Table Of ContentContributions to Economics
Yoshitaka Hosoi
Tuvshintugs Batdelger
Khashchuluun Chuluundorj Editors
Economic
Dependence
of Mongolia
on Minerals
Consequences and Policies
Contributions to Economics
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Yoshitaka Hosoi Tuvshintugs Batdelger
Khashchuluun Chuluundorj
Editors
Economic Dependence
of Mongolia on Minerals
Consequences and Policies
Editors
Yoshitaka Hosoi Tuvshintugs Batdelger
Japan International Cooperation Agency Economic Research Institute
Tokyo, Japan National University of Mongolia
Ulaanbaatar, Mongolia
Khashchuluun Chuluundorj
Department of Economics
National University of Mongolia
Ulaanbaatar, Mongolia
ISSN 1431-1933 ISSN 2197-7178 (electronic)
Contributions to Economics
ISBN 978-981-19-5514-3 ISBN 978-981-19-5515-0 (eBook)
https://doi.org/10.1007/978-981-19-5515-0
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Singapore Pte Ltd. 2022
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Acknowledgments
This book is a product of “The Project for Capacity Building on the Natural Resources
and Mining Sector in Mongolia” implemented by the Economic Research Institute
(Mongolia) in collaboration with the Ministry of Mining and Heavy Industry and
generously supported by the Japan International Cooperation Agency (JICA).
The editors are grateful to JICA for their substantial support. Without it, this book
and project would not have been possible. We are also grateful to all the contributors,
advisors, project coordinators, and the staff of the ministry involved in the project.
The excellent Economic Research Institute’s researchers and visiting researchers
who were educated in overseas graduate schools in economics carried out core
research studies that provided the backbone of the chapters. Without all the
contributors’ cooperation, we could not have completed this book.
The academic advisors from Japan and Mongolia gave us invaluable advice on
each of the studies. Their reviews, comments, and suggestions greatly improved each
study.
It should be noted that our contributors also greatly benefited from feedback
during the annual conferences and meetings organized in Ulaanbaatar and Tokyo.
We thank the participants of Ulaanbaatar conferences and Tokyo workshops for their
comments, feedback, and suggestions.
This book was coedited by Yoshitaka Hosoi, a senior advisor at JICA;
Tuvshintugs Batdelger, director of the Economic Research Institute (Mongolia) and
an associate professor of economics at the National University of Mongolia; and
Khashchuluun Chuluundorj, an associate professor of economics at the National
University of Mongolia. Chapters of the book were authored by the many
analysts/writers listed as introductory authors and on each chapter. We thank all
of them for their efforts.
v
vi Acknowledgments
We hope this book will become a compass for resource-holding developing
countries.
Tokyo, Japan Yoshitaka Hosoi
Ulaanbaatar, Mongolia Tuvshintugs Batdelger
Ulaanbaatar, Mongolia Khashchuluun Chuluundorj
2022
Contents
Introduction ...................................................... 1
Khashchuluun Chuluundorj, Tuvshintugs Batdelger, and Yoshitaka Hosoi
Mining Sector Contracting in Mongolia ............................. 13
Khashchuluun Chuluundorj, Dulguun Tuvshintugs,
Manlaibaatar Zagdbazar, and Unurjargal Davaa
Foreign Direct Investment in Mongolia: Impact and Determinants ..... 53
Chuluunbat Narantuya, Manlaibaatar Zagdbazar,
Khorol-Erdene Bayartsogt, Dulguun Tuvshintugs,
Bayarjargal Munkh-Ireedui, and Delgermaa Begz
Mining Development Strategy ...................................... 93
Tuvshintugs Batdelger
Budget Revenue Management ...................................... 121
Ragchaasuren Galindev, Tuvshintugs Batdelger,
Esmedekh Lkhanaajav, Manlaibaatar Zagdbazar,
Munkh-Ireedui Batjargal, Dulguun Tuvshintugs, Oyunzul Tserendorj,
Nyambaatar Batbayar, Delgermaa Begz, and Ankhbayar Delgerchuluun
Impact of Mining on Local Livelihood and Social Licensing
in Mongolia ....................................................... 159
Tuvshintugs Batdelger, Dulguun Tuvshintugs, Enkhsaikhan Usny-Ekh,
Khorol-Erdene Bayartsogt, Manlaibaatar Zagdbazar,
Oyuntugs Davaakhuu, Oyunzul Tserendorj, and Unurjargal Davaa
Appendix: Other Survey Statistics .................................. 187
vii
Editors and Contributors
About the Editors
Dr. Yoshitaka Hosoi has qualifications both in mining and in economics. He is
currently a visiting professor/lecturer at Akita University, Hokkaido University, and
Kyushu University, all of which are in Japan. He teaches courses in international
relations, resources economics, and international cooperation. He has taught at the
University of Tokyo, Osaka University, and others as well. He is also a senior advisor
for natural resources of the Japan International Corporation Agency (JICA), which
is a Japanese government organization for Official Development Assistance (ODA).
His task is to advise JICA and developing countries in the mining field, formu-
late projects, supervise implementing projects, and conduct human resource devel-
opment in Africa, Asia, the Pacific, and South America. Before joining JICA, he
worked for the Deep Ocean Resources Development Co., Ltd. (DORD), which holds
a manganese nodules concession in the Central Pacific, as general manager of the
Exploration Department for planning and executing exploration. Before DORD, he
worked for the Japan Oil, Gas, and Metals National Corporation (JOGMEC), which
is a Japanese governmental organization, for 33 years. He has experience in mineral
exploration, mine development, technology development, mine pollution surveys and
prevention, and mineral economics in almost 100 countries. He has been a visiting
lecturer at the University of the South Pacific in Fiji, and Adamson University in
the Philippines. He has held positions in the SODIMIZA mining company in Zaire,
Metal Mining Agency of Japan (MMAJ), Japan Mining Engineering Center for Inter-
national Cooperation (JMEC), and South Pacific Applied Geosciences Commission
(SOPAC) in Fiji. He has also published numerous papers and articles in areas of
exploration, the mining industry, and economics. He has published the books Mining
and Development (2009), Mineral Resources Frontier (2012), and Mining in Africa
(2014). He holds a Bachelor of Mining Engineering degree from Akita University
and has done postgraduate research in mining at the University of Tokyo, a master’s
in economics from the University of Santo Tomas in the Philippines, and a Ph.D. in
economics from the University of Queensland in Australia.
ix
x EditorsandContributors
Dr. Tuvshintugs Batdelger is the director of the Economic Research Institute (ERI)
and an associate professor of economics at the National University of Mongolia. He
has a bachelor’s degree in economics from the National University of Mongolia; a
master’s degree in economics from the University of Manchester, UK; and a Ph.D. in
economics from Boston University, USA. He has experience working at the Bank of
Mongolia and was the head of the Economics Department of the National University
of Mongolia from 2014 to 2017. He has been a member of the Economic Policy
Council under the prime minister of Mongolia since 2012 and was a member of the
Monetary Policy Committee from 2011 to 2016. He has been actively involved in
policy discussions in the country through the establishment and operation of ERI
since 2010, one of the longest-running think tanks in the country. Through ERI, he
successfully contributed to policy discussions on wide-ranging economic and social
issues by coordinating and implementing many projects by international organiza-
tions, such as the World Bank, Asian Development Bank, and JICA. In particular, he
successfully led research teams conducting an economic assessment of big mining
and industrial projects on the country’s economy and society in general. He has
successfully conducted and published policy research studies in international peer-
reviewed journals and publications such as Applied Economics, Resources Policy and
East Asia Forum and has authored chapters on the Mongolian economy in numerous
books. His current research interests are the role of mining in the economy and
society, the role of monetary policy in regulating the Mongolian economy, and the
impact of economic development on income distribution and the country’s middle
class.
Dr. Khashchuluun Chuluundorj is an associate professor of economics at the
National University of Mongolia. He has a bachelor’s degree in economics from
Moscow State University, Russia; a master’s degree in economics from Yokohama
City University, Japan; and a Ph.D. in economics from Keio University, Japan. He
worked with the JICA project on national economic development policy in 1997–
1999 and then served as the dean of the Economics School of the National University
of Mongolia from 2004 to 2009. From 2009 to 2012, he served as the chairman
of the National Development and Innovation Committee of Mongolia (NDIC), a
government agency, where he oversaw the establishment of the national economic
planning system in the market economy, introduced the public investment program
(PIP), and supervised the establishment of the Development Bank of Mongolia, for
which he served as an inaugural chairman of the Board of Directors. In addition, he
supervised the creation of a legal system to support innovation in the country and
oversaw the development of national public–private partnerships. Currently, he is
a member of the Economic Policy Council under the prime minister of Mongolia
as well as a member of the Monetary Policy Committee of the Central Bank of
Mongolia. He is also working as an independent member on the boards of directors
for numerous financial and mining companies in Mongolia and is a visiting professor
