Test analysis of the economy of Mongolia. Industry of Mongolia Mongolia food industry enterprises

Climate. Sharply continental. The coldest month of the year is January. In some areas of the country the temperature drops to -45...-50 o C. The hottest month is July. The average air temperature during this period in most of the territory is +20 o C, in the south up to +25 o C. Maximum temperatures in the Gobi Desert during this period can reach +45...+58 o C. Average annual precipitation is 200-250 mm. 80-90% of the total annual precipitation falls within five months, from May to September. The maximum amount of precipitation (up to 600 mm) falls in the aimags of Khentii, Altai and near Lake Khuvsgul. The minimum precipitation (about 100 mm/year) occurs in the Gobi. The winds reach their strongest in spring. In the Gobi regions, winds often lead to the formation of storms and reach enormous destructive power - 15–25 m/s. Spring is coming in Mongolia after a very cold winter. Spring begins in mid-March, usually lasting about 60 days, although it can be as long as 70 days or as long as 45 days in some areas of the country. For people and livestock, this is also the driest and windiest season. In spring, dust storms are common, not only in the south, but also in the central regions of the country. Summer is the warmest season in Mongolia. There is more precipitation than in spring and autumn. Rivers and lakes are the deepest. However, if the summer is very dry, then closer to autumn the rivers become very shallow. In Mongolia, summer lasts approximately 110 days from late May to September. Autumn in Mongolia is the season of transition from hot summer to cold and dry winter. Autumn lasts approximately 60 days from early September to early November. However, we must take into account that snow may fall at the beginning of September, but within 1-2 months it will completely melt. In Mongolia, winter is the coldest and longest season. In winter, the temperature drops so much that all rivers, lakes, streams and reservoirs freeze. Many rivers freeze almost to the bottom. It snows all over the country, but the cover is not very significant. Winter begins in early November and lasts approximately 110 days until March. It snows occasionally in September and November, but heavy snow usually falls in early November (December). Relief. Basically it is a plateau, elevated to a height of 900-1500 m above sea level. A series of mountain ranges and ridges rise above this plateau. The highest of them is the Mongolian Altai, which stretches in the west and southwest of the country for a distance of 900 km. Its continuation are lower ridges that do not form a single massif, collectively called the Gobi Altai. Along the border with Siberia in the north-west of Mongolia there are several ranges that do not form a single massif: Khan Huhei, Ulan Taiga, Eastern Sayan, in the north-east - the Khentei mountain range, in the central part of Mongolia - the Khangai massif, which is divided into several independent ranges. To the east and south of Ulaanbaatar towards the border with China, the height of the Mongolian plateau gradually decreases, and it turns into plains - flat and level in the east, hilly in the south. The south, southwest and southeast of Mongolia are occupied by the Gobi Desert, which continues into north-central China. According to the landscape features, the Gobi consists of sandy, rocky areas, covered with small fragments of stones, flat for many kilometers and hilly, different in color - the Mongols especially distinguish the Yellow, Red and Black Gobi. Hydrography. Surface waters. The rivers of Mongolia are born in the mountains. Most of them are the headwaters of the great rivers of Siberia and the Far East, carrying their waters towards the Arctic and Pacific oceans. The largest rivers in the country are the Selenga (within the borders of Mongolia - 600 km), Kerulen (1100 km), Tesiin-Gol (568 km), Onon (300 km), Khalkhin-Gol, Kobdo-Gol, etc. The deepest is the Selenga. It originates from one of the Khangai ridges and receives several large tributaries - Orkhon, Khanui-gol, Chulutyn-gol, Delger-Muren, etc. Its flow speed is 1.5-3 m/s. The Selenga freezes for six months, the average ice thickness is 1-1.5 m. It has 2 floods a year: spring (snow) and summer (rain). The average depth at the lowest water level is at least 2 m. Rivers in the western and southwestern parts of the country, flowing from the mountains, fall into intermountain basins, do not have access to the ocean and, as a rule, end their journey in one of the lakes. In Mongolia, there are over a thousand permanent lakes and a much larger number of temporary lakes that form during the rainy season and disappear during the dry season. The largest lakes are located in the basin of the Great Lakes in the north-west of the country - Uvs-nur, Khara-Us-nur, Khirgis-nur, their depth does not exceed several meters. In the east of the country there are lakes Buyr-nur and Khukh-nur. Lake Khubsugol (depth up to 238 m) is located in a giant tectonic depression in the north of Khangai. The groundwater. Aquatic biological resources. Vegetation. It is a mixture of mountain, steppe and desert with inclusions of Siberian taiga in the northern regions. Under the influence of mountainous terrain, the latitudinal zonation of the vegetation cover is replaced by a vertical one, so deserts can be found next to forests. Forests on the mountain slopes are located far in the south, adjacent to dry steppes, and deserts and semi-deserts are found along plains and basins far in the north. The mountains in the northwestern part of the country are covered with forests of larch, pine, cedar, and various deciduous tree species. In the wide intermountain basins there are magnificent pastures. As you move to the southeast, with decreasing altitude, the density of vegetation cover gradually decreases and reaches the level of the Gobi desert region, where only in spring and early summer some types of grasses and shrubs appear. The vegetation of the north and northeast of Mongolia is incomparably richer, since these areas with higher mountains receive more precipitation. Water meadows are common in river floodplains. Forest resources. Soils. Chestnut soils are widespread (over 60% of the country's area), as well as brown soils with significant salinity, developed mainly in the Gobi. Chernozems are found in the mountains, and meadow soils are found in river valleys and lake basins. Agriculture. Due to Mongolia's harsh continental climate, agriculture remains vulnerable to natural disasters such as severe drought or cold. The country has little arable land, but about 80% of the territory is used as pasture. Animal husbandry. Cattle breeding, sheep breeding, goat breeding, horse breeding, camel breeding, yak breeding, reindeer breeding. Plant growing. They grow wheat, oilseeds, potatoes, tomatoes, watermelons, fruits, and sea buckthorn.

Regions of Mongolia
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Features of the Mongolian economy

Mongolia is an agricultural and industrial state that today trades with more than 80 world countries.

Note 1

Until the nineties of the 20th century, 90% of trade in Mongolia was trade with the Soviet Union, today more than 40% is trade with the Russian Federation and China, the rest is trade with highly developed countries: Japan, Switzerland, South Korea and the USA.

Most people are urban dwellers, however, Mongolia's economy today is concentrated in industries such as mining and agriculture. A significant portion of the country's industrial production comes from mineral resources, including copper, tin, molybdenum, coal, tungsten and gold.

Due to the harsh continental climate, the country has an agricultural sector that is vulnerable to natural disasters during periods of severe cold and drought. The country includes small arable lands, about 80% of the territory is used as pasture. Most of the rural population produces livestock, which consists of sheep, cattle, goats, camels and horses. Mongolia has more livestock per capita than any other country in the world.

Specifics of Mongolia's industry

Mongolian industry is quite extensive; this country has opportunities for the development of a large number of manufacturing industries, the products of which are exported to other countries, and are also in great domestic demand.

Note 2

Initially, the country developed agriculture, food production, textile and leather products. After World War II, the state received significant financial assistance from the USSR and China, which contributed to a significant expansion of industry.

In modern conditions, there are enterprises in Mongolia:

• steel foundry,
• iron foundry,
• coal mining industry.

The location of industrial enterprises is concentrated in more than 20 cities, while the bulk of the output is consumed domestically in the state. Today, more than 1,000 types of agricultural products are offered in Mongolia: products made from fur, leather, wool, and furs and leather themselves are also sold. These products are exported and also used by the population of the country. To a large extent, Mongolia works for itself, while having everything it needs.

Mining industry of Mongolia

Mongolia has a widely developed mining industry. But, despite the abundant mineral deposits, they are characterized by limited development. Mongolia has four brown coal deposits, concentrated in Nalaikha, Sharyngol, Darkhan, and Baganur. The southern part of the country in the region of the Taban Tolgoi mountain range is characterized by the presence of hard coal; the geological reserves of coal in this place can be calculated in billions of tons.

Deposits of tungsten and fluorspar with average reserves have been known and developed for a long time. A copper-molybdenum deposit was found in Treasure Mountain. This deposit leads to the creation of a mining and processing plant, around which the city of Erdenet is built.

Oil was discovered in Mongolia in 1951, after which an oil refinery was built in the city of Sain Shanda (a city southeast of Ulaanbaatar), which is located near the border with the Chinese Republic. The plant existed for 20 years; in 1970, oil production ceased. Also, large deposits of phosphorites have been discovered near Lake Khubsugul, and their mining is beginning. But soon, due to environmental reasons, all work is reduced to zero.

Before the start of reforms in the country, with the help of the Soviet Union, the search for zeolite, a mineral of the aluminosilicate group, which is used in livestock and agriculture, as adsorbents and biostimulants, was carried out without success.

Today, the main mining industry in Mongolia is the coal industry, with the advantage of brown coal mining. The main part of coal production is concentrated in the SharynGol coal mine, the annual production of which is more than 1 million tons. It is located near the city of Darkhan, and in the Nalaya mine (capacity is more than 600 million tons). Smaller sections are present in the Under Khan area and other areas.

Electrical energy is produced at thermal power plants, the largest of which is located in Darkhan.

Manufacturing industry

Mongolia's manufacturing industry includes light and food industries. These industries account for more than 1/2 of the state's gross industrial output and more than 1/2 of the employed workers in the state.

Larger enterprises are represented by an industrial complex with eight factories and factories in Ulaanbaatar, Choibalsanei.

The building materials industry includes a house-building plant in Ulaanbaatar and a brick and cement plant in Darkhan.

First of all, the local industry was based on the processing of livestock raw materials, and the main types of products were fabrics, leather goods, food products and felt.

A large number of new industrial companies appeared in Mongolia after the end of World War II. The period of growth was characteristic of the fifties and sixties, at that time the state received large financial assistance from China and the USSR.

Since the eighties, local industry has provided about a third of the entire country's gross national product. After the end of World War II, the share of heavy industry in the total volume of industrial production increased significantly. There are more than 2 dozen cities in the country with enterprises of national importance. In addition to Ulaanbaatar and Darkhan, the largest cities are Erdenet, Sukhbaatar, Baganur Choibalsan.

Mongolia produces a large number of industrial and agricultural products, a large share of which is consumed in the country. Furs, leather and fur products, leather and wool, livestock and animal products, as well as molybdenum ore, phosphorites and fluorites are intended for export.

Mongolia is a state located in East Asia, bordered by Russia, China and landlocked. Vast areas of the country, some of which are unsuitable for life, are unevenly populated. At the same time, Mongolia boasts a fast pace of economic development and a fairly high standard of living of the population. Mongolia has observer status in most international organizations.

Brief history of the state

The first attempts to establish a Mongolian state were made by disunited tribes that settled the territory of modern Mongolia 850 thousand years ago, in the 4th century BC. The Huns then united to fight the Chinese tribes and ruled the Mongolian steppe until 93 BC. Later, the Hunnic Empire was replaced by several Kyrgyz, Turkic and Mongol khanates. None of them managed to gain a foothold in the Mongol lands for a long time: a nomadic lifestyle, militancy and insufficiently authoritative power - all this became the cause of disunity.

A more stable union of tribes went down in history as Khamag Mongol and became the basis of the future Mongol Empire led by Genghis Khan. But already from the end of the 13th century, cultural differences, the death of the strongest ruler, the endless redistribution of power and the heterogeneity of the population of the state became the reason for the beginning of the collapse of the Golden Horde.

Over the next few centuries, the Mongolian steppes were occupied by various rulers, empires and peoples: the Yuan Empire, the Northern Yuan Dynasty, the Chinese Qing Empire ruled by the Manchu Dynasty - until 1911. When the Xinhai Revolution thundered in China, putting an end to the empire, and a national revolution arose in Mongolia itself, statehood as such did not exist on the territory of modern Mongolia.

New Mongolia was recognized as an autonomous part of the Republic of China in 1915, and nine years later the independence of the state was proclaimed again (for the first time in 1911). However, until the end of World War II, the independence of Mongolia was recognized only by the USSR.

The Mongolian People's Republic was characterized by some features of Soviet power: repression, collectivization, destruction of monasteries, and later perestroika. Japan's aggression was reflected by the joint actions of the USSR and Mongolia. The modern history of Mongolia began with the adoption of a new Constitution in 1992 and a change in political course.

Government and politics

Mongolia, which has a diverse population, is a parliamentary republic. The head of state is the president, the executive branch is represented by the government, and the legislative branch is represented by the parliament, which is called the State Great Khural. Locally, power remains in the hands of local governments, which are elected for a term of four years.

In 2008, an internal political crisis occurred in Mongolia, which provoked mass unrest in the capital of the state (Ulaanbaatar) and caused a change of government and re-election of the president. Currently, the president of the state is Tsakhiagiin Elbegdorj, the ruling party is the Mongolian People's Party (MPP).

Geography of Mongolia

In terms of territory, the state ranks nineteenth in the world, being quite large. The area of ​​Mongolia is 1,564,116 km², which is comparable, for example, to half of Yakutia. Most of the country (geographically) is occupied by a plain with several towering ridges and mountain ranges. The Gobi Desert is located in the southern part of Mongolia.

All fresh water sources originate in the mountains and are fed by several large tributaries. Mongolia has a large number of lakes, many of which are temporary, that is, they form during the rainy season and disappear during drought.

The area of ​​Mongolia and the location of the state make the climate sharply continental. The average temperature in the winter season ranges from -25 to -35 degrees, in the summer it is within the same values ​​with a plus sign. The amount of precipitation decreases from northwest to south.

Administrative division of the state

Mongolia, whose population is unevenly distributed throughout the state, is divided into 21 aimags, with a total of 329 soums, and the capital Ulaanbaatar. The largest city, as expected, is the capital, with one and a half million permanent residents. The administrative center is followed in terms of population by aimag Khuvsgel (114 thousand people), Dornogovi (109 thousand people) and Uverkhangai (100 thousand people).

A characteristic feature of Mongolia is the presence of temporary settlements, and therefore a different address system is used than the standard one. Thus, in Mongolia there are no usual names of cities, streets, house and apartment numbers, and addresses are replaced by digital codes that allow you to determine the location of an object on the ground with an accuracy of one meter. Moreover, the longer the code, the more accurately the location of the object can be determined. The system is suitable for use on a global scale and is actively used in digital cartography and navigation systems.

Economy of Mongolia

Mongolia's economy is developing unusually dynamically, and the state itself is the largest market in the entire Asia-Pacific region. According to the latest forecasts, the state's economy will grow at least 15% per year in the short term.

The main industries of Mongolia are represented by:

• mining (20% of GDP) and mineral resources;
• agriculture (16% of GDP);
• transport (13%);
• trade (also 13%).

Considering the employment of the population, it can be noted that the majority of able-bodied citizens are employed in agriculture (41%), slightly less in the service sector(29%) and trade (14%).

Mongolia imports petroleum products, equipment (both industrial and industrial) and consumer goods (the population is provided with everything necessary). The main partners in international trade are Russia, China, Japan and South Korea.

Financial sector

The Central Bank has the same functions as similar institutions in other countries. The currency of Mongolia is the Mongolian tugrik, which was introduced into circulation back in 1925. Today, the average exchange rate is: 2405 tugriks = 1 US dollar. Despite the fact that there is a national currency of Mongolia, the American dollar is also in circulation (used in almost all areas except for payment of government services) and the Russian ruble or euro, which are accepted in small shops (mainly in the capital) and markets.

By the way, prices in Mongolia pleasantly surprise tourists. You can purchase memorable souvenirs, products made from natural wool and leather, and carpets in the capital at a cost lower than in Russia. Food prices are moderate. So, lunch will cost an average of 6-7 dollars.

Population of the state: general characteristics

The population of Mongolia is characterized by monoethnicity, a predominant urban population (even despite large employment in agriculture), positive natural growth, a large number of dialects in the linguistic affiliation of the population and a diverse religious composition.

State population

The population of Mongolia as of 2015 is 3 million 57 thousand people. Residents of the capital account for one third of the total number of citizens. The nature of the settlement of citizens throughout the state will be discussed in more detail below.

Natural population growth is 28 people per 1000 citizens per year. This fact allowed the population of Mongolia to quadruple between 1950 and 2007. Back in 1918, the population of Mongolia was only 647 thousand people, and by 1969 it was already twice that. No reliable data on the number of inhabitants before 1918 has been preserved due to the difficult history of the formation of statehood, when the territories of Mongolia were part of other countries, and the indigenous population was oppressed.

Density and settlement of residents

The average population density of Mongolia is almost 2 people per square kilometer. This indicator caused the state to be placed in last place (195th line) in the list of population density of countries in the world. The most densely populated areas in Mongolia (5-6 people per square kilometer) are the Orkhon River valley and the mountainous areas of Khangai - the most habitable areas to the west of the capital.

Vast territories (40%) of the state are unsuitable for a comfortable life due to natural features. The population density is a record one person per 10-15 square kilometers, and some of the territories remain completely uninhabited.

Ethnic and national composition

Mongolia (the population is predominantly made up of representatives of the Mongolian group) is a mono-ethnic state. The dominant ethnic group is divided into several clans of Turkic origin, subethnic groups and close ethnographic groups.

In addition to the indigenous population, which totals just over 82%, the country is home to Turks, Russians and Chinese. There are only one and a half thousand Russians in Mongolia, while back in the late 80s there were as many as 20 thousand. Mostly Old Believers fled to the neighboring state to escape religious persecution in their homeland. There are currently several hundred Chinese living in Mongolia; in the 60s, the number of immigrants from China in Mongolia reached 25 thousand people.

Language and writing in Mongolia

The diversity of closely related ethnic groups predetermines minor, but still pronounced linguistic differences. State (Mongolian) includes several dialects:

• Oirat;
• directly Mongolian;
• Buryat;
• Hamnigansky.

Turkic dialects are also common:

• Kazakh;
• Tuvan;
• Tsaatan-Soyot.

Teaching in the capital of the state is also conducted in Kazakh.

In 1945, the Mongolian language was translated into Cyrillic with the addition of two more distinct letters. Old Mongolian is not used today, although attempts to restore the language have been made several times. In religious practices, Tibetan is still widely used to this day, in which works of art, religious and scientific treatises were written in past centuries.

Religious affiliation of the population

The main religion in Mongolia is modified Buddhism (53%). Moreover, in the capital the majority are Christian rather than Buddhist temples (197 versus 63). The majority of the population are atheists (38%). Religious diversity is also represented by Islam, shamanism, Christianity and some other religions.

Standards of living

Mongolia, the standard of living of whose population in most sources remains beyond the scope of the narrative, is a fairly developed state with a stable economy. There are still people in the country who lead a nomadic lifestyle, but their existence is made easier by the numerous benefits of civilization. The capital is similar to most modern cities. Thus, today Mongolia is confidently opening a “window to the big world.”

Mongolia is one of the former Eastern Bloc countries with economies in transition. EconomyMongolia is mainly agricultural.

After a long period of stagnation (from 1990 to 2002, economic growth ranged from +3 to −3% per year), today the country is experiencing economic growth, which ranges from 5.3% to 10% per year; At the same time, the main growth is in the services sector, whose share has increased to almost 40% of GDP, and in the mining of copper and gold due to an increase in world market prices for them. True, the growth in recent years has not affected the poor part of the population: about 40% of Mongolia’s population lives below the poverty line, the same as in 1990. The difficult years of reforms, although they led to an increase in the share of the private sector of the economy to 80%, but further exacerbated social differences and the difference in living standards between urban and rural areas.

According to the UN World Nutrition Programme, the proportion of chronically undernourished people in Mongolia averages 43%. Infant mortality is very high. 58 out of a thousand newborns die in infancy. During the cold season, many children and teenagers huddle in heating pipe tunnels near Ulaanbaatar. The bottom of these tunnels is covered in excrement and infested with rats. Representatives of humanitarian organizations estimate that the number of people living in the tunnels is approximately 4,000 to 10,000 people.

Due to very infertile lands, long winters, low rainfall, the nomadic tradition of the population and a short growing season (only 95-100 days a year), agriculture in Mongolia is very poorly developed. However, against this background, highly specialized animal husbandry arose. At the same time, 5 types of livestock are bred here. Livestock products and the use of the physical strength of farm animals are an integral part of the nomadic lifestyle of the local population. Thus, sheep are bred for wool, milk, meat, goats for producing hides and milk, yaks for producing milk, leather, meat, and horses and camels are used as a means of transport, for transporting goods and for producing milk.

Mongolia's traditional agricultural products include meat, milk, sheep's wool and cashmere, as well as small amounts of grain, potatoes and vegetables.

Modern agriculture developed slowly in this country. The era of socialism was marked by collectivization, which began in the 1930s. By 1959, 100% of agriculture was collectivized. In 1960, its share of national income was reduced to 22.9%, but it still employed 60.8% of Mongolia's working population. After the country joined the Council for Mutual Economic Assistance in 1962, the volume of assistance to its agriculture from the USSR and other CMEA members, primarily Czechoslovakia and Hungary, increased.

In the late 1980s, agriculture still constituted a significant part of the economy of the Mongolian People's Republic. In 1985, it employed 33.8% of the working population, but generated only 18.3% of national income. The country's industry primarily processed food and timber for domestic use, and animal products such as hides and skins for export. In 1986, almost 60% of Mongolia's exports were agricultural products.

After the end of the socialist economic system, profound changes occurred regarding the ownership structure in the country's agriculture. However, its economic orientation still remains dependent on natural conditions and traditions. Thus, in 2006, 80% of income from agriculture came from livestock farming. But now 97% of livestock farming was concentrated in private hands. Subsequently, the share of agriculture and livestock farming continued to decline and in 2011 amounted to less than 20% of the gross national product (in 1995 it was 38%). However, the agricultural sector still employs a third of the country's population.

Mongolia is one of the 10 countries in the world with the largest mineral reserves, but to date only a third of them have been fully explored, and these are almost 6,000 deposits of various minerals, including coal, copper, uranium (about 2% of world reserves) , oil, gold, silver, fluorite, molybdenum, zinc and diamonds.

Deposits of copper and coal are still developed mainly by open-pit mining. This leads to large-scale changes in the landscape and corresponding consequences for the flora and fauna of the country.

The country's official unemployment rate is 2.8%, although this is likely a gross underestimate. High inflation was successfully contained after 1996, and since then its level has been around 4%. Mongolia's external debt is about US$1.86 billion.

In 2007, the volume of exports of goods in monetary terms amounted to 1.95 billion US dollars, of which 41.6% were copper concentrate, 12.1% gold, 9% zinc concentrate, 9% cashmere and 6% stone coal. They imported mainly petroleum products, machinery and equipment, various installations, automobiles, electronics and food products. In 2007, 72% of all exports went to China, followed by Canada, which accounted for 9% of Mongolia's exports.

The country's largest suppliers in the same year were Russia (34%), China (31%), Japan (6%) and South Korea (5.5%). To reduce dependence on its two immediate neighbors, Mongolia is implementing the so-called “third neighbor” policy.

Thus, the volume of trade with Germany reached 82 million euros in 2008, and there is a clear upward trend. The volume of exports to Germany amounted to 15.4 million euros, and the volume of imports from this Western European country amounted to 66.6 million euros.

There are also several agreements with the EU on trade policy, customs and textiles. In addition, Mongolia is a member of important international organizations such as the WTO, the World Bank, and the Asian Development Bank.

The country's state budget expenditures in 2009 amounted to 1.6 billion US dollars, and revenues amounted to 1.4 billion US dollars. Thus, we can talk about a budget deficit of 4.6% of GDP.

Mongolia's public debt amounted to US$1.6 billion in 2008, or 33.1% of GDP.

Agriculture and livestock farming have historically been considered the basis. The lands of this state, located in the south-eastern part of Asia, are rich in vast deposits of natural resources. The Mongols mine copper, coal, tin and gold. The mining industry in Mongolia accounts for a significant government economic sector, but the extraction of raw materials is not the only industry in which the country's population is involved.

Economic history

The history of industry in Mongolia dates back to 1924, the year of the proclamation of the Mongolian People's Republic. Before this period, there was neither industry nor such a thing as a working class. All the population did was processing livestock products, including tanning leather, sheepskin, felt rolling, blacksmithing and carpentry. These types of production had artisanal features and were aimed at serving the on-farm needs of the local population. Manual production was represented by enterprises for the primary processing of wool and leather, carpentry, plumbing, blacksmithing and other workshops.

The only industry in Mongolia at that time was the coal mines in the Nalaikha tract. In some regions of the country, foreigners were illegally mining gold and precious metals.

In the first half of the last century, the Asian state was completely dependent on the import of industrial goods from abroad. That is why one of the primary tasks of the government of the republic was the creation of its own industrial enterprises. The young and economically immature state faced two problems: the lack of qualified personnel and material resources. The Soviet Union provided assistance in resolving these issues.

Industrial Development Period

At the first stages, the formation of the light and food industries of Mongolia began. The foundation of the modern energy sector of the economy was laid by the young republic of that time. Back in the 20s, widespread construction of processing plants began. In 1933, a brick, sawmill and mechanical plant began operating in Ulaanbaatar, and the first power plant was opened.

It is quite difficult to briefly describe the industry of Mongolia. The progressive development of the light and food sectors of the economy required a fuel and energy industry that could meet the pace of production growth. The coal industry of Mongolia has made a certain leap in development. Most of the coal mines in Nalaikha were expanded and mechanized, and the development of new deposits began in the area of ​​Under-Khane, Yugotzyrya, and Sain-Shande. Mongolia's coal industry largely satisfied domestic demand for solid fuel. In particular, local coal was used at the unified power plant of Ulaanbaatar in 1939 and at small power plants.

During the same period, another specialization of Mongolian industry arose - metalworking enterprises, including an iron foundry. One by one, printing and paper factories and enterprises specializing in the production of building materials, gold processing, etc. were built.

Mongolia today

After the collapse of the USSR, aid from the Soviet republics, which accounted for almost a third of external GDP, stopped flowing, leading to a prolonged decline in Mongolia's economy. Industries needed radical economic reforms.

The government of the country has adopted a new course in the development of the country, aimed at building a market economy. During the reforms, a number of radical decisions were made in most areas of the national economy. The state has ceased to control the pricing process. By liberalizing domestic and foreign economic activity, attempts were made to rebuild the banking system and the energy sector; programs for the privatization of land and the implementation of measures to attract foreign investment were developed and adopted. Mongolia participate in international tenders.

However, the reform process was stalled as a result of resistance from the communist movement and political instability caused by frequent changes of governments.

The peak of the economic crisis came in 1996 after a series of natural disasters and a fall in world prices for copper and cashmere. But despite this, the very next year, 1997, was recognized as the year of economic growth of the country. That same year, Mongolia became a full member of the WTO. And although Russia’s decision to ban the export of oil and petroleum products in 1999 had the most unfavorable impact on the state of Mongolia’s economy, the country continued to move forward with confident steps.

Since 1999, by decision of the WTO, partner countries have annually provided financial assistance to this young and promising state: China, Russia, South Korea, Japan. And although economic indicators and the degree of industrial development in Mongolia can hardly be called advanced, many experts consider the economy of this country to be the most progressive in the whole world. In their opinion, the state’s potential is enormous, given the reserves of mineral raw materials, the development of which is still at an early stage.

The basis of industry: natural and labor resources

Despite the many deposits of valuable mineral raw materials, their development is not being fully developed due to numerous restrictions. In Mongolia, brown coal is mined in four deposits, and in the southern part of the country, in the Taban Tolgoi mountain range, hard coal deposits have been discovered. According to preliminary data, geological reserves amount to billions of tons. Active development of small tungsten subsoil and areas rich in fluorspar is underway. The discovery of copper-molybdenum ores on Mount Erdenetiin-ovoo served as the basis for the creation of a mining and processing plant, around which the industrial town of Erdenet is located.

The oil industry of Mongolia has been actively developing since the middle of the last century. One of the main enterprises in this industry is the oil refinery in Sain Shanda, a city located near the border with China.

Massive deposits of phosphorites were discovered near Lake Khubsugul. However, today the development of the field was suspended, without even allowing it to develop fully due to environmental hazards. It is known that zeolites accumulate in the bowels of the earth; Mongolia searched for this material jointly with the USSR. However, today the extraction of these aluminosilicate group minerals, used in agriculture for biostimulation processes and adsorption, is practically not carried out due to lack of funding.

The development of any Mongolia depends on labor resources. The population as of 2018 is 3.119 million people, of which approximately a third are citizens of working age. Part of the population (about 40%) is employed in agriculture, in industry in Mongolia - about 20%. The rest of the population works in the service sector, is engaged in private entrepreneurship and housekeeping. The unemployment rate is at 9%.

Food production

Briefly about the industry of Mongolia, which meets the food needs of the population, we can say this: this sector of the economy accounts for about 40% of total production. The production of dairy and meat products is actively developing in this industry. Numerous oil factories and separator stations were built in small settlements (aimags). It is worth noting that just a few decades ago Mongolia could not even count on the production of commercial butter. Today it is one of the major export positions.

The main ingredient for the food industry in Mongolia is milk. There is a dairy plant in Ulaanbaatar that processes tens of tons of milk and cream per day. All production processes at this enterprise have long been automated and mechanized. The capital's dairy plant produces pasteurized dairy and fermented milk products, butter, cottage cheese, sweet glazed cheese curds, and ice cream. This enterprise is a leading food processing plant in Mongolia.

Not far from Ulaanbaatar there is a large meat processing plant, equipped with modern technology, thanks to which the plant’s workshops demonstrate high production results. The meat processing plant complex includes workshops for processing meat products, departments for the production of semi-finished products, sausages, and canned food. The majority of goods from the meat processing industry are exported to other countries.

In addition to meat and dairy production, the food industry in Mongolia is represented by dairy, confectionery, bakery, alcoholic beverages, fishing and other industries. Several years ago, a new direction in the food industry began to rapidly develop in the republic - flour milling. Today, the country meets the needs of its citizens for flour through the products of national producers. In addition to the mill plant in Ulaanbaatar, which produces more than 30 thousand tons of flour annually, there are a number of mechanized flour mills in aimags.

Industrial plant in Ulaanbaatar

Among the light industry factories in Mongolia, it is necessary to first of all note the industrial plant in the capital - this is one of the largest enterprises engaged in processing agricultural products. The industrial plant in Ulaanbaatar was built in 1934. Subsequently, this enterprise began to be called a forge of professional industrial personnel of the times of socialism. The industrial complex consists of a complex of plants and factories equipped with modern equipment. There are wool washing, cloth, worsted, felting, shoe, saddlery and textile workshops. The Ulaanbaatar industrial plant also includes in its structure cherry, chrome, sheepskin and fur, tanning and other factories. The main products produced by the plant:

• various woolen fabrics;
• felt;
• drape;
• cloth;
• shoes for all seasons;
• felt boots;
• camel wool blankets;
• bags;
• outerwear.

The plant’s products are in demand not only within the country, they are exported to other countries. The industrial plant strives to expand its production area. As this holding developed, its individual workshops long ago acquired the status of independent enterprises.

Progress in heavy industries

Over the past years, the country has seen positive dynamics in the development of energy, coal, oil, metalworking, mining, construction, woodworking and other production sectors. Average annual growth rates exceed similar figures in other former socialist republics. The rate of industrial growth in Mongolia surprises many economic experts, since this country, which was not so long ago considered the most backward, is steadily approaching the level of advanced powers.

In order to develop the main sectors of the national economy, the Mongols are striving to bring industrial production to a new level that corresponds to the world average. The country's government pays special attention to the creation and establishment of its own chemical, pharmaceutical, and biological production, which plays a huge role in expanding the main sector of the economy - livestock and agriculture in Mongolia. Industry, as already noted, employs approximately 20% of the working-age population, while almost 40% of working-age citizens are engaged in raising livestock, farming, and growing crops.

Industrialization of Mongolian cities and development of the coal industry

Briefly about the specializations and industries of Mongolia, which form the basis of the fuel and energy block of the country's economy, we can say that they are fundamental in the development of the national economy. Republic occupies the main place in this segment. Today, brown and hard coal are mined in Mongolia at 13 large deposits. The most popular products for export are coking and high-grade coal, which is mined in the Nalaykha region near Ulaanbaatar.

In the coal basin of certain regions of Mongolia, in particular in the aimags of Uverkhangai and Sukhbaatar, operating mines fully satisfy the need for solid fuel not only in their settlements, but also in some neighboring ones. Not long ago, new coal mines were put into operation and old enterprises were equipped with new equipment. This step naturally led to an increase in average annual production rates by more than 10-15%.

Along with coal deposits, during the development of deposits, natural reserves of ores, asbestos, limestone and other valuable raw materials are often discovered. Darkhan-Uul is considered one of the rapidly developing industrial centers today. Here, within the Sharyn-Gol coal basin, an industrial and energy complex is being built that will provide coal to all areas of the national economy and the needs of the population. That is why the city of Darkhan-Uul is called the “flower of friendship” by the Mongols. In the construction of this complex, significant assistance to the republic is provided by the countries of the former USSR (Russia, Kazakhstan), China, Japan, and Canada. The main objects of the complex should be several large coal mining enterprises, a railway transport hub, a high-voltage power line and an elevator. Today, the process of the emergence of another economic and cultural center of Mongolia is taking place here.

Oil production, electricity production

As the fuel base and industrial sectors in general grow, the production of electrical energy has to be taken to a new level. Just a few decades ago, electricity was not even heard of in remote regions. Today, the need for electrification is explained not only by the everyday needs of the population, but primarily by the need to mechanize and automate production in the country and increase the performance of finished products. Local power substations operate in aimak centers.

Unlike other industrial sectors, oil refining is a relatively young specialization in the industry of Mongolia. The industry is still in its infancy, but the country produces half of the gasoline for its own needs, and imports the rest.

The only major oil refining center is in the Eastern Gobi. Not long ago, a young city appeared here - Dzunbayan, which also houses infrastructure and cultural facilities. The Eastern Gobi meets almost half of Mongolia's fuel needs.

Due to the expansion of the manufacturing and manufacturing industries, electricity costs in Mongolia are increasing every year, which prompts the government to consider the construction of new thermal power plants.

Mining of mineral ores and metals

The mining industry provides Mongolia with:

• gold;
• manganese;
• tungsten;
• magnetic iron ore;
• lead ores;
• rock crystal;
• turquoise and other non-ferrous, precious metals;
• salt.

Mining and processing enterprises are being built near the sites of large deposits. Mongolia exports tungsten and certain types of non-ferrous metals to other countries. Ferrous metallurgy in Mongolia is represented by a mechanical processing plant with an iron foundry in Ulaanbaatar. Agricultural equipment, hand tools, and small equipment are produced here for domestic and export sale.

Marble, limestone, asbestos, gypsum, and mineral paints are mined in the republic. The extraction of this type of raw material makes it possible to develop the industrial construction materials industry. Over the past few years, several dozen enterprises have been commissioned, including a house-building plant in Sukhbaatar. They are engaged in the production of lime, cement, bricks, slate and other construction products. The large-panel house-building plant in the capital of Mongolia, the glass factory in Nalaikh, and the reinforced concrete and brick factories in Ulaanbaatar deserve special attention. The workshops use complex mechanized technologies. All enterprises are equipped with modern technology.

The production of building materials and their sale to the public at an affordable price is an important aspect for a people who in the recent past were considered nomadic. The transition of the Mongols to sedentarism is facilitated by the large-scale construction of comfortable houses, infrastructure facilities, and the development of a public transport network in cities and aimags.

Agricultural economy

The Ministry of Agriculture and Light Industry of Mongolia is doing everything to support the agricultural sector of the economy and create the most favorable conditions for its development. Agriculture has been the basis of its economy throughout the history of this state. In the context of the transition to a market model, the importance of the agricultural sector has not decreased. Almost half of Mongolia’s labor reserve is involved in it, although 50-60 years ago this figure reached 80%. Agriculture provides more than 40% of total GDP. The Mongols rank third in the world in terms of livestock per capita, behind Australia and New Zealand.

Almost until the middle of the last century, while industry was going through the process of formation and transformation into an independent sphere, agriculture remained the only production sector. Even in those days, finished products were exported, which made it possible to receive almost 60% of the national income. Over time, this share has decreased and today is about 35-40%, with more than half of export products being raw materials.

The most important economic indicators in this country depend on the level and pace of development of agriculture. In particular, the costs of agricultural raw materials are the main part of the costs of producing goods in the light and food industries. The Ministry of Agriculture of Mongolia is constantly working to create new concepts and techniques that would minimize costs and increase the productivity of finished products.

Pastoralism is the predominant economic activity practiced by Mongols. According to some reports, there are 12 heads of livestock per person here. In some aimags, livestock is a conventional monetary unit in transactions of a material nature. Unlike livestock raising, agriculture plays a secondary role in modern Mongolia.

Completion

The development of industry led to the formation of the working class according to the model of the USSR proletariat. In the process of training specialized workers, the participation of the Soviet Union played an important role. Some Mongols gained experience and knowledge by working at their enterprises under the supervision of sent Soviet craftsmen. They were trained in special clubs, technical sections, and training centers. Others received their education directly in the USSR. Thus, Mongolia is an example of a national desire for the economic prosperity of its country through industrial development, rationalization of production processes and conservation of resources.