Ayumi Konishi, Director General for East Asia, discusses ADB’s new Country Partnership Strategy for Mongolia.
Last May, ADB’s Board of Directors endorsed the new Country Partnership Strategy for Mongolia for the 2017-2020 period.
The CPS has a title – “sustaining inclusive growth during a period of economic difficulty”.
As Mongolia's economic growth has sharply declined from double-digit rates at the beginning of this decade to almost 0%, the fiscal deficit has swollen to 15.4% of its gross domestic product.
In the short term, Mongolia urgently needs to restore macroeconomic stability in collaboration with the International Monetary Fund and the international community at large.
Such macroeconomic stabilization measures inevitably involve some pain, as they include budget cuts and tax increases.
It is however extremely important to ensure that a slowing economy and fiscal tightening will not reverse gains in poverty reduction that Mongolia has achieved in recent years. It is important also that the 35% of the population that is near-poor does not fall back into poverty.
In the longer term, Mongolia needs to develop a more resilient and diverse economy less dependent on mining, in order to consistently deliver rapid, inclusive, and sustainable growth that is not influenced by the fluctuations in commodity prices.
ADB has been Mongolia's leading development partner for the past 25 years and our strong cooperation will continue.
During the CPS period, we aim to deliver total assistance of more than $1.2 billion, and will support investments, policy reforms, capacity building, and knowledge sharing to sustain inclusive growth.
We will focus on promoting economic and social stability, infrastructure development for economic diversification, and strengthening of environmental sustainability.
With strong support from ADB and the international community, I am confident that Mongolia will successfully address its challenges and lay the groundwork for a bright future.