The next general election is due in mid-2016 and Mongolia’s economy continues to suffer, along with many other economies globally. The massive decline in commodity prices and faltering growth in China are significant reasons for concern in Mongolia. The commodities boom is now a bust and it is difficult to get finance for good projects anywhere in the world, and even more difficult in frontier economies.
Over the next 10 months we will see much political debate about the economy and its rapid slowing. The different political parties will talk about what they have done and what their opponents have done wrong or should have done. If this election follows the path of others we will see the “politics of blame” game played hard by both sides.
INS believes that in this critical period it is essential for a new political approach to emerge. Mongolians deserve honesty during the next year. Unrealistic promises that cannot be funded, and outlandish claims as to whether certain events are good or bad need to be examined critically.
The Mongolian electorate deserve to be informed by those who are expert in terms of good policy settings – for the purposes of reviving the Mongolian economy and setting Mongolia on a sustainable growth path for the future.
Over the coming year INS will publish articles on key areas of policy impacting
Mongolia’s future and will make commentary on policy debate where the politics of blame are overtaking good policy setting.
INS will continue to seek article contributions from those who write from the perspective of informing the electorate on key issues important for Mongolians and Mongolia. It will seek to do this in a way that is unbiased to or against political party. It will play the issue and not the party.
Our next article deals with an issue critical to most Mongolian families – real estate. In our article 5 published shortly after Mr. Saikhanbileg became PM, we urged the GoM to address the urban development issue immediately.
At that time INS stated ….. “Aside from OT phase 1 real estate development in UB has been the second reason for economic growth. Unfortunately housing affordability is expensive despite government subsidies to owners and property developers (for raw material inputs). INS believe:
- The price of housing (and the quality offered) has little to do with the cost of producing it, with high margins to developers.
- The number of unfinished buildings is more to do with developers’ running out of money, than to do with other factors
- Mongolians deserve better value for money than they are getting
- Cost-effective community friendly low-rise development should be evaluated and promoted.
- Mongolians deserve better than to be crammed into small apartments in high rises with very low level community facilities.
In article 11, M.A.D. will give an overview of the real estate situation, and policy issues, in Ulaan Baatar, where almost 50% of Mongolia’s population live.