Unofficial Translation

Action Program of the Government of Mongolia

The Government of Mongolia formed as a result of the third Parliamentary elections defines its Action Program for the next four years on the basis of the election program of the MPRP.

The key objectives of the Action Program of the Government of Mongolia are to:

• Continue and deepen the economic reform and ensure higher economic growth;

• Pursue an export-oriented economic policy and sustain higher economic growth;

• Respect and preserve education and culture, and promote human factor - the keystone of the development;

• Improve the living standard of people by streamlining the distribution of wealth and income, and develop an effective system of social welfare;

• Adopt and implement regional development concept and on this basis, narrow the gap between the development and living standard in the rural and urban areas;

• Formulate and effectively implement a social and economic development policy, tailored to the specific conditions of Mongolia, and set up a highly efficient and accountable Governance.

One. Social Policy

The key objectives of the social sector lie in creating an environment for human development, improving the living standard of citizens, ensuring an equal access to social services, and reducing unemployment and poverty.

1. An environment which provides people with equal opportunity and access to education shall be created; the system of basic education and all types of professional training shall be developed in compliance with individual’s interest, needs of the society and the market force; and a system that provides with modern education shall be established.

• Increase investment and capital repair in the education sector;

• Expand and/ or construct buildings for crowded schools and maintain the rural school buildings to meet the normal requirements of educational activities;

• Support and encourage private Investment in the education sector;

• Computerize all secondary schools and install the Internet;

• Redesign the education content in order to prepare young generation for the future life and work and to teach them the traditional and as well as modern production technologies; Enforce educational environment standards; and, adopt the quality evaluation system;

• Actively seek possibilities for mutual acceptance of educational documents by domestic and foreign schools;

• Review regulations on accreditation of professional schools and take measure to improve quality of schooling;

• Improve text book writing, publishing and distribution systems;

• Expand secondary school attendance and fully subsidize expenses related to the school dormitory;

• Provide children of vulnerable group families and those families with more than three children attending schools starting 2000-2001 school year with free textbooks and stationary;

• Expand scope of pre-school education activities, improve kindergarten attendance and introduce a new method of training children at home school;

• Welcome branches of colleges and universities of developed countries in Mongolia and provide them an opportunity to function normally and permanently; Support with tuition to students of such institutions;

• Renew the regulation of accrediting vocational training schools and undertake measures to strengthen their training program;

• Resolve issues of providing grants and awards to talented and academically brilliant students of domestic universities and colleges;

• Grant scholarships to domestic universities and college students of poor and herder’s family and a student of a family with more than two children attending higher education schools;

• Take measures to ensure that domestic university and college students receive the same benefits and allowances in accordance with the international practice, and support students to improve their lives by working during non-class hours;
• Effectively conduct informal and distance education, and specialized training; Provide drop-outs with necessary training and reduce substantially illiteracy rate;

• Formulate a policy designed at staffing Government institutions and organizations with qualified personnel; Make an request of such personnel according to needs and requirements and ensure that contracted students have a guaranteed job upon graduation;

• Increase the number of students in MA and Ph.D. degrees in developed countries; Set up the requirements to learn and use internationally accepted languages as a door to the latest information and new technology;

• Renew training and retraining system of teacher and education management staff;

• Upgrade and intensify professional training.

2. Health service quality and health preventive measures shall be developed to the international standards; the objectives to improve population health and increase the average life expectancy shall be achieved. In order to achieve the objectives:

• Increase budget allocations to the basic health care and services every year;

• Free preventive medical check-ups, diagnosis and laboratory testing at Government–run hospitals through the revision of types of medical services, covered by the health insurance; Develop health insurance fund independently;

• Provide with basic medical services through family doctor system;

• Set up an immunization fund; Gradually decrease infectious diseases using preventive injections and vaccines and furthermore, eliminate them;

• Provide free medical services to vulnerable groups, i.e., the elderly, female headed households with many children, adolescents and handicapped people;

• Implement a maternal and infant health protection and reduction of mortality rate programs and finance them;

• Improve the provision and purchase of medical drugs within the framework of the integrated medical drug policy, and tighten drug quality control; Abandon abnormal practices among patients paying the ambulance fuel cost and the drugs;
• Formulate and implement a national Healthcare Technology Program;

• Establish a diagnostic and therapeutic centers in economic regions and furnish them with modern medical equipment and provide with specialists & doctors;

• Renovate not less than 40% of ambulance fleet in soums and 60% in aimag centers and capital city;

• Formulate a Soum hospital development program and provide soum hospitals with premises, equipment and create conditions and incentives for professionals to improve constantly their qualification and to work in order to improve access and quality of effective and adequate medical services delivery in rural areas;

• Take measures to protect and particularly to rehabilitate population health using methods, such as mineral spring care services;

• Promote private health services and expand coverage of services provided by them from the health insurance fund;

• Strengthen certified health institutions & medical doctors system and improve a quality guarantee of medical services;

• Patronize big sports. Develop public sports to protect population health and physical health of growing young people.

3. The Government shall work to ensure an intensive development of national culture and arts in conformity with the world cultural achievements and values and the unique features of Oriental culture.

• Improve institutional arrangements of cultural & art institutions and strengthen their management;

• Develop traditional culture and art in combination of classical and modern art; Respect, develop, study and advocate our mother tongue, script, culture and adhere the common etiquette of human relations;

• Implement cultural heritage projects such as protection and rehabilitation of monuments in Harihorum and of Turee period in Mongolia;

• Patronize the classical art and art and masterpiece books for children; Increase financial support to authors of the above to participate in international contests and events and to train themselves;

• Re-open soum culture centers and libraries; increase the scope and access to cultural, art and information services provided to the rural population;

• Build a Children’s Book Palace;

• Support outstanding artists and sportsmen;

• While ensuring the religious freedom of people, support studies, restoration, inheritance and development of traditional religion which is a cultural, intellectual and ethical heritage of the Mongolian people;

• Direct all educational institutions and cultural & scientific organizations to respect and preserve long-lived tradition, such as respect for elders and humanity.

4. The Government shall implement a national program on boosting scientific & technological capabilities and acquiring new comparative advantage of development and shall increase the value of works of scientists and researchers.

• Formulate and start implementing a long-term national program on the Mongolia’s science and technology development for up to 2010;

• Establish a self-financing and independent science-education-manufacturing complex in line with the Long-term development program priorities;

• Increase government orders for priority researches on the traditional technology, biotechnology, new materials, information technology and new energy sources, and support & encourage their application into production;

• Increase the number of people to be trained in-country and abroad in the field of priority areas of science and technology;

• Establish an integrated scientific and technological information network and information database; enrich research libraries fund and increase their usage;

• Increase provision of necessary instruments, equipment, chemical reagents and other materials for research institutions ;

• Improve and expand the cooperation between scientific, educational and business organizations; increase value of intellectual products and develop related legislations;

• Cooperate actively with international organizations and foreign countries in the field of science and technology; and support establishment of joint laboratories and centers.

5. The Government shall improve the wealth and income distribution system; stale the decline in the living standard of the people; narrow the income gap among social groups and eliminate absolute poverty.

• Reduce the number of poor households living under the poverty line by twice through taking a complex set of social and economic measures to prevent living standard decline and provide with jobs to poor citizens of working age and able to work;

• Gradually increase the minimum wage to three times higher than the level at the beginning of 2000;

• Increase civil servants wage every year starting from 2001 to twice much than the present level;

• Improve the working and living conditions of civil servants and build a concessional credit fund designed at providing loan to them for construction of private houses;

• Grant special allowances to civil servants, teachers and doctors working in remote and desert areas;

• Develop and strengthen a national social protection system;

• Improve social insurance relations and take measures to protect from risks through insuring family members and relatives;

• Gradually increase the amount of pensions and allowances provided from Social Security Fund starting from 2001 to twice of today’s level;

• Increase the compensatory pension of those who retired before their retirement age due to administrative arrangements to the minimum pension;

• Fully introduce a notional individual pension account;

• Expand social insurance coverage and strengthen the responsibility of timely payment of insurance contributions; improve self financing of social insurance fund;

• Revise and enforce the labor safety and sanitary standards in accordance with the Labor Law;

• Enforce a regulation on payment of benefits of the disabled people during their injury period caused by the industrial accident and professional sickness, and expenses of care and treatment from the work injury insurance fund;
• Cover herders and self employees by the social insurance and improve their social protection;

• Establish and enforce a procedure on granting long-term loan to young families for construction of private houses; resolve issues on privatization of apartments owned by organizations;

• Increase the number and types of benefits and services, rendered to senior veterans;

• Improve social protection measures for the poor and disabled people, and mothers with many children;

• Support and encourage new job creation as a part of complex set of measures to create better employment opportunities. Promote microcredit;

• Provide opportunities for uninsured people by unemployment insurance and for long-term unemployed ones with professional training and Labor market activities;

• Pay attention to creating a favorable condition for neglected children to live in their own homes and take measures to provide them with assistance and services ;

• Develop content of vocational training and activities of centers for vocational training;

• Establish a credit fund to promote small and medium size enterprise development and to engage in the small-scale crop, vegetable, fruit & berry, and poultry farming businesses in rural areas;

• Create a favorable legal environment for protection of rights of Mongolian citizens working abroad and for export and import of workforce;

• Formulate and implement a policy on the population migration in accordance with the regional development.

Two. ECONOMIC POLICY

A sustainable and high economic growth shall be ensured by reinforcing a macro economic stability and intensifying structural reforms based on export-oriented and private sector led economy. The priority shall be given to improvement of processing level of mining and animal-origin raw materials and development of export-oriented and tourism industries.

The economic growth shall be accelerated, and by 2004, shall be reached to 6 percent. In order to achieve of the objectives, the following policies shall be implemented:

• Ensure macroeconomic stability;
• Build up sound banking and financial sectors;
• Continue the privatization process and improve its efficiency;
• Restore domestic industries and promote export;
• Develop intensively infrastructure.

1. Ensure macroeconomic stability:

• Stabilize the real exchange rate of the national currency and maintain an inflation rate at a proper level that stimulates economy, production and investment;

• Reduce the budget deficit;

• Decrease the unemployment more than by 50 %;

• Reduce the trade deficit;

• Take complex legal and economic measures to eliminate informal sector;

• Strengthen independent status of statistic office and provide transparency through improving official statistic information.

Tax issues:

• Expand the tax base and develop it to support production; enhance tax collection; take comprehensive measures aimed at strengthening of tax authorities;

• Tighten the control on tax imposition & payment and the legal environment; strengthen management of the Assets recovery agency;

• Solve issues of dual taxation and make the decision available to the public; Reduce tax concession and exemption;

• Pursue differentiated and flexible customs duty and tax policy in order to encourage production growth and investment in the regions; reduce tax burden on business entities by up to 30 percent;

• Exempt from corporate income taxes for a certain period investors, who creates jobs other than the in alcoholic production and its trade in rural areas;
• Take measures to reduce gradually individual income taxes imposed on low income people;

• Impose import duties 10 % in average;

• Grant tax exemptions to business entities exporting goods and products to for imported equipment, raw materials, spare parts and other materials;

• Make information on customs duties, exemptions, and payments available to public.

Fiscal issues:

• Formulate and implement a policy directed to stable growth of budget revenue sources;

• Formulate budget proposals in conformity with medium and long-term macroeconomic policies; improve budget financing process and transform gradually stage by stage into output-based financing;

• Improve basis for budget expenditure financing norms and standards;

• Enhance treasury cash management system;

• Establish a mechanism to protect main strategic commodities such gold, copper, cashmere from the price risk;

• Clearly determine sources and uses of special funds, and improve their management and organization and as well as provide their transparency;

• Provide a greater opportunity to the local governments to generate local budget independently and take measures to strengthen duties and responsibilities of local representative authorities.

2. Build up sound banking and financial sectors:

• Develop sound banking system through accelerating restructuring process, privatizing commercial banks, improving their management and by attracting foreign investment in;

• Tighten legal procedures in order to improve responsibilities of debtors and creditors in repayment of the loans extended by commercial banks;

• Restructure the Agricultural bank into a Development bank, strengthen it and improve its competitiveness;
• Create a legal environment in regard to support non-banking financial institutions and to develop a system that mobilizes remaining balances of insurance companies;

• Pursue flexible monetary and credit policies to expand production services activities and to encourage and promote domestic industries and investment;

• Create a favorable environment for development of securities market, expand its scope and increase information and public awareness campaign;

• Improve supervision over participants’ activities in the securities market, develop a system on allocation and distribution of dividends to shareholders, and protect their interests;

• Broaden insurance coverage and expand types of insurance. Take measures to increase responsibilities of insurance companies and make information about them available to the public;

3. Continuation of the privatization process and improving its efficiency:

• Eliminate distortions of the privatization process, strengthen law enforcement and increase responsibilities;

• Improve management of privatized entities and pay attention to the final results and efficiency improvement;

• Privatize business entities on basis of the most appropriate methods allowed by the law and accelerate the privatization process;

• Privatize most valuable enterprises in line with economic efficiency and the national securities requirements;

• Restructure the energy sector, and gradually sell out government shares in state-owned enterprises in energy and mining sectors;

• Create a legal environment for privatization of the social sector, and commence the social sector privatization;

• Adopt a principle to mobilize privatization receipt only for the investment purposes;

4. Rehabilitation of domestic industries and export promotion:

Support to domestic industries:

• Implement "The Cashmere" program, increase export of the Mongolian cashmere products and improve competitiveness at the world market;

• Establish a reserve fund of strategic raw materials such as cashmere and wheat grain and support domestic producers through provisions such loan for working capital and raw materials purchase;

• Improve processing standards of animal-origin raw materials, particularly meat, cashmere, sheep and camel wool, skin and hides;

• Implement sub-programs like "Wool", "Skin and hides" and increase the export of combed wool and processed skin. Encourage export through revision of standards for preparation of sheep and camel wool, yak & horse hair, skin & hides and improvement of quality of raw materials & products;

• Adopt "The Meat" program, and increase meat and meat products export;

• Create greater opportunities for export of meat, wool and leather products by entering into agreements on the veterinary and sanitary conditions;

• Formulate and implement programs designed at improvement of business entities management and enhance businesses and quality of products;

• Support production and service cooperatives via the tax and credit policies, and encourage job creation;

• Create a legal environment for establishing free economic zones in Altanbulag, Zamiin Uud and Tsagaannuur and start implementation;

• Develop an appropriate system of purchase, transportation, storage, and processing agricultural products according to market forces. The raw material purchasing system shall be organized to function in conjunction with wholesale trade network;

• Increase foreign & domestic investment and strengthen country’s competitiveness in the world market;

• Reduce administrative steps of foreign investment entrance and develop "one stop " system in order to make faster and easier;

• Mobilize revenues generated from foreign aid products sale for the purpose of expansion of production and services and improve control through ensuring information transparency;

• Develop a legal environment to protect consumer rights, prohibit unfair competition, and fight against monopoly.

Increase the mining products export:

• Increase export revenues of mining production;

• Support Erdenet plant’s efficiency improvement through carrying out technological renovation and deepening the processing level of copper concentrate;

• Increase the production capacity of cathode copper, so produce 10-15 thousand ton of refined copper per year;

• Increase gold production by 1,5 times of the present level;

• Provide an opportunity to construct plants for processing zinc ore deposits in Tomort, gold in Boroo, gold soil deposits in Toson and Bayangol, and start production in upcoming years;

• Formulate a project to utilize copper deposit in Tavan Tolgoi and put it into attraction of foreign investors;

• Provide with conditions to utilize gold deposit in Tavt, copper deposit in Tsaggan Suvarga and silver ore in Asgat;

• Create an internationally accepted legal environment to protect domestic and foreign investors’ rights and a tax & financial system in order to attract investment into the geology and mining sectors.

Enhancing geological survey and provision of mineral reserves:

• Enhance geological survey on oil and oil refinery activities;

• Increase gradually geological survey financed from the Central Government Budget and so, 2.5 times;

• Take step by step measures to create a Mongolian geological map at scale 1:200000;

• Conduct a general search and create a geological map, scaled 1:50000, in the field, nearby the border area and the possible mineral deposits, not less than 50000 square kilometers;

• Support private investment in geological survey through creating favorable investment and tax environment;
• Keep on maintaining geological information base in accordance to the international information standard requirement, based on the geographical information network.

Stale decline in Crop industry:

• Stale decline in crop industry and create a favorable legal and economic environment to support stable growth of the industry;

• Increase unused arable land fee and decrease if it’s used effectively by companies and citizens, in order to improve arable land utilization;

• Provide domestic demand in high quality grain-seed through supporting seed production business entities and scientific research organizations;

• Increase utilization of arable land with watering system;

• Support initiatives and activities of fertilizer production;

• Formulate and implement an efficient credit policy to support the crop industry;

• Support establishment of business entities to provide technical services to crop producing companies and citizens;

• Intensify "The Green revolution" national program implementation;

• Accelerate "The White revolution" national program implementation and increase dairy product supply to the urban areas;

• Improve the food quality control system and create an environment for food safety.

Tourism industry as a priority sector:

• Strengthen the coordination and management of the National Tourism Master Plan implementation;

• Develop a tourism infrastructure in Ulaanbaatar, Kharaahorum, Omnogobi and Khovsgol;

• Upgrade the tourism services quality to the international level.

4. Development of regional infrastructure:

• Engage unemployed people in the road construction and maintenance in order to provide them with permanent income sources.

Three. Regional and Rural Development Policy

Essential basic conditions for settling and improving their lives citizens in the particular rural areas will be created through the development economy in regions, the establishment of regional infrastructure and the implementation of taxation, investment and credit policies consistent to the development of the areas. The following actions will be taken to achieve the goal.

• Take a set of subsequent measures in establishing the concept of regional development and its legal coordination, in defining the strategy for rural development and in ensuring their relatively uniform development;

• Implement differentiated tax and customs policies designed to encourage investment and industrial growth in rural areas;

• Set up a network of wholesale trade of raw materials, goods and food products in each particular region, take measures to supply with cheap, high quality consumer goods to the herders and the general rural population;

• Regulate economic and legal activities of herdsmen families and farmers by law, support initiatives of herders in improving their lives through collective establishment of co-operatives and farms;

• Perfect the State system of herds protection in conformity with the market forces, direct the State policy towards support of veterinary services, irrigation of pastureland and creation of buffer fodder stock;

• Adopt a livestock insurance system;

• Adopt a system of protecting livestock from natural disasters and establish a disaster relief network. Establish inter-aimag reserve pastureland in rural areas;

• Take measures in overcoming losses of Zhud of 1999-2000 in 2-3 years. Implement restocking measures towards herder families, whose income level fell far below the poverty line due to Zud with the active participation and scrutiny of communities;

• Develop a cooperation among herders, farmers, business entities, scientific and research organizations and support initiatives directed at close linkage between the industry and science;
• Improve animal health protection system, revise regulations on genetic fund, health protection and quarantine in conjunction with the market forces;

• Improve the quality of work to fight against animal diseases: brucellosis, glanders, tuberculosis, leucocyte, anaemia in the horses and strengthen capacity building for veterinary laboratories and support towards intensifying the animal husbandry;

• Improve water supply in not less than 70 per cent of the pastureland in the desert and steppe regions by constructing new wells and repairing the abandoned ones;

• Resolve the issue on ownership of water spots;

• Improve water supply and public services in aimag centers, take a set of measures in supplying with clean and safe water and meeting sanitary and health requirements to the population;

• Ensure that all centers of aimags and soums having public bathhouses;

• Implement the rehabilitation of public services in Ulaanbaatar, Hovd, Ulaangom, Ulgii, Murun, Uliastai cities, start implementating urban services rehabilitation projects in central and eastern 8 aimags;

• Renew diesel generators in 80 soums and connect 2 aimag and 40 soum centers to the central power grid;

• Consequently supply largest consumers in soum centers with renewable energy sources;

• Take measures in meeting the basic needs and requirements of 100 thousand of herder families with solar batteries and wind generators;

• Improve and renew the railway fleet and activities of railway maintenance units and implement the security measures against flood;

• Take measures in enhancing the competitiveness of the Mongolian railway in the regional and continental network;

• Increase air space usage in the territory of Mongolia through the introduction and application of new navigation, communication techniques and technologies in the civil aviation sector;

• Support the renovation of Airplane Fleet of civil aviation;

• Improve an inspection system of vehicle technical conditions to the internationally recognized standards;

• Expand and develop the international transport communication;

• Construct and employ reinforced concrete bridges along the major highways in Bulgan’s Egiin, Zavkhan’s Tes and Buyant, Selenge’s Zuunburen rivers, commence the construction of reinforced concrete bridges in Khumuult river of Khentii and in Sarkhairkhan river in Zavkhan;

• Provide with technical support to equip all aimag centers with IDD and DDD connections and increase the automatization level of inter-urban communications by 85%, and the current level of telephone subscribers by 20%;

• Renovate and expand radio and TV studios, the whole technical transmission network with digital technology and provide all aimag centers with FM radio stations;

• Increase the number and the duration of Radio and TV channels in rural areas and improve the quality of TV broadcast transmission;

• Improve the quality of basic postal services and introduce new types of postal services. Improve delivery services of subscribed newspapers and posts to rural bags;

• Expand mobile communication areas. Develop information technology, internet, E-commerce as a tool for intensive economic co-operation;

• Implement Mongolian Law on use of Sea, strive for the best use of Ocean wealth;

• Elaborate and commence the implementation of a Construction and building materials development Master Plan;

• Support the implementation of the technique and technology renovation of in coal mining and take measures in improvement of coal supply to rural areas.

In Western region:

• Build hydropower stations in Durgun, Ulaangom and Uyench rivers and set up an independent energy system of the western zone;

• Renovate airports in Khovd and Ulgii;

• Continue the construction of Khovd-Ulaangom-Khandgait and Ulgii-Tsagaannuur roads, connect Gobi-Altai-Khovd-Uvs-Bayan-Ulgii highway with that of Arvaikheer-Bayankhongor. Commence the construction of Tsetserleg-Tosontsengel-Uliastai road and Bulgan-Yarant road in Khovd;

• Take measures to install VSAT stations in the centers of Bayankhongor, Gobi-Altai, Khovd, Bayan-Ulgii, Uvs and Zavkhan;

• Transfer the broadcasting transmission system between Zavkhan and Uvs centers as well as regional radio broadcasting systems into the digital technology;

In Khangai region:

• Build the Chargait hydropower station, intensify the search for the sources of funding the Egiin hydropower station and connect the center of Bayankgongor aimag with the central power grid. Build a thermal power station on employing Bayanteeg coal mine;

• Commence construction of Erdenet-Bulgan-Murun road. Employ the road of Kharkhorin-Tsetserleg;

• Take measures in expanding and renovating Automatic Telephone stations and cable lines of the centers of Arkhangai and Huvsgul aimags;

In Central region:

• Employ the thermal power station in Dalanzadgad;

• Employ the paved roads of Darkhan-Erdenet and Nalaikh-Maanit-Choir. Commence the construction of Choir- Sainshand- Zamyn-Uud road;

• Take measures in connecting soums of Central and Selenge aimags with radio communication system from one spot to a multiple;

• Take measures in installing VSAT stations in Gobisumber, Dornogobi, Dundgobi and Umnugobi aimags;

In Eastern region:

• Complete the expansion and renovation of the Choibalsan thermal power station and provide reliable sources of energy to the regional consumers;

• Continue the construction of Erdene soum-Baganuur-Undurkhaan-Choibalsan road;

• Expand and renovate the Choibalsan and Baruun Urt airports;

• Develop a transparent fibre network, connecting the centers of Hentii, Sukhbaatar and Dornod aimags, expand and renovate the communication equipment with the digital technology;

In Capital City:

• Provide consumers with reliable services through the introduction and adoption of new technologies in the power, heating and water supply systems. Revise and implement the Ulaanbaatar city development Master Plan;

• Form a special fund for construction of apartments, increase the provisions of apartments and construct an apartment complex for 1000 families of civil servants and young people;

• Conduct the repair and renovation works on roads and bridges utilizing the sources of City Road Fund;

• Expand the International Direct Dialing station;

• Develop water, communication, transportation and urban services of ger areas in accordance with the integrated policy matrix. Strengthen the right to land and improve the conditions for sustainable settling for the opportunities for conducting tiny business activity;

Four : NATURE AND ENVIRONMENT POLICY

The Government shall aim to rationally utilize the natural resources with due consideration of deposits, to ensure an eco-oriented economic growth by the means of restoring nature, to define the civil rights and liabilities related to the utilization and protection of local natural resources and to create a mechanism of self awareness among the citizens in protecting the nature and environment. The following actions will be taken to achieve the set goal.

• Consecutively implement the long term environment policy and program towards the sustainable development with due consideration of the regional social and economic development;

• Improve the legal co-ordination to integrate activities of the Ministries, local administration, non-Governmental organizations and individuals towards successful implementation of Environment policy and policy measures;

• Support the application of advanced, eco-friendly technology and the development of eco-clean products;

• Estimate and establish eco-economic cost of and criteria for of environment and main reserves, adopt and enforce standards of environment reserve usage, protection and restoration of environment;

• Establish fees and charges for the use of natural resources and for the polution and damage to the nature and environment;

• Intensify forestration works being done towards appropriate use, protection and deforestration. Organize works for the achievement of initial goals set in the National Forest program;

• Develop a legal, monitory and incentives aspects for the eco-friendly technology application in mines;

• Expand a network of protected parks, improve park management. Implement measures towards the improving living standards of communities in protected parks and areas;

• Take measures in breeding the number of rare and endangered species of flora and fauna;

• Perfect the system of environment protection, improve its outcomes. Renovate the control system on radiation, meteorology, pollution and application of new techniques and technologies;

• Bring the system of environment information database, information and statistics to the international standard;

• Expand the rights of individuals on land ownership and its use and improve the legal basis of deriving fruits of productivity of the soul on the longer and sustainable terms by guaranteeing its implementation;

• Increase interests of employing the land for the industrial purposes, and develop sound conditions for the long-term ownership of the land to the individuals and organizations for the purposes of increasing the quality of the use;

• Perfect and implement incentives for attracting foreign investment and their sustainable operation through land lease on longer terms;

• Intensify research works on the country’s desertification through implementing projects and programs of international organizations and combat the desertification and soil erosion;

• Take measures in protecting the land from erosion. Take measures in protecting the crop from hail, increasing the precipitation with the purposes of increasing the harvest and distinguishing steppe and forest fires in the areas of far reach;

• Intensify the works for combat against forest and steppe insects, rodents, spread of harmful steppe plants by the means of eco-friendly technology, and increase the current area of combat against the steppe mice by 1.5 times;

• Resolve issues of classifying, transporting, disposal of wastes of Ulaanbaatar city and building eco-friendly recycling plants in a systematic manner. Conduct preparatory works on classifying, transporting, cleaning the wastes and building the recycling plants in the larger cities of Darkhan, Erdenet and Choibalsan;

• Take consecutive measures in providing efficient stoves to the families with the purposes of reducing pollution in Ulaanbaatar city;

• Expand the bilateral and multilateral relations in the nature and environment. Take measures to increase support and assistance from the foreign countries and international organizations in the field of resolving complicated ecological issues;

Five. DEFENSE AND FOREIGN POLICY

1. The system of Mongolian defense and military reform policy will be implemented in accordance to the principles of State military policy and measures will be taken to eradicate the distortions and hindrances emerged in the system during the recent years. The following action will be taken to achieve the goals.

• Revise and develop laws and regulations on defense and strengthen the civil control over activities of military organizations;

• Define priorities in upgrading technical armaments of armed forces and border soldiers and implement an initial stage of the upgrading;

• Perfect the establishment of military forces, intensify the reforms, and increase the capacity and capabilities of the military forces;

• Upgrade qualification of military personnel by the means of improving the terms and conditions of agreement for the voluntary military services;

• Perfect the training concept of military personnel in due consideration of current necessity and conduct training in the areas differing from the basic responsibilities, like natural disaster, alleviation of causes and damages from industrial accident, humanitarian aid to the civilians;

• Conduct training for military officers in the particular areas of prevention and fight against natural disaster and industrial accident;

• Implement the preparatory measures for the engagement of domestic military personnel in UN peace-keeping activities;

2. Measures will be taken towards the protection and preservation of Mongolia’s independence, creation of a conducive environment for peaceful life to its people. The following action will be taken in the framework of the goal.

• Evaluate the implementation and perfect the legal coordination of the Mongolian State policy towards the Border, laws, and regulations related to the border and the clauses of enrolled international agreement. Develop an independent system of military border forces;

• Work towards the extermination of robbery in the border areas of Mongolia, intensify the preventive measures against the border violation especially in the areas of Uvs, Zavkhan, Huvsgul, Dornod and Sukhbaatar aimags and secure the border safety;

• Consecutively improve the process of renewing the technique and technologies, communication and transportation means of the border military forces;

• Perfect the system of voluntary involvement of regional citizens, local bodies in the protection of State border;

• Take measures in improving and renewing the clauses of agreement with the Russian Federation and the Republic of China on the regulation of border and border posts;

• Develop incentives for the sustainable activities of the military officers and seniors, working in the regions;

• Improve the living conditions and social status of military officers and seniors, support their endeavors to obtain general profession. Support the family members of military officers and seniors in obtaining job;

• Actively participate in all the aspects, concerning regional security and military confidence and trust, expand the bilateral cooperation and foreign relations of the military forces;

• Resolve the issues concerning the funding for the fight against the major industrial accident and natural disaster;

• Prevent and exterminate all the internal and external factors that may adversely affect the political, economic, civil and ecological aspects of national security;

• Perfect the conditions of peaceful life of the civilians, expand the mutual cooperation between the citizens and police departments;

• Perfect the legal environment, protecting the rights of Mongolian citizens working in abroad and foreign citizens living in Mongolia;

3. Government will be committed in implementing all the principles, stipulated in the Mongolian National Security Guidelines and the Foreign Policy Principles, adjusting to the new changing situation in the World and Mongolia, and will run a multi-pole, open, independent and active foreign policy consistent with the national core interests and principles of sustainable development. Preserve the continuity and integrity of foreign policies, pursue activities of preserving Mongolian independence and strengthening Mongolia’s status on the international arena. The following action will be taken in the framework of the goal.

In respect to the neighboring countries :

• Expand the friendly ties and multilateral cooperation with the neighboring countries based on the existing mutual trust and tradition;

• Expand the mutually beneficial cooperation, friendly ties and equity on rights with Russian Federation in all the spheres of the economy in accordance to the vision and clauses of the Agreement on friendly ties and mutual cooperation between Mongolia and Russian Federation and find an appropriate solutions to unresolved issues;

• Expand and develop mutually beneficial cooperation, friendly ties and equity on rights with the Republic of China in accordance to the Agreement on friendly ties and mutual cooperation between Mongolia and Republic of China and the visions and clauses of Memorandum of mutual understanding of 1998;

• Find an appropriate solution to the unresolved border issues with the neighboring countries, expansively use the potentials of economic cooperation, improve outcomes and develop the cultural and humanitarian ties;

In respect to the countries of APEC :

• Conduct an active participation in activities of the countries of Asia Pacific region, and develop bilateral cooperation with the countries of the region;

• Strengthen the mutual cooperation with the United States of America, taking in view the importance of established ties and relationship with the USA in strengthening market system and democracy in Mongolia;

• Develop and expand already established mutual cooperation and relationship with Japan;

• Develop friendly relationship and mutual cooperation with the Republic of Korea, Republic of India and countries of Asia Pacific region;

• Advance the already established political relationship with the member countries of ASEAN, Australia, New Zealand and Canada, expand and develop the cooperation framework;

• Develop mutual cooperation and friendly relationship with the Republic of Turkey, Republic of Kazakhstan and other countries of Central Asia, while respecting and honoring their history, culture and tradition;

• Develop a mutual cooperation with the countries of Latin America and conduct activities towards establishment of trade and economic relationship with the major countries of the region in the framework of activities of the international organizations;

• Regularize the work on exchange of bilateral views on the security matters of Asia Pacific region, South East Asia and intensify the process of negotiation with these countries;

In respect to the countries of Europe

• Consider the relations with European countries vital important to strengthen and develop democracy and market economy in Mongolia and develop mutual beneficial relations with them;

• Strengthen friendly relations with the European Union and develop mutual cooperation with its member countries, such as Germany, Great Britain, France and Italy;

• Develop mutual beneficial relations with other European countries.

In respect to the countries of Middle East and Africa

• Develop relations with the Middle East and African countries in the framework of the open foreign policy and particularly, commercial and economic cooperation;

The relations with the UN and other international organizations

• Participate actively in the UN, its specialized agencies and international organizations and make efforts to benefit of their influence for the purpose of providing the national security and implementing social & economic objectives;

• Enforce an UN General Assembly Resolution on Mongolian national security and Non-Nuclear Weapon Status and a Mongolian law on Non-nuclear weapon region; Make the Non-Nuclear Weapon Status approved internationally;

• Participate actively in the activities of the "Non-alliance movement " and the group 77 and cooperate closely on the issues which meet the common interests of developing countries and our interest and support negotiations of the North-South;

• Meet the responsibilities and commitments taken under the international organizations and the international agreements;

• Seek all possibilities to join the international agreement and act related to the improvement of the Human rights, environmental protection, improvement of the Society’s vulnerable groups, world issues such as an organized crime, terrorism, and drugs, and cooperate on these matters;

Participation in multilateral activities

• Actively and effectively participate in the multilateral processes, agreements and regional political & economic integration of Asia-Pacific, North-East Asia and central Asia;

• Actively participate in the ASIAN Regional meetings and in the multilateral agreement with the APEC and Asia-Europe political and economic development cooperation;

Developing foreign economic relations

• Preserve the integrity of Mongolian foreign policy and external economic relations; direct the foreign economic relations to achieve the current social and economic objectives;

• Cooperate closely with the donor countries and create a favorable environment for increase in foreign direct investment and foreign trade; with regard this, the relevant legislation shall be developed.

Protecting Mongolian citizen’s rights in foreign countries

• Ease down conditions of travel abroad for Mongolian citizens and create a favorable legal environment for those who study or work abroad; consular services shall be developed to the international standards;

In the field of cultural and humanity relationship

• Develop humanity relations with foreign countries by spotlighting on the close cooperation with the individuals, non-government organizations and local authorities; and support their activities;

• Cooperate actively with the international organizations and funds for education, culture, sport and information; and join with the required agreements; participate effectively in the international human activities;

• Work forward to increasing the number of people and countries, interested in Mongolia through the promotion and advertisement of Mongolian national culture;

• Extend the relationship with Mongolian ethnic in overseas and support a policy to utilize their energies.

Six. POLICY OF OVERCOMING GOVERNANCE CRISIS AND STRENGTHENING PUBLIC ORDER AND DISCIPLINE

The Government shall strive in setting up a "Good Governance" that would develop and implement efficient and effective government policies, serve efficiently and timely the people, meet their basic needs and requirements, and establish justice. Actions towards achieving the objectives are as follows:

• Develop an integrated legal system on the structural and organizational formation of the Cabinet, Ministries, agencies, state and administrative institutions and create a legal framework for their activities;

• Set up optimal structure, division of rights and responsibilities, objectives and strategy of the Government and the administrative institutions in order to eliminate duplication of duties, responsibilities and interruptions in the services provided by the Government to the public;

• Revise and renovate the reforms in the Government administration and services, improve and increase the knowledge and capacity building of the civil servants, and consecutively implement projects and programs for the enhancement of the capacities of the government organizations;

• Meet the efficient and timely provision of services, rendered to public by the state and government organizations in terms of taxation, finance, social insurance, civil registration, health and grant of permissions/licenses pertaining to land tenure;

• Perfect the legal structure of the public sector administration and financing and transform the current public services into the appropriate and cost-effective structure;

• Eliminate the duplicity in granting licenses and permissions, stipulated in the Law, take measures in reducing the number of licenses and permissions, through the approval and implementation of related laws and regulations. Stop an illegal distribution of licenses and permissions;

• Perfect and improve the means of educating public of newly established laws and regulations, support informal training and involvement of non-government organizations in this aspect. Define the legal structure of the state information system, take measures in efficient distribution of information through the use of modern technology. Define and follow up the standards of exchange of information among the government agencies;

• Improve the registration process of foreign citizens and establish the information network;

• Expand the opportunity for the voters to directly monitor and evaluate the performance of the Citizen’s Representative Hural and the executive agencies nominated by Hural;

• Support the activities of non government organizations, expand their involvement in the development and implementation of the state policy, in particularly their participation in the social sector;

• Integrate the activities of local branches of agencies, departments and institutions under the direct jurisdiction of the Governor;

• Expand the trilateral cooperation of the Government, trade unions and employer’s association, take measures to involve non government organizations in performing state works and services on agreement;

• Develop a special policy towards homeless children and adults and alcohol addicts, take measures in organizing the work on their socializing;

• Improve the traffic safeties, perfect the means on the inspection and patrol activities of the traffic police, renew the park;

• Create conditions for the safe and peaceful environment for citizens, enforcement of police patrols and inspections, reliable and efficient services, expand the bilateral cooperation among the citizens and police;

1. Improve the accountability system of public service, raise and strengthen it’s reputation and capacity.

• Define the needs for the improvement of qualification among the public servants, introduce the new means of free training along with the systematic post-graduate training in the country and overseas with the purposes of upgrading their professional skills and knowledge;

• Improve the registration process of all the wealth and income of all political appointees and those working in the key state and government positions, conclude an anti-corruption agreement with the above;

• Amend the clauses in the Law on Public Service, create an efficient mechanism to protect the rights of professional civil servants from all kinds of political pressure, develop and evaluate job description and terms of reference at all stages, create and introduce a system of accountability and bonus;

• Tighten and improve the efficiency of the control on budget revenue and expenditure, utilization, preservation, protection of government property and the ethics of the public servants, and the procedures on the independent audit of the financial statements and performance of the government organizations;

• Decisively oppose all forms of pressure by administrative and service organizations on citizens and consumers and any manifestation of abuse of the monopoly, introduce the rules, that will oblige government organizations to consider and monitor the applications from citizens;

1. Intensify the pace of legal reforms and improve the implementation of laws.

• Introduce the system on studying, monitoring and evaluating the implementation of laws and their efficiency;

• Perfect the enforcement of court decision;

• Develop and submit the guideline on the amendment of laws and regulations by the year of 2004 to the State Ikh Hural for approval;

• Create a national organization on human rights, take measures to accord national laws and regulations with the international agreements and conventions on Human Rights;

• Provide an equity among the parties involved in the legal process;

• Create an efficient condition for the improvement in the safety and storage of the state archives, take measures in improving the system of filing government correspondence;

• Intensify the pace of bringing the national coordination on intellectual property rights to the world standards, accord the laws and regulations on the intellectual property right with that of international agreements. Perfect the legal environment for the protection of national and traditional intellectual products;

• Improve the organizational structure of the work and responsibilities of the government organizations, make the activities of the government organization transparent;

1. Implement measures on the decisive struggle against corruption, bribery, crime and destruction of their formation.

• Develop and implement a national Program against corruption;

• Enforce investigation and prevention of new crimes such as armed robbery, drug realization and it’s use, falsification of cash and their use;

• Eradicate the gratuity acceptance in delivering the government services like income tax collection, customs, issuing licenses and permissions;

• Reinvestigate the criminal cases in privatization, customs, taxes and bank operations, inform public of it’s outcome on a transparent and permanent basis;

• Introduce a system of public monitoring on the discipline and ethics of the lawyers, adopt a mechanism of their resignation, withdrawal from the service and take of responsibilities;

• Develop and consecutively implement a strategic program guaranteeing independence among the lawyers.

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Last Update: 02. Januar 2023