Foreign currency reserve was 1 billion US$ and it is decreased down to 700 million US$. Mr M.Enkhsaikhan, former Prime Minister and Deputy Prime Minister of Mongolia, has his views.
Q: You and your party warned about the world economy crisis much before the election. What was the reason of your prediction and why you warned it instead of economists?
M.Enkhsaikhan: Before the election, there were enough warnings about food crisis. When food price increased, people are getting poor. We warned about it. I also mentioned about that we Mongolians and our Government and State are not ready for the big crisis, changes and challenges. Today, the world crisis shall affect us and our economy in minor or major scale. These politicians have to worry about how to get through it easily and with less loss. I hope that the State Great Khural and Government worry about it already.
Q: Did you advise to Prime Minister?
M.Enkhsaikhan: Some researchers and I sent an official letter to the Ministry of Finance, about our readiness to prepare technical advice for it. I have no reply. If read interviews of S.Bayartsogt, the Minister for Finance, he thinks that this crisis is made by journalists. Therefore, I understand that even Prime Minister might have such a thought and feeling also.
Q: Prime Minister S.Bayar said that someone who was Prime Minister before threatens people through inevitable crisis in Mongolia. Is he addressed to you?
M.Enkhsaikhan: I don’t know, many Prime Ministers. R.Amarjargal, D.Byambasuren, Sh.Gungaadorj, D.Sodnom, warned that the economy is in trouble. They all gave interview. When I read these articles, I thought that people who have experience and saw hardship are always veterans in their field.
Q: What kind of advise can you give in relationship with the crisis?
M.Enkhsaikhan: It is ridiculous if I advise through newspaper. First of all we should diagnose our illness correctly. Then politicians and economists can join in its treatment. If the diagnosis misses the target, then treatment will surely be missed. Our diagnosis is “dementia”.
Q: Countries of the world are taking measures to handle the crisis. What shall we do?
M.Enkhsaikhan: Not only domestic but also external factors and leverages are important for the economy. We can solve the domestic resources through debating, discussing or even quarrel, but we shall worry about the foreign resources. Ukraine, Hungary and Pakistan made request several billion US$ from IMF. We should act like this way. Our foreign currency reserve was 1 billion US$ and it is 700 million US$ now. The State Great Khural shall pay attention on why it decreased that much. If we don’t have money one day, then it will be too late to take urgent reaction.
Q: Shall Mongolia fear from inflation or crisis?
M.Enkhsaikhan: Sudden increase disables the State ability to monitor and management. But election promises 1 and 1.5 million MNT will destabilize state monetary and fiscal policy.
Q: You talk about many innovations in social wealth distribution. Is it true to start it with 1.5 million MNT?
M.Enkhsaikhan: Those election promises well served its political task. It is enough now. I don’t care about how to justify their lie using world financial crisis or not. Now we need to give up from this thought. Otherwise inflation would be hyperinflation.
Q: What is your position towards the Government of S.Bayar? You cooperated with him more than once.
M.Enkhsaikhan: I hope that they established cooperation with direction and tasks to develop country instead of dividing petty income or wealth that we have now. We talked about that the lost parties in election must become “swap horse” for the winning side. We need political culture that understands Mongolia as one source of Human Resource and recruit those who understand and have knowledge.
Q: Today, state monetary policy and main principles of economy and society development in the next year, are under discussion. What kind of main mistakes can be observed?
M.Enkhsaikhan: The biggest mistake is that when word and acts have big gap. Our state structure imposes the biggest obstacle in focusing one economy policy. Our politicians will understand it very soon.
Q: What were you doing when the riot in July 1st had happened? What brief conclusion can be made on it?
M.Enkhsaikhan: When studying the incident, it has its system. I can’t agree with the punishment form the court to the children and youths. It is also unclear that what is the State Great J=Khural doing. I think it must pass the law on mercy. Unification and mutual understanding is essential in the society rather than rivalry and fierce positions. Leaders of MPRP and DemParty shall bear responsibility for the incident of July 1st.
Q: Being as a statesman and economist, what do you expect from the new amendments of the Mineral Law of Mongolia?
M.Enkhsaikhan: I don’t want them to ruin everything again when they felt sorry and regrets. According to the experience of other countries, it is very critical and serious issue to take back.
« MP Batj. Batbayar: It is time already to issue special resolution on Tavan Tolgoi and Oyu Tolgoi Dr. Graeme Hancock, senior mining specialist for the World Bank’s Oil, Gas and Mining Policy Division: Mongolian banks are potential »