the transportation of export and import goods during the coronavirus epidemic. 
S.Amarsaikhan, the Deputy Prime Minister of Mongolia, will lead the working group which aims to resolve the current situation at the Zamiin-Uud and Erlian border port in a mutually beneficial manner through negotiations with the Chinese party, and to take comprehensive measures to provide management and organization to the border administration.
The Deputy Prime Minister held an urgent meeting of the working group to approve and implement an action plan to improve coordination and accountability at all levels, and to organize discussion with relevant Chinese authorities. 

Source: GoGo News

ESTABLISHING A WEALTH FUND WITH ERDENES MONGOL’S DIVIDENDS - EDITORIAL

Erdenes Mongol is officially en route to becoming a wealth fund, as the Government seeks to get the Parliament to approve its draft Law on the National Wealth Fund. While the full draft law has not yet been made public, the main issues that it covers were presented. In the past, there have been questions around how Erdenes Mongol could be transformed into a wealth fund and whether this would increase the financial burden in the mining sector. It has become clear from the statement of O.Batnairamdal, Deputy Minister of Mining and Heavy Industry,  that the creation of this new wealth fund will not put additional financial burdens on the mining sector. Under the draft law, Erdenes Mongol will also undergo a structural change.
Erdenes Mongol LLC was established to represent the state on strategic mining deposits. The question now is whether it could be transformed into a company to transfer high dividends to Mongolians.

Source: Mongolian Mining Journal

MONGOLIA’S FEMALE PEACEKEEPERS: A CASE STUDY FOR GENDER PARITY - EDITORIAL

In a traditionally patriarchic sectors – such as the military, police, and security forces – women around the world have faced political, social, and cultural barriers for centuries. Since the 1950s, the United Nations’ operations have led and promoted the inclusion of women in global missions. However, to this day, the number of women in higher ranks and leadership positions remains disappointingly low. The experience of Mongolian female peacekeepers can exemplify these global shortcomings.
Throughout history, women from diverse cultural and ethnic backgrounds have served as shieldmaidens, wartime strategists, and behind-the-curtain contributors in making modern history. Unfortunately, in modern times, women’s roles when serving the armed forces were switched to support functions, such as nursing, cooking, caregiving, and administration. These roles, in turn, prevent women from receiving promotions, blocking them from advancing in career and rank due to their lack of experience in other fields within the security sector.

Source: The Diplomat
See also: Mongolia ranks 26th with the number of female peacekeepers

PRINCIPLE OF CIVIL SERVICE APPOINTMENT IS DISTORTED - EDITORIAL

Mongolians protest against unfair and double standards, in which laws and regulations apply differently to the authorities and citizens. But unethical authorities, who cannot apologize for their illegal actions, continue to violate their own decisions. An example of this is the appointment of Chairwoman of the government agency, Communications and Information Technology Authority of Mongolia (CITA), B.Bolor-Erdene. She has served in the civil service for less than two years, but she was appointed as a ministry’s acting secretary in violation of the Law on Civil Service. The citizens are displeased with this. 
During its irregular meeting last week, Cabinet appointed Chairman of the National Development Agency Kh.Batjargal as acting state secretary of the Ministry of Economic Development, while Chairwoman of CITA B.Bolor-Erdene was appointed to the Ministry of e-Development and Communications. In order to make the appointments, CITA and the National Development Agency were dissolved.

Source: The UB Post

BUSINESS

MONGOLIA STOCK MARKET TURNS HEADS WITH 133 PCT GAIN

Mongolia has long been a