View the original newsletter here!
A new editorial from the East Asia Forum argues that Mongolia is stuck between opportunity and crisis. The article starts out by pointing the high level of economic and political uncertainly facing Mongolia over the past two years, and argues that factionalism rather than solutions dominates the parliament. Corruption and an unreliable civil service are also enduring problems. The article gives the IMF loan and the soon to come online underground Oyu Tolgoi mine expansion as two positive developments, however, neither of those will be able to bring prosperity to the country without a more thoughtful, purposeful government.
This week the parliament passed the 2018 budget. In the 2018 Budget, revenue is projected to be MNT 7.2 trillion. The 2018 State Budget reflects major expenditures including rebuilding of Central Wastewater Treatment Plant, implementation of ‘Mothers with salary’ program, increase of pensions in correlation with inflation rate and granting bonus to public servants for their accountability and excellence.
Also this week, the World Bank has approved a USD $25 million loan to Mongolia for the development of job creation programs. This should be a boost to the local economy and helpful to ensure that people at all levels of society are able to find well paying work.