B.Tugsbilegt
Popularly perceived as successor of Future Mongolia, held to much acclaim in 2012 and again the next year, Expo Mongolia 2015, organized by Planetfair and JV Messemanagement in Buyant Ukhaa sports complexin Ulaanbaatar from March 23-25, was a huge success, bringing some hope that Mongolia would soon be out of its present economic difficulties. Billed as “A mining and multisector tradefair”, it brought together as many as 80 companies, enough to encourage one to trust that the light at the end of the tunnel would soon be seen. The expo was supported by the German Federal Ministry for Economic Affairs and Energy, and VDMA–the German engineering federation.
Speaking at the inaugural event, Minister of Mongolia M.Enkhsaikhan highlighted the importance of standardized service, equipment and operational skills for Mongolian development. He noted ways in which the Mongolian government is working towards creating a good investment environment. For example,Mongolia is preparing to join the Convention of Multilateral Investment Guarantee Agency and the Asia-Pacific Trade Agreement. It has also entered into an Economic Partnership Agreement with Japan.
Gerhard Thiedemann, the Geman Ambassador, noted that it was crucial for Mongolia to regain the trust of foreign investors. He felt the presence of a significant number of German companiesat Expo Mongolia was a clear indication of their eagerness to do business with and in Mongolia. He announced that the comingautumn will see another important event in Ulaanbaatar, to celebrate German-Mongolian Cooperation Day.
Going around the fair, one could see how it was a draw. The French and the Czech RepublicAmbassadors were there, as were representatives of the German Ministry for Economic Affairs and Energy, VDMA, DMUV (the German-Mongolian Business Association), the Mongolian National Chamber of Commerce and Industry, CzechTrade, companies, etc.
The Polish connection
Ewa Swedrowska from Poland’s Ministry of Economy said her country was interested in cooperating with Mongolia in the areas of mining equipment and food products. In the course of a presentation titled “Made in Poland-Cooperation Opportunities for Mongolian Companies”, she revealed at a subconference that Poland had decided to expand its cooperation with 11 countries including Mongolia. Among other participants in this event were the President of the Mongolian National Chamber of Commerce and Industry,B.Lhagvajav, and representatives of the Polish Ministry of Economy, the AGH University of Science and Technology, and business giants such as Ewa-Bis, Kopex group, Aplanalp Consulting, and Tines Capital.
Poland has wide experience inminerals extraction and in coal and copper processing. Their mining technology sectoris developing in ways that are eco-friendly. Poland manufactures quality agricultural and mining equipment, particularly for underground coal mines. Some of the more well known companies in this area arethe Kopex group, Elger-Hansan, Dalbis, and Famaga.
We talked to some participants on the sidelines of the expo.
“Rules and standards here must improve”Monika Hollacher is responsible for the Russia, Eastern Europe, and Central Asia section at the German engineering association, VDMA.
Right now, the Mongolian economy is not doing well because of falling commodity prices and lack of FDI. How do you see its long-term prospects?It is true that the Mongolian economy is facing problems, but you still have over 6 percent growth, which is not bad, if you think of many other nations. I think the Mongolian economy will have to go through a process of consolidation before it can get back to growing at a faster rate. I also think just exporting raw commodities is not enough, you have to produce value added products.
In 2011, Germany and Mongolia signed a memorandum on cooperation in mining and industrial activity. How has the cooperation progressed? German companies are waiting for the general investment environment to improve. They are wary of putting their money in Mongolia where they find rules and standards to be very unclear.
Will Expo Mongolia continue to be held even if the Mongolian economy does not get a boost in the next few years?
Yes. I think we shall continue with this exhibition because relationships have to be forged even ifthe economic scene is difficult. Only then can we be ready when the page turns. Our countries are far from each other and it is very important to keep this exhibition active to retain the interest of companies and people.
What other sectors are you considering for cooperation?Our initial interest is in mining equipment, construction and agricultural machinery, food processing and packaging. Renewable energy has goodprospectshere.
How is the German economy doing in the present worldwide difficult times?I would say the world economic outlook is stable now, as 3 percent growth is quite good. Our economy has grown 1 percent, but for Germany that is normal. A highly developed economy like ours cannot grow 6 percent as you.Our economy is doing well, and our own projection for machinery this year and the next is very strong. True, some markets like the Russian are shrinking rapidly, but others are back in the growth path, for example the USA. The Chinese economy is growing more slowly, but it is growing. We hope the next two years are all right for Germany, and we can only wait and see what happens to the euro if there isa financial crisis in Europe.
I have a question on the energy sector. Germany is planning to dismantle all its nuclear energy plants. Will this not lead to higher greenhouse gas emission? This is important for us as Mongolia plans to build nuclear energy plants in the future.
Our government decisionis to shut down all nuclear power plants by 2020, but the target may have to be missed, as the task is proving to be more difficult than expected. Future power supply depends on renewable sources such as wind, water and the sun. This change is both a challenge and an opportunity for innovative German technology to solve.