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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Mongolia

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN MONGOLIA

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INTERNATIONAL COOPERATION

No information available.

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TRADE

Decision-Making: Coordinating Bodies

The integration of trade and environment policies at high decision-making levels is discussed in Standing Committees of the Mongolian Parliament.
The Nature and Environment Protection and Monitoring Agency at the Ministry of Nature and Environment is responsible for identifying "hot spots" in the integration of trade and environment issues.

Decision-Making: Legislation and Regulations

In 1999, Parliament modified the Law on Export Tariffs. According to this decision, tariffs on some of the export raw materials were increased, including wood materials. The main purpose of this decision is to protect the forest.

Decision-Making: Strategies, Policies, and Plans

Sustainable Development is an international universal concern and Mongolia supports the concept that sustainable development will be achieved through providing favorable trade conditions. The Mongolian Government is focusing its policy on achieving the objectives of the United Nations Conference on Trade and Development in which it actively participated. Recently developed concepts and recommendations are being reflected in the National Development Concept and are being implemented.

Decision-Making: Major Group Involvement

NGOs, trade and industry associations and the private sectors are included in consultations for the integration of trade and environment policies.

Status

For Mongolia, it will be important to include environmental protection issues in the legislative documents on trade, and conduct training sessions on integration of trade and environment.
Due to the decrease in copper and wool prices at the international market, production of copper and wool exports was reduced. There has been no notable change in the consumption patterns during the past years.

Capacity-Building, Education, Training and Awareness-Raising

For Mongolia, it will be important to include environmental protection issues in the legislative documents on trade, and conduct training sessions on integration of trade and environment.

Information

Information related to trade, investment and economic growth is accessible to potential users through the Ministry of External Relations and Foreign Direct Investment Support Agency.

Cooperation

Mongolia became a member of the World Trade Organization in July 1996.
On the basis of partnership relations, the Government of Mongolia provides various types of reports on issues related to trade, investment and economic growth to meet the requests of such international organizations as the World Bank, Asian Development Bank, IMF, WTO, GATT and UN agencies.

This information was provided by the Government of Mongolia to the 5th and 8th Sessions of the United Nations Commission on Sustainable Development. Last Update: December 1999.

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies

The main institutions that focus on the issue of consumption are the Ministry of Agriculture and Industry, the Ministry of Nature and Environment, and the Ministry of Infrastructure Development.

Challenges

The issue of changing consumption patterns is a new concept and not well understood in Mongolia. There is a need for awareness programmes on consumption and production and its consequences, and legislation encouraging waste reduction and changes in consumption patterns.

This information is based on Mongolia's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997.

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FINANCING

Decision-Making: Legislation and Regulations

Both environmental laws and FDI laws contain special articles that reflect policies directed to make foreign direct investment more environmentally sound.
In order to improve the budget expenditure composition, an insurance system has been introduced for the social welfare and health sector; measures have been taken to reduce public administration expenditures; charges have been introduced for occupational training courses; and the Government has intensified its control on budget revenues and expenditures.
Also, new forms of taxation have been created and executed, such as social insurance fees for retirement and unemployment, accident insurance, additional taxes on diesel and gasoline, income taxes on services, stamp duties and fees on the utilization of natural resources. Tax revenues comprise 28% of GDP or 80% of the state budget.

Furthermore, new economic instruments need to be created to:

Decision-Making: Strategies, Policies, and Plans

The Government is implementing a comprehensive policy-led activities phase which is aimed at:

Fiscal policy is directed towards the expansion of the budget revenue base, determination of the tax rate and the improvement of the tax collection system in order to ensure economic stability and to create a basis for sustainable growth.
Historically, big environment-unfriendly subsidies have not been paid from the state budget. However, attention has now been paid to this issue, and activities have been undertaken which deal with the reduction of pollution, restoration of land, and forestation.

Decision-Making: Major Group Involvement

Special attention should be paid to increasing the independence of the local governments from the state budget.

Programmes and Projects

To promote sustainable development the Government must undertake the following:

The Mongolian Government has adopted the National Poverty Alleviation Program. There is a National Council responsible for the implementation of the Program.

Status

Six years have passed since Mongolia began the transition from a centralized planned economy to a market-oriented economy. The process of reform that covers all aspects of social life occurred at the time of global reform and the collapse of the socialist system in the former USSR and other COMECON countries. As a result of many external and internal factors, the economic crisis deepened, and the living standards of the population sharply decreased.

However, as a result of the implementation of a comprehensive fiscal policy, changes have occurred in state budget revenues and expenditures as well as in the taxation system, thus making the financial system healthier.

Challenges

There is an additional financial need for the Implementation Support Group for the Mongolian Action Programme for the 21st Century (MAP-21), to promote public awareness, capacity building, and actions to support small projects that have been designed by the local communities.

Information

All ministries and agencies of Mongolia have access to the Internet. The World Wide Web Site on information related to financing sustainable development will be provided by the Implementation Support Group for the Mongolian Action Plan for the 21st Century (MAP-21).

Financing

There has been a significant improvement in the state budget situation. In 1995, the overall budget deficit was Tg 11.4 billion which is 24.6% lower than in 1994. The current account surplus is 2.9% higher than in 1994. The state budget expenditure is comprised of: wages 17.3%, subsidies to the local budget 11.2%, and state agency and social service expenditures 28.7%. In 1995, Tg 16.6 billion of subsidies were allocated from the state to local budgets totalling 33.8% of their total expenditure.

Cooperation

The Asian Development Bank and the Mongolian government has agreed on a policy to combat poverty through enhancing sound governance at all levels of administration. This policy takes effect in February/March of 2000.

This information was provided by the Government of Mongolia to the 5th and 8th Sessions of the United Nations Commission on Sustainable Development. Last Update: December 1999.

For information on participating States in the Global Environment Facility, click here:
For information about issues and projects in Asia and and the Pacific from the World Bank, click here:

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TECHNOLOGY

Transfer of Environmentally Sound Technology

Decision-Making: Legislation and Regulations

International environmental standards are being used selectively, specifically, those that are appropriate for Mongolian conditions. Development and environmental legislation and related documents include the means of promoting clean technologies and waste minimization processes. Ecologically clean products are given certificates.

Decision-Making: Strategies, Policies, and Plans

With regard to a national policy or strategy for the promotion of innovation in the area of Environmentally Sound Technologies (ESTs) there is a draft of a Law on Technology Transfer. In order to create the Environmentally Sound Technology Policy and Strategy, there is also a working group that is developing the Cleaner Production National Programme which should be in place in the near future. In addition, the Ministry for Nature and Environment has prepared a policy document entitled "Government policy on Ecology" for Parliament to consider. This document emphasizes the need for cleaner production.

Programmes and Projects

With the technical assistance of the Asian Development Bank, the "Strengthening Environmental Management of Mongolia" project is being implemented. Within the framework of the project, initiatives have been taken to monitor small- and medium-sized enterprises using environmentally clean technology and developing environmental standards for them.

Challenges

Although there have been initial efforts to promote cleaner production processes, not been much success has been achieved for the following reasons:
1. Shortage of investment sources.
2. Relatively low understanding on ESTs among businesses in the private sector.
3. Insufficient training and awareness activities on cleaner production and ESTs.

There are, however, some positive efforts among export oriented factories. An example is the shoe leather production company, "Buligaar", which reconstructed its technology and lines and it is starting production activities in the end of this year. It will use technology on recycling and reusing chromium solutions, which have negative impacts on the environment.
E.S.T.s are most urgently needed in mining, leather processing and wool, and cashmere processing industries.

Capacity-Building, Education, Training, and Awareness-Raising

The Government has been conducting training sessions on environmental technology applications for people involved in government and the business sector.

Cooperation

The Mongolian Government has actively participated in international cooperation in the field of clean technologies and waste minimization. Mongolia is widely using publications on environmentally sound technologies, though a national information system on environmentally sound technology has yet to be established. Mongolia does not have the appropriate technological capacity for creating links with regional information systems.

This information is based on Mongolia's submission to the 5th and 6th Sessions of the United Nations Commission on Sustainable Development, April 1997 and 1998. Last update: 18 February 1998.

Biotechnology

Decision-Making: Coordinating Bodies

The official bodies established to deal with legal and policy issues related to the environmentally sound management of technology, including biotechnology, are the Department of Science and Technology Policy, the Ministry of Enlightenment, the Ministry of Nature and Environment, the Ministry of Agriculture and Industry and the Ministry of Health and Welfare. In addition, several governmental bodies such as the Mongolian Academy of Sciences institutes as well as universities are involved in biotechnology research and development. Scientists, researchers (on molecular biology, microbiology, fermentation, embryo transfer, biochemistry, animal genetics, virology etc.) and producers are consulted.

Decision-Making: Legislation and Regulations

National legislation will be developed on the safe use of biotechnology/gene technology through the Mongolian Biotechnology Association (MBA), a new non-governmental organization, after having signed an agreement, now being formulated, with the Government. The draft should include issues on safe and ethically acceptable use of biotechnology/gene technology. It also includes provisions for public consultations to ensure active and informed decision-making by the public.

Status

"The National Biotechnology Programme Towards the Year 2000", initiated by the previous Government in 1989, is not currently being implemented due to the recent changes in the Government and the economic crisis.

Research and Technologies

The technologies used are manufacturing traditional fermented milk products in small holder levels and producing bacterial fertilizers. Embryo transfer in cattle and goats, radioimmunoassay and gene technology in medicine are being adopted. Molecular biology, microbiology, genetics and biochemistry laboratories exist in universities and academic and Ministry institutes. The most specialized units are: the Institute of Biotechnology, Mongolian Academy of Sciences, SHIM Research and Production Co. Ltd., MONENZIME, GENOMICS, National Center for Hygiene, epidemiology and the Ministry of Health and Welfare.

Financing

Money is allocated through the Science and Technology Foundation for all science and technology developments. There is no special foundation for biotechnology projects.

Cooperation

Regional and international cooperation has not yet been fully established though attempts are currently being made and issues are under discussion. Membership in the International Center for Genetic Engineering and Biotechnology is being discussed.

This information is based on Mongolia's submission to the 5th Session of the United Nations Commission on Sustainable Development, April 1997. Last update: 1 April 1997.

Click here to link to the Biosafety Information Network and Advisory Service (BINAS), a service of the United Nations Industrial Development Organization (UNIDO), which monitors global developments in regulatory issues in biotechnology.
Click here to go to the Web Site of UNEP's International Register on Biosafety.
Click here for the International Centre for Genetic Engineering and Biotechnology Biosafety WebPages
For information on the Mongolian Technical University click here:

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INDUSTRY

Decision-Making: Legislation and Regulations

Sustainable industry development is being considered in the MAP21 document first draft and the Ministry of Nature and Environment is working on the draft document "State policy guidelines on ecology".

Programmes and Projects

Reports have been prepared which includes issues such as national industry rehabilitation, subprogramms on export production and small & medium industry development. "Gold" and "Uran" programmes have been introduced to the Parliament to reach the industry development targets of the Goverment action program.

Status

The mining, energy and forestry industries considerably affect the stable consumption of the natural resourses. Energy production pollutes the air in urban areas which has a negative influence on human health . Moreover, many kinds of open pits, enriching industries and steel plants produce a lot of dust, heat and shrill which also have a negative influence on human health.

Challenges

For Mongolia, the urgent objective is to undertake a policy on development of ecologically clean production. In order to achieve this objective certain measures must be taken such as the development of ecologically clean production combining different types of environmentally sound mechanical, chemical and biotechnological production; formulation of standards and norms of ecologically clean production and development of laws and economic mechnisms, should be taken.

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TRANSPORT

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SUSTAINABLE TOURISM

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