World is under financial and now economy crisis. World Bank Resident Representative Arshad Sayed shares his opinions and views. World Bank challenges the Governments of the World to cease its ineffective expenses and support socially vulnerable strata of the society.
Mr. Arshad Sayed has his word regarding Mongolian economy.
Q: What we need to do in order to cease our expense?
A.Sayed: Government of Mongolia shall cease its ineffective expenses. It shall be against of acts such as increasing salary and subsidy without economic arrangements. If the current economy situation imposes pressure on those who are socially vulnerable part of population, I would say yes. Three “Fs” (Food, Fuel, Financial) crisis affects economy of the world. According to the study, this crisis affects the economy of poor or under-developed countries.
Q: What measures are required from the Bank of Mongolia?
Arshad Sayed: I think, Bank of Mongolia is doing good work. Nevertheless, its responsibility and duty are the most important for the level of the Bank Administration. The Bank of Mongolia shall work hard on securing guarantee favorable environment for the businesses in roder to prevent inflation.
Q: Does Mongolia need mining program?
Arshad Sayed: In relationship with the decreasing price of copper commodity in the world market, the Mongolian Government can close its social welfare and protection programs and decrease other expenses. It also shall consider the urgent development of mining industry and realization of its mining projects in short term. It can bring profits and benefits from major projects. It must not forget about its attention on foreign investment. Mining life continues 3-50 years. Therefore, it is really hard to predict and imagine what it will be in 5-10 years. In order to gain something, one should move on. Therefore, I think it is better to wait will happen, without worrying of price increase or loss of time.
Q: Will you present the above-mentioned issues during the Forum on economy policy on October 28 2008.
Arshad Sayed: Sure thing. I cannot postpone this issue. I hope you will hear lot about the most appropriate measures needed to be taken during this crisis time, what measures are required in order to prevent from the credit system failure and to establish stability in economy, what experiences and know-how are being implemented in different countries and so on.