Shifting From Mining Dependence to Tourism-driven Economy

Tourism has the potential to become the main driver of the economy, and Mongolians should pay more attention to developing the industry instead of digging up resources underground to sell it to China and elsewhere.In recent years, mining has been playing in a critical role in the national economy of Mongolia.

More than 80 percent of Mongolia's exports were mineral products last year. This proportion is expected to rise in a few years' time to 95 percent.

Mongolia attracts mining geologists and investors due to its known riches and unexplored potential for copper, coal, gold, silver, uranium, molybdenum. Some 3,476 mining licenses were issued by 2017, according to the statistics.

The Oyu Tolgoi copper and gold mine is the biggest foreign-invested project in Mongolia with its initial and second phase investment amounting to well above 10 billion USD. The mine is expected to become the world's third-largest copper operation at peak production in 2025, with an output of over 550,000 tons per year.

It is also expected to comprise a large portion of the country's economy, well over a quarter. Although the income from mining is increasing with the underground phase of the Oyu Tolgoi project's in progress, the developments and riches coming into the nation has not reached the large majority of the population, only going to those in the mining sector and industries that complement it.

The International Monetary Fund data shows that the economy only grew one percent in 2016, a sharp drop since the 17.5 percent growth in 2011. This was mainly caused by vulnerability to external factors such as global commodity prices. To prevent future volatility, the country needs good policies and laws that bring long-term profit and business opportunity, not one-time cash handouts and short-term welfare.

For instance, after pledges made during the 2008 elections, every Mongolian, rich and poor, received 21,000 MNT in cash handouts for many months, which left the country hungry for more while inflation rates soared giving additional burden to the most vulnerable groups in the country.Mongolians shouldn't forget that every economic sector has been receiving foreign loans to some degreeand foreign debt has reached asmuch as 26.2 billion USD as of the third quarter of 2017, according to Mongol Bank.

So far, the public is critical of the benefits mining has brought the nation, becoming increasingly frustrated by the lackluster reach of the country's development. Herders...