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Vishal Mansukhani
While many countries are going through an economic recovery, Mongolia has a different story. The country has shown remarkable prospect and progress in the business sector as the re-elected President, Tsakhia Elbegdorj, has sworn to promise rapid development and growth. The resources boom has allowed such a sparsely populated country to be able to look to a brighter future. The nation has opened the economy to foreign investment and trade. This has allowed their Doing Business 2013 rank to increase from 88 to 76. The abundance of natural resource wealth and agricultural production makes Mongolia’s population one of the potentially richest countries per capita in the region. In order to convert this potential into reality, there have been numerous projects that are expected in the near future. The first effort was the establishment of free trade agreements, as discussed in the previous blogs, so that foreign ties can be made. Currently, Mongolia has two free trade zones along the trans-Siberian highway located at the Russia-Mongolia border and Chinese-Mongolia border.
Business Environment
The business environment in Mongolia is still continuing to develop with its systems of business law, taxation, banking, and external links to the international business community. There are challenges that remain around accessing real business risks and making reality based decisions rather than relying on luck. The agriculture market is definitely the hot spot to trade and do business in. Animal herding provides almost two-thirds of agricultural production, while the main crops grown are wheat, potatoes and vegetables. The introduction of measures such as 40-50% loans for fuel, wheat seeds and fertilizers, along with Customs remittances and tax incentives for small and medium-sized enterprises (SMEs) are hoped to produce even higher yields. However, the major concern, according to Business-Mongolia, is the reduction of arable land for agriculture. There has been a 20-30% decrease in pasture grassland yields over the past 40 years due to an increase in air temperature, increased dust storms and over-grazing. Thus, Mongolia has started partnerships with countries like South Korea, to develop and carry out eco-friendly agriculture and livestock breeding.
Mongolia Mines
The availability of natural resources is definitely the biggest asset for Mongolia. The government has identified many large deposits with strategic importance that is crucial to the nation’s advancement. According to the International Monetary Fund (IMF), Mongolia will be the largest beneficiary - with the country receiving up to 71% of the income from the mine. Companies, like Rio Tinto, are heavily invested in the site and projects. Under its agreement with Rio, Mongolia has a 34% stake in the mine and the project is already a major jobs provider, with 13,000 workers of whom 87% are Mongolians.
Trans-Mongolian Railway
The infrastructure in Mongolia is an ongoing preparation as the nomadic lands are slowly transforming into modern trade routes. Since there is no close body of water or sufficient airway and the high dependency on natural resources has resulted in the government’s decision to create the Mongolia Rail Plan. Mongolia currently has 1,908 kilometers of broad gauge track with plans to expand the network by 5,600 kilometers to help mining companies export their products. The country is rich in gold, copper, coal and other minerals and is seeking opportunities to exploit its reserves and its $10 billion economy. The 267-kilometer section from Tavan Tolgoi to the Chinese border will be the first part of this expansion, according to the Mongolian government. The next section is planned to connect Tavan Tolgoi and the city of Sainshand, the site of a $10 billion planned industrial complex. These ongoing railroad projects will boost the economy and expand trade with both China and Russia.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| LPAR30 bearing | 30 | 47 | 68 |
| LPAR25 bearing | 25 | 40 | 58 |