The Generation Z (Gen Z) in the labor market has brought new challenges to employers. Internationally, Gen Z was born between 1997 and 2012. According to the 2020 research on identifying the generation of Mongolian society, people born after 1995 are considered the “new generation” in the country. Having been friendly with technology since birth, they can be described as “native digital citizens” who do not like the current established relations and attitudes of the labor market, especially the traditional ways of employers.

On the other hand, most employers are critical of the new generation’s relationships, attitudes, and ways of working and want to change them. As a result, time has shown that this is not a simple problem, and the question “how to employ Gen Z” is being raised among the employers.

In traditional labor relations, there is a big difference between boss and workers. Gen Z is forcing people to change the concept and attitude of being in control, fixed hours and stereotyped methods. The results of international and domestic research show that their perspective is completely different from that of the previous generation, and they are more free-thinking, innovative, and independent. This means that traditional employment relations are outdated and employers need to convert to other methods and management.

However, many employers in our country, without realizing it, have started to explain the shortage of human resources as the reason for the lack of human resources due to the fact that the labor force has been sent abroad, and the government has not taken any measures.

So what is the “recipe” to employ Gen Z and what special services do they need? The following is the positions of professional researchers and representatives of employers on this matter.

‘Gen Z doesn’t choose organizations that don’t consider mental health’

CEO of Optimal en Max Company and psychologist G.Mandukhai:

Gen Z is expected to occupy 27 percent of the global labor market by 2025. This generation has already started changing the labor market. Their main characteristic is that they are familiar with the Internet, e-networks, and smartphones, and are also called “native digital citizens”.

It can be said that this is a generation with high cognitive abilities, capable of gathering information from many sources. According to the Deloitte Global 2023 Gen Z and Millennial Survey, 49 percent of Gen Z say that maintaining work-life balance is more important. They admire someone who can maintain a work-life balance. When choosing a new job, it is important for them to get support for maintaining work-life balance. Compared to millennials, they consider family and friends more important than work.

About 46 percent of Gen Z, particularly women, feel constant stress and anxiety. Many also place a high value on mental health, and are able to talk openly about it with others. We hope that the results of such research will help to better understand and accept young people. It is more important to try to understand people than to interact with them in a special way. In doing so, it is enough to follow the principles of positive and professional communication. This includes taking the time to listen to them, being faithful and non-judgemental about their feelings, paying attention to their feelings, and helping them open up.

Underestimating employee mental health not only reduces organizational productivity, but also negatively affects long-term values ​​such as team cohesion.

According to a survey conducted in 2021, Gen Z is 47 percent more likely to be unemployed, or bored of work than others. The main reasons why they leave work include excessive workload, bad relationships in the work environment, loss of work-life balance, the organization not paying attention to the mental well-being of its employees, and receiving salaries that are not appropriate for the work they do. Z people are more aware of technological developments, look at problems from many angles, solve them scientifically, and have good critical thinking. Perhaps, the environment suitable for their characteristics and the fact that the management of the organization does not understand the difference between them will be the reason for Z’s leaving their jobs.

The workplace environment is important for mental and physical health. Therefore, it is necessary to pay attention to the mental health of employees. But organizations do not know how to start and what to do. In order to do this, it is important to include provisions in the internal procedures of the organization to support mental health.

‘There will be a whole generation fed by parents’

Director of the Department of Education and Training of the Mongolian Employers’ Federation B.Doloonjin:

There are a lot of ads for recruitment, but there are very few people who go to work. I see that the main reason is that people do not like to work anymore. They want to make money as easily as possible. I think that to change this, we need government policies. It is important to immediately develop the policy and support the working people, especially the youth.

It is common for young workers to refuse their wages. In the past, people valued and emphasized work from the bottom, starting from the beginning and progressing step by step. But the current young people want to be the boss immediately. Politicians are the main people who influence them to do so. If you look at the biographies of politicians, they become leaders immediately after graduating from universities.

On the other hand, parents are overprotective of their children and spoil them too much. Due to this, today’s young people do not listen to people, do not get along well with others, and are unable to work. In other words, there will be a whole generation fed by their parents. The family is the main environment for a person’s upbringing and development. Therefore, parents and guardians need to focus on making them like work. Another problem is that the quality of education in our country is very poor. We do not train the in-demand specialists. Lawyers and economists are trained in large numbers. Their knowledge and skills are poor. The government policy of preparing the pavement for work has already been lost.

‘New generation is afraid of dangerous community atmosphere’

Chairman of the National Research Institute of Human Resource, Professor G.Tegshburen:

Our organization studied the features, advantages and disadvantages of Gen Z and how to work with them. Everyone thinks that their main characteristic is that they are too ambitious, they learn things easily, and they are ready for anything. They can be defined as those who want hybrid working models, communicate openly with their management, are passionate about environmental and social protection, and are extremely sensitive to human rights. Weaknesses are biased thinking, haste, frivolity, fragile psychology, thoughtless speech, tendency to take life easy, simplify work. These people value satisfaction with the goals of their work more than salary. Therefore, when they work, they follow their desires. Making work interesting and fun is a key way to motivate them. An interesting environment where they can learn new things and a flexible work schedule that motivates and inspires them. About 85 percent of young people participating in our research are interested in changing their careers in a short period of time. Moreover, 67.8 percent considered mistakes to be part of the learning process. In addition, 50.4 percent agreed that there should be flexible time and shift arrangements with equal distribution of workload. About 49.2 percent answered that there should be a fair system of mutual understanding and exchange of opinions.

‘They cannot be ruled through domination or pressure’

Chairwoman of the ️Federation of Mongolian Human Resource Management Ts.Tsetsegmaa:

According to the final statistics of 2022, 22 percent of our country’s population is accounted for by Gen Z. Almost one-third or 31 percent of the total workforce is occupied by these people.

The past generations are expected to work steadily in their work. However, for Gen Z, changing jobs is normal. They look for a suitable and comfortable environment by trying to work in many places. In addition, these people value communication through digital means, and consider it important to manage their work and life flexibly. For this reason, they do not tolerate the established style of the workplace, they want to freely express their ideas and engage in meaningful work. For example, according to a survey conducted in many countries at the end of 2021, about 40 percent of Gen Z prioritize working remotely and flexibly, maintaining work-life balance. In addition, they are likely to change jobs more than 10 times during their active working life. They began to look for psychologically stress-free, healthy and safe workplaces. They are ready to leave their jobs immediately if the wages and salaries do not match their demands.

Due to the above situation, the traditional forms of employment in our country do not meet the demands and requirements of Gen Z. Therefore, if the organization does not update its culture, working methods and management, it will not be possible to maintain its human resources in the future. It is not possible to manage new people who have the opportunity to exchange ideas and earn extra income in the digital environment with old-fashioned methods, such as ruling, harassing, and oppressing them.

'Flexible work schedule was created for young people’

Central Express CVS JSC:

Our company has more than 2,600 employees. Gen Z accounts for 89 percent of it. That’s why we’ve introduced an optimized approach for Gen Z. For example, we defined their work methods based on their five main features. We have introduced a flexible time system because Gen Z strives to maintain a work-life balance. They strive to be financially independent. Therefore, it is possible for them to receive a salary every week.

In accordance with the interest of these people, we have opened the opportunity to change their careers. Because they value comfort, a comfortable workplace environment makes them happy. The most important thing is that Gen Z choose their jobs based on their own values. This is why we have created value through organizational culture. They prefer to finish their work on time and do other interesting things. Therefore, we strive to be one of the employers that can meet their interests and provide a work-life balance.

‘Companies train their required employees themselves’

Director of the Research Institute of the Mongolian National Chamber of Commerce and Industry O.Tumen-Amar:

Enterprises and organizations have mentioned two main problems. The first is funding and the second is human resources. Especially after the pandemic, enterprises and organizations face a shortage of manpower. For example, our organization conducted a survey in October last year, and 58 percent of the companies said that there is a lack of professional staff. This is twice as much as before the pandemic. In particular, there is a shortage of workers in foreign trade, tourism, transportation, and food production. Moreover, 85 percent of the agricultural companies responded that they are training and employing the necessary human resources themselves.

It is said that the graduates do not meet the requirements of the job. When we asked what measures are being taken to alleviate the shortage of workers, large companies said that they have increased the amount of salaries. However, according to the research, small and medium-sized businesses are reducing their production and the scope of their activities. Such a situation is due to the migration of the labor force. In other words, it is due to the fact that many of the working-age citizens aspire to work abroad. Therefore, business owners are constantly telling us that it is necessary to take measures at the policy level.

By Misheel Lkhasuren

Mongolia has experienced a 2.1-degree Celsius increase in average air temperatures over the past 70 years, making it one of the countries most affected by climate change. This changing climate has had adverse effects on vital sectors such as agriculture, particularly animal husbandry, as well as the natural ecosystem requiring urgent and timely actions. As of 2021, the assessment of desertification and land degradation in Mongolia reveals that 77% of the land is degraded due to overgrazing and climate change.

Additionally, the frequency and magnitude of natural hazards including harsh winters (dzud), drought, snowstorms and dust storms are increasing. Comprising nearly 30% of the population and relying heavily on livestock and natural resources for their livelihood, nomadic herders are extremely vulnerable to these impacts signifying the urgent need for enhancing their risk management capacity as an adaptation priority for Mongolia.

Let’s explore how Mongolian nomadic herders and the very life as-they-know-it are being challenged by climate change and how they are striving to adapt to the ever-changing climate from Narangerel and Ariuntuya’s household – one of the 300 thousand herder households in Mongolia.

Narangerel and Ariuntuya are champion herders in Ulziit soum (sub-provincial unit) of Arkhangai province of Mongolia. Narangerel is also a celebrated wrestler and racehorse trainer.

Together, they look after over 1,000 animals in their herd including sheep, goat, cow and horse which is a significant undertaking for their family of six.

The birthing season and the task of caring for malnourished animals after a harsh winter make spring the most challenging time for many herders.

Every member of the household, including their sons and eldest daughter, is occupied with caring for the animals both the weaker ones and newborns starting their day before 6 a.m. and ending it after 10 p.m. Ariuntuya says, “When our children get home on the weekends from school, they are huge help for us but when they are in school during weekdays, we become very busy and shorthanded.”

Unlike the city residents, this household or Mongolian nomadic herders don’t have weekends off. It is a 7-day routine all around the year.

Over their 30 years of herding livestock, they have noticed a significant and challenging change in recent years - the accelerated pace of climate change. Narangerel says, "Predicting seasonal changes has become increasingly difficult. For instance, by May, we should already see the emergence of new green grasses and vegetation, which are crucial for our herds to regain strength after losing up to 30% of their body weight during winter. However, this year in May, we still haven't seen the grasses, making things very challenging."

Indeed, the animals are very weak, and landscape is still plain yellow with little to no vegetation for the animals to graze. Every morning, Narangerel would help the weak animals to stand up and while Ariuntuya together with their daughter and sons feed them as the animals can’t leave for pasture themselves yet. Even if they manage to reach the pasture, grass is still yet to come.

Narangerel further added, "We are also seeing significantly warmer temperatures in December and January, but unusually cold temperatures in March and April compared to the past. This unpredictability makes planning extremely challenging for us." Sadly, these patterns are becoming increasingly common causing difficulties for many herders. This year alone, certain regions of Mongolia experienced temperatures as high as +5.5 degrees Celsius in January on some days.

One of the major challenges herders are facing in recent years is drying of the nearby rivers, springs and streams forcing them to rely on wells which are shared by everyone in the surrounding area which is usually around 10-15 herders’ households and 4,000-5,000 animals daily.

Narangerel explains that in the event of water depletion or operational issues with the wells, the herders are left with no choice but to travel approximately 10 kilometers to the nearest river to provide water for their animals. This round trip to the river consumes an entire day.

One effective solution to tackle this challenge is the protection and fencing of springs, with the support of the UNDP's ENSURE project. This project is funded by the Global Environment Facility and has been assisting the local community for several years. According to the locals, a spring that had almost dried up two years ago due to the presence of herds of animals blocking the spring source, has now made a remarkable recovery since it was fenced. It now runs for hundreds of meters and has even formed two small lakes along the way. This rejuvenated spring now provides abundant water not only for the people and animals in the area but also for the local wildlife.

The combination of harsh winter followed by delayed vegetation in spring has inflicted significant losses upon many herders. As reported by locals, some herders in the surrounding area have suffered the loss of 60-70% of their livestock this year. The frequent presence of animal carcasses serves as a stark reminder of the extent of the impact. Reportedly, the nationwide animal losses have reached nearly 500 thousand as of March 2023, dealing a severe blow to the livelihoods of thousands of nomadic herders.

The livelihoods of herders are heavily dependent on their livestock, particularly through the sale of cashmere, meat, wool, and hides. However, in recent years, many are losing their herds at an unprecedented rate due to extreme weather conditions resulting from climate change and land degradation amplified by overgrazing of pastures by the staggering number of over 70 million animals.

Consequently, many herders now agree to reduce their herd size and focus on the quality of their animals. Moreover, many are also seeking to diversify their income sources to reduce their livelihood dependency on the herd size. One prominent alternative that has emerged is tourism. Mongolia's nomadic culture is a captivating attraction for foreign tourists, and herders possess significant potential to benefit from this growing interest.

Narangerel and Ariuntuya are reaping the benefits of the "Ger and Nature" ecotourism initiative by UNDP. This initiative, funded by UN PAGE, aims to promote community-based eco and cultural tourism. As custodians of the nomadic lifestyle and culture, herders are the primary beneficiaries of this programme.

Mongolian herders often rely on an excessive number of plastic containers to store their food and water, leading to health issues as they age. Additionally, there is a need for environmentally friendly and portable toilets that cater to the nomadic lifestyle while meeting the requirements of tourists.

Through the initiative, herders are receiving essential guidance on becoming professional hosts and overcoming key challenges. Their success in establishing alternative income sources, reducing their reliance on the herd for livelihood, is crucial for their future. It plays a vital role in enhancing their adaptability to changing climate conditions, ensuring the survival of their lifestyle and traditions.

“When I grow up, I want to become a wrestler and herder just like my dad” says their youngest son, a third grader, expressing his aspirations for the future.

With a smile on his face, Narangerel affectionately pats his son on the head and says, "I am glad that he wants to carry on our herding tradition. However, I want to ensure that he receives a secondary education before he chooses to become a herder and wrestler." Ariuntuya wholeheartedly supports this sentiment and also expressed her pride in their eldest daughter's ambition to study dentistry after completing high school.

While they are hopeful to continue and preserve their traditional livelihood and nomadic herder culture, challenges of adverse climate change impacts loom large in the years to come underscoring the critical and ongoing support from development organizations such as UNDP and their partners.

Whipsnade Zoo, just outside London, is celebrating two important new arrivals. A male foal called Luujin and an as yet unnamed female were born to a herd of rare Przewalski’s horses at the zoo this spring.

The births are a boost to the zoo’s international breeding program which backs up the endangered Przewalski’s population in the wild.

Native to Asia, the Przewalski’s horse is untamed – even here at Whipsnade, where it roams unhindered on a large expanse of open grassland. It is officially the only truly wild horse on earth, with two extra chromosomes that differentiate it from a domestic horse. It looks distinctive too, short, slightly stocky light brown in colour and with a short, tufted mane.

Despite ever increasing numbers of Przewalski’s horses in Mongolia and China, there are still challenges ahead as they re-establish themselves in the wild. ZSL has a partner program in Mongolia, helping to protect the species and its native habitat.

President Sadyr Japarov has ordered establishment of the Embassy of Kyrgyzstan in Ulaanbaatar, Mongolia.

The given decision was made with the purpose of facilitation of development of political, commercial, economic, scientific, technical and cultural ties between Kyrgyzstan and Mongolia.

The Cabinet of Ministers will resolve organizational and financial issues linked to operation of the embassy of Kyrgyzstan in Mongolia.

Harvest Moon, the film that was last year selected as Mongolia’s Oscars contender, has secured distribution deals in Europe and Asia through sales agent Asian Shadows.

Directed by Amarsaikhan Baljinnyam, as an adaptation of a novel by T. Bum-Erdene, the narrative tells of the encounter between a man, who unexpectedly returns from the big city to the countryside and then stays on to take up an agricultural role, and boy being brought up by his grandparents. Both are forced to re-evaluate what they had taken for granted.

The film had its world premiere last year at the Vancouver festival, where it won the audience award and followed that with further audience award at FESCAAL Milan and two more prizes at the Miworld Young Film Festival Milan. Additionally, Tenuum-Erdene Garamkhand who played the role of the young boy collected the best actor award at the Fribourg IFF.

The film was picked up for Italy and Italian speaking territories by Officine UBU, a company which previously handled the release of “The Quiet Girl” and “Lunana A Yak in the Classroom.” In Taiwan, it was licensed by Joint Entertainment, which has previously released “The Super 8 Years,” “The Sitting Duck” and “Utama.”

Baljinnyam is a major force in Mongolian cinema. He played the role of Ariq Boke in Netflix sries “MarcoPolo”. Before that, he played in and produced 2011 film “Thief of Mind” and the 2014 title Trapped abroad, both directed by Janchivdorj Sengedorjis. “Thief of Mind” won the Grand Prix for best film during the Mongolian 2012 Academy Awards, with Baljinnyam also winning the prize for best lead performance.

The film also won best supporting role, best cinematography, best screenplay and best sound editing.

More recently, he worked as screenwriter and actor on “Under the Turquise Sky,” a 2021 mix of realism, fantasy and comedy in a visually stirring feature debut by Kentaro, about a Japanese man who goes on a journey of self-discovery in Mongolia.

The film was produced by independent production company IFI Production (Mongolia), founded by producer Uran Sainbileg, The film was previously pitched by IFI at the 2016 edition of Locarno’s Open Doors project market.

With credits including Mongolian-Japanese film “Under the Turquoise Sky” and “The Mongolian Connection,” a Kazakhstan-U.S.-Mongolia picture directed by Drew Thomas, the company is active in using co-production to pioneer the new wave of Mongolian cinema.

French President Emmanuel Macron made a historic visit to Mongolia on May 21 at the invitation of Mongolian President Khurelsukh Ukhnaa. Macron’s state visit, bringing with him a 54-people delegation, marks the high-level political will for Mongolia and France to advance their bilateral ties to a strategic-level partnership – one of the stated goals after the visit.

France and Mongolia established diplomatic relations in 1965. In Mongolia, France is recognized as one of the European countries to have devotedly supported Mongolia’s independence, democracy, and modernization from an early stage. Especially since Mongolia’s democratization in the early 1990s, the two countries have shared a mutual understanding of the significance of democracy, human rights, and democratic governance.

Since the two established ties in 1965, France has received three presidential state visits from Mongolia. In 1996, the first delegation was headed by Ochirbat Punsalmaa, followed by Enkhbayar Nambar in 2007, and Elbegdorj Tsakhia in 2015. Each high-level meeting between the heads of state strengthened France-Mongolia diplomatic relations and paved the way for agencies, businesses, and institutions to cooperate on diverse issues and projects.

On the prime ministerial level, Mongolia sent Byambasuren Dash to Paris in 1992, Bayar Sanj in 2009, and Batbold Sukhbaatar in 2011. These diplomatic visits – albeit intermittent – demonstrated Ulaanbaatar’s interest in augmenting France-Mongolia relations. But Mongolia had never hosted France’s head of state – until now.

Macron’s historic visit to Mongolia ultimately cemented previous attempts to bolster the two countries’ relations. His visit shed light on three major areas for advancing France-Mongolia relations to a strategic partnership.

First and foremost, the timing of Macron’s state visit highlights Mongolia’s geostrategic location.

Despite its landlocked position, Ulaanbaatar’s foreign policy remains multi-pillared and democratic. Therefore, as countries around the world, particularly, democratic countries seek stable partners, Mongolia provides a rare opportunity. For France, as Macron is determined to strengthen its presence in East Asia under its Indo-Pacific Strategy, Mongolia is a partner that cannot be neglected.

The second important outcome was that Macron and Khurelsukh showed a political will to advance bilateral ties to a strategic partnership level. Indeed, establishing a strategic partnership requires a certain level of trust in governance, institutions, and mutually accepted and respected cultural ties. In 58 years of diplomatic ties, Mongolia and France have strengthened these fundamental linkages. Macron’s visit demonstrates these shared values.

Finally, Macron’s high-level meetings with Khurelsukh and Prime Minister Oyun-Erdene Luvsannamsrai clarified the significance of France’s interest in Mongolia, ranging from investment and strengthening business relations to cultural ties.

A diplomat, and leading Mongolian international relations scholar, Bayarkhuu Dashdorj, explained, “Macron’s state visit to Mongolia is a significant step in advancing the two countries’ relations. If Mongolia and France were to establish a strategic partnership, this signifies the two countries’ relations have entered the next level. This itself a significant indication of France’s respect and continued support for Mongolia’s democracy, human rights, and fundamental ties as an important third neighbor partner.”

Khurelsukh’s foreign policy adviser stated that Macron’s state visit to Mongolia illustrated – among many things – Mongolia’s multi-pillared, balanced, and peaceful foreign policy. Moreover, he stated, “Macron’s visit carries both political and geopolitical relevance. Also, it is a major indication of Mongolia’s successful utilization of the third neighbor foreign policy.”

In a joint press conference with Macron, Khurelsukh reaffirmed France as an important third neighbor partner and a country that has continuously devoted itself to supporting Mongolia’s democracy. For his part, Macron stated that France considers Mongolia to be a “privileged partner.”

In the Mongolia-France Joint Declaration, the two countries declared mutual respect for the robust partnership between the two countries, which is embedded in democracy, human rights, freedom, and the rule of law. Moreover, as members of the United Nations, Mongolia and France declared the responsibility of implementing a multilateral approach promoting peace, security, stability, and sustainable development.

The Joint Declaration also indicated areas of cooperation, such as in the fields of “politics, defense, civil defense, economy, trade, investment, energy, agriculture, communications, technology, industrialization, education, science, culture, and sports.”

One major area of cooperation between Mongolia and France is the strengthening of Mongolia’s civil protection sector. France has offered support in strengthening Mongolia’s emergency response and disaster relief management system. The two sides have agreed to extend this collaboration by providing professional training in disaster relief operations and bringing the emergency team to international standards and requirements.

Moreover, France has shown increasing interest in Mongolia’s climate change, and air pollution issues. Macron praised Khurelsukh’s “One Billion Tree” initiative as part of Mongolia’s commitment to the Paris Agreement. One of the major infrastructure projects currently under discussion is creating an environmentally friendly aerial transportation system in Ulaanbaatar.

The two sides will also expand cooperation in space science and communication satellites for peaceful purposes.

In an interview, Mongolia’s ambassador to France, Nyamkhuu Ulambayar, touched on the importance of bilateral relations, particularly the two countries’ cooperation and success in defense, trade, education, investment, mining, and the health sector. She added that the civil protection sector, husbandry, and education sectors have been the most active and successful areas of cooperation. Since 2015, France and Mongolia have jointly provided funds for 10 students to study in France each year.

From a political and governance perspective, Macron’s historic state visit reaffirmed Paris’ respect for the fundamental democratic values shared by both countries. Each meeting between the heads of state strengthened France-Mongolia diplomatic ties, but more importantly, it has paved the way for government agencies, private businesses, and other civil institutions to cooperate on diverse issues and projects.

With bilateral relations approaching their 60th anniversary in two years, Mongolia and France are on their way to advance ties to a strategic partnership level.

GUEST AUTHOR

Bolor Lkhaajav

Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.

Mongolia is on course to increase its coal exports to 50 million tonnes in 2024, said Bold Javkhlan, the country's Minister for Finance, during a plenary session of the State Great Khural on May 18.

"While the economy is showing signs of stability, there are still external risks beyond our control," he stated. "The decline in coal prices in foreign markets is not determined by Mongolia."

Mongolia will be able to export 50 million tonnes of coal in 2024. This represents the actual volume of physical exports. However, it is difficult to directly forecast or estimate the prices, he added.

Mongolia exported a total of 19.05 million tonnes of coal in the first four months of this year, surging 402.41% from the same period last year, data from the Mongolian Customs General Administration showed. The export revenue reached $3.06 billion, up 187.66% compared to the same period last year.

Mongolia's coal exports came in at 31.69 million tonnes in 2022, surging 101.72% or 15.98 million tonnes year on year. Exports to China totaled 29.77 million tonnes, accounting for 94% of the total.

At the end of April of this year, the bank savings in national currency amounted MNT 13.5 trillion, making an increase of MNT 424.8 billion (3.2 percent) from the previous month, and a decrease of MNT 206.1 billion (1.5 percent) compared to the same period of the previous year.

MNT 12 trillion (88.9 percent) of savings belongs to citizens, and MNT 1.5 trillion (11.1 percent) belongs to enterprises and organizations.

The National Statistics Committee reported that foreign exchange deposits reached MNT 5.3 trillion, decreasing by MNT 616.5 (10.4 percent) billion from the previous month, and increasing by MNT 976.5 billion (22.4 percent) compared to the same period of the last year.

Economist R.Shinegerel shared his opinion about the current economic situation in the following interview.

The government always talks about developing rural areas. How favorable is the local business environment for new businesses? Have the indicators generally improved, such as markets, investment, and regional competitiveness in rural areas?

Our country is not very friendly to new businesses. A favorable policy environment for start-up business in cities and rural areas has not yet been created. Pressure from the government, taxes, social security, fees, and contributions do not give businesses a chance to grow. Compared to other countries, we have to see if there is an environment where small businesses can stand on their feet and expand. Today, our country has a very tough and difficult situation. That’s why the business does not grow, or cannot develop stably and steadily. Most of them are unable to pass the first stage. Support and ancillary services should be provided to villages that are based on intensive animal husbandry or near newly operating mines. There may also be some opportunities in tourism.

Recently, people have been going abroad a lot to work and live. For example, some of them sell their business and leave to live in a foreign country for a long time. What do you think is the main reason for this?

In a country like Mongolia where development is slow, where corruption and bureaucracy is rampant, where the state has attacked the values and dignity of individuals, two types of human resources flee from their countries. This is confirmed by economic theory and research. First, young people go abroad a lot. It is said that the largest core part of the labor market is leaving. We are losing young people. Today, many young people are ready to go to Australia, the USA, and South Korea to work. Second, the most highly skilled and specialized workers are recruited by such countries. This phenomenon is quite common, and to that extent it is very harmful to the development of the country. It takes a lot of time to build such a highly skilled workforce. Young people who are engaged in business are going abroad as well. This is very sad news. People who create wealth are leaving like this, and a “tough” situation is emerging in our labor market. The lack of human resources has already started. Labor productivity is declining in both the public and private sectors. People themselves are capital. The beginning of the country’s change is people. However, the fact that people were not appreciated and neglected is manifested in this way today. A country will develop if people develop. A rich citizen means a rich country. So, losing our most creative part is a big risk. It is necessary to quickly investigate and find out why this is happening with such intensity, and take immediate measures. Most of them should not be left like that. The state and government policies should also be aimed at this issue. The state’s involvement in business and economy has increased too much, and the state itself has turned into a business competitor. With a “big” government, the door to corruption will not be closed. These are the factors that have the biggest negative impact.

The state bureaucracy is invincible. The index of economic freedom also decreased. The biggest influence is corruption in the government. Property rights, free investment, and the financing environment also scored low. If the state does not reduce its excessive involvement in business, it will turn into a state economy, not based on the private sector. Politicization also affects the above situation. We will reduce this flow by staunchly supporting the free market and by making the big government smaller and more productive.

Inequity is a major social frustration, and the income gap is widening. This is probably one of the reasons why people go abroad, right?

Yes. This is another big factor. When the support of the party and the region comes first, the value of spirituality and knowledge is lost. It has been many years since this unfair space started. No one wants to live with injustice. Unfortunately, this situation has become too widespread.

You said that the high level of government involvement has a negative impact even on the labor market. Can you elaborate on this?

A huge sector of state-owned business has emerged. There is no governance. There are no qualified and professional human resources. There is no transparency, plans and targets are not realistic. Party appointments are served there. Because of this, people have to leave their country. The government itself has put its people in such a difficult situation. It leads to such a choice. For many years, we have been talking about losses in the public service, not economic efficiency. Most of them are not driven by business principles, but by political goals, and only some mining companies are operating profitably. More than 90 percent of the rest have lost production for almost the last 30 years. Today there are more than 100 state-owned companies. Their debts and loans have increased year by year, and there is no accountability system. An unhealthy system has been created.

Ulaanbaatar will operate a coal mine. The mayor says that the city’s problems will be solved with the profits. Is that correct? Is this a sign that the government is trying to do business by itself, not the private sector?

This is the biggest example of the state trying to do business today, which is tragic and deviated from the path chosen in 1990. This is a sign of going back to the old days. Is Ulaanbaatar running out of money? No. The city has enough money, sources of money, and resources. Many enterprises operate in the capital and collect taxes. A legal framework has also been created. Power has expanded. But what is missing in the city is proper management. Running a coal business is an impossible “stupidity”. Today, our country is not moving forward, it is going backwards.

The livelihoods of the people are deteriorating day by day. How well is the budget and monetary policy implemented? How would you rate macroeconomic policy today? Can you express your opinion on how to raise the declining livelihood of the family?

The weakening of tugrug has the biggest impact on today’s price increase. Last year, the exchange rate of the USD was 2,800 MNT, but today it is about 3,500 MNT. It is impossible to see what caused the devaluation of tugrug. The government does not want to see it. This situation is likely to continue. Too flattened welfare destroys the interest to work. The lack of care for the target group and the massive distribution of worthless money in the market ultimately leads to an endless crisis. The independence of monetary policy has been lost. Budget deficit, external and internal debt burden have brought today’s economy to such a difficult situation. If we don’t review our macroeconomic policy, listen to the opinions of academics, and make realistic conclusions, we are going to get even deeper into a dead end. Today’s government is questioning whether macroeconomic policies are in place.

The Ministry of Economy and Development was newly established. It’s the old structure that was set up before. How do you see the ministry working in today’s difficult economic environment?

A large ministry was formed in terms of rights and duties. This shows that not only the Ministry of Finance, but also the prime minister has reached the same level of power and influence, and in some cases, their activities are overlapping and contradictory. The first “work” from this ministry has not yet been produced. It is not clear what “product” to release, and it seems that the process is going on only to understand its duties. Big programs and development policies such as “Vision-2050” and New Revival Policy are being discussed. Investments are required to implement these. So far, no major reforms are in sight. If we don’t eliminate government intervention in business, our development path is still blocked. Also, if the state intervenes in the economy of every company and household, it will not change the interest in working and productivity, it will only worsen. The work of the Ministry of Economy and Development should begin with the reduction of government involvement. It starts with sorting out and cutting out the flattened care and welfare. It should only go to those who need it. Big behavioral and psychological decisions need to be made. Household income goes through the government in the form of welfare, not as a job or salary, and the benefits are not visible. This situation has continuously led the society for more than 10 years. If this is the case, even if there are 10,000 Tavan Tolgoi mines, the current situation will not change.