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Mongolia and China agree to establish “Gashuun Sukhait Railway” joint venture

Ulaanbaatar, Mongolia, Daily News and Information about Mongolia in English, Data and Statistics, Maps, Photos and Mongolian language lessons, On-line courses
Sunny Sundberg's insight:

A proposition for a new railway between China and Mongolia has been accepted and will be completed within a year. This economic venture will be made possible by Erdenes Tavan Tolgoi transporting company. Its plan is to reduce the costs of transporting coal to China which would then increase the amount of coal being shipped to China overall. Due to the high demand of energy in rapidly developing China, the country needs large amounts of coal from the surrounding countries due to the relatively cheap transaction costs. The venture itself will be majorly owned (51%) by three Mongolian train companies and minorly owned by Chinese companies (49%). It will be able to transport 24-27 million tons of coal to China every year, and the costs of shipping will be reduced from 7-8 USD to only 2USD per ton of coal. This large reduction in costs will help the Mongolia companies make more money and help their businesses thrive. This undertaking is not extremely expensive and will help build both Mongolia's infrastructure as well as China's. The railway will connect to a port city in China which will also allow the shipment of other goods besides coal if need be. This move by the two developing countries will help both of them in the long run, expanding China's supply of goods due to decreased input costs and expanding Mongolia's demand due to increased demand of coal.

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Andre Hessini's curator insight, April 28, 2014 12:26 AM

A proposition for a new railway between China and Mongolia has been accepted and will be completed within a year. This economic venture will be made possible by Erdenes Tavan Tolgoi transporting company. Its plan is to reduce the costs of transporting coal to China which would then increase the amount of coal being shipped to China overall. Due to the high demand of energy in rapidly developing China, the country needs large amounts of coal from the surrounding countries due to the relatively cheap transaction costs. The venture itself will be majorly owned (51%) by three Mongolian train companies and minorly owned by Chinese companies (49%). It will be able to transport 24-27 million tons of coal to China every year, and the costs of shipping will be reduced from 7-8 USD to only 2USD per ton of coal. This large reduction in costs will help the Mongolia companies make more money and help their businesses thrive. This undertaking is not extremely expensive and will help build both Mongolia's infrastructure as well as China's. The railway will connect to a port city in China which will also allow the shipment of other goods besides coal if need be. This move by the two developing countries will help both of them in the long run, expanding China's supply of goods due to decreased input costs and expanding Mongolia's demand due to increased demand of coal.

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The EU to provide a financial support of over 6.5 billion EUR to 12 Asian countries including Mongolia : InfoMongolia.com : News and information about Mongolia, Mongolian language lessons

The EU to provide a financial support of over 6.5 billion EUR to 12 Asian countries including Mongolia : InfoMongolia.com : News and information about Mongolia, Mongolian language lessons | EDP #4 | Scoop.it
Ulaanbaatar, Mongolia, Daily News and Information about Mongolia in English, Data and Statistics, Maps, Photos and Mongolian language lessons, On-line courses
Sunny Sundberg's insight:

This article is completely objective, only spelling out the information on the issue clearly using facts and figures. Mongolia and other Asian countries are going to receive monetary aid in the form of loans to further develop their economies. Approximately 6.5 billion dollars worth of aid will be distributed to 12 countries. The money is coming from the European Union to attempt to achieve the Millennium Development Goals (MDG) which address, "climate change, promote energy efficiency, facilitate business and trade through better market access and support regional integration". These goals are designed to help the Asian communities due to their large amount of people (800,000,000) that are living on less than $1.25 a day. The money has yet to be specified for the exact activities it will sponsor, but with the investment, an economic, as well scientific, boom is hoped to occur. With better education and modernization of medicinal practices, this funding would help raise Mongolia's (as well as the other countries) real GDP, causing their poverty level to go down. This is only if the money is given carefully to responsible companies so that the money can best help the overall economy and not create an even larger economic gap between the poverty-stricken and the very rich. This proposal will be a good spur to the economies of the Asian nations that are struggling in the wake of Japan and China's dominance, allowing the smaller countries to develop into emerging economies.

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Andre Hessini's curator insight, April 20, 2014 11:53 PM

This article is completely objective, only spelling out the information on the issue clearly using facts and figures. Mongolia and other Asian countries are going to receive monetary aid in the form of loans to further develop their economies. Approximately 6.5 billion dollars worth of aid will be distributed to 12 countries. The money is coming from the European Union to attempt to achieve the Millennium Development Goals (MDG) which address, "climate change, promote energy efficiency, facilitate business and trade through better market access and support regional integration". These goals are designed to help the Asian communities due to their large amount of people (800,000,000) that are living on less than $1.25 a day. The money has yet to be specified for the exact activities it will sponsor, but with the investment, an economic, as well scientific, boom is hoped to occur. With better education and modernization of medicinal practices, this funding would help raise Mongolia's (as well as the other countries) real GDP, causing their poverty level to go down. This is only if the money is given carefully to responsible companies so that the money can best help the overall economy and not create an even larger economic gap between the poverty-stricken and the very rich. This proposal will be a good spur to the economies of the Asian nations that are struggling in the wake of Japan and China's dominance, allowing the smaller countries to develop into emerging economies.

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Mongolia’s economy facing difficulties and it is true, says Finance Minister Ch.Ulaan

Mongolia’s economy facing difficulties and it is true, says Finance Minister Ch.Ulaan | EDP #4 | Scoop.it
Ulaanbaatar, Mongolia, Daily News and Information about Mongolia in English, Data and Statistics, Maps, Photos and Mongolian language lessons, On-line courses
Sunny Sundberg's insight:

This interview gives insight into how the overall economy of Mongolia is doing by the standards of the Financial Minister Ch.Ulaan. According to the financial minister, the predominant reason that the public is concerned with the economy is the multiple budget revenue interruptions such as large-scale enterprises that have yet to be stabilized. Another problem is that the value of the Tugrug has depreciated relative to the US dollar. Ch.Ulaan suggests that the imported goods from other countries should be decreased, especially because the end product goods are often those that are created in the nation. By reducing Mongolia's trade deficit, he hopes to have the Tugrug appreciate relative to the US dollar over time. Inflation is also a large contributing factor to the depreciation of the Tugrug, but even after their parliament passed a bill to keep inflation to under two digits, it has not gone down from two digit numbers. He suggested that contractionary fiscal/monetary policies should be used to keep inflation down, but as a developing country, Mongolia wants to grow quickly. Overall, Mongolia is developing, but it needs follow the business cycle in order to sustain growth instead of booming and busting. With Ch.Ulaan's advice, Mongolia could be ready for an overhaul in its policies and eventual growth of its entire economy.

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Andre Hessini's curator insight, April 28, 2014 12:14 AM

This interview gives insight into how the overall economy of Mongolia is doing by the standards of the Financial Minister Ch.Ulaan. According to the financial minister, the predominant reason that the public is concerned with the economy is the multiple budget revenue interruptions such as large-scale enterprises that have yet to be stabilized. Another problem is that the value of the Tugrug has depreciated relative to the US dollar. Ch.Ulaan suggests that the imported goods from other countries should be decreased, especially because the end product goods are often those that are created in the nation. By reducing Mongolia's trade deficit, he hopes to have the Tugrug appreciate relative to the US dollar over time. Inflation is also a large contributing factor to the depreciation of the Tugrug, but even after their parliament passed a bill to keep inflation to under two digits, it has not gone down from two digit numbers. He suggested that contractionary fiscal/monetary policies should be used to keep inflation down, but as a developing country, Mongolia wants to grow quickly. Overall, Mongolia is developing, but it needs follow the business cycle in order to sustain growth instead of booming and busting. With Ch.Ulaan's advice, Mongolia could be ready for an overhaul in its policies and eventual growth of its entire economy.