Japanese Commitment in the Mongolian Economy, Resources and Infrastructure Development

Abstract

Since liberalisation of the Mongolian economy, Japan has contributed substantially to Mongolia’s economic development and is proud of being the largest donor country to Mongolia. However, due to the recent rapid growth of the Mongolian economy the country will be soon be beyond the scope of oda donations from oecd countries. The Mongolian government oda budget will be reduced and private investment from overseas will have to be enlarged and enhanced. Most of the infrastructures have been supported by foreign government aid in Mongolia, but from now on Mongolia must rely on its own money or foreign private financial sources to develop such infrastructures. However, in the short term the Mongolian government budget is not going to be large enough to support the current increasing demands for infrastructure development. In this transitional period for Mongolia, changing the money source from foreign government aid to private investment, private companies and investors from Japan are also facing this new agenda in Mongolia. There are many issues to consider. Both Japan and Mongolia should mutually solve these issues.