The New Recovery Policy aims to strengthen Mongolia's economic independence, reduce the negative impact of the coronavirus infection (COVID-19) pandemic on the economy, and promptly address development barriers. This policy is a medium-term target program for up to 10 years intended for creating the basic conditions for effective realization of Mongolia's long-term development policy and improving the economy, infrastructure and public productivity.
With realization of the “New Recovery Policy”, the economic growth will be maintained at an average of 6 percent in the long term, the per capita national income will double, and the labor force participation rate will reach 65 percent. The border ports’ capacity will increase 3-fold, and the energy sources will increase 2-fold. The basic conditions will be created to reach the goals and objectives of the first phase of the “Vision-2050” long-term development policy of Mongolia.
Based on an active partnership between the public and private sectors and investors, the New Recovery Policy will address six sets of issues that deem to limit Mongolia's development.
1. 1. The hard and soft infrastructure of the border ports shall be further developed, their freight and passenger capacity and exports shall be increased.
1.2. Border ports will be fully connected by railway and paved roads, their freight and logistics competitiveness will be improved, freight traffic will be enhanced, and the basic conditions for turning them into a transit hub will be created.
1.3. Improvement of the management and use of Mongolia’s airspace and airways, increase in the number of transit flights, establishment of a freight forwarding hub by way of ensuring the gradual liberalization of air transportation and support of the tourism sector.
1.4. Increase in the trade turnover through the phased establishment of free economic zones and inland “dry” ports pursuant to the Concept of Regional Development of Mongolia.
2.1. New energy sources and transmission and distribution networks shall be established and their existing capacity shall be enhanced, and the reliability of energy production and supply shall be improved.
2.2. Renewable energy facilities shall be developed in an appropriate ratio where the water facilities and stored resource stations shall be built for ensuring the reliability and stability of the integrated energy system.
2.3. In certain phases, the energy sector shall be trasferred into an independent financial and economic system.
2.4. Actions shall be taken to ensure the preparation of the high voltage aerial transmission lines and substations for connecting to the renewable energy source and network within the Northeast Asian integrated energy grid.
2.5. The construction of a natural gas pipeline from the Russian Federation to the People's Republic of China through the territory of Mongolia shall be boosted.
3.1. Through advanced technologies and upgrading the guaranteed mineral resources recorded in the government database, due actions shall be taken for digitalizing the process of issuing mineral licenses, reducing costs and increasing investment and the volume of value-added mining products.
3.2. Value-adding heavy industry shall be developed for meeting the domestic development needs and increasing exports.
3.3. Increase of the proven oil reserves shall ensure uninterrupted provision of raw materials to domestic refineries and production volume of the refineries.
3.4. The volume of new products, services and production shall increase through development of agricultural production based on advanced technologies and innovation.
3.5. Reduction of the share of exports of semi-finished products and increase the export of value-added finished products by way of increasing the capacity of processing plants according to the availability of agricultural raw materials products and other resources.
3.6. Introduction of the advanced technology, blockchain and artificial intelligence based on the science and innovation, industrial development in line with the latest digital economy trends.
4.1. Programs shall be realized for improving the quality and standards of public transportation in the capital city Ulaanbaatar, introducing new types of high-capacity public transportation services, expanding and renovating the network of main and basic highways, streets and road facilities, establishing multi-level intersections, increasing accessibility and reducing the traffic congestion.
4.2. Intensify the development of new residential areas, satellite cities and free economic zones, and mitigate the urban centralization by way of supporting citizens and businesses who have migrated from Ulaanbaatar to rural areas, through realization of a relevant comprehensive policy.
4.3. Aimag centers shall be developed as independent cities and financial and economic opportunities for local governments shall be supported to generate their budget revenues independently.
4.4. Through realization of the regional economic development policies, the sustainable growth of livestock and agricultural production shall be supported, domestic food demand shall be met and the share of food products in total exports shall increase.
5.1. For making a significant contribution to mitigating the climate change, the “Billion Trees” national movement will be effectively launched under the enabling legal environment that supports initiatives of citizens, businesses and organizations.
5.2. Actions shall be taken for protecting water resources, providing the population with safe drinking water, irrigating pastures, increasing water supply in the Gobi region, reusing “gray” water, building artificial lakes and ponds, and rehabilitating exhausted rivers and springs.
5.3. Environmentally friendly waste recycling plants with advanced technologies shall be established, considering regional perspective, in aimags and the capital city.
5.4. When implementing the policy of economic and industrial recovery, the national traditions of environmental protection shall be preserved and ensured. A national model of green development shall be defined in accordance with the global development trends.
6.1. The government services shall be digitalized leading to reduction of the government bureaucracy.
6.2. A comprehensive analysis and assessment of the structure and organization of the Government shall be conducted for identifying its optimal structure. Some government functions shall be delegated to the private sector and professional associations.
6.3. Duplications in the state inspection system shall be addressed and the planned inspections shall be temporarily suspended. The number of licenses and technical conditions that the state bodies require, shall be shortened.
6.4. The efficiency, management and governance of state-owned enterprises shall be improved through shifting them under the direct public control.
6.5. The punishment policy against corruption and office crimes shall be made stricter.
6.6. Preventive measures shall be taken against inclusion of the country in the list of countries with strategic deficiencies in combating money laundering and terrorism financing (“gray list”, “black list”) of the Financial Action Task Force (FATF) and in the “List of non-cooperative jurisdictions for tax purposes” of the European Union and against downgrading Mongolia’s credit rating.