Writing a new law draft to regulate cooperation of private entity and the government

MMJ reporter met with L.Zorig, Vice Chairman of the National Development and Innovation CommitteeWhat is important about economy diversity in your opinion? What are weak points about economy that is solely dependent on products from mining industry?Diversity in economy is important and is related to the economic safety of the country. Presently, developing countries no longer depend on one industry, and rather transit to a system of multi-industry economy. Diversity has been started from complete processing to make agricultural and mining end-products of few varieties are used to be exported. Economic diversity is made according to climate, economic capacity and condition of country, and as well as the need or demand of neighboring countries. This impacts development of the country and enables opportunities to get involved in the global economic integration.  As for Mongolia concerned, mining industry is quite developing, which results in it  provides large percentage of the gross domestic product, volume of export and revenue of the state budget. It has both advantage and disadvantage. Advantage is possibility of making money when price of mining product is increasing at the world market and when needs or demand are high for the product. Disadvantage is the economy depends on few varieties of product. Lately this trend has impacted our economy severely. As copper price drops down at the world market, it impacts the budget and revenue, which results in the income become not sufficient enough for the budgeted expenditures, which create risk. There is no other industry to fund on-budget projects. The term “Diversification” nowadays has become used word to stress a substantive importance about Mongolian economy. What would be most adequate Mongolian term for that?What would be exact economic term in Mongolian, I do not know. To my knowledge, that is economy with range of producers or it might have different other meanings. In our language, one can say it is multi-based economy, which means not solely mining industry but many other industries to be developed. That is one way of how economy can expand. To rely not only on few industries such as animal husbandry, mining, but we have possibility of developing tourism, processing industry etc other industries in the country.  Subscribe to our journal for full information