Mongolian Economic Development Lacks Good Management
According to the World Bank, economic growth in developing East Asia would drop down by 1-2 percent, reaching 8.5 percent approximately. “This change is related to the worldwide slow-down outcome, resulted by fiscal crisis in USA. In recent years, East Asia, especially China has become the supportive ground for the world economic growth, which maintains equilibrium of industrial countries of which growth has slowed down. In addition to it, East Asian countries, not depending upon US import decline and instability in the world financial market, maintain economic stability from 2007 to the commencement of 2008. Development speed of China is to fall down from 11.4 percent to 9.4 percent this year, however it maintains stability thanks to increasing domestic investment and consumption. As per Philippine, consumption growth increased due to transfer flow of money from overseas to the country has gone up. Economic growth rate of Indonesia reached 6.3 percent or the highest in recent decade. It was caused by increasing private investment and consumption. In Taiwan, where consumption and investment had stopped due to political instability, growth rate reached 4.8 percent or potential level. Domestic needs and demand in East Asia and Pacific region start to play major roles in the regional development,” says Vicram Naru, Head economist of Asia and Pacific region of the World Bank.
Last year, Mongolia’s economy showed high indices; GDP increased by 9.9 percent, main sectors driving the economy are agriculture and services. Foreign investments go mainly to mining sector however value added went up by 1.7 percent. It depends on coal mining. Road, trade and transport among the service sector showed growth rates. Decrease in currency rate in Mongolia reached 15.1 percent in the previous year, reaching the highest point as of recent decade because of rapidly increasing amount of money in the market. As of the first two months of this year, commodity goods index reached 17.9 percent, alerting the economy. Mr. Arshad M. Sayed, Country Manager and Resident Representative of the World Bank in Mongolia noted the importance of qualitative services in health and education sectors, as well as good governance and management in judiciary and justice in overcoming the barrier.
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