Mongolia, a country that has long recognized the transformative power of education, finds itself grappling with a disheartening trend that exposes the deepening inequality between its affluent and impoverished citizens.

Recent revelations have brought to the forefront allegations of government fund abuse, as the children of Mongolia's elite stand accused of exploiting the Education Loan Fund, further exacerbating the socioeconomic divide.

This scandal not only sheds light on the alarming wealth gap but also serves as a cautionary tale for aspiring politicians who harbor ambitions of running in the upcoming 2024 parliamentary elections.

Student walking in the University library

Throughout the years, Mongolia has sent its brightest young talents to advanced nations, recognizing education as a catalyst for progress and development. While the Soviet Union was once the primary destination during the communist era, the advent of democracy in the past three decades has expanded the choices to include the United States, Europe, Japan, and Korea.

Acknowledging the importance of fostering global competence, the Mongolian government initiated the financing of international studies at the top 100 universities worldwide.

However, concerns have recently surfaced regarding the misuse of government funds allocated for these educational opportunities. A former Deputy Minister of Mining and Heavy Industry, himself a Harvard graduate, revealed a disconcerting trend in which a significant number of students, predominantly high-ranking officials and their dependents, obtained loans from the Education Loan Fund without fulfilling their repayment obligations.

The former minister disclosed that over 2,300 students failed to repay their loans, with a staggering 90 percent of them having ties to influential figures within the government.

A former employee of the Education Loan Fund corroborated this, confirming the misappropriation of funds benefiting students with political connections.

Allegedly, each loan, ranging from $30,000 to $200,000 per student, was granted without adhering to proper selection processes, further fueling concerns about favoritism and the abuse of power. By diverting government funds to finance their children's studies at prestigious universities abroad, the privileged few effectively obstruct access to educational opportunities for those in genuine need. This resulting disparity in wealth, opportunity, and values undermines the principles of meritocracy and social mobility that should form the bedrock of any equitable society.

As public awareness of this scandal grows, so too does the public outrage. Many demanded borrowers who have taken loans from the Education Loan Fund to promptly repay their debts.

However, some borrowers claim exemption from repayment by citing a requirement to work in the country for five years after graduation, asserting that the funds were granted as a grant rather than a loan. Yet, these claims are met with skepticism, as the absence of clear legal provisions supporting such exemptions raises concerns of power misuse and circumvention of established procedures.

Moreover, the issue extends beyond the misuse of the Education Loan Fund. Mongolian universities have long struggled to provide quality education, resulting in a strong demand among Mongolians to seek education abroad at prestigious institutions.

The combination of this demand and the lack of oversight and accountability in fund allocation has created an environment ripe for exploitation and the entrenchment of privilege.

The misuse of Mongolia's Education Loan Fund by the country's elite reveals a disturbing trend of increasing inequality and the erosion of equal opportunities. Furthermore, it appears to be a politically motivated tactic aimed at undermining political opponents, as the children of leaders from the Democratic and National Labor Parties were specifically singled out. Also, it has come to light that the child of the construction minister, who has been in disagreement with his cabinet regarding electoral reforms, has also received a student loan.

Some politicians, including the education minister and opposition party leaders, swiftly repaid their loans for their dependents as the scandal escalated, attempting to mitigate the political fallout.

The palpable public outrage serves as a resounding message that Mongolians will no longer tolerate the perpetuation of privilege at the expense of the nation's development and prosperity. A similar wave of public anger occurred in late 2018 when high-ranking officials and politicians funneled subsidized loan money to their family and friends from government funds intended to support small businesses. This outcry resulted in the removal of the parliament speaker, a cabinet reshuffle, and numerous politicians losing their renomination for the 2020 elections.

The next scandal expected to emerge revolves around the farmer subsidy fund, with several politicians allegedly implicated in abuse and corruption. Given the country's heavy dependence on government funds, nearly every businessman-turned-politician in Mongolia is entangled in the web of state subsidies, loans, or state procurement.

As part of his unwavering commitment to combat corruption, Prime Minister Luvsannamsrain Oyun-Erdene and his close allies are actively pursuing the establishment of a definitive separation between business interests and political endeavors. Their objective is to ensure that these realms maintain a prudent distance from one another.

However, the potential costs associated with these demanding reforms, which are aimed at reinstating integrity within public institutions, remain uncertain. Maintaining a delicate balance is crucial when implementing these reforms, as excessive pressure and targeting influential politicians as scapegoats could potentially undermine Oyun-Erdene's support from his political allies.

Mongolia started vaccinating small ruminants against Peste des Petits Ruminants, also known as sheep and goat plague, the country's General Authority for Veterinary Services said Tuesday.

The authority said in a statement that "at least 30 million head of small ruminants in central and eastern parts of the country, where outbreaks of the highly contagious animal disease have been reported in recent years, will be vaccinated."

The livestock sector is a main pillar of the Mongolian economy. However, frequent livestock animal disease outbreaks impede the industry.

According to official statistics, the nomadic country had 71.1 million heads of livestock at the end of 2022. Sheep and goats accounted for most livestock at 46 and 38.8 percent, respectively.

Mongolia finds a new coal export route to China after the first cross-border freight train departing from Mongolia's capital Ulan Bator arrived at northern China's Caofeidian port.

The freight train, comprising 98 open-top containers, carries an impressive load of 3,100 tonnes of raw coal. Its successful arrival at Caofeidian port signifies the establishment of an alternative trade route

This new railway connection forms a crucial component of the China-Europe (Central Asia) freight train service, helping bolster the global sea-rail transportation network of the Beijing-Tianjin-Hebei region. By integrating various modes of transportation, this venture not only enhances logistical efficiency but also strengthens international trade relations.

With the advent of this strategic export route, Mongolia is poised to further capitalize on its vast coal reserves and forge mutually beneficial economic ties with China.

Mongolia aims to export 50 million tonnes of coal this year, while the volume during the first five months stood at 23.06 million tonnes. Around 99% of the total exports, mainly coking coal, went to China, according to the Mongolian Customs General Administration.

President of Mongolia Khurelsukh Ukhnaa delivered the opening remarks at the “Green Finance - International Forum". We present the full transcript of the President’s speech:

“Distinguished guests,

Ladies and gentlemen,

Good day to you all!

We have gathered here today to discuss the ways to reduce the negative effects of climate change, which has become the most difficult challenge humanity faces, and to deliberate on ways to increase our efforts to battle climate change and to find solutions to finance planned projects and programs.

Climate change has a strong impact on the security of human existence with scientists, researchers, world leaders and international communities paying special attention to this issue. Although, every country is trying to fulfill its goals, obligations and commitments, the negative effects of climate change are continuing to intensify.

Numerous studies consistently demonstrate that since pre-industrial levels for over the last 170 years, the average global temperature has risen by 1.09 percent as well as other negative impacts including loss of global biodiversity.

Moreover, from heatwaves in Europe and wildfires in North America, to droughts in Africa and floods in Asia: last year saw climate disasters on all five continents.

In meantime, world economy shows a rocky recovery.

According to the IMF, global growth is projected to decelerate from 3.4 percent in 2022 to 2.8 percent in 2023. In particular, the slowdown in the Euro Area is even more pronounced.

Despite the recent drop in energy prices, energy security concerns will continue to loom large. This speaks to the importance of the green transition and green development.

Therefore, despite the world facing the many social, economic and geopolitical challenges and difficulties, we must intensify our efforts to protect the environment and reduce the negative effects of climate change.

In other words, we need higher ambition, stronger policies, and more finance for implementation.

Therefore, the last point we will focus during this forum.

Despite the fact that the world is making efforts to reduce the negative effects of climate change, many issues remain to be resolved in terms of how to finance these efforts and policies.

Increasing climate finance is critical to not only mitigating the negative impacts of climate change, but also to increasing resilience and fostering sustainable and inclusive global development trends.

As of today, we are seeing only around 630 billion dollars a year in climate finance across the whole world according to the IMF report.

However, in order to fully reach the goals under the Paris Agreement and the sustainable development goals of the United Nations, trillions of funds are needed every year.

For instance, the latest study by the London School of Economics shows that developing countries (other than China)’ annual investment in climate action needs to increase immediately, from about $500 billion in 2019 to $2.4 trillion by 2030.

Financing should go toward accelerating the energy transformation, increasing investments in resilience to protect lives and livelihoods protecting people's livelihoods against the increasingly devastating effects of climate change, enhancing biodiversity and conserve the ecosystems, and building capacity of countries to effectively combat climate change.

Thus, countries cannot singlehandedly overcome the challenges that the humanity faces.

To deliver on our shared climate goals, we must combine policy reforms, capacity development, and financing arrangements. What we need today is unprecedented cooperation and coordination.

Distinguished guests,

Mongolia, which has an extreme continental climate, is one of the countries most affected by climate change. Specifically, over the last 80 years the its temperatures have risen by 2.25 percent, which is twice the world average.

In Mongolia, 77 percent or 120 million hectares of the Mongolian territory is affected by desertification.

In addition, the number of annual natural disasters has more than doubled over the last 25 years, and weather-related disasters affect 8 percent of Mongolians every year and cost 0.6 percent of GDP annually in damages, in average.

The countries of the world have determined their share in reducing greenhouse gas emissions, and in this context, more than 70 countries have pledged to reduce their greenhouse gas emissions to zero by 2050.

Although Mongolia’s GHG emissions are small in absolute terms (0.1 percent of global GHG emissions), Mongolia has consistently supported the international community's efforts to mitigate and adapt to climate change and has been making its due contribution.

For example, Mongolia set a goal of reducing greenhouse gas emissions by 27.2 percent by 2030, and at the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change expressed its policy and objective to zero greenhouse gas emissions by 2050.

In order to meet the above policies and objectives, Mongolia is implementing them in the domestic policies and action plans of the key social and economic sectors such as agriculture, energy, infrastructure, and health.

In this context, the President of Mongolia initiated national movements such as "One Billion Trees", "Food Supply and Security", and "Healthy Mongolians" and these are being implemented implemented throughout the country. I am pleased to inform you that the government, private sector, wealth creators, domestic and foreign investors, and citizens are actively participating and working together towards our common goal.

For example, by planting and caring for billions of trees by 2030, within the framework of the "One Billion Trees" national movement, we are confident that it will play a crucial role in the development of sustainable financing while reducing deforestation and degradation, increasing water resources and greenhouse gas sequestration.

In point of fact, I am pleased to note that UN Secretary General Antonio Guterres, during his visit last year, expressed his willingness to join and cooperate with the "Billion Tree" national movement.

With the implementation of the movement, the most important initial result is that there is a big change in the attitude of the citizens and the public towards the protection and restoration of the environment.

Furthermore, Mongolia needs to drastically reduce carbon dioxide emissions from the agriculture and energy sectors.

Mongolia’s potential for renewable energy is very large estimated at 2,600 gigawatts thanks to its geographical location and climatic condition. It presents an opportunity to decarbonize its energy sector and further contributes to the energy supply of the region.

Therefore, Mongolia will pay special attention to increasing its clean and renewable energy sources, improve the business environment in the sector, and actively cooperate with investors and the international community.

In addition, we are working to develop the food and agriculture sector in line with green development. For example, the projects, programs and activities implemented within the national movement "Food Supply and Security" will be aimed at supporting green development.

Distinguished delegates,

As Mongolians, our cultural heritage stems from our nomadic lifestyle, which has fostered a deep connection and harmonious coexistence with nature. This unique way of life embodies our inherent responsibility to both preserve the pristine beauty of our surroundings and derive sustainable benefits from it, ensuring its longevity for future generations.

Therefore, economic and social policies should be fully focused on rapid reduction of environmental pollution and ecological degradation, improving people's livelihoods, and building green development.

For countries, there is a limited opportunity to solve and overcome the risks, challenges of climate change as well as necessary funding by themselves, therefore it is vital to cooperate in a mutually beneficial way at the regional and international level, exchange experience and further expand the cooperation and collaboration of the organizations in this field.

In particular, due to the global pandemic, high inflation, and the energy crisis, limited fiscal space in most countries in recent years poses a significant risk to increase green finance.

Therefore, the second "“GREEN FINANCE – INTERNATIONAL FORUM” is important for expanding regional and international cooperation, strengthening mutual understanding, increasing green financing, improving the system, exchanging best practices, and coordinating policies and measures.

Furthermore, series of important issues will be discussed during this conference, such as strengthening institutional capacity for green development, enhancing coordination, roles and responsibilities of economic sectors, international approaches, standards and new instruments for green and sustainable financing, advanced technology, innovation and green agricultural sector, energy effective construction industry.

It is pre-estimated that $11.5 billion is needed for Mongolia to reach successfully targets in its Nationally determined contribution.

In terms of our efforts for mobilizing this funding, Mongolia has decided to annually spend up to 1 percent of our GDP to combat climate change and desertification.

Moreover, I am pleased to mention that in recent years, our private sector has been actively working to mobilize sustainable funding with tangible outcome.

For instance, during last year's "Green Finance - Regional Forum", Mongolia adopted its sustainable finance roadmap, and the financial sector committed to rapidly increase its green loans by 2030.

Moreover, Mongolia has developed its sustainable finance taxonomy in accordance with the international standards, and currently working to create a specialized financial institution for green financing through a proper public and private sector partnership model.

Also, I am pleased to mention that Mongolian commercial banks have successfully issued the first green bond on the international market, as well as Financial Regulatory Committee has granted a permission to issue the first domestic green bond by one of banks yesterday.

In the future, it is essential for Mongolia to fully define comprehensive green development policy, improve legal environment, ensure coordination and cooperation of stakeholders, and create a green business environment.

It is also advisable to actively participate in the carbon market, determine the carbon tax and green financing environment, introduce optimal innovative financing methods, and work proactively to create the legal framework.

For the implementation of the above policy objectives, we will actively cooperate with the public and private sector, foreign and domestic investors as well as international organizations towards increasing sustainable financing through their support and involvement.

Distinguished guests, delegates,

Fresh air, clean water, and sacred soil are the main sources of the wellbeing of the mankind.

The green development is the foundation of sustainable global development.

For the sake of the green development, humanity and the world we shall look in the same direction, cooperate harmoniously, and promptly make effective yet bold decisions.

Let’s work together towards the safer life for the humanity!

I wish the best for the organization of the forum!”

The Financial Regulatory Commission has registered the first green bond in Mongolia. The Financial Regulatory Commission (FRC) emphasizes that this is the first "Green Bond" assessed by the international organization Sustainable Fitch as meeting the principles of green bonds.

Khan Bank plans to issue the green bond without collateral in accordance with its credit rating calculated by an international credit rating agency and to implement a major mid-term goal of intensively increasing its green financing portfolio to finance environmentally friendly activities.

In 2021 FRC approved a new procedure for issuing green bonds, which play a significant role in the development of green financing in the country. In May 2020 FRC signed a Memorandum of Understanding with the International Finance Corporation (IFC), a member organization of the World Bank Group to solve the environmental problems facing Mongolia by increasing green financing.

According to the Memorandum IFC supported the development of procedures to regulate relations regarding issuance of green bonds and its registration in conformity with internationally recognized principles. The FRC supported and cooperated in including the regulations related to this relation in the newly approved "Procedure on Registration of Company's Debt Instruments." The establishment of this arrangement will be a step to support the development of the domestic "Green Bond" market for financing environmentally friendly and green projects in Mongolia.

At the international level, green bonds are widely used to attract investments required to reduce the negative effects of climate change, increase energy efficiency, and solve waste problems.

Mongolia is a vast country with a population of just over three million people. The majority of the population lives in rural areas, where access to the internet is limited. However, this is changing thanks to Starlink, a satellite internet service provided by SpaceX.

Starlink is a game-changer for Mongolia’s digital landscape. It provides high-speed internet access to remote areas that were previously unreachable. This is a significant advantage for rural communities, as it allows them to access information, education, and communication tools that were previously unavailable.

One of the main advantages of Starlink is its speed. It provides internet speeds of up to 150 Mbps, which is faster than most traditional internet services in Mongolia. This means that rural communities can now access online services, such as video conferencing, streaming, and online learning, without experiencing buffering or slow loading times.

Another advantage of Starlink is its reliability. Traditional internet services in Mongolia are often unreliable, with frequent outages and slow speeds. This can be frustrating for users, especially those who rely on the internet for work or education. Starlink, on the other hand, provides a reliable and consistent internet connection, even in remote areas.

Starlink is also cost-effective. Traditional internet services in Mongolia can be expensive, especially in rural areas where the infrastructure is limited. Starlink, however, provides a cost-effective solution for rural communities, as it does not require expensive infrastructure or maintenance costs.

One of the most significant advantages of Starlink is its accessibility. Traditional internet services in Mongolia are often limited to urban areas, leaving rural communities without access to the internet. Starlink, however, provides internet access to remote areas that were previously unreachable. This means that rural communities can now access the same online services as urban areas, without having to travel long distances.

Starlink is also easy to set up and use. Traditional internet services in Mongolia often require complex installations and configurations, which can be challenging for users. Starlink, on the other hand, is easy to set up and use, even for those with limited technical knowledge.

In conclusion, Starlink is shaping Mongolia’s digital landscape by providing high-speed, reliable, cost-effective, and accessible internet services to rural communities. This is a significant advantage for rural communities, as it allows them to access information, education, and communication tools that were previously unavailable. Starlink is a game-changer for Mongolia’s digital future, and it is expected to have a significant impact on the country’s economic and social development.

Mr. Ban Ki-moon, the 8th UN Secretary-General of the United Nations and Chairman of the Ban Ki-moon Foundation made a speech as the guest of honor at the Trans-Altai Stability Dialogue: Gender Equality and Sustainable Development, being held on June 12-14 at the State House.

“We all together represent the global movement in which we strive to create a just and equitable world for all. This is something I have advocated and practiced throughout my career. It is a core mission of the Ban Ki-moon Foundation for a Better Future. From the start of my tenure as the UN Secretary-General, I promised to make gender equality and women's rights a global priority.

Recognizing that change starts at home, has inspired the appointment of dozens of high-profile women to leadership positions within the United Nations. As I travel the world, I witness the struggles of women and girls, drawing strength from the indomitable spirit of the women, who show resilience and determination to make a difference in their communities.

As outlined in the latest report on the Sustainable Development Goals, the world faces obstacles to achieving its goal for gender equality by 2030. Specifically, the social and economic consequences of the COVID-19 pandemic have a particularly negative impact on women and girls. Violence against women continues to plague our society. Also, the progress for women to reach leadership positions in the political and economic sectors is still slow.

To change it, we must use a holistic and multifaceted approach. We should encourage legislation, policies, funding, and institutions that advance gender equality. We should encourage legislation, policies, funding, and institutions that advance gender equality. I want all of you, the policymakers, experts, academics, and students gathered here today, to continue to make a difference in your zone of influence.

We hope that the Trans- Altai Sustainability Dialogue will raise Mongolia's reputation overseas. With unity and determination, we can overcome obstacles and speed up the future in which discrimination against girls and women is eradicated, and a stable and prosperous society is built,” said Mr. Ban Ki-moon.

Recently, Mongolia's foreign relations have been very active, with various visits of foreign government officials and the organization of major international events. One of these events is Ulaanbaatar Dialogue on Northeast Asian Security, the international conference organized by the Ministry of Foreign Affairs and the Institute for Strategic Studies of Mongolia. Mr. N. Ankhbayar, State Secretary of the Ministry of Foreign Affairs has been interviewed about the conference.

- How many visits and events has the Ministry of Foreign Affairs organized this year so far?

- Since the beginning of this year, the Ministry of Foreign Affairs has organized visits to more than 10 countries at the level of Minister, Deputy Minister, and State Secretary of State of Foreign Affairs. Additionally, representatives from almost the same number of foreign countries have visited Mongolia. Moreover, this month alone, we have scheduled the Meeting of Women Foreign Ministers, the Ulaanbaatar Dialogue international conference on Northeast Asian security, the Global Export Promotion Forum, and the Regional seminar on promoting women, peace, and security in Northeast Asia. We are actively preparing to host these major international events in Ulaanbaatar.

-Two events related to Northeast Asia will be held this month. Why does Mongolia focus on Northeast Asia?

- The regions of Northeast Asia and Central Asia and its peace, security, economic development, social development, and environmental issues are of great importance to Mongolia, which stretched over vast territories to the east and west, regionally part of both the two regions. Northeast Asia, with its majority population and potential priority role in future development, as diplomats and scholars consider still faces security threats arising due to state interests, geopolitical conflicts, territorial disputes, and mistrust. It also confronts traditional and non-traditional challenges, including the issue of nuclear weapons. The six-party talks initiated in Beijing in 2003 by diplomats from Russia, the United States, China, South Korea, North Korea, and Japan to address the Korean Peninsula issue have reached a stalemate.

Given Mongolia's traditionally friendly relations with all countries in Northeast Asia, including South Korea and North Korea, we believe we can contribute to regional peace, security, and the establishment of peace on the Korean Peninsula. The "Ulaanbaatar Dialogue" initiative was proposed as it aligns with our country's goal of consistently implementing a peace-loving, open, multi-pillar foreign policy and contributing to global and regional peace and security.

-Could you provide a brief introduction to the "Ulaanbaatar Dialogue" initiative?

-Since the 1980s, before the end of the Cold War, our senior diplomats proposed numerous initiatives to establish a dialogue mechanism for the security of Northeast Asia. In 2001, Mongolia put forward an initiative to establish a dialogue mechanism for ensuring peace and security in Northeast Asia. We raised the issue again in 2003, but due to the prevailing circumstances, it was not realized. Furthermore, we made constant efforts in this direction including organizing the international conference on "The Future of Central Asia and Northeast Asia's Security: New Helsinki" in 2008, as well as hosting the meetings of the bilateral working groups in charge of the normalization of North Korea-Japan relations in 2009 and 2012 in Ulaanbaatar. Finally, in 2013, our country initiated the "Ulaanbaatar Dialogue" initiative.

- Now, could you elaborate on the Ulaanbaatar Dialogue, the international conference on security issues in Northeast Asia?

-Under the framework of the "Ulaanbaatar Dialogue" initiative, Mongolia has been organizing an annual conference on security issues in Northeast Asia since 2014. The conference, held in June each year, has become a traditional platform for discussing security issues in Northeast Asia and its solutions. It attracts participants not only from the region but also from Asia, the Pacific region, North America, and Europe. After a two-year hiatus in 2020 and 2021 due to the Covid-19 pandemic, we successfully held the seventh conference in 2022, both in-person and online. The eighth conference is scheduled to take place on the 15th and 16th of June.

The "Ulaanbaatar Dialogue" is unique compared to other dialogue mechanisms in the region. It covers a wide range of issues and encourages open expression of opinions in an informal setting. The discussion format combines the first channel of official representatives and the second channel of academics, which helps prevent the dialogue from reaching a deadlock.

- With recent missile tests conducted by North Korea, is there hope for peace in Northeast Asia?

-In today's complicated international relations landscape, our country maintains a balanced foreign policy based on the main principles of our peace-loving, multi-pillar, and open approach. Diplomacy teaches us the importance of constantly seeking ways to continue the dialogue, even in tense and conflicted situations.

We believe that engaging North Korea in international dialogue is more effective than isolating the country. Despite the deadlock in the six-party talks and closed dialogue channels, we remain committed to this policy, which led us to launch the "Ulaanbaatar Dialogue" initiative in the past. Regional countries have shown great support for our initiative.

- Will there be a representation of North Korea participating in the eighth international conference?

-We have extended an invitation to the Democratic People’s Republic of Korea to participate in the conference. The door to the conference is always open to them. For the DPRK, the "Ulaanbaatar Dialogue" serves as an important platform to express its position, and its voice to be heard to the world and offers an opportunity to exchange views with other countries.

- What is the theme of this year's conference? How is it different from previous years?

-This year's conference marks the 10th anniversary of the "Ulaanbaatar Dialogue" initiative. It will be a conference that reviews the experiences, challenges, and achievements of the past 10 years while planning for the next 10 years. Over the past five years, the conference has been organized using a 1.5-channel format, which combines official representatives (first channel) and academics (second channel). In addition to Northeast Asian countries, more than 150 representatives from over 20 countries, including the Netherlands, France, Britain, Estonia, the Philippines, and Kazakhstan, as well as international organizations, and research centers have confirmed their participation. Izumi Nakamitsu, the UN High Representative for Disarmament Affairs, will also take part. The high-level participation of the United Nations signifies its recognition of the conference's significance.

The main sessions of the conference will focus on topics namely, "Security Challenges and Opportunities in Northeast Asia," "Multilateral Cooperation in Northeast Asia," "Future of Peace in Northeast Asia," "Economic Cooperation in Northeast Asia after the Pandemic," and "Promoting Energy Cooperation in Northeast Asia."