On September 10, Mongolia and South Korea held a high-level online summit. During the meeting between Mongolian President Khurelsukh Ukhnaa and his counterpart, President Moon Jae-in, South Korea became the sixth strategic partner of Mongolia.

The two countries established diplomatic relations on March 26, 1990. In 1991, Mongolian President Ochirbat Punsalmaa’s state visit to South Korea made him the first head of state to visit Seoul after Mongolia’s democratization. Over the past 30 years, as Mongolia’s third-neighbor foreign policy expanded, Mongolia-South Korea relations too blossomed rapidly under a multi-pillared approach. For decades, Mongolia was inspired by South Korea’s development, industrialization, culture, and economic policies as one of the economics “tigers” of East Asia.

In the early 1990s, the fast spread of South Korean pop transformed the Mongolian youth. Old school K-pop bands such as H.O.T and S.E.S were hugely popular in Mongolia. Not only did young Mongolians listen to Korean music, but they also learned the Korean language, imitated Korean styles, and studied and worked abroad in South Korea – the impact was transformative.

Despite these social changes, Mongolia and South Korea’s economic relations and trade remained slow but steady. Between 1994 and 2008, trade between the two countries grew from $23.5 million to $270 million. According to a report from the Korea Economic Institute of America (KEI), “Until 2015, Korea’s direct investment to Mongolia consisted of small businesses (55.5 percent), large companies (27.8 percent), and individual or private companies (16.7 percent) based on investment amounts.” Since 2008, South Korean investment in Mongolia has targeted the mineral industry, small manufacturing, construction, and agriculture. South Korean agricultural and pharmaceutical companies have also invested in Mongolia’s natural medicinal industry in the last couple of years.

On a more political level, Mongolia, and South Korea, as two of the largest democracies in East Asia, both play different but essential roles in solving complex tasks in the region. Given South Korea’s geographical specificity, Seoul needs to make tough decisions concerning North Korea. Those in the West may not feel the immediacy of North Korea’s nuclear threat, but in East Asia, it is a ticking bomb. North Korea’s repetitive provocations – such as its cruise missile tests over the weekend – not only threaten regional peace and security but also complicate political and economic solutions to overcome its protracted desolation. While neighboring countries like China, Japan, and South Korea, have sought deterrence in the past, Mongolia continued to push for peaceful dialogue, using its small-state mediation skills. Moreover, Mongolia’s non-nuclear weapons state status (NNWS) is a powerful boost to its credibility on the topic of denuclearization.

Since 2014, Mongolia has been hosting the Ulaanbaatar Dialogue on Northeast Asian Security to continue international debate and conversation on the security issues of the region. According to the Mongolian Ministry of Foreign Affairs, in 2017, the conference upgraded to Track 1.5 level, involving both government delegates and academia.

During the Mongolia-South Korea high-level summit on September 10, Khurelsukh and Moon noted that over the past 30 years, Mongolia-South Korea relations and cooperation have developed rapidly. Moon congratulated the president of Mongolia on his election victory and said he was pleased to be the first foreign president to hold a summit with Mongolia’s new head of state.

Moon also highlighted the importance of Mongolia in South Korea’s New North Policy. During his speech, he pledged South Korea’s cooperation in Mongolia’s long-term development plan, Vision 2050.

The decision to advance Mongolia-South Korea’s relations to a strategic partnership level builds on the “Protocol on the Establishment of Diplomatic Relations” of 1990 and the joint statements signed between Mongolia and South Korea during their 1991, 1999, 2006, and 2011 summits. The consistent strengthening of the two countries and their people’s relations, under the principles of “complementary cooperation in the 21st century,” has been reflected in the changing status of the relationship: a “good neighborly and friendly cooperation partnership” in 2006, a “comprehensive partnership” in 2011, and now a strategic partnership.

Under the newly established Mongolia-South Korea strategic partnership, the two countries have agreed to play an important role in strengthening regional and international peace and sustainable development under a multi-pillared foreign policy approach.

The Mongolia-South Korea Strategic Partnership Joint Declaration reaffirms their commitment to strengthening political trust and expands cooperation between the two parliaments as well as stabilizing and enhancing dialogue mechanisms on security, defense, and foreign policy issues. Moreover, Khurelsukh and Moon agreed to deepen mutually beneficial and complementary economic relations using the advantages and development potential of the two countries, such as South Korea’s advanced technology and Mongolia’s rich natural resources.

The Joint Declaration further stated that South Korea would continue to seek various cooperation projects with Mongolia, supporting Mongolia’s post-epidemic economic recovery through official development assistance. South Korea also seeks cooperation in Vision 2050-based projects and offered to assist in Mongolia’s policy implementation process. The Joint Declaration also touched on education, science and technology, environmental issues, public health, culture, and tourism.

Mongolia’s strategic partnership with South Korea once again shows its foreign policy strength. In July 2021 alone, Mongolia held high-level talks with China, Japan, South Korea, the United States. Given the increasing significance of the Asia-Pacific region, Mongolia cannot afford to bandwagon with one regional player. In the past, Mongolia has established strategic partnerships with Russia, China, Japan, India, the United States, and now South Korea.

This newly established partnership presents new opportunities, a new level of dialogue, and increased collaboration between the two governments and the people of Mongolia and South Korea. It is paramount for both governments to utilize and allocate resources correctly to produce a genuinely fruitful outcome.

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.

September 13, a consultative meeting between the government, the private sector and investors on ‘Intensifying economic recovery amid the pandemic’ initiated by the President of Mongolia was held in the State House.

The consultative meeting aims at hearing the views and initiatives of entrepreneurs and the private sector on the legal environment for economic recovery, fiscal reform, public-private partnerships, intensification of investment, and creation of a favorable business environment.

During the meeting, Prime Minister L. Oyun-Erdene made a presentation ‘A new revival policy to stimulate economy in a pandemic era’. At the beginning of his presentation, the Prime Minister briefed on the current international situation of the COVID-19 pandemic, the global transport and logistics crisis and delays, and stressed an importance to protect and support the economy along with protecting health during the pandemic.

A new revival policy to stimulate economy in a pandemic era aims at ensuring political and macroeconomic stability, accelerating public-private partnerships, creating a favorable business environment, improving the environment for foreign and domestic investment, as well as implementing fiscal reforms. The PM said, “The government must look at it through the eyes of business people. We are trying to get rid of red tape through the digitalization of public services. It is important to improve the environment for foreign and domestic investment, maintain its stability and build a barrier-free environment.”

Moreover, the PM introduced about the fiscal reform. Within this frame, the reform towards increasing the efficiency, transparency, accountability and benefits of state-owned companies will be carried out.

The ‘from welfare-to-labor’ reform aims at supporting low-income people and people, who are able to work, through the employment rather than welfare.

Required financing will be resolved to reduce traffic congestion in the capital city, decentralize and ensure the urban and rural development balance.

Adhering to a principle that the government will not perform functions, which can be executed by the private sector, it will move to a system where the government procures standard-quality-competition based services.

The civil service structure will be reformed and salaries and social securities of civil servants will be improved through authorizing health, education, arts and culture and scientific organizations to spend total funding based on results, performance and quality.

A consultative meeting between the government, the private sector and investors on ‘Intensifying economic recovery amid the pandemic’ initiated by the President of Mongolia has started today in the State House.

At the beginning of the meeting, President of Mongolia U.Khurelsukh highlighted that the vaccination remains the only way to prevent coronavirus infections, while underlining that the cooperation between public and private sector is becoming more important than ever in overcoming the pandemic with minimum damage. He, furthermore, underscored the successful implementation of measure to exempt every household in Mongolia from electricity, water, and waste bills, and ‘MNT 10 trillion Comprehensive Plan for Health Protection and Economic Recovery’ being undertaken by the Government, which is an important policy to support citizens and entities.

President U.Khurelsukh emphasized the necessity of further increasing citizen’s income, restricting the increase in commodity prices, restoring export, and intensifying the construction projects and programs.

“Creating the legal environment for intensifying the economic recovery, transitioning from welfare to labor, extraction to processing, and from import to export are important. Let us set a goal to eradicate extreme poverty as 30 percent of Mongolia's population remains poor. In order to achieve this goal, government should take measures of supporting wealth creators, entrepreneurs and investors, aside from protecting them from possible risk. Regarding the matter, we will listen how state policies are affecting businesses and investors, and determine solutions on how we can work together in the future," said U.Khurelsukh.

Sept. 13 (Xinhua) -- Mongolian President Ukhnaa Khurelsukh on Monday called on the private and public sectors to work together to eliminate absolute poverty over the next decade.

Khurelsukh made the remarks at a consultative meeting of public and private organizations and investors under the theme of accelerating economic recovery during COVID-19 pandemic at the country's State House here.

Khurelsukh said there is a need to increase incomes, limit rising prices, recover exports, and implement major projects and programs, noting that creating a new legal environment would be necessary to accelerate Mongolia's economic recovery, and transit from welfare to work, from mining to processing, and from imports to exports.

"At least 30 percent of Mongolia's population of around 3.4 million is still poor. Therefore, let's set a goal to become absolute poverty-free country in the next 10 years," he said.

He stressed the government must support wealth creators, businesses and investors and protect them from any risks.

In addition, vaccines are the only way to prevent infections and save lives, the president said, expressing his condolences to the families of the victims of the coronavirus pandemic.

Mongolia reported its first imported COVID-19 case in March 2020 and confirmed its first locally transmitted case in November last year.

The Asian country has so far confirmed a total of 257,770 COVID-19 cases, with 1,046 related deaths.

So far, 65 percent of the country's total population has received two doses of COVID-19 vaccines.

Hong Kong (CNN Business)A typhoon that swept its way through East Asia is now forcing two of the world's busiest ports in China to suspend some operations.

The Shanghai International Port Group said in a statement that several terminals at the Shanghai Port — the world's busiest port by cargo volume — either stopped running Sunday night or would do so Monday in anticipation of Typhoon Chanthu.

The nearby Ningbo-Zhoushan Port, the world's third-busiest after Singapore, halted operations at some terminals, too, according to separate notices from those terminals.

Chanthu has weakened significantly since it slammed into the Philippines and later Taiwan over the weekend. At its strongest, before it made landfall in the Philippines, Chanthu was one of the strongest storms this year. Its sustained winds of 260 kph (160 mph) were equivalent in strength to a Category 5 Atlantic hurricane at its peak.

The shipping crisis is getting worse. Here's what that means for holiday shopping

The shipping crisis is getting worse. Here's what that means for holiday shopping

While not as strong as it was a few days ago, the typhoon has already caused severe disruption in the Shanghai area upon its approach. Shanghai and the adjacent Zhejiang province have canceled most flights and suspended schools and train service.

The port disruption comes at the worst time for global trade. Supply chains have been stretched to breaking point by a resurgence in consumer demand and shipping delays. A recent resurgence of the coronavirus in China worsened a container backlog at major Chinese ports, contributing to the ongoing crisis.

Last month, for example, a terminal at the Ningbo-Zhoushan Port was closed for two weeks after a dock worker tested positive for Covid-19. One shipping analyst at the time said that it could take up to 60 days for operations at the port to return to normal.

The price of shipping goods from China to Europe and North America has soared, and companies are reporting substantial delays in receiving orders just as they try to stock up ahead of the year-end holiday shopping season.

On September 10, CEO of ‘Erdenes Mongol’ LLC D.Khayankhyarvaa held a meeting with Ambassador of the People’s Republic of China to Mongolia Chai Wenrui.

During the meeting, they discussed bilateral relations and cooperation, and exchanged views on some projects being implemented by Erdenes Mongol LLC for the development of the mining sector and increasing the capacity of border checkpoints.

Ambassador Chai Wenrui highlighted the mining sector’s importance in further developing bilateral economic cooperation, and noted how Chinese public and private entities are paying special attention to increasing economic contribution alongside economic growth.

The Erdenes Mongol CEO introduced the progress of the construction projects for the 5,280MW Shivee-Ovoo power plant and the 200MW power plant based at the Shivee-Ovoo coal deposit as well as the works being carried out to export coal to China, and requested support from the Ambassador. Moreover, he also expressed interest in cooperating in a geological exploration project to increase coal resources.

In turn, the Chinese Ambassador expressed that he will support the Shivee-Ovoo-based energy export project by accelerating cooperation and serving as a “bridge” to connect investors. He also expressed his confidence in further development of the energy sector of Mongolia as well as the creation of more new business opportunities as an experienced, large-scale company of China is cooperating in the 5,280MW power plant project.

As for the construction project for the railroad in route Nariinsukhait - Shiveekhuren, both sides agreed that its implementation has several advantages such as increase of capacity at border checkpoints, and reduction of negative environmental impact, alongside increased export of coal and mining products of Mongolia. Erdenes Mongol CEO D.Khayankhyarvaa noted that the company is paying attention to accelerating works and introducing certain matters such as the 47-km railroad construction in route Nariinsukhait - Shiveekhuren, carrying out studies on developing transportation of export products through air and containers, and introduce suggestions for creating the appropriate legal environment to the corresponding ministries and the Government.

Ambassador Chai Wenrui expressed readiness to comprehensively cooperate in developing bilateral economic cooperation, and especially bringing cross-border transport and logistics to a new level

The Swiss Agency for Development and Cooperation (SDC) in Mongolia and the Ministry of Food, Agriculture and Light Industry of Mongolia have finished implementing the ‘Green Gold and Animal Health Project’. We interviewed Project Manager Ts.Enkh-Amgalan on the project results.

Results and achievements of the ‘Green Gold and Animal Health Project’ have been presented to the Agriculture Ministry. What did Mongolia gain from the project?

-We deem that the project changed herders’ attitude towards pasture use. They have realized it is important to use pasturelands responsibly. Secondly, Mongolia has learned to identify the changes in pasture condition and desertification in a way the world can understand using the internationally accepted method. Finally, we introduced a national ‘standard for sustainable nomadic livestock production’. There used to be no standard for supply of animal products.

What are the characteristics of the standard?

-The ‘standard for sustainable nomadic livestock production’ indicates whether the animal raw material was sourced from fresh pasture, whether it is environmentally friendly, how responsible the herder was and what stages it went through from the herder’s pen to the factory. Countries around the world are introducing numerous sustainability standards. We introduced the abovementioned standard as Mongolia as a country of nomadic livestock husbandry had to have such standard. At our meetings with international traders, businesspeople, scientists and agricultural specialists, they often said, “If there could be a standard for sustainable nomadic livestock production, it would come only from Mongolia.”

Seizing the opportunity, we worked towards introducing a standard for sustainable nomadic livestock production. It was made possible not only as part of the Green Gold and Animal Health Project, but also with the cooperation of the Agriculture Ministry, and Mongolian researchers and agricultural specialists. The standard has been approved by the Mongolian Agency for Standardization and Metrology. What we need now is the government’s focus on its implementation.

How should the Agriculture Ministry continue the ‘Green Gold and Animal Health Project’?

-There has to be a distinct state policy on the proper use of pasture that has been missing for 30 years. It is also time for everyone to place emphasis on creating new jobs other than herding in rural areas. Herders and municipal employees of soums are the only people working in rural areas and there is no other job to choose. Therefore, there is a need to create a large number of jobs that supply and process animal raw materials, such as animal feed farming and organic food producing jobs.

Why did the project begin? It is said to have begun with aid provided for herders during the dzud of 1999-2000. Why was the project focus shifted to pasture?

-Yes it began during the dzud. At the time, SDC in collaboration with the United Nations Development Programme delivered financial and food aid to herders. We launched the project with a view to addressing overgrazing, herders’ livelihoods, and numerous other social and economic factors causing dzud. It started in view of the facts that pasturelands, where nomadic livestock farming is 100 percent based on, cover 70 percent of Mongolia’s total area, animal husbandry is one of Mongolia’s key economic sectors, and that pasture is the primary source of everything.

Pasture is also where even the project name Green Gold comes from. One time, when we mentioned eco pasture management in our conversation, a scientist who came from Switzerland said, “It seems the renewable pasture resource is the real gold in Mongolia”. We named the project as such afterwards. Now, when we say Green Gold, herders know we are talking about pasture.

One of the goals of the project was to also provide a research-based understanding of pasture degradation as researchers had different understandings of pasture and it was a controversial subject at the time. We refer to the changes observed in the pasture as it moves from one state to another by the term ‘pasture transition’ and identify what preventive measures are required and at what level the pasture degradation is through study.

For what reason scientists held differing understandings of pasture? What are the special features of your study?

-The differing understandings could be due to the transition period. Before the transition to a market economy, there was a pasture and fodder department in the Institute of Animal Husbandry where a team of scientists used to carry out a detailed study of the pasture and its plants and soil using the right method. They used the correct approach of studying the practices of herders who were responsibly using the pasture and reintroducing the practices after making research-based improvements. In other words, agriculture, animal husbandry, and pasture issues were at the center of state policies and when the economic system changes, the issues have been disregarded over the last 30 years. There is currently no policy, allocated budget, or a government body for pasture.

We have to restore the state policy on pasture that has been missing over the last 30 years.

The study we conduct assists in evaluating the pasture degradation in a short period using more numerical data. Ultimately, we show the transition patterns to the herders and the local authorities.

What about the study method?

-We use a new method of pasture management and use studies designed for decision-makers. To develop the method, we conducted studies using the latest methodology used for monitoring rangeland health in Australia, New Zealand, and Inner Mongolia, China. The study focuses on the levels of three factors, the changes in the native plants of the pastureland, total area of the bare spots, and the pasture productivity, which is determined by the amount of plants per hectare, which are all shown in percentages, meaning there is very little inaccuracy. We assess overall rangeland health and degradation risk in a short period using the three measures.

The project focused on animal health besides the ‘green gold’. What is the role of veterinary services?

-Animal health is definitely connected to the overgrazing problem. The ‘standard for sustainable nomadic livestock production’ requires the animal to be healthy and the raw materials to be of high quality and standard. That is why we have worked to ensure more accessible and higher quality veterinary services for herders.

You previously mentioned the introduction of a standard for sustainable nomadic livestock production. The soccer ball made of yak leather is a great example. Have you started manufacturing it in large scale?

-We tested a number of products against the standard. One of them is the yak leather soccer ball. You can see QR codes on the soccer balls, which will let both the seller and buyer know about where the ball’s raw materials were sourced from, what herder from what place supplied the raw material to the factory, whether the product is environmentally friendly, and how responsible the herder was when grazing their livestock.

Leather products are in high demand on international markets. So Mongolia needs to make such products of high quality. The yak leather soccer ball paves the way for the production of more high quality leather products. We aimed to show that it is possible to mainly export quality products in any quantities to compete in the world market. There have been purchase orders for the soccer ball made of yak leather certified by the Responsible Nomads standard from abroad. The country that implemented the project, Switzerland has placed an order for a thousand balls.

On September 10, President of Mongolia U.Khurelsukh held a virtual summit with President of the Republic of Korea Moon Jae-in.

It marked the first summit between the two countries since U.Khurelsukh was elected as the President of Mongolia in June. It is also the second meeting between the two leaders since U.Khurelsukh visited the Republic of Korea in January 2018 when he was working as the Prime Minister of Mongolia.

The Presidents of the two countries agreed to upgrade bilateral relations to ‘strategic partnership’ during the virtual summit and put out a joint declaration.

Within the joint declaration, the sides agreed to deepen and expand cooperation in five areas: politics and security; economy, trade and investment; education, science and technology, environment and health; culture, tourism and people-to-people exchanges; and regional and international cooperation.

Highlighting that Mongolia and South Korea have been developing bilateral relations for more than 30 years based on their common values such as democracy, human rights and freedom, President U.Khurelsukh reaffirmed his commitment to further strengthen bilateral ties and cooperation.

President Moon Jae-in congratulated President U.Khurelsukh on his election and noted his delight with being the first foreign president to hold a summit with Mongolia's new head of state. He reiterated to strengthen relations and cooperation with Mongolia, a key partner in the New Northern Policy, and to work together in the implementation of Vision-2050, Mongolia's long-term development policy.

Emphasizing the importance of cooperation between the two countries' legislatures to strengthen the legal environment of bilateral relations, the sides agreed to further enhance political dialogue mechanisms, such as the Intergovernmental Joint Committee, and the Consultative Meetings between the Ministries of Foreign Affairs.

The two sides concurred to focus on developing economic priority areas such as transport, logistics, energy, mining and agriculture. President U.Khurelsukh briefed that the plans are underway to establish a satellite city and develop free economic zone at Khushig Valley along the recently opened airport at the valley. In turn, President Moon Jae-in expressed readiness to share experience and cooperate in this direction.

The sides stressed the need to further strengthen the legal environment to boost exports, increase investment and reduce trade barriers. Underlining that Mongolia's accession to the Asia-Pacific Trade Agreement has created more favorable trade conditions, they agreed to continue their efforts to launch the Economic Partnership Agreement (EPA) dialogues based on the results of the two countries' joint research.

President U.Khurelsukh noted that the loans and grants that have been provided by the Republic of Korea over the past years have made a valuable contribution to the social and economic growth of Mongolia, while emphasizing the necessity of accelerating development projects - Solongo 1 and 2 apartment complexes, rent apartments by the Bayangol Mountain and central heating station for 10 rural aimags - in cooperation with the ROK government.

The sides agreed to bolster cooperation in the fields of environment, green development, tourism, culture and arts, and creative cultural production. In this context, it was agreed to implement the third phase of the Mongolia-ROK joint project - ‘Green Belt’, while underscoring the project’s significance in mitigating desertification and combating dust storms. It was also agreed to continue to realize scholarship programs, support the people-to-people exchanges, and further develop Mongol studies in South Korea and Korean studies in Mongolia.

The leaders also expressed their satisfaction with the development of bilateral ties and cooperation despite the harsh time amid the pandemic. President U.Khurelsukh thanked the government of the Republic of Korea for providing assistance to help combat the pandemic. They also agreed to expand people-to-people exchanges to strengthen friendship and deepen mutual understanding, and continue to work together to protect the interests of Mongolian and South Korean citizens living and working in the two countries, and create favorable living and working conditions.

The two sides also agreed to continue to work closely together in the international and regional arenas, emphasizing the importance of ensuring the stability of the Korean Peninsula in order to maintain peace and security in the Northeast Asian region. Moreover, both sides reaffirmed their mutual support for the ‘Ulaanbaatar Dialogue on Security in Northeast Asia’, an initiative of Mongolia, and the ‘Northeast Asia Cooperation Initiative for Infectious Disease Control and Health Protection’, spearheaded by the President of the Republic of Korea.

In order to increase the level of immunization against coronavirus infections, citizens aged over 18 are being offered a third dose of the COVID-19 vaccine from today.

According to the order of the Minister of Health, it is required that the citizens, who had the second can receive a third dose after three months since their second dose. Eligible citizens will be vaccinated with a booster shot by selecting either Pfizer’s Comirnaty vaccine or ‘CorV’ vaccine developed by Sinopharm.

Citizens can receive their third jabs at vaccination points in districts.