A SEGandDevelopment Priorities Eng Final

8/6/2019 A SEGandDevelopment Priorities Eng Final

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NATIONAL DEVELOPMENTNATIONAL DEVELOPMENTSTRATEGYSTRATEGY

Government of MongoliaGovernment of Mongolia External PartnersExternal Partners

Second Technical MeetingSecond Technical MeetingN. Enkhbayar, Director, EPDN. Enkhbayar, Director , EPD

Ministry of Finance of MongoliaM inistry of Finance of Mongolia

UlaanbaatarUlaanbaatar

OctoberOctober 99 , 2006, 2006


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Need for National DevelopmentNeed for National Development

Strategy (NDS)Strategy (NDS)

Weak coordination of policiesWeak coordination of policies Need to implement the countryNeed to implement the countrys social policiess social policies

in a comprehensive approachin a comprehensive approach UnemploymentUnemployment

PovertyPoverty

EducationEducation

HealthHealth

Migration, etc.Migration, etc.

Based on achievements of the MDG there is aBased on achievements of the MDG there is a

need to pursue long term policies/strategiesneed to pursue long term policies/strategies


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Consequences of adoption of NDSConsequences of adoption of NDS

Decreased a number of policy papersDecreased a number of policy papersapproved by the Parliamentapproved by the Parliament

Enhanced policy sustainabilityEnhanced policy sustainability

Improved policy coordination amongImproved policy coordination amongsectorssectors

Shared vision and understanding onShared vision and understanding onMongoliaMongolias future developments future development


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NDS contentsNDS contentsI. Human developmentI. Human development

-- EducationEducation-- HealthHealth-- Reduce unemploymentReduce unemployment-- Social welfareSocial welfare

III. EconomyIII. Economy

-- Support private sectorSupport private sector-- Ensure economic growthEnsure economic growth-- Industrial policyIndustrial policy-- Investment policyInvestment policy

-- Budget policyBudget policy

IV. EnvironmentIV. Environment

-- Natural degradation, forestationNatural degradation, forestation-- Urban air pollutionUrban air pollution-- Biological speciesBiological species-- DeforestationDeforestation

II. GovernanceII. Governance

-- TransparencyTransparency-- Participatory policyParticipatory policy--makingmaking-- Political stabilityPolitical stability-- Enhancing legal environmentEnhancing legal environment


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Policy prioritiesPolicy priorities

Medium term objectives (2015)Medium term objectives (2015) to reachto reach MDGsMDGs and enhance development andand enhance development and

progress of Mongoliaprogress of Mongolias peoples people Long term objectives (2015Long term objectives (2015 2021)2021)

Eliminate poverty, convert the country into the one ofEliminate poverty, convert the country into the one of

the leading country in the region in terms of humanthe leading country in the region in terms of humandevelopment, create knowledgedevelopment, create knowledge--based economybased economy

Vision (2021Vision (2021 -- further)further) Contribute creatively to the global economy throughContribute creatively to the global economy through

technological advancement. Create a society basedtechnological advancement. Create a society based

on its human capacityon its human capacity


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Population, millionPopulation, million

3.25

3.0

2.7

2.4

2

2.4

2.8

3.2

3.6

2005 2010 2015 2020years

popula

tion,

mln


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Increase employmentIncrease employment Increase private investmentIncrease private investment Support vocational trainingSupport vocational training Enhance training contents, standardsEnhance training contents, standards SupportSupport SMEsSMEs

Expected outcomesExpected outcomes Employment participationEmployment participation 75% (2015), 80% (2021)75% (2015), 80% (2021)

Generate jobs for 40.0Generate jobs for 40.0 thousthous (2007(2007--2015) per year2015) per year

Generate jobs for 30.0Generate jobs for 30.0 thousthous (2015(2015--2021) per year2021) per year

Eliminate from poverty 60.0Eliminate from poverty 60.0--70.070.0 thousthous per yearper year


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Policy to reduce unemploymentPolicy to reduce unemployment

SMEs

Infrastructure,big deposits

Private business,technology

Unemployed, thousand people

110

50

150

200

0

50

100

150

200

2005 2010 2015 2020

SMEs

year

Infrastructure,

big deposits

Private business,,

technology


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GDP per capita US$, decreaseGDP per capita US$, decrease

unemployed (unemployed (thousthous))

4692,0

2217,0

1327,0

680,0

50,0

100,0

150,0

200,0

0

2500

5000

2005 2010 2015 2020

G

DP

percapita,U

S$

0

50

100

150

200

250

Unem

ployedpopulati

on,

'000

Unemployed, '000 people

GDP per capita, US$


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Reduce povertyReduce poverty

6,018,0

28,036,0

0

10

20

30

40

2005 2010 2015 2021

MDG

target

Percent

To achieveMDG target


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Target growthTarget growth,, percentpercent

0.0

2000.0

4000.0

6000.0

8000.0

10000.0

12000.0

14000.0

16000.0

18000.0

20000.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20210.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

GDP (billions tugriks)

Real GDP growth (%)

GDP per capita:

2200$

GDP per capita:4700$


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Economic growth strategyEconomic growth strategy

1.SMEs support (20051.SMEs support (2005--2010)2010)

2. Industrial development (20102. Industrial development (2010--2015)2015) Ensure energy supply by domestic producersEnsure energy supply by domestic producers Full supply by energy and export of excessFull supply by energy and export of excess

Start oil processingStart oil processing

Put into operation big mining enterprises andPut into operation big mining enterprises andenhance processing stagesenhance processing stages

Establish industrial parksEstablish industrial parks

3. Knowledge3. Knowledge--based industry and servicebased industry and serviceexpansion (2015expansion (2015--2021)2021) Introduce new technologyIntroduce new technology

Prepare skilled workersPrepare skilled workers


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Factors to reach economicFactors to reach economic

growth targetgrowth target To reach stable and higher economic growthTo reach stable and higher economic growth

Develop infrastructureDevelop infrastructure Presence of favorable investment environmentPresence of favorable investment environment

Reduce transportation costReduce transportation cost

Keep public investment at 8Keep public investment at 8--10 % of GDP10 % of GDP Keep price level increase (at 3Keep price level increase (at 3--5 %)5 %)

Expected OutcomesExpected Outcomes Increased private investment growth at 9Increased private investment growth at 9--10% per10% peryearyear

Generated job according to the investment growthGenerated job according to the investment growth

Enhanced investment opportunitiesEnhanced investment opportunities


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Investment program policyInvestment program policy Sources:Sources:DomesticDomestic public investment (public investment (88--1010%% of GDP)of GDP) private investment (16%)private investment (16%)

ODAODA LoansLoans (5(5--8%8% of GDP)of GDP) GrantsGrants

IssuesIssues Improved investment climateImproved investment climate Improved service delivery and its quality in education, healthImproved service delivery and its quality in education, health

Expanded information, information channelsExpanded information, information channels

Priority sectors:Priority sectors:

EducationEducation HealthHealth InfrastructureInfrastructure

EnergyEnergy Information technologyInformation technology


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Education sector policyEducation sector policy1.1. 2005200520102010

Ensure facilities (schools, textEnsure facilities (schools, text--books, etc) supplybooks, etc) supply Specialists training program: US$ 10Specialists training program: US$ 10--1515 mlnmln perper

annumannum

2.2. 20102010201520151.1. Expand education basic standard onExpand education basic standard on

HealthHealth Ecological knowledgeEcological knowledge Technology advancementTechnology advancement


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Health sector policyHealth sector policy

Publichealth

Capacitybuilding

Technology,vaccination

Mortalityreduction

Improvedservice delivery

Extended lifeExpectancy


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NDS preparation planNDS preparation plan

Working GroupMDG-based

NDS(draft-2)

MDG-basedNDS

(draft-2)

Open competitionOpen competition

resultsresults

PresidentPresidentMDG-based NDS(draft-3)

MDG-based NDS(draft-3)

Open discussionOpen discussionfindingsfindings

MDG-based NDS(draft-4)

MDG-based NDS

(draft-4)

ParliamentParliament MDG-based NDS

MDG-based NDS

MDG needsMDG needs

assessment, costingassessment, costing

Academics,Academics,

publicpublic

Public,Public,parties,parties,

NGOsNGOs......

GovernGovern--

mentment TTFsTTFs


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Government Policy HarmonizationGovernment Policy Harmonization

ParliamentParliament

Line MinistriesLine Ministries

Ministry of FinanceMinistry of Finance Medium TermFiscal Framew ork

Public InvestmentProgram

Medium TermAid P rogram

SectorDevelopment

Strategy

Annual ODADisbursement

Planning

CountryAssistance

Strategy

ConsultativeMeeting

Socio-EconomicGuidelines

National DevelopmentStrategy

Mil lennium DevelopmentGoals

AnnualBudget

Annual SEGsaction plan


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Main objectives ofMain objectives ofSEGsSEGs Enhance business environment, promote foreignEnhance business environment, promote foreign

and domestic investment, and sustain economicand domestic investment, and sustain economicgrowthgrowth

Resolve issues faced by health and educationResolve issues faced by health and educationsector (20.8% of investment)sector (20.8% of investment)

Prepare and start use big mining depositsPrepare and start use big mining deposits

Accelerate use of renewal energyAccelerate use of renewal energy Continue implement social programs included inContinue implement social programs included in

Government Action PlanGovernment Action Plan Cover 1Cover 1--4 grades by School Lunch program4 grades by School Lunch program


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Budget OutcomesBudget Outcomes

5,8

14,1

8,6

10,2

3,2

5,6

4,4-

4,0-

-10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25,0

Plan 2007

Expected 2006

Plan 2006

Actual 2005

Overall balance Current balance


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Budget policy prioritiesBudget policy priorities

Ensure economic growthEnsure economic growth

Ensure fiscal sustainabilityEnsure fiscal sustainability

Optimal allocation of domestic andOptimal allocation of domestic andexternal resourcesexternal resources

Increase real income of populationIncrease real income of population

Expand access to public servicesExpand access to public services

Support real sectorSupport real sector


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LinkageLinkage SEGsSEGs objectives andobjectives and

budgetbudget

Link is established (Link is established (SEGsSEGs Budget)Budget) Increase investment forIncrease investment for sectoralsectoral programsprograms

considered as prioritiesconsidered as priorities

Provide financial support to industries withProvide financial support to industries withadvanced technologyadvanced technology

Enhance investment into infrastructureEnhance investment into infrastructure RoadsRoads 15.3%15.3% EnergyEnergy 26.9 %26.9 %


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Thank you for your attention!Thank you for your attention!

Documents

A SEGandDevelopment Priorities Eng Final