market overview However the challenge posed by the country’s transformation into a global source for raw materials and minerals lies in the appreciation of currency (the Togrog) and inflation that may negatively impact on the other local industries such as that of cashmere, with particularly harmful effects on the 29.8% of the population tha still lives in poverty, although the figure has dropped dramatically from the 39.2% registered in 2010. Another problematic issue is the environmental risk associated with mining activities and related pollution, towards which Mongolia’s population, that mainly belongs to Buddhism and shamanistic religion, has a very careful approach. The government aims at regulating this industry, which is set to bring unprecedented wealth into the country, according to principles of sustainability and responsible mining.
Infodent International 3/2012
Considering the turbulent global economic conditions the government of Mongolia is expected to adopt measures that seek macroeconomic stability and may reduce the amount of public expenditure, at the same time focusing it on infrastructure and investment in the human capital to enable the country’s population to take advantage of its mineral wealth.
The National Development Strategy envisaged for the years 2010-2015 include: • Targeting the energy problem using domestic producers
• Starting oil and raw material processing to integrate the simple extraction or mining activity with more technology-intensive industries • Establishing industrial parks
• Keep public investment at 8-10% of GDP
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