“Golden Triangle of Development” to boost economy in Mongolia’s central zone

ZGM DAILY

2018-05-24 14:05 GMT+8

In cohesion with the development of the Darkhan and Erdenet cities under international development trend of larger cities and settled areas, the Golden Triangle of Development policy was recently presented. According to the Mayor of Ulaanbaatar City Batbold Sundui, the policy was formulated with the governors of five aimags geographically located in the central zone. At present, the central zone comprises only 8 percent of the country's total territory, 10 percent of livestock, 10 percent of water reserve and 27 percent of the forest reserves. However, the central zone inhabits nearly 61 percent of the total population, produces 78 percent of GDP and sells 85 percent of industrial products.

The population density is around 286 persons per square kilometer in Ulaanbaatar, which is 150 times higher than the country’s average, and the capital is facing problems, such as air pollution, traffic jam, growing load of infrastructure and social services, which are 2-3 times than the proper amount. On the other hand, it plays a significant role in improving economic capacity of the country, the mayor noted. For example, the capital city economy was the fundament which sustainably ensured the country’s economic growth when mining and agricultural sectors were facing a crisis. “47 percent of its population and 60-70 percent of its economy and businesses are centered in one city. This raises a challenge to create leverages to analyse and resolve the urban centralization,” he added.

The goal of economic diversification of the three-pillared development policy, which was approved by the government early this year, is to plan the development of agriculture, tourism, industrialization, trade and infrastructure spheres in coordination with information technology, finance, transportation and logistics, and increase the country’s economic competitiveness, the mayor highlighted.

He announced that Ulaanbaatar will be a free economic zone in the near future and working group has been established in this regard.

The city governor’s proposed conception is to develop Ulaanbaatar, Darkhan and Erdenet under the Golden Triangle model of economic development as well as to ensure their sustainable development by increasing accessibility of human resources and workforce and improving market opportunities and resources in local areas using economic and administrative means together with Tuv, Selenge and Bulgan aimags, which are in gravitation and impact zone of the mentioned cities.

Also, a Memorandum of Understanding was signed between the Governors of the abovementioned cities and aimags to help decentralize Ulaanbaatar. For example, Selenge aimag expressed that it will be a reliable provider of healthy food and welcome some faculties of agricultural university. Selenge aimag’s deputy governor noted that out of its 17 soums, 16 were included in the crop farming zone of the country.

While, Darkhan-Uul aimag, where processing factories operate, offered to welcome all hide and skin processing factories at its territory. Darkhan-Uul aimag’s governor emphasized that the city utilizes only one third of its available capacity of producing heat and plans to increase electric power generation. Moreover, the Governor of Erdenet city underscored that infrastructure with fully resolved electric power and engineering networks have been established in 452 hectares of land. In addition, the Governor mentioned that its Science and Technology Park is successfully running its operation. With its profit, the Governor's office is planning to establish a development fund to provide loans to micro businesses.

As for Tuv aimag, its Governor highlighted that the aimag will be the most active zone of Mongolia’s development soon, as the Khushig Valley Airport and Great Maidar projects are finalizing. In addition, a power plant project, which is expected to generate 7 thousand jobs, will be implemented in the area.

Oyunbayar.N

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