INTERVIEW: Mongolia living 'exciting' boom times, premier says

By Andreas Landwehr Oct 11, 2011, 10:35 GMT

Ulan Bator - Mineral-rich Mongolia is experiencing 'a real boom,' with its economy and democracy evolving rapidly, Prime Minister Sukhbaatar Batbold said in an interview with the German Press Agency dpa.

The interview at the historic Hotel Ulan Bator - which kept getting interrupted by the premier's phone calls - was given prior to German Chancellor Angela Merkel's visit to Mongolia on Wednesday.

dpa: You seem to be a busy man ...

Batbold: Yes, this country is experiencing a real boom. Democracy is developing rapidly, and so is the economy. We have a lot to do. There's a lot of interest from the outside. The German chancellor's visit is a highlight among many visits by foreign politicians. A lot is going on here, and there is much interest from abroad. Exciting times.

dpa: Why does a small country like Mongolia send its troops to Afghanistan or on United Nations missions?

Batbold: Mongolia is a young democracy. It has been in a transition from a centralist system to a market economy and a democratic system for 20 years. Democratic values are already deeply rooted. We have done a lot, but we are still facing challenges. And I think we have something to share. Our contribution has limits, of course, in capacities and resources. But we wholeheartedly support the development of peace, stability and democracy. And that is what it is all about in Afghanistan.

dpa: Will Mongolia stay after the international troops pull out and help to train the local police force?

Batbold: Yes, I think it is not just our troops. We can also help in other areas, where we have experience, such as in building democratic institutions. We are ready to share our experiences, because we were successful and have learned lessons from our experiences. We are ready to make a corresponding long-term contribution.

dpa: Several agreements will be signed during the German chancellor's visit. What does the raw materials partnership entail?

Batbold: We are discussing the raw materials and processing industries, the necessary technology and environmental policy on government level. These are areas in which we want to learn from Germany. We have the raw materials, Germany has the technology and know-how. Mongolia does not only want to export raw materials, that is why we consider Germany an important partner.

dpa: China is limiting its exports of rare earth elements. Is Mongolia willing to jump in and deliver these important raw materials?

Batbold: Sure, of course. Mongolia has rich natural resources, and we would like to use them to benefit our people and our partners. We are seeking cooperation that will be beneficial to both sides.

dpa: What about allegations of corruption in parliament and the government? Some even describe Mongolia as a sham democracy. There is a lot of criticism.

Batbold: That shows it is a democracy. The things that people are talking about are bureaucracy, corruption and the rich getting ever richer, the poor getting poorer. The problems must be addressed. We have a strong and lively democracy with a power balance, a well-functioning parliament and a coalition government.

dpa: How will you distribute wealth across the social spectrum?

Batbold: We have created a social development fund which absorbs the income from licences and profits in the Mongolian mining industry. This fund will serve our 2.7 million people. It will offer possibilities for healthcare, housing, a social security net and employment. We will distribute preferential shares to the people, so that the people have equal opportunities and a share in the mining income, not only a few people.