Coralie Gevers, Country Manager and Resident Representative of the World Bank, discusses the development partnership between the Bank and the Mongolian government.
European Times: How has the World Bank been involved in Mongolia’s economic development?
Coralie Gevers: Mongolia joined the World Bank Group in 1991. Initially, the World Bank supported the country in its transition to a market economy. For the past eight years, the Mongolian government has been using World Bank assistance and advice to manage mining development – and its associated revenues – in a way that is effective, transparent and sustainable from an economic, social and environmental perspective. As the government is also thinking about how to diversify the country’s economic base and trying to find sources of growth others than mining, the World Bank Group is supporting projects to develop the high-potential agriculture sector and providing advice on how to improve the business and investment environment, based on other countries’ good practices. Last but not least, we are also concentrating on improving people’s lives, particularly the lives of the most vulnerable ones living in the countryside and in Ulaanbaatar, through better health, education, water, energy and telecom services.
European Times: How much financial support does the World Bank provide each year?
Coralie Gevers: The support that we provide takes the form of analysis, advice, and financial support. In light of the Mongolia’s middle-income status, they can now access concessional loans from IDA, our fund for the poorest and non-concessional loans from IBRD. In recent years, we have provided around €28 million per year to Mongolia. We also provide some grant money which international donors have entrusted to the World Bank.
European Times: Can you describe some specific projects?
Coralie Gevers: The World Bank has launched projects in Mongolia’s infrastructure, energy, education and water sectors. For example, we helped the government set up an incentive mechanism so that private telecom companies would provide mobile-telephone services in rural areas. Today, every village has mobile reception. We also supported the government in rolling out its 100,000 solar gers program. Almost all nomadic families have now a solar home system on their ger (i.e. traditional Mongolian tent) and they can turn on the light, listen to radio and watch TV, and re-charge their cell phone.
European Times: What are some of the challenges for Mongolia’s development?
Coralie Gevers: One big challenge is that mining revenues are being spent before they have been realised. There are great needs for building up the infrastructure of the country and the government has the hard task of prioritizing those investments and financing them in the most effective ways– through their own budget resources, debt financing, or partnerships with the private sector. The current expansionary policies could lead to economic difficulties.
European Times: Can you single out some good FDI opportunities?
Coralie Gevers: Mongolia currently needs infrastructure investments more than mining investments. For example, massive infrastructure investments – equivalent to Mongolia’s current GDP – are needed in the south Gobi before the area’s mining potential can be realised. Mongolia needs to attract private and public partners to fund railway, power and other industrial opportunities. The long-term prospects of the country are bright. It will be a long-distance horse race, with its share of excitement, to get there.
