Vision 2050 and New Recovery Policy

In December 2021, Oyun-Erdene introduced the New Recovery Policy (or New Revival Policy) as part of Mongolia’s Vision 2050 program, focused on diversifying Mongolia’s economy, supporting the country’s recovery from the COVID-19 pandemic and driving long-term development. The policy contains six pillars with each aimed at tackling existing economic constraints and unlocking growth in the following areas: border ports, energy, industrialization, urban and rural development, green development and state efficiency.^[10]

Partially as a result of the New Recovery Policy beginning to be implemented, the country’s economy grew by 4% in 2022,^[11] having been forecasted to grow by just 2.6%.^[12] The Mongolian budget deficit was reduced by 60%, with exports increasing.^[13] In December 2022, the Government announced that Mongolia had paid off the 1.5 billion USD ‘Chinggis bond’, a key milestone in the country’s long-term debt management strategy.^[14] In 2023, the European Bank for Reconstruction and Development forecasted that Mongolia’s economy would see 7.2% growth in 2023 and 7.5% in 2024.^[15]

Under the New Recovery Policy, Mongolia has already built the Zuunbayan-Khangi rail link, which opened in November 2022, and started construction on the New Settlement Zone of Khushigt Valley. Other New Recovery Policy Projects completed in 2022 include the Borkh solar thermal power plant charge storage system in Uliastgai and the solar thermal power plant hybrid system in Altai soum.^[16][17]

Tourism

On 29 November 2022, the Government of Mongolia unveiled a major package of measures to promote the country as a growing tourist destination.^[18] This included the Government launch of its ‘Welcome to Mongolia’ campaign, as well as designating 2023-2025 as the ‘Years to Visit Mongolia’. The aim of the campaign is to encourage overseas travelers to visit Mongolia for both leisure and tourism. The Government’s reforms are focused on opening up more travel routes, modernizing Mongolia’s visa system and reducing the cost of flights to the country.^[19] In June 2022, Mongolia started allowing South Koreans to enter and stay without a visa for up to 90 days.^[20] In January 2023, nationals of 34 countries became exempt from visa requirements for those traveling to Mongolia for tourism purposes.^[21] In August 2023, during Oyun-Erdene’s visit to the United States, the Prime Minister met with Vice President Kamala Harris and held a joint press conference. During the visit, it was announced that there would be direct flights between the US and Mongolia starting in 2024.^[22]

Digitalization policy

In December 2022, Oyun-Erdene’s government launched its new online procurement portal, Mindgolia, to boost the country’s tech sector and to transition the country’s economy “from mining to mind.”^[23] The website allows companies to search for products by software category, view reviews, and choose products and services by looking at other people’s ratings of them.^[24] In April 2023, Oyun-Erdene launched the E-Business online platform to help businesses start and grow more easily, cutting down on bureaucracy and waiting times by streamlining exchanges between government and business.^[25] At the Mongolia Economic Forum in July 2023, the Government announced an agreement with SpaceX and Starlink to launch a new era of high-speed internet connectivity.^[26] Mongolia now has two licences for SpaceX to operate as an internet provider in Mongolia using low-orbit satellites. In August 2023, during Oyun-Erdene’s official visit to the United States, it was announced that Google would be partnering with Mongolia to enhance the digital skills of Mongolian teachers and young people, including the provision of 20,000 Chromebooks to schools.^[27]

Mining

On 13 March 2023, the Prime Minister joined Rio Tinto CEO Jakob Stausholm 1.3 kilometres (0.81 mi) underground to celebrate the commencement of underground production at the Oyu Tolgoi copper mine in the Gobi Desert.^[28] A partnership between Rio Tinto and Mongolia, the Oyu Tolgoi open pit and concentrator have been operating since 2011. The total workforce of Oyu Tolgoi is currently around 20,000 people, of which 97% are Mongolian.^[29] Oyu Tolgoi works with more than 500 national suppliers and has spent around $15 billion in Mongolia since 2010, including $4 billion of taxes, fees and other payments to the state budget.^[30] According to Rio Tinto, Oyu Tolgoi is expected to produce an average of 500,000 tons of copper per year from 2028 to 2036 from the open pit and underground, which would be enough to produce around 6 million electric vehicles per year, and an average of close to 290,000 tons over the reserve life of around 30 years.^[31] 

Speaking at the commencement ceremony, the Prime Minister said “I am proud to celebrate this major milestone with our partner Rio Tinto as we look towards Mongolia becoming one of the world’s key copper producers. The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia’s ‘New Recovery Policy’ and Vision 2050 economic diversification strategy. Mongolia stands ready to work actively and mutually beneficially with global investors and partners.”^[32]

Anti-Corruption

During the December 2022 Mongolian protests, thousands protested in Mongolia’s capital against alleged corruption in Mongolia’s coal industry and inflation.^[33] As part of the New Recovery Policy’s pillar to tackle corruption and in light of these protests, the Prime Minister put forward an initiative to change the governance of Erdenes Tavan Tolgoi JSC (ETT), making the company public. This was aimed at improving transparency within the mining sector.^[34] The Prime Minister also set up a six-month investigation into ETT.^[35] In January 2023, Mongolia took further steps to crack down on corruption by passing the Commodities Exchange Law, which requires state-owned enterprises to trade export commodities on a new mining commodity exchange.^[36]

In January 2023, Mongolia’s anti-corruption authority announced that over 30 officials, including the chief executive of Erdenes Tavan Tolgoi, were under investigation for embezzlement.^[37] In May, the Mongolian Parliament passed constitutional amendments to enlarge the legislative body, from 76 members to 126, and adopt a more proportional electoral system for the 2024 elections. Oyun-Erdene stated that the proportional system would prevent the government being used for private gain.^[38] In July 2023, Mongolia became the first APAC country to implement all 40 recommendations from the Financial Action Task Force, and the fifth globally.^[39]

Foreign affairs

In January 2024, Mongolia stated that it seeks to institute a summit where Mongolia, China, and Russia can further develop economic opportunities, including the China-Mongolia-Russia Economic Corridor, one of the six major land corridors of the Belt and Road Initiative.^[40] That same month, Oyun-Erdene described relations between Mongolia and China as at their highest level and described the two countries as working towards a comprehensive strategic partnership.^[40]