PresidentSpeech by Tsakhiagiin Elbegdorj, President of Mongolia,

at the Mongolia Business Summit-2014

“Private Sector is the Navigator of Development”

  June 20, 2014                                                            Ikh Tenger

Good morning,

At the onset, I wish to convey gratitude to the Mongolian private sector. The lion share of the wealth created in Mongolia in the past twenty years has been produced by the private sector.

The private sector has been the leading force in Mongolia’s hard journey to the present, a journey both challenging and fulfilling. I express my deep gratitude to the private sector for your success and accomplishments, for your sustained contributions and investments into the well-being of Mongolia.

The Mongolia Business Summit-2014 is being organized today at the initiative and leadership of the private sector. In the past, such meetings and forums would usually be organized by the government. I do welcome and commend the efforts of the private sector to take the lead and get organized into one solid venue. I do appreciate the Mongolian Economic Forum, the Business Council of Mongolia and other NGOs initiative for organizing this Summit.

We must strengthen and consolidate our private sector

When will our society, our chosen path start heading to the right direction? This will happen only then, when, on one hand, the government enforces the law, and the public, on the other hand, demands and is capable to enforce accountability on the government, a public that is ordered and organized.

We hear a lot about the government’s efforts to support the private sector not being adequate and efficient. We must now look at this issue from a different perspective. The private sector had to organize itself into a meaningful and effective structure to voice out its positions and concerns. And this effort has been made now and the private sector has taken the right course. At times, it pains me seeing the private sector and private businesses scratch along. We know that our private sector grew up like an orphan child. Today, we have reached a point in time when it is vital to support, to help the private sector strengthen and consolidate.

Just like a child who having grown up, starts taking care of his parents, the private sector brings home the bacon after it has grown and firmed up. For that to happen, the government and our general public need to support the private sector.

Politicians, during their election campaigning, have no other recourse but to run to the private sector, yet, as soon as the election is over, they turn their back on the private sector.  Begging and pleading before the election, the politicians fall into a total oblivion of the promises and pledges; and worse, start exerting taxation and other pressures. We must end this. And here we need an organized system or a structure of the private sector and the general public to track back to the government.

I do hope that from this moment on, the private sector shall stop once and for all falling the victim of such unabashed behavior of the politicians. Politicians must reflect their vows to support the private sector not in the “pre”-, but in “post”-election decisions.

Private sector must emerge as the country’s development navigator

Why is the private sector important? Why do we all unanimously agree on all-around support for the private sector? It is all because only the private sector can come up with the most optimal solutions at least costs.

Certainly, the private sector is profit-driven. I see prosperity behind the profits. Behind any profitable business, there is a progress, advancement, tough discipline and solid organization. Therefore, the private sector must be the navigator in the development process.

Let me remind you that in that winter of 1989 we chose the market economy for we believed in that very power, the capability and opportunities brought about by the private sector. We chose the market economy to take the best advantage of this creative force of the private sector. And we manifested this principle in our Constitution. Our decision-makers should abide by this principle in their daily work.

The private sector is responsible, rational and is self-controlled. This is not much liked by the decision-makers. Perhaps, those decision-makers who trade official posts, who cash in on tenders, licenses and permits, avoid and run off from the private sector for they fear their crimeful acts would be revealed if they engage and cooperate with the private sector.

A smart government is a government which, simply, does its job; does what it ought to do

In spite of the difficulties and daunting challenges of the past years, the private sector did record success and achievements. The bulk of the problems and defects are in the government, public sector. Therefore, I put forward the Smart Government initiative. A Smart Government is, simply, a government which does its job, a government which knows its place and stays there. A smart government must not turn into a hollow catchphrase, it must become a reality; it must be implemented persistently and consistently.

One of the good news we started hearing of since recently is that the government has started raising and discussing the issue of supporting the private sector at the policy level. The policymakers have started seeing in the private sector a key player to drive the economy out of crisis, a support pillar of the economic growth. It is truly commendable that the policymakers have started discussing about decent policies to support the private sector, about the need of an effective mechanism of support, about restricting government participation in business.

At all levels of the government, from Prime Minister to the governor of the soum there will be set a performance measurement. The performance of the government and governors shall be measured against the volume of investment in the aimag or soum, against what new services, new plants were introduced or put into operation, against how many jobs were created in their areas. These performance indicators shall be reflected in the policy and shall be used in assessing the performance of the public servants.

If the government is to participate, it should invest

We now have a very clear policy on government participation. Prime Minister, Speaker and I agreed on and have directed through the National Security Council on a very clear policy.

Some still do not understand the essence of that policy and continue exerting pressure on private companies. The Parliament has reached a consensus on the matter already. And this is a notable progress. If the government wants to participate [in any one project], it has to invest. No “aggression” by the government to hold a stake in a project by debt, or simply, by the mere fact and face of a preponderant government, shall be allowed.

For the private sector to raise funds, the government participation to a certain extent is needed. Yet the right to lead the initiative, to drive the project must be given to the private sector and not the government, and this principle is going to be made a law. Let us give the private sector the right to propose the government to invest to a certain share or percentage. That will make the government pay if it decides to invest.

Let the private sector discuss business among and between itself, business to business. The government efforts to start operating the large mines often fail or encounter numerous difficulties and complications. When the government appoints its officials to do the deal, the deal turns into politics. However, if businessmen run the deal, the language is business, for no one would demand from a businessman things he or she would demand from a minister. In the worst case, if an unethical minister is to lead the deal, corruption is given way. Therefore, it is always better for the private sector deal directly with the private sector; let just the private sector discuss and agree with the government on necessary support, taxation conditions etc.

I can never accept damaging Mongolia’s reputation

Let’s take an example on Oyu Tolgoi. I have always been convinced that it was wrong for the government to hold a 34%-stake. Today, Rio Tinto and the Mongolian Government look like a couple with a child. The child is their own. The parents are compelled to discuss the future of their child. They used to have 30-40 issues to discuss, they were being resolved, and today they have less than a handful of issues to discuss and solve.

I will never accept, though, any attempts to damage Mongolia’s reputation, to misinterpret the reality and in that way, to discourage and dispirit other investors in Mongolia.

Let us learn a lesson the crisis is teaching us – let us become a producer country

Once an investor has come to invest in Mongolia, he or she should go ahead, having the pending issues solved, and engaging and cooperating. Different options to develop the Tavan Tolgoi mine are being tried. Even a government owned, coal transportation company has been established, yet without any notable results.

I do support the position to entrust this project to the private sector. Let the private sector negotiate with the foreign investors the contracts the government fails to conclude. Let us just discuss what concrete support is needed from the government on this matter.

These day people are wrangling over whether the economy is in crisis or not. In any case, we must sense the reality and recognize the exigency for action. This crisis forces us to realize that government is inefficient, the business it engages in brings no profits, the debts it incurs brings only pain and tears.

Rest assured, Mongolia will repay its debts

Since the first day of issuance of the Chinggis Bonds we were calling upon accountability. And this is perhaps one of the distinctive advantages of our society. We can and do discuss issues openly, we do and can criticize. Maybe, some of those who invested in Mongolia are deprived of sleep, steering at computer screens and experience blood pressure swings. Please do rest assured – the Mongolian government will repay its debts. We will repay with the taxes from our private sector, we will repay with what we create.

From this crisis, we must emerge with our structures corrected, with improved performance, as a producer economy. Mongolia is a raw-materials supplier, and therefore we are susceptible to get fully engulfed by any crisis of this origin. Producing domestically semi-processed goods will make us half as prone. But if we produce final and finished products, the crisis shall not enter through our doors. We can sell for more if we enrich, for instance, iron ore at home. Then the crisis will inflict less pain.

Farther shall we be from crisis, if we produce cables and other final products with our copper concentrate. This is even more visible on cashmere. A kg of raw cashmere earns us 80 thousand tugrugs of exports, which, if combed, increases to 160 thousand. If spinned, woven and made into a sweater, we will earn more. The crisis is reminding us of these unseen, unrealized potentials to add value at home. We must learn this lesson.

A capable private sector, a skilled individual, a smart government – Mongolia’s future

Mongolian development gateway, a gateway from crisis is our real sector. Real sector is the private sector. The private sector today is the only warrior on the battlefield fighting with the crisis.

Those who were around in good times, promising and pledging, are all gone, vanished. Yet the private sector is there, paying the taxes, cutting on expenditures, cutting its employees, making more debts and loans, and lives a life as goes in English proverb “robbing Peter to pay Paul”.

The reason why we should support the private sector is that in times of hardship it is only the private sector that stays. Those who were shouting out loudly important words disappear, after achieving their goals. Therefore, the private sector is the way to development. A capable private sector, a capable, skilled individual and a smart government are the future of Mongolia. With these three pillars present, Mongolia’s future is bright and prospective.

Let us start talking about and implementing private sector support, not the “government support”, for only the private sector prevails in hard times. Let us support the private sector. The private sector fails if and because it is not supported.

Here are some concrete principles we must adopt. First, let us invite for no less than 60% of private sector participation in all sectors where possible. Let us keep the government participation below 40%. It is fully feasible to introduce this structure for all of the assets fully owned by the government today. If the private sector is willing to invest, let us enable it to do so.

Once the private sector gets in, let us transfer the management to the private sector as well. These two principles must be sought to be reflected in the Parliament discussions and the eventual adoption of the pertinent law.

A great deal of government owned assets remain a dead capital.

Let us move to corporate governance. You all know, Mongolia has splendid assets, resources, opportunities. Take, for instance, our health, education, culture, sports sectors. What a huge amount of capital is there – buildings and other assets. Imagine, how much opportunities will be created in our economy if all of these assets are pulled into the business cycle. The owner – the government remains a mere paid guard, nothing more. If the private sector is offered to participate, if a private management is invited, over a night, we shall see a miraculous difference. Well, the only thing the government could do is to set very clearly that the type of the service or product offered by that entity be not changed.

The public should understand one thing very well; well, in fact, the public is mistaken to think that the government keeps a very keen and caring eye on its assets. Those government assets are long as “privatized”; all turned into “private properties” of the director, head or whoever else, appointed by the government to head the organization. There is no reason to blame them. They are humans, they have already figured out how to capitalize on government assets. Just visit public hospitals, schools, universities – they all have already leased out what is leasable, are using what is usable. We must not punish them, but to recognize.

A right management team with a right mindset needs to be placed there, and invite for more private sector participation. Plus, the rules, procedures and standards must be made very clear. Huge opportunities are hidden there; several-fold more opportunities than in apartment privatization, are stuck there sitting idle.

Solutions must be cost-effective to produce high quality products

The second point I would like to make is about business mortgage. Most of our businesses today – small, medium, and even larger ones – are left without any working capital after they spend all of they had on buying fixed assets necessary for their business. A man with 200 thousand USD is left with nothing after he buys a 50 sq.m. space, However, if we introduce the business mortgage, the same man can spend 30% or 60 thousand of his money for mortgaging a building, and can circulate the remaining 140 thousand for his business. Isn’t it so?

The 8%-housing mortgages have revealed the reality, and we now all know – all what the people have is used for buying a single apartment or a hall.

Therefore, people need working capital, and this capital must be “released”, or “freed”, “unlocked” from the braces they are kept today. The 8%-mortgage scheme would be a fitting mechanism to apply here. Most of us have heard of “home equity loans”, which is widely used in mature market economies. If we use this mechanism for our school, clinics and other assets, a lot of opportunities will be created in the economy.

If we cannot find cost-effective solutions, we cannot produce high quality products. If we fail to come up with such solutions, Mongolia’s economic development will not be sustainable in the longer run. Those who have a mortgage are the middle class Mongolians. If they are secure, if their businesses are sustained, Mongolia will be secure, and our development and prosperity – lasting. So, our due decision on this matter is pending

People say we haven’t enough schools and kindergartens. The baby boom of the golden year of Pig is adding up the burden on the society. So let’s respond to that problem of the year of Pig through that scheme, that business mortgaging system. Money is there, opportunities are there, we just need to herd them into a mortgage system. You build a kindergarten, make the down-payment for its 30% and keep the remaining 70% under a mortgage. Just think of how much burden would be alleviated from the shoulders of the government. Let’s implement the system. And let’s stop terrorizing the private sector by abusing government and political powers.

The time to privatize the Stock Exchange has come

The third idea I wish to share with you is about our capital and financial markets. Today commercial banks comprise our financial sector; in essence, our financial sector has just one foot, one wing. We need to construe the second wing – we must reinvigorate the functioning of our Stock Exchange.

The Mongolian Stock Exchange has remained just a mere phrase for more than twenty years now. We have tried to change, reform, improve it in many different ways, but always failed. A government appointee usually is concerned about his office to sit in and a car to ride; worries about only his time on the seat.

It is now the time to privatize the Stock Exchange. Let just the brokerage firms privatize  it. Why has the Mongolian Stock Exchange not been viable? The premium it charges is 2%. Just take a closer look at the ribbon news feeds on your news channels on TV – the traded stocks’ price spreads are merely some 0.87, 0.1, 0.09%.

Yet 2% premium is charged, therefore, no one is willing to go public. And you have been urged to trade your companies at the Mongolian capital market, yet you remain reluctant, for this very simple reason. A Stock Exchange is most worthy when its entry and exit are simple. Say, I bought some stocks yesterday, but today I want to sell them back. I would need the Stock Exchange enable me to sell them easily, using my mobile phone, while in my car. Such an environment, such an opportunity must be created by the Stock Exchange.

Information must be open, accessible, made public. People’s right of access to information must not be violated. Because of lack of information, of the premium it charges, of the management it has, the Stock Exchange makes no progress, makes no step forward. If the legal environment is adjusted and improved, private companies, those family companies can really go public. We must head toward this direction.

Guarantee is vital for investment

The government guarantee is important. Bonds and other events and processes keep teaching us lessons. Well, quite a considerable share of bonds have been turned into bricks, some are turned into roads. We don’t know when they would start paying back. Road maintenance is practically non-existent. A road laid last year is broken a year later. Because we failed to provide for road maintenance from the very start, the security, the guarantee that the investment would ever pay back is meager.

Any government can raise funds, the issue is how costly. Guarantee of repayment is very important. Well, a billion dollar fund is raised, and these funds must be used to back up profitable investment projects. If a private company wants to implement a 50 million USD project, but has handy some 20 million and gets some another 10-20 million from his partner, why not the government provide guarantee for 10 million? The government should release guarantees if such projects are proposed.

Production-oriented, bankable, risk-immune projects will succeed. Therefore, I would urge the government to start providing such back-up  support.

Let us use a clear, understandable language – well, you raise 30%, your investing partner adds up another 30%, and the Mongolian government would back you up with 30%. Deals and negotiations among investors and businesses are more successful if they know the Mongolian government is supporting and backing the project up. And in fact, this was a principle embedded in the Investment Fund Law. Let’s enliven this fund. This would help us relieve our financial burden to a certain extent.

Pension fund is the key mechanism to protect from crisis.

The fourth point I’d like to make about is pension funds. Well, today we are all in search of money. We do have the social insurance funds, the pension fund. For any country today the pension funds have turned into a buffer or shock-absorbers against any financial bangs or crises. They are a great financial tool of opportunities.

Mongolia today owes some 3-5 trillion MNT to its social insurance funds. For instance, a man has paid social insurance contributions for 25 years, and is going to be contributing for another 10 years. The contributions he or she pay are not going to be disbursed to him tomorrow. They are the pensions the man will receive after 30 years of paying contributions.

So what I highlight here is that let’s capitalize our empty social insurance funds. And personalize the accounts. Say, a man called Elbegdorj paid social insurance contributions for 23 years. The 10 million MNT funds he has paid must be put in my account under my name. I will not withdraw the funds today, but I must be able to get them after I retire.

Those 10 million MNT could be reinvested with, say, a 4% interest rate, to support the businesses. If we start capitalizing with one trillion MNT a year, locating the true owners behind, managing the assets wisely under an able, independent leadership, consistently with best international practices and standards, we shall derive tremendous opportunities.

Let’s just look for such hidden opportunities. If we start utilizing these opportunities, your businesses will prosper, investments increase and things will get on the right track. And most importantly, we will have established prudence and control.

The danger of the government’s raising funds lies in the uncontrolled, unbridled disbursement of these funds. No prudence, no control is present here. I am most concerned about this very danger. Control, international standards and corporate governance shall make awry decisions and actions right.

No, the government hasn’t abandoned capitalism

The fifth point I would like to make is about capitalism, the market economy we are aspiring. No, the government didn’t abandon capitalism; it’s just that the government’s participation is wrong. Just think of it: those famous brands, defense and military, food industries were all fed and nurtured by the government procurement. They first set up a company and started producing soft drinks, which the Army bought in huge amounts. This is how their success stories start and unfold.

And when Army kept buying for 50 years, after 50 years, the company emerged as a huge, billion-dollar, transnational corporation. So the government was collecting money with one hand, and supporting the producers by buying their goods, with another.

Now, if you established a contract with the government to supply chairs for 10 years, the bank will issue you a loan right away, based on that contract. Well, the quality of your chairs will be improving year to year.

For ten years, the government buys the chairs and the company grows stronger, at which time the government may want to decide to start buying from a different company. Indeed, the government procurement system is the essence of market economic relations. Now let’s start buying goods produced in Mongolia. Let’s create such a culture. We can make it a law. Let’s create and cultivate this culture. It is, indeed, a great culture, a sense of patriotism to buy, use the capital, goods, services produced at home. Demonstrate you patriotism here.

The government’s one arm would be collecting tax while the one would be buying home-made products and services. This would include all kinds of services. This would encourage national industries – for instance, a company supplying cars to the government would start producing buses in Mongolia in 15 years and start supplying them to government and other clients. These are tremendous opportunities of growth and expansion, and of consolidation of market economic relations. Plus, this is a wonderful mechanism to prevent and do away with government corruption. The profitability margin for the supplier company must be publicly stated.

Because this number is hidden, that 10 percent of profits is pocketed by a public servant. Once this number is made public, the situation will change.

For instance, a school project of 8 billion MNT, 10% of which is 800 million MNT. And it must be publicly asked if there is any company interested to undertake. If the project is urgent, the profit rate can be increased to 15, or 20%. If the profit rate is announced, the contractor will make sure the school is built within the deadline.

So, because the profit rate is kept secret, our development projects are lingering and are of poor quality. Because those secret profits leak into the pockets of the government officers, the contractor company “saves” on the project to extract the 10% profits. That ends up with a 10% lower quality product.

This will have a far-reaching implication for our efforts to combat corruption. This is the best way to set in discipline in government and public servants. And this principle must be reflected in the Government Procurement Law. I will push for this to happen.

These are the 5 key messages, ideas that I wanted to share with you today.

Since these points are stated by the President, the Government, the decision makers have to go along these ideas and principles. As President, I shall lead the efforts and actions in this direction. This whole exercise does and will engage many people including national and foreign investors.

Investment environment is an environment for the people to live and work

We must make it clear for ourselves once and for all that an investment environment is about an environment for people to live and work. An investment environment is not only about the investment law. Therefore, I bring out and discuss the topics of our home economy, internal issues.

For instance, air, water and food security, kindergartens and schools, public health services, enhancing the quality and standards of these public goods and services are all about investment environment. Do not limit the definition of the investment environment by a couple of laws and regulations.

So please, do think of the investment environment as of a human environment, an environment where people have to live and work and succeed. And the society advances if this environment is stable.

We can be a trusted partner if we are understood correctly.

One of the special facets of Mongolia is the fact that in her entirety Mongolia rests between the Russian Federation and the People’s Republic of China, two great powers. We have maintained and supported mutual understanding and cooperation with the governments and public organizations of the two countries. We do see progress and achievements. I have had a long talk with Mr. Xi Jinping, President of the PRC. I hope to host Mr. Xi Jinping this year in Mongolia.

I hope that the President of the RF Mr. Putin will visit Mongolia. We will discuss and resolve issues pertaining to our bilateral relations. I think, my counterparts of Russia and China do share the same view. There are also issues on which we could hold the highest level tripartite meeting among the three countries in Ulaanbaatar.

We proposed this idea. And the idea has been supported by our two neighbors. Therefore, we will discuss and resolve the issues, and that, in turn, will serve for the shared and mutual benefits of the three countries, will help advance business and investment activities in Mongolia.

We do know well what the investors demand from us. We do work to meet those demands. On the other hand, Mongolia must be understood correctly. Mongolia does have her own specific features, attributes, our own history, culture, rules, interests and benefits. For that matter, if Mongolian guests understand, interpret us correctly, Mongolia can be a trusted friend and partner. This was the case in the past and will be the case in the future. We are committed to trusted, meaningful, productive cooperation.

We must move to public ownership

Another two important messages to share with the private sector. First, now let’s draw a plan to develop our Stock Exchange and capital market. We must move to public ownership of assets. We got used to meaning officials the owners of government assets, and families the owners of private businesses. Why public ownership is so important? Why the government, the officials are so largely blamed for all ill and wrong-doings? Just think of it – you can grab and hold the key to influence the politicians. And that key to influence the politicians is understanding what the people want, where the people’s expectations and hope lie, what is the direction of the “wind” or the inclination of the will of the society”  is. And politicians simply follow that direction. There are very few who make decisions against the direction of the wind. The determiners of the course of the wind are the people.

Wealth becomes a wealth when people enjoy and benefit from it

If assets are owned not by 3000, but by 30 000 shareholders, and if those 30 000 bought stocks for 10 000 per stock and if that stock price plunged to a 1000 MNT, the shareholders would not let the Parliament and the Government sit idle. And in that way we will cure, rectify our ailed capital market.

People will start gaining trust and confidence, the wealth will be controlled. Therefore, the public and private sector have to work on a plan to make public the assets in Mongolia. Any wealth, any growth is meaningful when it is felt, enjoyed, appreciated by the people. This is an essential virtue of development.

Politicians say “I do feel for you, I do feel your pain”. This is a lie. Before the people feel the pain, politicians can never feel it. The force that makes the politicians feel it, is the people. I noted this at the beginning of my talk.

The revolution, the reform has to unfold in human brain, in one’s mindset.

Our private sector is, in this manner, getting organized. I want the Mongolian businesses, our private sector be distinguished with one, very specific quality – your ability to get organized, your power of assembly. If the government is going to err on this or that issue, let the private sector be able to stop, prevent a harmful decision. You do have such a capability.

Some of you say that you are exasperated after having failed to engage with politicians at your own, just by yourself. You have a better way to rid yourself of your problems – just share your wealth with the people, by going public, and that’s it. Once you are listed, once you have your shareholders, together you can prevent the government’s making a wrong decision.

At stake are the interests and benefits of the people who create value together with you. You are thinking of initiating changes in the pertaining laws. But changing a law, in fact, means changing the mindset. A change in the law instigates a change in the society. And that societal change invites change in the law again, this is a live circle.

Revolution, reform must take place in people’s mindset, in people’s brains.  Such changes are not brought about fake feelings, temptations and talks of the officials and ministers. If the Mongolian people start participating in decision making, and if the majority of the electors get to understand the importance of this participation, no problem will be a problem. Those politicians and officials who detest wealth creators, who engage in populism against them will no longer be even around such creative, active and productive people. This will bring about good changes in the society and in the law.

The private sector, the businessmen run excessive commercials and ads. You have your public relations PR departments. Your PR departments are not meant to run your ads. This is a part of your business to make people understand the nature and value of your business. People blame politicians that they took over the media. But you preempt the politicians. Take the best and right use of the means which will help you make your clients, make the consumers understand and appreciate, and therefore, consume your products and services.

Let’s all come together to make Mongolia better, make her more prosperous, successful. Let the businesses, not the politicians, do the business, lead the talks and sign the contracts. This need for collective aspiration and effort must to be embraced by all – the electors, the youth, the voters. Our collective will and action will change the face of Mongolia. Therefore, please be active on that arena that shapes public mind, the media. Make the society understand you.

Once the public, the society starts understanding you, some bare statements of single politicians will mean nothing to the people. And speaking of that, I must note, the Mongolian society is emerging as a very healthy, sober-minded society. This is one of the distinguished features, advantages of Mongolia.

If we make a mistake, we do correct it, we work to improve, rectify. Why do the politicians correct their mistakes? It is because people, the public demands them to. We do not hide our shadows, the decisions we make are open and transparent. There is no government monopoly in media, we do not appoint the directors of media, we have no censorship. This makes our society healthy.

One may think Mongolia has problems. It is because our issues are open, not hidden, they are discussed openly, we criticize each other en face. We are able and capable to discuss openly the solutions to our issues. This makes our society a strong society. The private sector must participate in further consolidation of this power of our society.

And, the Mongolian government has a duty to serve and help in this effort.

In conclusion, I’d like to express my hope that this summit of the Mongolian businesses becomes a regular event. I hope people know and value this event, and that there is a feedback on what was achieved.

I do not want this event be another venue for active-today and forgotten-tomorrow discussions. This is one of the weaknesses of nomadic Mongols who instantaneously adapt to new seasons and are often forgetful of the coming season. I would expect you to start your summit next year by reminding, discussing, analyzing and concluding on what will have been achieved of the 5 major areas of actions that I shared with you today.

Therefore, the summit must yield concrete results, and it must be aware of the public expectations from it. It is the duty of the Mongolian government to support such initiatives of its private sector and individuals as today’s business summit. I do not want to see this summit be a ceremonial gathering of businessmen where the President makes some ornate speeches like a wedding MC, and you, the audience, be happily applauding.  We must record certain progress, achievement. These achievements must be discussed, must be designed and projected while our mistakes must be analyzed and serve us lessons.

With this, friends, I wish success to the work of the Summit. Thank you.