Just a few decades after the shift from Mongolia’s communist era to a market economy, the country’s industrial base remains small. Government support for the sector and some significant natural resources work in its favour, but several factors present obstacles to growth. They include geography, infrastructure, corruption and bureaucratic hassle, and the lack of a systematic approach to developing industries or a marketing effort for the finished products. Being situated next to China…
Industry and Retail
From The Report: Mongolia 2012
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Landlocked in part by its rapidly industrialising neighbour, China, Mongolia’s potential for manufacturing and other industry is limited by factors beyond its control. The government has responded to these challenges by focusing on areas of competitive advantage. Cashmere, for which Mongolia could supply up to 30% of the world, has proven an excellent export commodity, and producers are hoping to boost the amount processed in country. One related strategy is for Mongolia to develop itself as a brand for premium agricultural products, trading on its image as a remote and spiritual land. The government’s plans for traditional industrial development, meanwhile, depend on the development of Sainshand Industrial Complex, which will specialise in processing Mongolia’s abundant mineral resources.
This chapter features an interview with T. Badamjunai, Minister of Food, Agriculture and Light Industry.