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World Bank Managing Director reiterates support for Mongolia

Mongolia has been hit hard by the global financial crisis but can emerge with a stronger foundation for sustained economic growth and poverty reduction if the Government succeeds in maintaining momentum on the ambitious reform agenda it has put in place, according to World Bank Managing Director Juan Jose Daboub.

In a public address in Ulaanbaatar on Friday, Daboub, the Bank’s managing director for operations in 74 countries, said, “Mongolia has managed the transition of its economy and politics since 1991 very well and should be proud of its achievements, but the impact on the country of the present global economic crisis has revealed the need for continued reforms.”
During a three-day visit to Mongolia, Daboub met Government officials, parliamentarians, members of the business community, civil society, and other development partners, in addition to seeing first-hand how the crisis has hit the most vulnerable in Ulaanbaatar as well as in Mongolia’s outlying rural communities.
In his meetings with President-Elect Elbegdorj and members of the Cabinet and Parliament, Daboub praised the Government’s initial response to the economic crisis. “The Government deserves credit for acting rapidly and resolutely. It will be important to keep the momentum of the medium-term reform agenda, while assuring that needed support is extended to the most vulnerable groups to weather the crisis,” he said. Since February, the Government has taken several tough decisions -- amending its budget, adjusting monetary policy, and initiating reforms to strengthen the fiscal framework -- that better position the country to withstand future commodity price swings.
Referring to the possible contribution of the mining sector to the economy, Daboub said, “From my conversations with the Speaker of Parliament and the members of Cabinet, it is clear to me that there is a common vision and a strong desire to develop the mining sector in a sustainable and transparent way in order to benefit present and future generations of Mongolians. We stand ready to continue to support the authorities in this endeavor.”
In his meetings with representatives from the civil society and the private sector, Daboub highlighted the important role of the private sector as creator of sustainable jobs, growth and development. “With the global economy in recession and credit flows still tight, small countries like Mongolia more than ever need to ensure that they maintain transparent, efficient and competitive business environments to attract private investment. Our private sector arm IFC is present in Mongolia and actively pursuing investment opportunities,” he said. Underlying the importance of good governance, he commented that stronger institutions and transparent mechanisms that enhance public awareness and oversight are the best allies in the fight against corruption.
During a visit to Ulaanbaatar’s Ger districts to witness the World Bank-funded Ulaanbaatar Services Improvement Project which aims to reduce water loss and improve water quality for the city’s vulnerable, Daboub emphasized the Bank’s continued support for Mongolia to put in place necessary policy changes for social protection and safety nets so the nation is safeguarded against similar crises in the future. “I have seen in the eyes and smiles of Mongolian children optimism and determination to take destiny into their own hands for a better future. We will support the government and work with it to create the opportunities they need and deserve.” he said.
Over 18 years the World Bank has provided USD422 million for 29 projects in Mongolia. Some USD340 million of this amount has already been disbursed for projects aimed at economic progress, mineral resource management, governance, infrastructure and human development. The Bank has recently discussed with authorities a new country strategy that will support government efforts to weather this economic storm and attend to the immediate needs of the most vulnerable, while keeping an eye on the longer term development agenda.
“There is potential in this great nation and I believe that once the dust settles from this economic storm Mongolia’s march will continue. The World Bank stands ready to accompany Mongolians in their path to prosperity,” he said as a final word.

Source: www.news.mn

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