Minister for Finance S.Bayartsogt answers some questions from our journalist.

What is special about this year’s Mongolia Economic Forum to be held on March 2-3?
We hope it will be even more successful than last year’s inaugural forum. This year’s theme is: How to develop natural resources while practicing good governance. There would be 15 panel sessions. A scholar from Harvard University will speak on the “curse” of natural resources.
A Mongolia Investors’ Forum will be held immediately after the economic forum and we expect many foreign companies to attend.

What will be the main issues in the economic forum?
There will be three. For example, Mongolia has received some USD4 billion in soft loan and aid since 1990 but now we shall be seeking commercial loans with the Government providing the guarantee for repayment. We shall talk about the financial risks in this. We shall also discuss our development policy, including issues of mining production and good governance.

What were the results of last year’s forum?
The discussions led to several results, like passing the laws on budget stabilization and on local budgets. A draft election law that is still under discussion deals with promises of cash in elections. Mongolia now ranks 25th in the world in budget transparency.

How does the Government intend to use the gains of economic growth?
We have realized distribution of social wealth has not been effective. Now we wish to encourage more individual participation. Economic growth will be faster if more working places are created. That is why we have declared 2011 will be the year of employment.

Where will you get the money for distribution of cash allowances? And what about inflation?
The present price of both copper and gold is much higher than what was estimated in the budget. All this unexpected revenue will be put into the Stabilization Fund and the Human Development Fund. This will help us repay debts, meet budget deficits, and distribute allowances.

We shall keep an eye on inflation and shall take corrective measures after consulting with the International Monetary Fund and the World Bank.