HELPING REVITALIZE MONGOLIAN ECONOMY
Mongolia, a country of 3 million people with an economy of 12 billion U.S. dollars in size, is facing the worst economic crisis since 2009.
The new government led by the ruling MPP is trying to win investor confidence, cut government spending and find solutions to its mounting foreign debt.
The Belt-Road Initiative is expected to help Mongolia overcome the crisis, as many see China -- Mongolia's largest foreign investor and trading partner -- as a major source of foreign direct investment and the largest "market" for its products and services.
"If we can become a part of the Chinese Belt-Road Initiative, receive Chinese technology and know-how, push forward large projects and utilize our geographic advantage, it is not difficult to overcome the crisis," said Banzragch Munkhtuul, director of the Mongolian newspaper Mongolyn Medee.
She said that Mongolia's geographic advantage of locating between Russia and China offers it a chance to boost transit trade, logistics and transportation between these two countries.
About two weeks ago, China's National Development and Reform Commission unveiled the guideline of a China-Mongolia-Russia economic corridor focusing on seven areas, the first of its kind for multilateral cooperation within the framework of the Belt-Road Initiative.
Mongolian Ambassador to China Tsedenjav Sukhbaatar said that the plan to build the economic corridor is a milestone in history and Mongolia is planning to develop special foreign investment zones to attract investment.
Mongolian economists and public figures believe the Belt-Road Initiative will offer more export opportunities for Mongolia to boost its logistics and transportation between China and other countries through its territory.
They say Mongolia has abundant raw materials and mineral resources such as coal, copper and iron ores needed by China, which serves as the basis for mutually beneficial cooperation between the two countries.
Meanwhile, they realize that it is imperative for Mongolia to get rid of heavy dependence on the mining industry and explore new sources of economic growth.
The Belt-Road Initiative is expected to bring new opportunities for the development in areas such as the mining industry, agriculture, stock farming, light industry, tourism and construction of free trade areas.
For instance, Mongolia boasts 73 million heads of livestock farmed by about 200,000 herder households in the vast countryside. Currently, the country's agricultural products lack market access and the government wants to sell them to big consumer markets including China, according to Mongolian media.
However, the country's poor infrastructure and ineffective veterinarian and vaccination services have proven to be a big trade barrier.H Within the framework of the Belt-Road Initiative, these herders face a better prospect of transporting their meat and dairy products to China in a better and fresh condition, media reports said.
