Pledging to
steer Mongolia into the path of sustainable development during its present
period of transition, Prime Minister S.Batbold said in his inaugural speech at
the third annual Mongolia Corporate Governance Forum on Thursday, “There
is no reason why we should not succeed if we introduce new methods of
production and standards of service, and simultaneously develop the stock and
capital markets.”
Mongolia has the resources and the skills and is receiving support from foreign
countries. Thus there is no reason why sectors such as mineral resources,
education, agriculture, production, service and tourism will not grow, but the
key to real and sustainable growth, he asserted, was good governance. That is
what separates countries, and Mongolia must, the Prime Minister said, strive to
“improve our governance regimen, making it more sustainable and open”. The
recent situation in the national airline MIAT clearly showed the imperative
need to adopt improved practices of corporate governance, culture and ethics.

The private
sector has to realize this, and the sooner the better. On its part, the government
was determined that state-owned companies changed their mindset. To this end,
he has recently instructed the State Property Committee to induct
representatives of the civil society, like professional bodies and NGOs, in the
boards of governance. Only fresh air can blow away the cobwebs of outdated
tradition.

He also felt the state should leave business to
companies, which would work together with professional unions and NGOs. These,
on their part, must pool their resources and expertise to offer strong support
to national development. He urged all big national companies to aim at penetrating
the capital market by issuing stocks. He also hoped these companies would
incorporate the recommendations of the conference in their management and governance.