Mongolia’s private and secondary schools held their first forum on January 26. A. Tsanjid, the Minister for Education, Science and Culture, observed that the influx of private schools will provide a much-needed boost to improving teaching standards through increased competitiveness, although he admitted that private and state schools are currently unified by poor teaching standards.
The first private secondary school was founded in 1993; today. There are seventy-seven private schools, and 6.6% of all Mongolian students attend them. Private secondary schools charge students between T15,000 and T500,000 per annum, which is equivalent to the fees charged by higher education institutes. Yet the quality of their curriculum is often poor. There is a lack of teachers, and the schools generally don’t own their own buildings, which are usually rented out by the state. Meanwhile, state schools cannot cope with the number of pupils crammed into their dilapidated buildings.
The Minister of Education has announced that from now on, permission to establish a private school will not be given unless the organisation possesses its own building.
A survey of thirty private secondary schools found that subjects such as Mongolian language, literature, and music classes were taught between 10 and 100 hours less than is standard. Some classes were taught by unqualified teachers, and many did not have sufficient training materials, leading the Ministry of Education, Science and Culture to conclude that Ulaanbaatar’s private schools offer a sub-standard education when compared to local state schools.
The Ministry of Education, Science and Culture approved across the board teaching standards in 1998, but these are violated by private schools. The directors of private schools assert that they offer flexible teaching programmes and a lower pupil-to-teacher ratio, and that their teaching standards and programmes meet the expectations of parents and the requirements of students. Most private schools specialise in foreign languages, mathematics, music, and computer studies, to the detriment of other subjects. Unlike state primary schools, private primary schools teach foreign languages.
The government spends T64,000 per year on each state primary school student, T68,000 on each state secondary school student, and T72,000 on each state high-school student. Fifty-one percent (or T21 billion) of Ulaanbaatar’s budget is spent on the education sector. The amount allocated to each student is split between paying teachers’ salaries, books, and electricity.
P. Dorj, chairman of the Education Office of Ulaanbaatar, has said that they are considering funding those private schools that provide a sound state education and extra classes. Private schools currently do not receive any state funding. Dorj has also said that permission may be given to private schools so that they can build their own buildings.
The government says that 50,000 jobs will be created in 2001. Twenty-five thousand jobs will be created through foreign investment; 15,000 jobs by the Millennium Road Project; 10,000 jobs by implementing an environment campaign; and 25,000 jobs by banks providing loans for people to set up small businesses.
Mongolia and Buryatia Cooperate
Mongolian and Buryatian youth organisations signed an agreement on January 26 that will permit a children’s summer camp exchange between the two sides. Excursions will be organised for youths to Baikal and Khovsgol Lakes, and Buryat surgeons will attend a research meeting in Mongolia.
Zud Assistance Update
The government of Mongolia and the United Nations launched an appeal on January 20, 2001, requesting US$11,778,857 in assistance for Mongolians suffering from the zud.
[…] As of today, 100,000 herders with 20 million livestock from 192 counties in 20 provinces are affected by the zud. As of January 25, some 605,000 animals had already perished. Herders are becoming exhausted. […] As many as six million head of livestock - about 20% of the national herd - could perish during the next four months, more than twice last year’s losses. The requested contributions targeted for key sectors: livestock survival ($3,996,027 in cash and $4,682,248 in kind), health, water and sanitation ($2,386,582), nutrition ($608,000), and programme support and capacity building in disaster preparedness ($106,000). The appeal covers a four-month period, from February 1 to May 31.
Ten Members of Parliament Travel to America
A group of ten Mongolian Parliament members headed by the Chair of the Standing Committee on State Structure, D. Demberel, will go to the United States for a three-week International Visitors Program from January 29 to February 17, 2001, sponsored by the United States government through the Department of State. This important exchange programme will focus on the procedures and structures of the federal government, cooperation between state and local governments, free press in a democratic society, and civic education.
Members of Parliament will go first to Washington, D.C., for one week, and then travel to the states of Florida, Ohio, New Mexico, and California. In Washington, D.C., Parliament members will have meetings with the U.S. Congress to discuss the functions of a congressman’s office. Meetings at the Congressional Institute will present training programmes for members of Congress and explain the rules and ethics of the U.S. House of Representatives. The Mongolian officials will meet with representatives of the Voting Section of the U.S. Department of Justice to discuss federal efforts to ensure voting rights, and with the Freedom Forum for an overview about constitutional guarantees of freedom of the press in the U.S. and the relationship between the media and government.
Autumn Session of Parliament Closes
The last meeting of the autumn session of Parliament was held on February 2. The session decided that the date of the presidential election will be announced on March 20, and that Parliament will vote for the election on May 20. The Parliament has confirmed that it will spend T462,534,000 from the state budget for the first stage of the election.
During the session, Parliament made amendments to banking laws, to provide more security for customers. MPs debated the issues to be discussed in the spring session.
The autumn session lasted 89 days. During this time, Parliament discussed and passed 105 laws and resolutions, introducing thirty new laws, while twenty-eight were amended. Forty-six resolutions were made relating to current issues.
Parliament Speaker L. Enebish stated that “they were all significant in creating stable economics, overcoming financial problems, and solving social issues during this transition period to the market economy. As a result of passing the law of special permission for economic entities and the law of energy, an environment has been created within the main sectors of the economy to carry out structural changes and to abolish bureaucracy when opening new businesses.
”The Parliament has adopted a law on the Mongolian National Commission of Human Rights and appointed the head and members of the commission. Based on the experiences of the two previous presidential elections, we will henceforth announce the date of the elections sixty days before election day, limit the amount of donations from organisations and individuals, and establish new rules for running media campaigns. I believe that these will be helpful for the democratic development of elections.”
The spring session of Parliament will commence on April 5.
Ten Years of Freedom of Speech
The following are excerpts from an interview conducted by B. Indra and Ts. Dashdondov, President of the Mongolian Free Democratic Journalists Association
Summing up the year 2000, Dashdondov said, “Mongolians have just experienced a year that was both positive and negative. The main event of 2000 was the Parliamentary elections. The result of the elections was both interesting and true: the democratic forces failed during their four years of power. They showed their inexperience, and the people of Mongolia evaluated their performance by voting them out. The Democratic Party lost 72 out of 76 years.
”The arrival of free press has brought an added diversity to Mongolian society. It ushered in freedom of speech, differing opinions, a platform for people of different political persuasions. It has changed the face of journalism, bringing together a group of journalists possessing political and civil courage.
”There are some that talk about freedom of the press, but they demean it by their lack of responsibility and professionalism. If we want to develop real press freedom, we need to follow an ethical code; it’s a key to balanced reporting.
”A survey conducted in 1995 by the Journalists Frontier concluded that Mongolian press was considered ‘partly free’. According to Freedom House’s annual survey of press freedom in 2000, Mongolia is now listed in the category of ‘free’. The survey showed that a total of 69 countries - half the world’s nations and 20% of its population - have full freedom of the press; fifty-one were ‘partly free’, and sixty-six were ‘not free’.
”However, the International Federation of Journalists considers that there can be no freedom of the press if journalists live in conditions of corruption, poverty, and fear. Mongolia has all of these.”
President Bagabandi Meets Kim Dae-Jung in South Korea
Mongolian president Natsagiin Bagabandi and South Korean president Kim Dae-jung agreed on February 12 that their two countries will form a “knowledge partnership” to share South Korea’s experience in economic development. Under the agreement, Seoul will send a group of experts in the fiscal, tax and financial fields to advise their Mongolian counterparts.
President Bagabandi arrived in Seoul earlier yesterday (February 11) for a four-day state visit mainly aimed at boosting bilateral ties. President Kim visited Mongolia in May 1999. The two countries established diplomatic relations in 1990.
He received an honorary doctorate Tuesday from Sogang University, where his daughter, B. Bayarmaa, studied economics at its graduate school from 1996 to 1998.
Around one hundred dignitaries accompanied the Mongolian president on his tour of the Kia Motors automotive plant, including a number of government ministers, lawmakers, and businessmen.
An agreement was struck on youth exchange and cooperation, also, first proposed in 1999 when Kim Dae-jung visited Mongolia.
The joint statement said Mr. Kim and Mr. Bagabandi agreed that South Korea and Mongolia would jointly promote the development of natural gas in the Irkutsk area in southern Siberia, and the connection of an inter-Korean railway with Mongolia as part of an “iron silk road” that would link East Asia with Europe.
Mongolia, who has diplomatic ties in both North and South Korea, supports the Seoul government’s policy of reconciliation and cooperation with North Korea.
Two-way trade volume between South Korea and Mongolia totalled $35 million in 1999, and $46 million in the first eleven months of last year. South Korea is Mongolia’s fifth-largest trading partner, and third-largest investor, $35.5 million worth, after China and Japan.
President Kim said his government would continue to render economic cooperation in the form of Economic Development Cooperation Fund (EDCF) projects to help Mongolia in its efforts to develop its human resources and infrastructure. The president also pledged to boost technological cooperation between the two nations. Both sides agreed to cooperate in regional multilateral bodies to cope with environmental problems facing North-East Asia, such as seasonal dust storms from the Gobi Desert that affect Korea and Mongolia, and cause desertification. President Kim expressed concern over damage caused by the zud, and pledged Seoul’s assistance in Mongolia’s efforts to overcome the damage.
South Korea will celebrate a Mongolian Week, and Mongolia a South Korean Week, around March 26 of this year - the anniversary of their formal ties.
President Bagabandi Travels to Singapore and United Arab Emirates
Mongolian President Natsagiin Bagabandi arrived in Singapore on February 15 to commence a three-day official visit to the country.
Singapore and Mongolia have resolved to strengthen bilateral relations with a string of fresh initiatives to further boost trade and cultural ties.
President Bagabandi and Prime Minister Goh Chok Tong agreed to start discussions on a double-taxation agreement in August, and to increase cooperation in areas such as training. They also agreed on increased consultation between their foreign ministry officials.
Both leaders also agreed to an exchange of cultural officials and cooperation between their national libraries. Singapore will also provide courses for Mongolian officials on topics such as English language and business administration.
Mr. Bagabandi also discussed his country’s interest in the Asia-Pacific Economic Cooperation Forum and the Asia-Europe Meeting, and briefed Mr. Goh on developments in Mongolia and the business and investment opportunities there.
The visit was the first by a Mongolian president, and the highest level of contact since diplomatic ties were established in 1970.
On February 19, President Bagabandi arrived in Abu Dhabi, United Arab Emirates, on a state visit to that country. He was received by Sheikh Sultan bin Zayed Al Nahyan. During his visit, President Bagabandi and UAE Foreign Minister Rashid Abdullah held talks over the latest regional developments, including the Middle East peace process. They also reviewed ways of enhancing bilateral relations and cooperation.
UAE Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, met with Mr. Bagabandi. They discussed cooperation between the two countries in higher education. Meanwhile, Bagabandi met with Ahmed Baqir, Assistant Director General of the Abu Dhabi Fund for Development, ADFD. Baqir said that the Fund agreed to enlist Mongolia as one of the Fund’s beneficiaries in terms of loans and financing of projects.
The Many Faces of Corruption
Individuals and groups are motivated by two forces: those of public and private benefit. The latter can come in many forms, and includes small and large business dealings. It can also come through an illegal abuse of privilege. Such abuse is known as corruption.
Corruption has few boundaries. It permeates state and private enterprise. In Mongolia, it has grown alarmingly over the last ten years. It has become a significant part of many social spheres, including the economy, government, judiciary, policing, media, education, health services, and science.
The Judiciary. In theory, the Mongolian legal system is independent from any outside influence. However, bribery is widespread among court officials. Bribes are accepted from individuals in exchange for more lenient penalties. They are also given under threat of harsher penalties. Thus, wealthier people have a greater chance of receiving more favourable decisions, as do relatives and friends. Conversely, those from lower socio-economic groups, or those without family connections, are more likely to receive an unjust sentence.
The Police. Many police officers engage in corruption. For example, the importation, distribution and sale of much illegal alcohol is overseen by police officers in exchange for lucrative benefits. In effect, the police are facilitating the trade of many illegal goods.
Well-accustomed to black market operations, police officers know how to conceal some criminal activities while bringing others to light. Most illegal businesspeople have friends in the police force willing to turn a blind eye. These “friends” are quite prepared to destroy incriminating evidence before any criminal investigation.
Customs. Many Mongolian customs officers enrich themselves by overcharging customs duties. They have also been known to accept bribes from individuals transporting contraband. Officers themselves are also participating in border trade. Day-to-day work in the customs office has become a lucrative affair. Understandably, many Mongolians are seeking work as customs officers. In general, jobs are allocated not according to merit, but to the size of the bribe offered. A few million tugriks is usually sufficient.
The Ministry of Finance and the Taxation Office. The Ministry of Finance is the prime embezzler of Mongolian capital. It has become a vital intermediary between state organisations and the service industry. Short- and long-term government contracts are tendered to those private individuals or companies who can afford the highest “processing fee”. Kickbacks and tax concessions are reciprocally offered to these companies. While lining the pockets of various executives and managers, this also means that workers’ salaries may not be delivered on time. Furthermore, it expends money and resources that might otherwise be devoted to the public good.
The Taxation Office is often a further “middleman” in the giving and receiving of bribes. Funds may be offered to a taxation officer to ensure that company taxes remain low and that any expenses be written off. Tax evasion of this kind is extremely difficult to detect.
Government Bureaucracy. The various ministries and departments of government are the primary corrupting influence in Mongolia. For example, the Ministry of Environment accepts many bribes from illegal hunters and falcon traders. It also takes money from individuals and companies in the mining industry, particularly gold mining. Under Mongolian environmental laws, private enterprise that harms natural flora and fauna is not permitted. However, this is no obstacle to wealthy individuals seeking further enrichment. In this case, the cost may be long-term environmental damage.
Education. Educators often compromise their position through bribery. It is a sad indictment of the Mongolian education system when any individual can buy their way through school. To ensure a favourable assessment, students or their parents can offer a bribe to school or college officials. Furthermore, less academically inclined students can simply purchase the degree of their choice. The market price for a Master’s degree is around T50,000. This almost renders higher education worthless.
Health Services. Wealthier individuals can afford better medical care. If they want preferential treatment, a patient can simply bribe hospital officials. If they cannot afford it, patients must be prepared to suffer substandard care and pharmaceuticals. To cut costs, medical staff have been known to use medicine appropriate only for livestock. To feather their own nest, they have also overcharged patients. Patients without the necessary resources or nepotistic connections are therefore forced to endure illnesses, no matter how debilitating.
Science. Mongolia has the dubious honour of having 40% of its population crowned Doctors of Science. Dubious because a huge number of these were not earned, but bought. Thus, there is the peculiar situation where the most qualified academicians and professionals may not be able to explain the most basic aspects of their “education”.
While this is largely a measure to gain professional prestige, it also entitles those most qualified to higher salaries.
Media. Like its counterparts elsewhere, the Mongolian media is not generally concerned with informing or educating the public. Rather, it concentrates on furthering the interests of various powerful individuals and groups. As in other spheres of social life in Mongolia, the wealthy and corrupt dictate the terms.
[Note: In 1989, Mongolia was ranked 87 in the world for GDP per capita. By 1999, it had plummeted to 131st. Corruption is thought to have played a large role.]
From Communism to Social Democracy: MPRP Still Going Strong
The MPRP, or Mongolian People’s Revolutionary Party, Mongolia’s first political party, celebrated its 80th birthday on March 1. The history of Mongolia throughout the 20th century is inseparably linked with the MPRP. In fact, the party holds the Guiness Book’s world record for the longest ruling political party: 75 years (1921-1996).
In 1919, Chinese General Ciu Shu Jian’s army invaded Mongolia under the pretext of protecting Mongolia from the “red” Russian influence; but in reality, their goal was to destroy Mongolian autonomy and force the nation under its subjugation. During this period, Mongolian patriots and intellectuals formed dissident groups to counter the takeover. D. Bodoo, who would later become prime minister, was the creator of one such group. On June 25, 1920, his faction merged with another headed by customs officer S. Danzan - both groups holding as goals the restoration of independence and religion freedom.
At the outset, the new party’s goal was national independence, rather than communism versus capitalism.
In its broadest sense, Mongolia spent the 20th century fighting for independence. The formation of a communist party was seen as the only way of combating Chinese oppression. On March 1, 1921, the party’s first consultative congress was held in the Russian town of Troitscosovsk, located near the border with Mongolia. That day marked the beginning of 75 years of unbroken governance.
The current MPRP is very different from the communist party it once was. The democratic movement begun in Mongolia in the early 1990s saw the ruling MPRP rejecting communist ideology for democracy, thereby ending one-party domination. In the first democratic elections of 1992, the MPRP swept the polls, taking seventy out of seventy-six seats in parliament. The next election in 1996 found the MPRP defeated, and the political party opted for social democracy as a new tack. Before the parliamentary election of last year, the MPRP became a member of the International Socialist Network, SocIntern, but the party maintains that it will never return to communism. The parliamentary election was subsequently won by the MPRP. The party took seventy-two of seventy-six seats.
Currently, the MPRP has 118,351 members. 47,000 people have become members since 1996. Thirty-five percent of all members are between the ages of 36-45; thirty-three percent are 18-35 years old.
At 9:00 a.m. of February 28, 2001, the 23rd Congress of the MPRP was held in the State House. 625 members of the MPRP were elected to the congressional delegation. 13.6 percent of the delegates are women. Eighty-two-year-old Sh. Dashdorj is the oldest delegate, and G. Batsaikhan, age 22, is the youngest.
The well-known Egyptian businessman Mohammed al Fayed has announced that he is donating $25,000 worth of aid to zud-stricken Mongolia through his Ulaanbaatar-based Harrods Mineral Company. He donated $15,000 in aid last year.
Al Fayed visited Mongolia in 1998, and gave a donation to an orphanage in Hailaast, Ulaanbaatar. He has been investing in Mongolia’s mining sector since 1997.
The Harrod’s Mineral Company makes exploratory forays for gold in Dornogobi, Omnogobi, and Bayankhongor aimags.
Al Fayed requested that his donation be spent on restocking the local people of these aimags, who have lost their livelihoods through the death of their livestock.
Annual Economic Survey
The National Statistics Office has released its annual survey on Mongolia’s socio-economic situation in 2000.
GDP and Industry. Last year’s GDP index shows that Mongolia is going backwards. The planned GDP was to be 4%, but the survey indicates that it was only 1.3%. In 1995, GDP growth was 6.3%, and in 1999, 3.2%.
The reasons for the gradual economic decline can be summed up by one word: Zud.
The agricultural sector forms one third of the national economy, but production decreased, causing the animal originated raw material processing industries to go into decline. However, gross industry products reached T243.7 million - an increase of 2.4% against the previous year. Increases were seen in the mining sector, which experienced a 6.1% production growth, and the energy sector experienced a 3% growth in production. Production in the industrial processing sector decreased by 4.8%.
Macroeconomic Tendencies and the Budget. In 2000, the sum of the total state budget income and aid was T250.2 billion, and expenditure was T412.9 billion. The budget loss was T62.7 billion, a T35.5 billion decrease compared with 1999.
The current balance represents a T34.6 billion profit, the first since 1990. This is due to tighter controls on budget policy implementation. Compared to 1999, the tax income increased by 51.2%.
The Bank of Mongolia reports that since November 2000, the money supply of T245.5 billion represents an 18.6% increase against the previous year. Total cash in circulation was T99.6 billion, and the cash outside the banks decreased by 11.4%. Ninety-four percent of the total cash in circulation was outside the bank.
It was a very good index when the inflation rate reached 8.1% in 2000. In 1995, the rate was 53.1%, and since then has decreased annually, reaching only 10% in 1999. In December 2000, the prices of consumer goods and services increased by 8.1%. Compared to 1999, due to the 2.5% increase in heating costs and 30% to 50% price increase for wood and coal, the cost of renting an apartment and powering it with electricity has increased by 32% - the highest increase ever.
Agriculture. Mongolia is home to 30.1 million head of livestock, according to the animal census held at the end of 2000. Mongolian livestock numbers decreased by 10.3%. 142,100 tons of grain were collected throughout the country last year, a decrease of 27,400 tons compared to the previous year.
Social Well Being. At the end of 2000, the number of unemployed people registered at labour agencies throughout the nation was 38,600. This figure represents a 3% decrease. However, the real number is probably closer to 140,000 unemployed.
As of December, 2000, the Health Ministry reported that there are 21 births and 5.9 deaths per 1000 people, and the net population growth was 15.2%. The number of orphans was 47,700 - a decrease of 2.2% against 1999. The number of students throughout the country reached 587,100, a 6.6% increase.
Crime. A total of 23,500 criminal cases were registered in Mongolia in 2000. Violent crime is rising. For example, 12.9% of crimes committed were deliberate murders, and 15.2% were robberies.
External Trade. Preliminary estimates for 2000 indicate that the total external trade turnover equalled $1006.5 million, of which exports were $432.3 million and imports were $574.2 million. The trade external trade balance saw a deficit of $141.9 million, a decrease of $12.6 million compared to 1999. Compared with 1999, total external trade turnover increased by 15.5%, of which exports were 20.7% and imports 12.0%, respectively.
Privatisation Sends the Hide Processing Industry Spiralling in Decline
A “Leather and Skin” conference held on January 22, organised by the Ministry of Trade and Industry, the Counselling Office for Small- and Medium-Sized Enterprises, the German Technical Cooperative, and the Mongolian Association for Manufacturers of Leather and Skins, addressed the crisis facing the leather and skin industry and discussed ways in which the industry could be revived.
The leather and hide industry was the first to decline during the transition period to the market economy. In 1989, factories processed 5.1 million hides, producing 1.1 million square metres of goat hides, 400 square metres of sheep hides, 4.1 million leather boots, 1000 tons of raw hides for the boot heels, 240,000 pieces of leather clothing, and 180,000 sheepskin coats.
Ten years on, production of goat hides has decreased by 97.7%, sheep hides by 99.1%, sheepskin coats and leather footwear by 99.8%, and the production of raw hides for footwear heels and leather clothes has almost stopped. Thirty thousand people have lost their jobs as a consequence.
Today, only four fur, leather, and hide processing factories and 60 foreign-invested small enterprises work in this sector. The leather and hide processing industries only work at 10% of their total capacity, and most of their business activity is dependent on the seasons. […]
The revival of the hide processing industry is thwarted by many factors. Successful management is lacking, there isn’t a comprehensive system for the preparation of raw materials, and the companies have no market to sell their products. Hard capital is difficult to come by. […]
Now, 80% of raw materials are exported abroad, bypassing Mongolian processing industries. In 1989, 112,000 cattle hides were exported, increasing to 367,400 in 1999. In 1989, 180,200 sheepskin coats were exported, decreasing to 200 in 1999.
Horst Ammana, a representative of the German Cooperative, believes that the problem could be solved by introducing a state tax on raw material exports, providing private businesses in the sector with sufficient cash flow to purchase hides and the chemicals needed for processing. The taxable amount would be set according to the profits of exporting businesses. This would allow the price fetched for processed hides at the international marketplace to increase.
Ammana says that the profit could be used to establish a “Stable Development Foundation”, which would be a financial organisation that gave loans to hide processing companies to buy raw materials. The companies that take out loans would repay them once they had sold their products on the domestic market or through a raw materials exchange.
Bond Trades Show Low Turnout at the Exchange
The Mongolian Stock Exchange (MSE) has traded 12 billion tugriks’ worth of government bonds five times with private businesses and twice with individuals for terms of 30-120 days since November of last year. Each time, the sale price has been reduced. […]
”Mongolia has a seasonal economy. Only 5% of annual income enter the budget in the first quarter of the year. Our government has made a goal of providing social services on time,” head of the Treasury’s Management and Regulations Department at the Finance Ministry, Ts. Davaasuren, explains.
An estimated 70% to 80% of Mongolia’s cash stays in the hands of individuals. […] “Besides commercial banks, only three companies took part in the five bond trades for businesses, and only ten people participated in the last bond trade for individuals. […] I’m sure that money changers and herdsmen are not participating.”
[…] It is not surprising that national industries which face shortages of turnover capital are not available to take part in the bond trade. Mr. Bekhbat, general director of Gurvan Gol Gold Mining Company, says […] “We have no cash now. The money gained in the summertime was used for buying machinery, spare parts, fuel, oil, and paying salaries. In a word, we ate our cash this winter. We will start work again when it becomes warmer by taking out a bank loan.”
[…] Mostly commercial banks take part in bond trades. “Yes, banks obviously understand the value of money. Inactive participation of entities and individuals is related to their not understanding fully that value,” said Mr. Davaasuren.
[…] Some view bonds to be disadvantageous, creating rather than solving financial troubles. “Bonds will cause additional pressure on the budget. Essentially, bonds are a way for the government to get quick money instead of gathering taxes on time and in full. They cannot support the development of the stock exchange and the bond market without developing industry in the country,” Z. Dashzeveg, head of the Mongolian National Manufacturers’ Association, said.
Virtual Shopping Reaches Mongolia
Datacom is the first company to introduce online shopping to Mongolia. They are also the company who first introduced the internet to the country. Datacom’s NetCard, a subsidiary company, has introduced bronze cards, which gives consumers the right to shop online. The bronze cards will cost T5000, and card holders will pay T30,000 upfront to hold the card for two years.
By owning a card, customers will be able to shop online at the virtual NetMart. The bronze card can only be used at NetMart - in the future, NetCard will allow their bronze card to be used at other online shopping sites. The bronze card is not a credit card with which you can order and purchase products online; it allows customers to order goods online, for payment upon delivery.
Because Ulaanbaatar has no comprehensive map and address system, NetCard will not deliver the goods directly to people’s homes. They will deliver the goods through internet cafes. In cooperation with the Railway Office, NetCard is the introduce an on-line shopping service to residents of Erdenet City and other villages along the railway line, with the goods costing the same as if they had been purchased in Ulaanbaatar.
Currently, NetMart sells food products, medicine, cosmetics, flowers, and souvenirs. The company is also striving to offer online payment service. They want to promote the new-to-Mongolia experience of electronic payment. Internet service provider Magicnet is one of the very first customers of this service, and they will allow their customers to pay for services online.
Tradition and Capitalism Go Han in Hand at Tsagaan Sar
The week leading up to Tsagaan Sar is the focus of extensive preparations by families and traders alike. The average family prepares thousands of buuz (steamed meat-filled dumplings), and the home is cleaned from top to bottom to see in the new year. Such preparations cost time and money. Enter the burgeoning market economy. The set piece of any Mongolian table is uuts, a whole lamb, although some families may offer the sternum of a cow, and the meat is usually cooked at home. However, for some families living in apartments, cooking a whole lamb or cow’s sternum is a problem due to lack of space. Some guanz (canteen) owners have a sideline, charging families to cook the meat on their premises, and some entrepreneurs offer to cook your meat over an open fire.
Despite the nationwide zud, tonnes of meat have been transported to Ulaanbaatar specially for this holiday, with a whole lamb costing between T30,000-T60,000.
Anotehr festive treat is ul boov, specially shaped bread. Many younger Mongolians choose to buy heaviin boov from bakeries, T450-T650 apiece.
Buuz can be bought ready-made from the freezer section of supermarkets and guanzes. The Huns Trade Company have a flourishing business providing instant buuz for T1600 a kilo, and charge T1800 a kilo for dumplings.
Milk products are also a must on any Tsagaan Sar table. This year, because of the zud, there are not as many dairy products on display at the markets in comparison to previous years.
During the holiday period, Mongolians dress in the traditional del and hat, and it is not just the older generation who keep this tradition alive. Demand for new dels is highest amongst girls and women, with a new del costing between T20,000 and T30,000.
The Ulaanbaatar Transportation and Coordination Office has announced a new service for Tsagaan Sar. If there is enough demand, they will run special minivan services for families.
Mongolia’s Black Gold Lacks Investment
The tenth anniversary of the law on oil passed on February 13. Oil is known as black gold by Mongolians. The law on oil was passed in order to develop a favourable investment climate for the industry and to reduce investors’ risks.
Oil exploration was begun in Mongolia by American geologists in 1931. J. Dugersuren, a Mongolian geologist, discovered oil in Dornogobi aimag in 1940. In 1947, the MongolNeft Trust was established for the purposes of oil exploration. In nineteen years of oil exploration, nearly one million tonnes of oil were produced in Mongolia, supplying twenty percent of Mongolia’s total oil requirements.
The industry suffered a huge setback when oil fields began operating in Siberia in 1969, forcing a complete shutdown of the Mongolian oil industry. Mongolia was to import oil from Russia for the next twenty years.
It was only in 1990 that the oil industry was revived. With the advent of the market economy, Russia dropped its subsidies to Mongolia and charged full market value per barrel, which led to Mongolia deciding to exploit its own natural resources. Twenty-two oil fields were identified. A venture between the American company Snaidar Oil International and the Mongolian company Medalion Oil was the first to resume operations in twenty years, opening oil fields in Matad soum, Dornod aimag, in 1993.
O. Davaasambuu, the head of the Oil Authority, said that the government spent T9 billion on oil exploration and on promotion, to entice foreign companies to invest in this sector. The anticipated oil rush never happened - oil is considered a risky business, with a high initial outlay of capital for an uncertain return. Poor infrastructure within Mongolia, the abundance of oil in neighbouring Siberia and China, and a limited domestic marketplace did nothing to promote the possibility of oil-rich reserves to foreign organisations.
Today, oil companies work in ten oil fields and are engaged not only in exploratory work, but in mining for crude oil, oil storage, transportation and sale. The resurgence of the oil sector has created three hundred new jobs, and oil sales have contributed T2 billion to the state budget in the past four years.
On June 11, 1997, free-flowing oil spurted from a 2.3-kilometre deep borehole dug by the American company SOCO, and filled 687 barrels a day. In the past seven years, SOCO Oil Company have explored 12,000 km, drilled 21 holes, filled 193,000 barrels with oil, and exported 184,700 barrels to China.
Of the twenty-two oil fields in Mongolia, SOCO and ROC Oil run seven of them. SOCO are working in Tamsag, Eastern Mongolia, and ROC Oil work in the Gobi region.
Specialists believe that Ikh Nuurudiin Hotgor, in the west of Mongolia, has vast oil reserves just waiting to be explored. A Chinese company, American Desert Oil, has been active in this region since 2000.
Fish Farming Hindered by Lack of Infrastructure
Japanese experts visited Mongolia in 1999 and have concluded that due to Mongolia’s lack of infrastructure in the fishing industry, it will be extremely difficult to develop the industry for profitable purposes. During a meeting on the issue of fish farming, Professor U. Tsend-Ayush stated that Mongolia needed to split the fishing industry into three regions: the western region would have Khovd as its centre, the central region would have Ulaanbaatar, and the eastern region Choibalsan.
[…] The amount of fish that can be taken from Mongolia’s lakes and rivrs is based on a 1975 study conducted by the Scientific Academy’s Biological Institute. A research group determined the number of fish reserves in twenty-three lakes and then worked out the amount that could be killed without harming fish stocks. In 1998, researchers from the Russian Scientific Academy, along with Russian specialists from the fisheries company Rus Ribhoz, determined that 700 tonnes of fish could be killed every year, after conducting studies on five Mongolian lakes.
Since 1978, Jarmaga fish have been brought to Mongolia from fish farms in Ulan-Ude for breeding purposes. Because of the great distances between fish farms and urban areas, the fishing season begins in November and ends in March, when freezing temperatures ensure that the fish do not rot in transit. With more investment, the fishing season could run all year round.
Five Biggest State-Owned Enterprises Hit Auction Block
Last week, the Mongolia Cabinet issued the “2001 Privatisation Programme”. The programme includes listings for the sale of twenty-seven entities that are wholly or partly owned by the State, sixty-six unfinished buildings, and twenty-five entities that will require structural reforms before being sold.
The list includes the five largest state-owned enterprises in the country. These include Mongolia’s national airline, MIAT, NIC Petroleum, the Trade and Development Bank, Gobi Company, and the country’s largest alcohol producer, APU. State shares for each business range from 51% to 100%. The government has reported that the preparatory work and legal environment for their sale are close to completion.
Tender bids were accepted this past week for appraisals of the five companies, but the deadline has already passed. All applications for bids were to be received by the SPC March 1. The narrow timeframe is in place, SPC adviser D. Bailiikhuu maintains, because bidders were previously “in the know” about the upcoming sale. The 2001 privatisation process is a tight plan, he says. By June, the evaluation work should be done, and subsequent purchase bids should be received.
”The programme includes not only listings, but methods of privatisation and structural changes for all the entities defined in the programme,” he explained.
The five state-owned properties mentioned above were prohibited from sale during the former government’s administration. [Our note: that is, the democratic coalition.]
The Long Haul Just Got Shorter
Located eight kilometres from the centre of Khovd aimag is Memo Mongolia Co., the first travelling meat processing facility in the nation. A Mongolian-Russian-Norwegian venture company, Memo Mongolia was established one year ago in the country’s most south-western province.
P. Bataa, general director of Memo Mongolia, said, “Our mobile factory is capable of processing four tons of meat daily - in other words, the slaughter of 40-60 cattle. Processing levels can be adjusted according to demand. The facility can also be moved to other aimags and soums. This year, we have exported 240 tons of meat to Russia. On occasion, we accept flour, rice, and/or fuel from Russia as payment.”
The meat-processing company can be seen as a first step in bringing the city to the farms, instead of the farm to the city. Herders often travel hundreds, if not thousands, of kilometres to sell off their livestock in Ulaanbaatar.
Memo Mongolia buys livestock at T260 a kilogram, and in turn sells each kilogram of meat at a price of T800.
Small Business Get a Boost
A foundation serving small- and medium-sized entrepreneurs was established in Mongolia in 1996. At that time, the sale of wheat and butter from a State relief programme was centralised in the foundation and distributed to business owners as a loan; but the centralised, “big” money has vanished without a trace. Recently, the Ministry of Industry and Trade established a department to support these entrepreneurs. M. Zorigbaatar, head of the department, spoke to the Mongolian News newspaper about the department’s activities.
What is considered a small- or medium-sized enterprise (SMSE)?
Since 1990, many wholly or partly-owned state enterprises, private enterprises, and self-employed persons have gone into business in Mongolia. So, anyone who runs an economic entity in any field - construction, trade, animal husbandry or agriculture - is considered a SMSE operator. But there is no official criterion for defining what an SMSE is.
How many people run SMSEs in Mongolia?
According to last year’s figures, there are 23,800 economic entities in Mongolia. Ninety percent of them (approximately 20,000) are private entities. Sixty percent of that number are SMSEs. There are over 1000 SMSEs in agriculture and animal husbandry alone. We began research this year to find out how many businesses are in each aimag; how many workers they have; and how many assets and turnover capital they possess. Most aimags have already sent us their information. Based on those results, we will define who are SMSEs. Furthermore, our department will work out a draft law which will provide SMSE owners a favourable financial environment in which to run their businesses and protect their interests.
What favourable financial and legal environments will be provided?
A policy that imposes SMSE income tax differently. For example, we will exempt SMSEs and investments in remote aimags and soums from income taxes, and we will also support foreign investment and non-banking financial organisations, such as Gobi Initiative, Credit Mongolia, and Golden Foundation for Development.
I remember that during the previous governmetn’s administation, a foundation to support SMSEs was established. At that time, revenue from the sale of U.S., aid in the form of butter and wheat was centralised in the foundation. Where is the revenue now??
The sales revenue of the American aid was centralised in the previous foundation that supported SMSEs. The foundation gave T4.6 billion in loans to over 1000 SMSEs through the following banks in order to develop SMSEs: Ard (“People”), Daatgal (“Insurance”), Restore Bank, the Agricultural Bank, and the Investment and Technology Development Bank. But Restore Bank, the Investment and Technological Bank, and the Ard Bank went bankrupt, so the foundation’s activities came to a halt.
Our department has already started to redeem the previous foundation’s funds. By December 2000, the department gained T830,400,000, and materials and equipment from the bankrupt Restore and Investment and Technology Development Banks. Now it is possible for us to lend financial relief to SMSEs.
Can Mongolia Climb Out of Its Economic Rut This Year?
Professor G. Purevbaatar was interviewed by the Mongolyn Medee newspaper on his economic predictions for the New Year
Do you expect improvement in the Mongolian economy?
No, I don’t. Livestock losses are expected to reach five or six million. That will affect the economy. Raw material exports will be reduced, and foreign trade will be unbalanced. Meat prices will take their toll on the livelihood of the people.
Although gold, copper mining, and energy production will stay at the same level as last year, the raw material processing industry - the main economic sector - is having a hard time with less turnover…
The cashmere industry is not ambitious. One million out of eleven million goats were lost in 1999. More losses are predicted this year. China’s policy is to make Mongolia a raw cashmere base for Chinese industry. Raw cashmere prices are T50,000 to T55,000 per kilogram. That system will lead our national industry to bankruptcy. Banning raw cashmere exports is the way to prevent that from happening…
Although moist soil from winter snows are promising better harvests this year, the financial situation for fuel, fertiliser, and seeds is not promising to boost the economy.
I think that using the $20 million loan from the Asian Development Bank to revive the agricultural sector - farms and livestock raw material production - is a wiser use of the money than building apartments.
Mongolia’s dilapidated economuy will once again be dependent on foreign aid and loans this year. The gross domestic product did not increase last year, so a two or three percent annual increase in the GDP would mean progress.
What can you say about the nation’s living standards?
No improvements. It’s expected to get worse. Considering such factors such as the increase in heating and electricity prices, the real decline in income is 5% to 7%. If the salaries and pensions of 140,000 civil servants and 240,00 retired people increases by 10%, the decline will stand at 3% or 4%.
The country’s negative influence will affect 80% of the population.
What about inflation or the U.S. dollar (USD) exchange rate?
Neither will increase. Inflate does not increase if new currency is not coming into circulation, or when purchasing power is decreased against the increased supply of goods and services. In that case, last year’s inflation rate of 8.1% could even decrease.
I am quite sure about a stable USD exchange rate this year. The national currency reserve is T258 billion. The foreign currency reserve is US$246 million, or equal to T246 billion. The USD rate will not increase if these two currencies are equal in circulation.
The widespread use of the USD at local markets has had unpleasant effects on the Mongolian market. Because of this, local market prices will become more sensitive to world-market price fluctuations…
Do you see any possible way to improve the economy and living standards of the nation in the short term?
It is impossible to solve these two important issues at the same time. Economic improvement needs to come first.
A serious loan, a long-term soft loan of US$1.5 to US$2 billion is needed from the IMF. Restoring raw animal products production, the agricultural sector, the mining industry, and the building of small- and medium-sized hydroelectric power stations are the high-priority tasks needed to improve the economy through the loan.
Of course, there are other issues, such as adopting new technology, but the most important thing is that the government be seen instituting effective policies aimed at reviving national industries.
Canadian Dollar – Mongolian Tugrik Exchange Rate: CAD$1 = T709.95
The Japanese government will provide aid worth $41,900 to a secondary school in Sagil soum, Uvs aimag. An agreement has been signed by the Japanese ambassador M. Hanada and the soum governor, D. Batsuuri. According to the agreement, the aid money will be spent on renovating the school and buying computers, printers, and a linguaphone set.
The Japanese government’s Grassroots project will provide $25,163 of aid for the improvement of medical services in Biger soum, Gobi Altai aimag. The money will be spent on reconstructing the hospital, staff training, and updating medical equipment.
During the 1990s, 15,452 Kazak people emigrated to Kazakstan from Mongolia. About 3200 of them have applied to the Mongolian Ministry of Justice to cancel their Mongolian status.
The government has announced that 2001 is the year of the supporting disabled people. The purpose of this specially designated year is to provide and encourage assistance to improve the social standing of disabled people and protect their rights. Over T120 million will be allocated from the state budget for this project. Unofficial figures suggest that there are about 120,000 disabled people in Mongolia.
Twenty percent of the total state budget will be spent on social care in 2001. Last year, ten percent of the state budget was allocated to the Social Insurance Fund. This year, T64.3 billion will be allocated to the fund.
Boxer D. Enkhsaikhan, a resident of Seoul, South Korea, was murdered in Beijing while on his way to Mongolia to celebrate the Mongolian Lunar New Year. Enkhsaikhan and two friends had remained in Seoul to seek work after the international Seoul Cup competition. He was carrying a large amount of cash when he was killed. Enkhsaikhan won bronze medals at the Asian Championships in 1997, and at the Asian Summer Games in 1998.
A pair of leather boots owned by a Mrs. R. Dashragcha of Arkhangai aimag date back to the 15th-17th centuries. The boots have been handed down through seven generations of the Dashragcha family, who believe that the boots once belonged to Chinggis Khaan.
A Kazak writer, Hamza Koktendi, asserts that he has proof that Chinggis Khaan is buried in Kazakstan. He says that if Kazak President T. Nursultan Nazarbaev promises to guarantee the protection of the grave, he will reveal its whereabouts. Chinese scholars claimed last year that Chinggis Khaan’s grave was in Xinjiang, which Mongolian scholars have denied.
Last week, an exhibition to support modern art, Kwangju 2000, was held in the city of Kwangju, South Korea. The theme of this year’s event was “Humans and Destiny”. Dagvadorj Sereeter, art professor at the Mongolian Fine Arts Institute, won first place at the exhibition. The Mongolian government will award him with eight million tugriks - approximately US$7,280 at the current exchange rate - for his success. Mongolian singer Battulga participated in Asia’s Best Singer competition held in Shanghai, China, last week, winning the bronze medal. To support his talent, the Mongolian government will award Mr. Battulga with two million tugriks.
Last Thursday, January 25, a fire broke out in Room 406 in the B wing of the Bayangol Hotel, located in the Sukhbaatar District, Ulaanbaatar. The blaze was allegedly caused by the room occupants’s lit cigarette, causing T700,000 worth of damage. Thirty to forty people were staying at the hotel at the time of the fire, between 10:30 and 11:30 a.m.
Russian news agency ITAR-TASS reports that thousands of white-tailed gazelles have migrated from Mongolia to Russia. About ten thousand animals passed to the Russian side through Mongolia’s eastern Dornod aimag and the Russian Chita region. Over 70,000 gazelles have gathered at the Mongolian border.
The number of single mothers has increased by 1.7 percent, which is an increase of 928 single mothers compared with the same period last year. Mongolia has over 56,000 single mothers, with the majority having between three and five children, and the minority having more than six.
February 2 was the birthday of Damdiny Sukhbaatar (1893-1923), one of the founders of the People’s Revolution of 1921.
A Russian trickster has been arrested in Singapore in connection with a string of deals he has pulled off, where he passed himself off as a representative of Mongolian companies. He used forged documents to make contracts with German, Singaporean and Chinese companies, who invested in his non-existent Mongolian business ventures. He had been wanted by Interpol since 1992.
On February 1, Mrs. S. Yanjmaa, native of Ulaangom, Uvs aimag, gave birth to healthy triplets weighing in at 2.2 - 3.5 kg. A teacher by profession, Mrs. Yanjmaa is the first mother to bear triplets in the new century and millennium n Mongolia, and the first triplets born in Uvs aimag in ten years.
The police department reported that on the first day of every month, minor traffic violations will not incur a fine. Traffic police do not issue tickets in Mongolia; if a driver is stopped for running a red light, for example, he must pay the fine directly to the officer, in cash.
Last Sunday, February 4, an earthquake of a magnitude of 4.0 on the Richter scale occurred in Omnogobi aimag at around 4:11 a.m. The epicentre was located between the border of Dundgobi aimag and Mandal-Ovoo soum of Omnogobi aimag. The moderate quake was perceptible, though damage slight. In the capital of Omnogobi aimag, located 130 km away from the epicentre, windows were said to have rattled. The area in and around Omnogobi aimag is considered to be an earthquake-prone region.
The City Governor’s Office has organised the Tsagaan Sar 2001 Trade Fair in conjunction with S&A Company at the Zuun Dorvon Zam Trade Centre from February 5 to 23. The fair will cater to the Asian New Year shopper. Sixty companies are at work at the fair, selling their wares at wholesale prices. Slaughtered sheep cost T20,000, and buuz are at T1600 a kilogram.
Mongolian Mobicom Co. is now offering the Mobile Account. Telephone lines are now not the only means of connecting to the internet. With the Mobile Account Plan, users will be able to connect directly to the internet on their mobile phones. Mobicom Co. representatives stated that the company will also decrease its rates for internet use by 40%.
In 1998, homeless children numbered five hundred in Mongolia. However, in the last two years, this statistic has increased by 150%. Of these children, 41% have left home to avoid abusive parents. In Ulaanbaatar, there are 3,100 street people, 8% of whom are 1-5 years old, 34% 6-13 years old, 28% 14-20 years old, and 6% over 50. Furthermore, over 10,000 children perform hard labour in Mongolia. Sixty-three percent of them work in markets and railway stations. They receive an income of T1000 to T3000 a day. Seventy percent are aged 8 to 13.
Mongolia and South Korea have signed an agreement on a student exchange programme. Fifteen Mongolians are currently studying in South Korea, and twenty South Koreans are studying in Mongolia.
Over 108 religious centres are officially operating in Mongolia. About one hundred of these are Buddhist monasteries. According to statistics, 50% of the Mongolian population is Buddhist. Religious temps of the Ba-hai, who have been active in Mongolia since 1989, operate in all 21 aimags, including Ulaanbaatar, and have over 4000 followers.
In a covert operation carried out by the General Police Department, code-named Abroad, eighteen Mongolians were arrested in the Russian cities of Moscow, Irkutsk, and Ulan-Ude for hooliganism, using counterfeit passports for overstaying their visas. The General Police Department were assisted by Mongolian consulates in Russia and by Russian police. The clampdown was made due to a rise in the number of crimes committed on the Trans-Siberian Railway, which links Moscow and Beijing via Ulaanbaatar.
A swath of land, located approximately 1,200 metres from Yeguzer Temple in Erdenetsagaan soum, Sukhbaatar aimag, recently fell in on itself, causing groundwater to seep up into the hole from a five-metre depth. The Mongolian Science Academy’s Physics Department has cited it as the natural process of lake formation.
Eighty percent of Mongolia’s university students study law, foreign languages and foreign relations, but over eighty percent of all available work exists in the technical field. Thus, most university and institute graduates are without employment. Sixty percent, or 30,000, of all unemployed workers in the nation are under the age of 35. The Ministry of Education, Culture and Science is giving consideration for the support of technical schools, which have become virtually extinct in Mongolia over the last decade.
Mongolian Prime Minister N. Enkhbayar’s official visit to Japan from February 13-19 has strengthened ties between Mongolia and its important neighbour. It has resulted in the Japanese Prime Minister I. Mori announcing the donation of a further US$3 million aid package to Mongolia, in addition to the US$10 million donation already given for zud disaster relief.
UBS TV will cooperate with Russian channel Irkutsk Aist TV (Irkutsk Stork TV). Irkutsk Aist TV will provide Ulaanbaatar with news programmes from this part of Siberia every two weeks, and a fifteen-minute programme prepared by UBS TV will be broadcast in Irkutsk.
Hoomii singing and performances of Mongolian art took place in New York City on Valentine’s Day at a charity function sponsored by the Mongolian Permanent Mission to the UN, the New York City Rotary Club, the UNICEF American Foundation, and the American-Mongolian Cultural Society. Twenty-five thousand dollars were raised.
MIAT are to operate a new route between Ulaanbaatar and Hong Kong from June to August 28, 2001, departing every Tuesday.
The World Bank Institute and the Mongolian Foundation for Open Society launched the first of an eight-week series of roundtable discussions on February 13. The discussions centre around national policies on poverty reduction and on promoting public participation in addressing this issue. Regional video conferences, with the participation of four other Asian countries and leading World Bank leaders, will take part in the discussions.
Last year, customs officers confiscated 198,000 litres of spirits, 1,238 kilograms of cashmere, 109,358 cartons of cigarettes, 12,600 marmot skins, 81 reproductive organs of deer, and 36.1 kilograms of deer antlers. Foreign companies are the most common culprits violating customs.
When the Democrats came to power in 1996, they passed laws allowing live television transmissions of parliament plenary session and citizens to sit for fifteen minutes in the gallery of the government house to watch debates.
Mongolia will celebrate on March 20 the twentieth anniversary of Mongolian cosmonaut J. Gurragchaa’s space flight. The celebration will be attended by Russian cosmonaturs B. A. Janibekov and B. Savinih, who travelled into space with J. Gurragchaa.
From 1980 to 1990, Mongolia exported a total of 21,163,000 cubic metres of sawn timber, or approximately 2,116,000 cubic metres a year. In the last decade, the yearly average has dropped to 600,000 cubic metres. However, illegal logging has reached an unprecedented level. There are over 200 illegal logging centres in Selenge aimag alone.
The 23rd Congress and 80th anniversary of the MPRP (Mongolian Communist Party) coincides today, February 28.
The Mongolian Foundation for Open Society (MFOS), together with state-owned Mongolian National Television, has established a professional council consisting of representative non-governmental cultural organisations.
An oil refinery plant in Orkhon aimag (capital, Erdenet), began operating after the Tsagaan Sar holiday. The plant will receive crude oil from Russia. Four hundred tonnes of meat was shipped to Russia as payment for the first consignment of crude oil. The plant has the capacity to refine up to 200 tonnes of crude oil a day.
On February 5, customs officials confiscated 163 mobile phones and 35 cans of military-grade tear gas on board a flight form Berlin, Germany to Ulaanbaatar. Police arrested two Mongolian stewardesses by the name of T. Bodigerel and Amarsaikhan, who were trying to smuggle the goods in the rear bulkhead of the airplane. Police officials report that carrying canisters of tear gas aboard a commercial airplane is not only illegal, but extremely dangerous, due to the fact that passengers are in an enclosed space. The police are continuing their investigation to find out who else may have been involved.
Three dinosaur eggs were confiscated from the Trans-Siberian train by Baikal border guards from the State Security Service of Russia. On February 1, at Naushki Station, on the border of Mongolia and Russia, officers confiscated fifteen fragments of ‘unknown origin’ from the Beijing-Ulaanbaatar-Moscow train. The owner could not be found. According to specialists from the Buriat Institute of Geology, the fragments are three dinosaur eggs which were hatched in Central Asia 150-170 million years ago.
Crash Survivors Sent to Japan for Medical Treatment
Three of the injured survivors from the helicopter crash on January 14 were sent to Japan on January 24. Namsrai, an officer from the Civil Defence Office, Battomor, the mayor of Malchin soum, Uvs aimag, and his daughter Battsengel are to receive further treatment for severe burns.
On January 22, Singaporean doctor Erik Zi Wei and surgeon K. Ruman, together with Mongolian doctors, successfully completed dermoplasty surgery on the burnt hands of Namsrai.
Traumatic surgeon B. Choyondorj said that the injured have sustained burns mainly on their bodies and have problems in their upper air passage. Those people who were wearing sheepskin coats were protected from the fire much more so than those wearing nylon clothing, which sticks to the wearer when it burns. Namsrai was wearing a military uniform made of nylon when the helicopter crashed.
Battomor was saved from all-over burns as he was wearing a sheepskin coat - his hands and face were burnt. His daughter was wearing clothes containing nylon and suffered from serious burns to her face, the fingers of both hands, her lower back, and her respiratory organs.
The psychological effects of the crash on survivors is being addressed by doctors at the Psychological Clinic, who are giving counselling.
Tourism Dries Up
Tourism in Mongolia last year fell well short of expectations. Statistics show that tourist numbers have fallen since 1999.
According to tourist consultant Alan Saffrey, of the 158,205 visitors to Mongolia last year, just 33,232 came on holiday. In 1999, Mongolia welcomed 158,743 visitors, and 34,049 came on holiday. That is a one-year drop-off of 817 dollar-toting bodies.
Earlier in 2000, the Japanese aid organisation JICA predicted that Mongolia would attract 43,000 visitors by year’s end. Experts blame the extreme zud for scaring off potential holidaymakers. JICA, which has drawn up a master plan for Mongolia’s tourist industry, estimates that 75,000 people will visit Mongolia by 2005, and 210,000 people by the year 2015.
