Interview with MP O.Chuluunbat: To become the factor that without Mongolian copper, the Chinese factories to be in trouble

Sep 4 • Business, Economy, Government, Interview • 534 Views • No Comments on Interview with MP O.Chuluunbat: To become the factor that without Mongolian copper, the Chinese factories to be in trouble

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Q: Inflation reached 33%. Can Bank of Mongolia and The Ministry of Finance take right measure to harness the inflation?

Chuluunbat: Yes, inflation reached 33%. Not only Bank of Mongolia is the guardian of inflation. Inflation is not because of sole policy of Mongol Bank, but it is fueled by budget policy. During the last two years, the budget expenditure has increased by 70%. It is over 100% including this year’s increase. Such big expense definitely accelerates the inflation. If the budget expense was devoted for the investment, then it won’t be like this. All expense was spent only for the pocket, therefore everybody spend their money in shops. In this sense, inflation was fueled by budget policy not by the policy of Bank Mongolia. The Bank of Mongolia is trying to harness the inflation, but measures don’t show any effect. The Bank of Mongolia has some other measures. It will probably talk with the Parliament and Government.
Q: If “portion of treasury” or “Grant of the Motherland” is started to be distributed, then will it influence the inflation?

Chuluunbat: if it is distributed through cash, then it will affect inflation a much. But there are so much preparation work is needed before distributing it. According to my calculations, this work can be realistic by 2012. If things go well, then this time is the earliest. In order to distribute it, the Mongolian economy shall be integrated with the world economy and become part of it. Without it better forget about it. If we become one part of it, then world well-known exchanges can evaluate and sell our mining projects. As for today, even we have so much gold and mineral in under ground, nobody will buy it. Because we are not integrated with the world in politics, economy, financially and society.

Q: How many years needed for Mongolia in becoming a part of the world?
We are working for it since 1991. But we have been working how to full our stomach rather than becoming a part of the world for 18 years. The begging has become our strategy during this time. We should halt of begging. Otherwise, other countries spare us their worst and mock us up. Lets take an example, one gives us a million US$, when we beg. But around 800 thousand of it goes as salary of a old man representing the country. We has been taking such a grant for 18 years. Today is the time to reject it and create.

Q: In order to be integrated, what measures shall be taken by the Parliament in next 4 years of term?
Chuluunbat: Politically, our country is democratic. But now, as for the economics, we should learn how to play according to the rule of the world market. For example, parliament shall not change, amend or alter its law after passing it. We shall learn to play according to the common rule of the world. From today, we shall not distress or diminish people who is working and creating. Our country rewards only those who work for the state and dependant on the state budget. But we shall not put down or distress people who is working in construction or mining. Policy is going wrong. Actually, we shall strive and fight to form and establish the system that is rewarding those who is working hard to build treasure to the country.
Q: Bank of Mongolia and the Ministry of Finance think to shrink budget in order to harness inflation. But the people who stretch or expand the budget are MPs. They make it big in order to distribute as much as possible to their electoral district. Can you resign or give up such phenomenon during the parliamentary discussion of the budget?
Chuluunbat: If we have much money then we shall spend. But we shall not distribute the budget for today’s type of expenditure. Our expense goes only for the consumption. The budget cannot be distributed for the expense that directly goes to shops. I don’t want to consider the budget based only on my electoral district. Also, I would like to challenge other fellow MPs for this attitude towards budget. If everyone pays attention only for their electoral district, then the Mongolian economy will collapse. Therefore, we shall consider and discuss the budget through policy and well-established way.
Q: When gas price is increased, then all other products’ price is increased. Is this right?
Chuluunbat: Gas is the main import product. Therefore, it affects in every price. If our economy is big enough to absorb the gas price, then there will be different issue, but our economy is so small to be affected by the gas price.
Q: Private sector has been compensated a much. It is right?
Chuluunbat: No. It is very wrong. Our state budget is like paying for everyone. It paid for the children, then flour importers, farmers, gas importers. Now it is going to compensate cashmere. It is going to pay for everyone at the end. But only one issue that is still so absent is how to make this money? Such subsidiaries create idle people and idle class and encourage social parasites. But in contrary, if we want to develop and grow, then we Mongolians shall be very hardworking and labor loving.  Then we can compete in the world arena.
Q: Government compensation is the taxpayers’ money?
Chuluunbat: Yes, absolutely. We are taxing people who are working hard and making money and compensating those who are sitting in their home idly.
Q: How can we go through this economy recession with less harm?
Chuluunbat: We shall bring our economy in high level only by developing our economic cooperation with our two neighbors. Therefore, we shall be deeply integrated with these tow country and shall strengthen our position and role in their economy. For example, we need to become the factor that without Mongolian copper, the Chinese factories to be in trouble. Only through it, China will become dependent on us, in reverse. We shall form such condition. Otherwise, if China integrated deeply with Indonesia, Chile and Australia, then it will not pay much attention on us.

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