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작성일 2007-07-29 21:45:21 조회 17156







ACTION PLAN

OF THE GOVERNMENT

OF MONGOLIA

FOR 2004-2008

The new Government of Mongolia, formed as a result of the 4th parliamentary elections held in June 2004, has defined its Action Plan for the next four years. This action plan is based on the respective election campaign platforms of the Motherland–Democracy Coalition and the Mongolian People’s Revolutionary Party, as well as on consensus reached between these two parties after the elections.

The main objectives of the Government’s activities are to:

- upgrade the quality of public service to a new level by strengthening the capacity and accountability of public service institutions and civil servants, expanding civil participation at all levels of decision-making and ensuring transparency;
- deepen legal reforms in all spheres of political, economic and social life and substantially improve standards for ensuring human rights and creating safe living environment;
- sustain higher rates of stable, private sector-led economic growth by providing support for access to new markets on the basis of knowledge and information, and by implementing a regional development concept to reduce disparities in development between urban and rural areas;
- conduct social policy aimed at improving living standards of families and households by providing them with a stable legal environment, adequate infrastructure and a financial environment conducive for accumulating savings, owning, possessing and disposing immovable property such as land and houses; and
- carry out human development policy aimed at educating citizens who respect education, culture and their national traditional heritage, and who are highly conscious about protection of the natural environment, values of democracy and their own rights, and who are able to contribute to the development of their country by taking advantage of various opportunities provided by the globalization process.


ONE. PUBLIC ADMINISTRATION AND CIVIL PARTICIPATION

1. The efficiency and accessibility of public service is to be improved by renewing legislative acts and standard requirements that are approved and implemented at the Government level and which ensure human rights, freedom and safety of citizens provided for in the Constitution and other legislative acts. For this objective the Government will:

- Make the processes of state policy-making and decision-making transparent, and establish a procedure whereby the views and opinions of all relevant stakeholders are taken into consideration;
- Introduce rules of professional and ethical conduct to be followed by civil servants in their service for the people and performance of their duties; in case of violations of the rules to take penalizing measures under public control;
- Make amendments to the Law on Civil Service to improve the quality of civil service and to clarify provisions on ethics of civil servants and principles of accountability;
- Set performance levels in public service and make the implementation and execution of public service activities more open and accessible to individuals, entities and organizations;
- Clarify functions and scope of work of central and local public administration organizations, and develop a detailed plan for the transfer of rights and responsibilities;
- Ensure transparency of the priority objectives, functions and requirements of each public service institution;
- Implement policy on ensuring and guaranteeing standards for human rights, freedom, and safety in all sectors of the society;
- Legalize the protection of private property, confidentiality, and place of residency;
- Provide citizens with rights to access any information to which they are entitled, by making a specific request for information and then obtaining it;
- Release the national television and radio and other means of mass media from the state control and ensure their independence;
- Implement a medium-term strategy of public service reform, with the goal of strengthening general managerial capacities along with the introduction of new sectoral requirements;
- Continue training and retraining of civil servants of all levels to upgrade their knowledge and professional skills;
- Encourage participation of women in governmental and social sectors and eliminate all types of discrimination toward women, enforcing a culture of intolerance to violence against women;
- Eliminate bureaucracy at all public services, simplify the procedures of issuing various permissions and licenses and provide citizens with equal opportunities to run business;
- Implement “e-Governance” program and set up appropriate time framework and amount of fee for delivery public services;
- Create conditions for providing the following services online: tax collection, customs clearance, tendering, and necessary registration, licensing and services related to the migration and movements of individuals;
- Simplify and computerize public services in order to reduce and replace paper work;
- Increase public servants’ salaries and job responsibilities by making the apparatus of public administration institutions more productive and less staffed;
- Improve the functions of professional monitoring organizations, establish financial and legal conditions for vertical management, and ensure that all inspection work is done in accordance with the law;
- Improve monitoring of the implementation of decisions by the Government;
- Upgrade the quality of professional monitoring of implementation of laws and standards to make it one of services provided by the state to its people; and
- Improve the capacities of professional monitoring organizations’ laboratories to ensure high-quality inspections.

2. Reform of administrative units will be carried out in a complex manner in accordance with historical traditions and current needs on the basis thorough study in order to improve the quality of public administration and services; the rights and opportunities of citizens will be expanded to participate in creation of social wealth and to implement policies to address the issue of centralization. For this objective the Government will:

- Resolve the issues on introduction of changes into present administrative structure and organization preserving public services delivered to citizens such as healthcare, education and communications;
- Regulate migration from rural areas to urban areas with market mechanisms;
- Use investment policy to promote urban settlements and regional centers –possible areas of high population density and concentration of production and services;
- Encourage policies of administrative units aimed at improving their economically independent development;
- Implement projects that comply with the peculiarities, advantages and developmental opportunities of the country’s regions;
- Improve the legal framework for activities of local self-governing and administrative organizations; and
- Encourage wide use of the state flag, coat of arms and other official symbols by citizens, including encouragement of parents to raise their children to be proud of Mongolia and Mongolian history.

3. Public service and social life will be freed from excessive politicking, idiosyncratic hiring criteria, and political confrontation. Hiring criteria for public servants will exclusively depend on professional skills, appropriateness for the job, and the quality and level of services to be provided to citizens. For this objective the Government of Mongolia will:

- Require all civil servants to be non-partisan and reduce politically-appointed posts;
- Prohibit civil servants’ participation in political election campaigns, including any use of budget resources, state property or vehicles in such campaigns;
- Set rules according to which civil servants shall resign their current positions in case of announcing their candidacy for elections;
- Protect civil servants from being requested to join a political party or from being asked about their political party membership status as a criterion for hiring; and


TWO. SOCIAL POLICY

The key objectives of the social policy lie in supporting families, significantly increasing the portion of the middle-tier income group in society, improving people’s purchasing capacity, as well as promoting human development. Within the framework of the social policy:

1. An integrated social and economic policy aimed at enhancing households’ living standards by combining the goals by combining the goals of reduction of unemployment and poverty, and improvement of social protection will be implemented.

• Carry out the Program on “Children’s Money” in a more targeted and result-oriented way within the framework of the implementation of social promises made by the MPRP and Motherland-Democracy coalition as stated in their election platforms, in order to increase family income and alleviate poverty. According to this Program, every child aged between 0–18 from families having more than three children, where income per person is below the poverty line, will receive T 3,000 monthly starting from January 1, 2005;
- Conduct a targeted, result–oriented poverty alleviation policy based upon surveys done on poverty and unemployment assessment;
- Change the public mentality that the fight against poverty, unemployment and corruption are solely the Government’s responsibility; study opportunities for transfer of adequate power to local authorities in this regard, and make them more accountable for these matters;
- Take measures on improvement of the system of social wealth distribution in coordination with policy aimed at combating corruption and bureaucracy;
- Adjust personal income tax rate against the per capita income of family members and the level of taxable income;
- Establish credit schemes for families to purchase by immovable property, especially apartments;
- Promote opportunities to obtain privately-owned houses, improve housing conditions, support and prioritize the infrastructure development for housing;
- Expand the level of training and public awareness activities targeted to the elimination of domestic violence, and support civil society initiatives and public participation in the improvement of accessible and effective protection services; and
- Contemplate demographic issues in complex decreasing sickness and death rate and undertake step by step actions in accordance with family–centered policy taking measures aimed at proper regulations of migration and promoting deployment of population in conformity with market demands and social needs;

2. Basic education in Mongolia will be strengthened, the competitiveness capacity of the educational sector will be enhanced, training and research achievements will be aligned with production and application accomplishments, and expanded opportunities will be created for citizens to exercise their rights to education. For this objective the Government will:

- Deepen legal reforms in the fields of education, science and technology;
- Develop a master plan for the development of education in Mongolia;
- Improve, in accordance with the Regional Development Concept, the structure and location of secondary schools, as well as supplies allocated to dormitories;
- Improve the professional capacities and recognition of teachers; prioritize teachers’ needs in state budget allocations for the education sector, and reduce educational administration costs;
- Undertake preparations for the shift to a 12-year school system and introduce new standard of secondary education;
- Promote rights for parents and school administrators to select textbooks that meet standard requirements;
- Renovate the system of primary and secondary education through the implementation of modern pre-school, primary and secondary education standards, and improve the level of enrollment in pre-school and primary educational institutions;
- In order to enhance preparations for making English a second official language, insert the relevant adjustments to the training curriculum, invest in teacher training, and increase the number of volunteer teachers;
- Expand and improve the quality of English language teaching in primary and secondary schools;
- Encourage the writing of post-graduate degree thesis in English and production and broadcasting of educational programs for teaching English language, natural sciences and information technology;
- Expand the opportunities for professional, correspondent and distant education;
- Support civil society initiatives towards provision of compulsory education to school dropouts and adults who had no opportunity to study at schools;
- Continue provision of free textbooks and stationery to children from vulnerable groups, to low-income families, and to one child in each family with more than three children attending schools;
- Enhance the level of state support to, and encourage private sector investment in, engineering and technological education;
- Seek accreditation of training curriculum in accordance with international standards;
- Continue privatization of education sector management;
- Encourage introduction of the internationally recognized code of conduct into training and research activities of universities and colleges, with a focus on improving the quality and effectiveness of training and research works;
- Introduce achievements of information technology into the secondary and higher education system;
- Improve the competitiveness and credibility of Mongolia’s higher education system;
- Pilot a system of confidentiality of students’ educational achievement marks;
- Support all types of “open” public universities designed for working people who are willing to study;
- Upgrade the contents and standards of professional vocational education by enhancing learning environment and maintaining social partnership, upgrade the quality of learning and support the development of professional vocational education;
- Recognize as one of the main criteria in urban planning the location of schools allowed to have a reasonable number of students in classrooms and to be accessible for learners;
- Gradually computerize and network secondary schools, vocational training and production centers in accordance with established standards;
- Build, enlarge and repair schooling premises, dormitories and kindergartens in order to reduce student overload in schools;
- Provide developmentally-challenged youth with opportunities to be educated; increase the number of schools and classes with specialized equipment and adequate conditions for special-needs learners;
- Reform the system of providing state loans and grants to students for tuition fees;
- Support initiatives to build dormitories and student camps; encourage colleges, universities and vocational training and production centers to establish integrated camps for students’ learning and living;
- Train research personnel and young scholars in developed countries; establish domestic affiliates of renowned and reputable foreign universities and colleges; and support initiatives to produce and export high quality educational products;
- Promote an initiative to create a “learning palace” with integrated services in urban and populated areas; establish effective legal and funding schemes for this.

3. Scientific and technological achievements will be linked with national economic development, the improvement of quality of life for population, and increased demand for new intellectual products and innovations that will attract production and capital increase. For this objective the Government will:

- Develop a master plan for the development of science and technology;
- Direct the national science and research capacity toward realization of Mongolia’s development objectives, identify detailed guidelines of scientific research works capable to contribute extensively to country’s development and upgrade funding mechanisms for scientific research programs;
- Intensify activities of scientific research organizations, enhance efficiency and effectiveness of their research findings and outcomes, upgrade facilities of research laboratories providing with new diagnostic equipment and devices;
- Establish and implement a system to reliably protect innovations and intellectual property that is registered nationally on the domestic market;
- Promote research commissioned by businesses; formulate and pursue legal procedures to maintain confidentiality of research that enables the opening of new markets or the expansion of existing markets; in order to encourage and increase private sector funding of research and scientific innovations, clearly determine the rights and responsibilities, and protect the interests of those who commissioned such research as well as co-owners of such intellectual property;
- Strive to create favorable conditions to introduce advanced technology that uses fresh and recycled water and fuel to power residential heating systems and communications transmission networks;
- Improve the quality of potable water for all Mongolians, including continuation of the installation of water softening equipment in soums and settled areas where water is hard and rich in minerals;
- Upgrade the implementation of short-term and long-term research projects by research institutions, and bring such projects up to international standards; and
- Set up an appropriate mechanism and structure for development of technological incubator and technology transmission center in top priority sectors of country’s development.

4. Citizens will be given open access to enjoy international cultures and arts, and the development of national cultural heritage and arts will be encouraged. The competitiveness of Mongolia’s culture and arts, sports, and public health programs internationally will be extensively promoted and increased. For this objective the Government will:

- Develop a program to turn into a digital system for storage all existing data on Mongolia’s national cultural heritage;
- Improve the promotion and safeguarding of national heritage;
- Use museums not only as sources of knowledge and information, but also to bolster the tourism sector; enrich museums with additional resources and equip them with alarm systems;
- Bring the study of Mongolian arts and history to a higher level;
- Renovate and rebuild rural museums and cultural centers, raise size of expenditures to be spent on supplying those organizations with musical instruments and other necessary equipments and expand service ranges;
- Broaden work to encourage and support workers of art, culture and literature in their participation in trainings, international competitions and other events;
- Refine the awards system for Mongolians with extraordinary performances at international competitions;
- Organize Mongolian Cultural Days and exhibitions in several countries;
- Develop and implement a plan for celebration of 800th Anniversary of foundation of the Mongolian State;
- Prioritize and develop those sports with potential to achieve success in world, continent championship and Olympic Games; and
- Expand research works of history of traditional religion and culture. Advance Mongolian language studies and its heritage. Promote cultural activities aimed at enriching children’s awareness and perception of classic and folk art works.

5. The accessibility of healthcare service and preventive measures will be improved nationwide, the types of public health services will be increased, the participation of citizens and organizations in health protection will be enhanced, the introduction of advanced diagnosis and treatment techniques will be intensified, and on this basis the objectives to improve the health of the population, develop sports and popular sporting games and extend average life expectancies shall be achieved. For this objective the Government will:

- Improve the health sector management, upgrade the diagnostic and treatment capacities of state-run and private medical institutions, specifically supporting initiatives to establish modern, fully-equipped diagnostic centers in Ulaanbaatar and in regional centers;
- Study the possibilities for introduction of a health care voucher system;
- Increase the actual income of medical doctors and medical personnel by establishing standards for health sector professionals’ performance assessment;
- Improve the management of general and specialized clinics;
- Prioritize infant and maternal health services; reduce infant and maternal mortality rate in accordance with the Millennium Declaration;
- Improve and strengthen the health insurance system, encouraging private sector involvement;
- Focus on improving professional qualifications for health care sector personnel, doctors and nurses; promote effective use of modern and advanced technology equipment; increase the number of qualified nurses meeting international professional requirements;
- Provide public with opportunity to get free access to environmental and hygienic-related information and consume properly high quality and safe medications and bio-plants. Support civil society professionals who assist citizens in using such information for health protection purposes and in requesting that relevant organizations observe such hygienic standards and requirements;
- Renew standard requirements and conduct comprehensive policy on production, service, sales and import in order to provide food and medication safety;
- Support the establishment of an integrated information network connecting hospitals and clinics in order to reduce bureaucracy in the provision of health care, to more evenly distribute workloads among health care providers, to improve the timely delivery of ambulance services and to reduce mortality rate;
- Provide basic and additional health care service packages at all levels in the health sector so that the healthcare service demand of the population is met;
- Improve the capacity of laboratories, diagnostic clinics and medical treatment teams to protect the population and to prevent epidemic diseases subject to international quarantine;
- Establish adequate reserves of medications and injections against contagious diseases and reserves of vaccines, provide supply of special preventive devices to public; decrease a number of injections designed for healthy children by introducing incorporated vaccines for immunization;
- Implement projects aimed at prevention and safeguarding from deaths caused by cardiovascular disease, cancer and accidents;
- Develop and implement urban planning policies with standard requirements that enable timely delivery of ambulance services regardless resident’s migration from place to place or destination;
- Require, as part of urban planning, the creation and protection of spaces necessary for healthy living, such as jogging pathways, bicycle lanes, open green belts, squares and parks; prohibit use of such land plots for other purposes;
- Undertake step by step actions to upgrade diagnostic and treatment capacity of bag, soum hospitals as well as family doctors; and
- Promote healthy lifestyle and sport common games among population, support initiatives to build sport complexes in regional centers, develop national sports such as wrestling, horse race and archery by combining traditional and modern techniques and set up the Olympic complex in the capital city;

6. The types and choices of social insurance will be increased, the coverage of social welfare and social services will be improved, the quality of social welfare and social services will be provided to the poor and other disadvantaged groups, and poverty and unemployment will be reduced by job creation. For this objective the Government will:

- Create jobs by reducing the burden of taxes and fees on employers and support industries with broad employment opportunities;
- Provide citizen identification and social insurance numbers to children starting from birth;
- Along with enhancing the current pension and health insurance system, set up private additional insurance system, expand population’s coverage in social insurance by increasing voluntary responsibilities of families and improve citizens’ social security;
- Study the feasibility of covering the self-employed people, herders and farmers under social and health insurance schemes and create legal environment;
- Secure independence of the social insurance fund and implement a policy to protect the fund from risks;
- Undertake step by step measures to eradicate differences between pension rates for people who retired before and after 1995;
- Create and support nursery homes for elderly people in aimag and regional centers for rehabilitation treatment and nursing;
- Encourage initiatives and activities of companies and non–government organizations to improve social welfare and other service provision to the elderly and bring them into active social life;
- Maintain a policy of increasing the minimum wage, pensions paid from social insurance fund and base salaries of public servants and employees of state-run organizations in accordance with economic growth, inflation rate and budget expenditure savings;
- Establish, on a pilot basis, social service centers in regional centers and in some districts of Ulaanbaatar in order to provide rapid and flexible social welfare services in a community-based manner;
- Conclude and implement agreements with interested countries to reciprocally recognize workers’ qualifications, certification, identification, migration and rights to work;
- Create at least 145,000 new jobs by providing sustainable macroeconomic development, promoting its growth, creating favorable environment for business and investing into infrastructure development;
- Pay greater attention to increasing efficiency and productivity of workforces and upgrading their competitiveness at the market;
- Create an information network using modern information communications technology (ICT), including job markets and information centers established under public, non-governmental organizations and companies;
- Create legal procedures to enable financing from insurance funds for industrial accidents and occupational diseases;
- Introduce management of safe and healthy working environments in the workplace, including active participation of employers and employees to enforce measures to prevent occupational hazards;
- Upgrade legislation in order to protect rights and interests of Mongolians working abroad and improve their social welfare, and increase involvement of government organizations in intermediation to send workers abroad and in improvement of quality of public service delivered to them;
- Provide support to workers to protect their rights and to increase their possibilities to earn fair wages for their labor; implement social partnership relations together with trade unions and employers’ associations;
- Accede to the International Labor Organization Convention on the eradication of forced labor, and take necessary steps to implement the Convention.
- Develop long-term policy on training national professionals and skilled workers with the involvement of economic entities in compliance with priority sectors of economic development and labor market demands and needs,
- Develop and implement policy on non-official employment; and
- Encourage job creation and income generation initiatives of people by promoting cooperatives, joint labor, conducting training on running business and providing needed financial source, credit and aid;

THREE. ECONOMIC POLICY

Economic growth will be ensured through economic and financial stabilization, deepened private sector-based structural reforms on the basis of technological innovation, and increased foreign investment and exports.
The following policies will be implemented in order to ensure economic growth at no less than 6 per cent annually:

- Ensure macroeconomic stability;
- Strengthen the banking and financial sector;
- Continue privatization and improve the economic effectiveness of land and private properties;
- Promote the industrial, agricultural and service sectors, and increase exports;
- Create a reliable legal environment that protects investment;
- Intensively develop infrastructure to enable economic growth;
- Create new capacities to increase economic growth; and
- Support economic growth through an active foreign trade policy.

1. Within the framework of macroeconomic stabilization, the Government will:

- Maintain inflation within single-digit levels;
- Take actions to protect the state’s foreign currency reserves; ensure that net foreign currency reserves equal at least to amount covering 17 weeks of imports;
- Improve the efficiency of public spending, ensure economic stability by maintaining the total budget deficit within three percent of GDP;
- Adopt a single-bracket tax system for corporate income tax;
- Create an adequate system of import duties; maintain a policy to prevent and protect the domestic market from crisis;
- Implement a flexible tax policy tied to incomes and livelihood levels of herders’ households;
- Strengthen togrog convertibility abroad;
- Improve the efficiency of foreign aid and loans and to enhance control on utilization
- Create an effective system to prohibit unfair competition and to restrict monopolies;
- Deepen legislative reforms related to bankruptcy and licensing.

2. Within the framework of strengthening the banking and financial sector, the Government will:

- Develop in complex financial markets and financial intermediation services;
- Issue government bonds on the international market;
- Develop a legal framework to create special, competitive zones with a favorable financial and monetary environment;
- Take phased steps to reduce loan interest rates through monetary, fiscal and tax policies;
- Facilitate a secondary market for securities;
- Intensify actions to provide housing to people by introducing long-term loans and mortgages; create and enhance a secondary market of mortgage securities;
- Expand possibilities to make non-cash payments and electronic payments;
- Strengthen the privacy protection of individual accounts; the privacy of individual accounts will be protected by special and highly protective measures to be stipulated by law.
- Encourage the creation of credit history for individuals.

3. Privatization will be continued and economic effectiveness of land and properties will be improved. For this objective the Government will:

- Intensify land reform process;
- Make land ownership and registration information open to the public, and related information access services efficient;
- Improve systems to register citizens, real estate, location and companies.
- Move to an integrated coding system of land location (ZIP code); assess real estate based on the location code;
- Improve the system of the real estate tax;
- Impose differential rates of land fees based on the fertility and location of land plots;
- Implement a policy to expand privatization methods and to improve their efficiency; continue privatization of most valued large entities;
- Emphasize management privatization in the social sector; and
- Upgrade regulations and transparency in tenders and acquisitions.

4. Within the framework of supporting industrial, agricultural and service sectors and increase of exports, the Government will:

- Develop a mechanism which provides an active participation of professional associations to elaborate polices promoting production, service and investment;
- Continue and expand the policy of establishing free economic and trade zones;
- Establish industrial-technological parks that support small and medium enterprises (SMEs);
- Support export industry and industries having largest intellectual capacity;
- Adopt a policy to cover government demand and purchase by domestically produced goods;
- Improve the system to encourage activities of production, trade and service cooperatives in rural areas;
- Implement a program for supporting farmers and intensified agriculture;
- Expand micro-credit scheme to support SMEs and farms; support issuance of various types of long-term, low-rate loans, as well as leasing and renting and other paid services for industrial equipment, facilities and agricultural machinery;
- Considering irrigated crop farming as the main factor for intensification of agricultural production under peculiar natural and climatic conditions of Mongolia, renovate and repair facilities for irrigation system, encourage investment in building new facilities, allocate reasonable portion of foreign and domestic loan and aid for this purpose and promote land ownership for farmers;
- Promote irrigated crop farming and support privatization of land to farmers;
- Support production of food, including potato, vegetables, leguminous plants, milk and milk products, fruits and berries;
- Create favorable legal environment and sustainable management for pasture utilization and ownership, increase fodder production, and improve the resilience of livestock to natural disasters through enhancing quality of veterinary service, selected breeding and introducing cattle insurance system;
- Introduce and expand Mongolia’s brand names as well as support services and industries that promote Mongolian brand names on domestic and international markets;
- Initiate a “one town-one product” movement; support the introduction of new, high-quality and competitive products into domestic and foreign markets;
- Upgrade the processing of meat and milk products, quality of agricultural food products in compliance with international standards and diversify types of export items;
- Support initiatives to create specialized markets for ecologically clean animal products through highly productive breed of livestock, animals and pedigree animals;
- Improve the licensing system for minerals exploration, utilization and mining;
- Strengthen the enforcement of environmental rehabilitation liabilities by mining companies;
- Ensure that living standards of local population are improved while local mineral deposits are being extracted;
- Intensify gold mining and production of pure copper; increase exports of mineral products;
- Increase exploration of oil and create new capacities to refine oil;
- Promote activities to yield petroleum products from slate and coal;
- Ensure broad use of liquefied fuels and natural gases in households, industries and transportation;
- Support technical and technological renovation of coal mining and take measures aimed at improvement of coal supply for rural areas. Implement projects and programs on upgrading fuel supply for Gobi region, Arkhangai, Gobi-Altai, Zavhan, Suhbaatar and Hovd aimags;
- Create a legal environment for the economical use of fuel and energy, reduce inefficient consumption and create economic mechanism to promote energy conservation; and
- Support private foreign and domestic investments in geological surveying; support extensive prospecting of minerals in high demand on global markets.
- Create a system for micro-credit in rural areas; and
- Implement regional development program adjusted to each region. Provide consistency of regional development, urban development and land management.

5. In establishing a reliable environment for protection of investment, the Government will:

- Promote domestic industry and service and implement policies aimed at increase of foreign and domestic investment;
- Support the adoption of internationally accepted rules, procedures and standards proven to be efficient in order to create a stable legal environment for foreign and domestic investors;
- Restore and bring up to international standards activities of the stock exchange with the aim of mobilizing new sources of investments and of increasing effectiveness of capital; and
- Promote private direct investments in the infrastructure sector;

6. To intensively develop infrastructure in order to enable economic growth, the Government will:

- Continue implementation of programs to develop unified networks for energy, roads, communications and information;
- Extend the railway transport network, increase its transportation and clearance capacities, and enhance the competitiveness of the railway in international transport; conduct research on building parallel railroads and on electrifying railways;
- Seek for multilateral solution of the problem of building up infrastructure to exploit Tavan Tolgoi, Oyu Tolgoi, Tsagaan Suvarga and other large mineral deposits;
- Study and develop recommendations for establishing a new power source with not less than 100 Mw capacity;
- Implement policies directed at widespread application of information and communications, bio- and nano-technology achievements;
- Promote increase in the number of international aircraft flights through Mongolian airway, and support the construction of a new, large international airport; and
- Study and implement the issue of creating additional services in air transportation.

7. In order to build capacities for economic growth, a new level of development for tourism, information and communications technology (ICT) will be reached. For this objective the Government will:

- Implement an “e-Mongolia” program;
- Bring to a new level the quality of public service provided to citizens and organizations; create a new flow of feedback directed from citizens to the government through e-governance;
- Establish a consolidated information system by introducing unified nationwide codification;
- Renovate the basic network for telecommunications connecting it to an international broadband network;
- Improve the legal environment for ICT;
- Provide schools and households in densely populated areas with permanent energy supplies with computers, and expand access to and coverage of Internet services;
- Implement in stages the reforms of information and communication networks in isolated soum centers and settlements connected to central grid and renewable energy sources;
- Support growth of software products through increasing demand for them;
- Transfer automatic telephone stations to digital technology in populated areas; by 2008, bring the average nationwide number of stationary and mobile telephone users up to 21 per 100 persons;
- Intensively introduce Internet trade and services, distance learning, electronic publishing and distance diagnosing;
- Create a nationwide capacity to receive multiple television channels by transferring TV broadcasting to digital technology;
- Assign addresses to every street, square, organization and household, and establish a zoning (ZIP) system of postal service;
- Improve the postal delivery system at all levels, create regulatory mechanisms for postal market competition and introduce financial service and electronic commerce in the postal services;
- Actively support projects that reflect Mongolia’s national culture, history and nomadic lifestyle, and that have the potential to attract a large number of tourists;
- Promote the establishment of tourism complexes that meet international standard; introduce a variety of services required for these complexes, and attract and attract foreign and domestic investors for the construction of infrastructure and supply of equipment;
- Develop and apply standards for accommodation, camps and services for tourists;
- Require aimags, cities and other settlements to develop special programs, plans and structures to develop tourism;
- Build roads and bridges and place road signs at tourist destinations and spots ;
- Upgrade the quality of hotel services for accommodating tourists by substantially increasing their capacities;
- Actively develop domestic tourism and decrease seasonal dependency of the tourism sector;
- Study and implement, in cooperation with respective countries, the issue of introducing a simplified visa system to attract tourists; and
- Celebrate the 800th anniversary of foundation of the Mongolian First State in connection with the revival of historical traditions of Mongolian people; develop the required environment and infrastructure for tourism.
- Set up a digital networking system for Uliastai-Ulaangom-Murun;
- Replace with fiber optic the transmitting network between Ulaanbaatar–Dashinchilen–Bulgan, Dashinchilen–Arvaikheer and expand the existing transmitting network between Nalaih–Baganuur;
- Expand Internet links and communication systems in ger districts in city outskirts and satellite cities.

8. Foreign trade policies are to be targeted at changing the flawed export structure. For this purpose, the Government will:

- Support export by all means and enhance the diversification of exports while not reducing the amount of minerals; support new export products;
- Actively work with foreign countries on the liberalization of labor markets, reducing tax rates and transaction costs, and lowering trade barriers;
- Work on establishing bilateral and multilateral agreements to ease tariff and non-tariff barriers to foreign trade;
- Enrich bilateral relations with trade, business and investment ties, and develop and implement medium-term relationship programs;
- Take full advantage of World Trade Organization membership and other current trade agreements;
- Actively negotiate to establish trade agreements with the Russian Federation, Ukraine and Kazakhstan, and work on establishing free trade agreements with the Russian Federation, People’s Republic of China, and the United States of America;
- In light of the upcoming expiration of the Multi-Fiber Agreement on textile and garment products, take measures to exploit new trade favorable and preferential opportunities for these products in order to maintain Mongolia’s position on international markets;
- Actively search for new markets offering favorable conditions for carpets, rugs and felt products;
- Develop business relationships with Eastern, Southeast and Northeast Asian and European countries; support the dissemination of information on the legal environment of Mongolia, Mongolian companies and brand names via e-business forums;
- By improving product standards, carry out work to attain full recognition of Mongolian standards in accordance with responsibilities taken under trade agreements with Russia, China and other markets; and
- Intensify negotiations with the European Union, the United States of America, Japan and other countries to include additional goods and products originated from Mongolia to their respective general preferential schemes.

FOUR. URBAN DEVELOPMENT, REGIONAL AND RURAL POLICIES

Policies aimed at closing the gap of urban and rural disparities are to be implemented by developing urban and populated settlements having a top priority in the regions.

1. Urban planning, development, construction and land management policies are to be renovated, taking into account historical, cultural and environmental and economic peculiarities; policies aimed at ensuring residents’ human rights, liberty and safety are to be conducted. For this objective the Government will:

- Advance methodology and standards of urban planning to an international level and launch reform of the urban planning system;
- Implement a program called “40,000 apartments”;
- Implement a program for turning the ancient Mongolian capital Kharkhorin into a model town for development;
- Establish and enforce safety standards in road building and in landscaping of streets in cities and populated settlements;
- Conduct administrative reforms and investment policies in accordance with population density, infrastructure and public service concentration;
- Provide for the ever-increasing needs of cities and populated settlements, introducing progressive and cost-saving technologies that use renewable energy resources for heating, water supply, sewage and power transmission networks;
- Establish detailed boundaries for regions inside cities; issue procedures for registering and certifying quality of buildings;
- Take measures to improve the management of traffic flow in Ulaanbaatar, introducing a perimeter road network and making certain traffic routes one-way;
- Intensify housing construction and set up building standards designated for residential use; obligate housing constructors, recipients and landlords to provide buyers, tenants and users with proper and true information on building quality, material risks and designation specifications;
- Support construction materials production;
- Promote investment directed at increasing land areas with infrastructure necessary for construction development;
- Take measures to make areas and locations for car parking and special infrastructural facilities for disabled people in compliance with requirements of modern, urban planning standards;
- Create a unified database on construction, urban planning, land management, land ownership, possession, utilization and assessment, and immovable property; create opportunities for citizens to gain bureaucracy-free access to that information they are entitled to;
- Promote initiatives of involving private entities in delivery of services such as water, heat, power supply, water sanitation facility and removal of trash in outskirt areas of the city;
- Expand, repair and renovate facilities for public utilities of ger districts of cities and populated settlements;
- Install drinking water purification filters and equipment for 102 soums of 17 aimags, and supply residents of populated settlements with drinking water meeting standard requirements; and
- Launch connection of ger district families to the unified network and line of fresh and used water supply, and
- Promote construction of private housing blocks in unsettled areas of suburban Ulaanbaatar.

2. Rural infrastructure and telecommunications at regional levels will be developed and their competitiveness on the market will be improved by promoting local specificity and comparative advantages. For this objective the Government will:

- Intensify land privatization in rural areas and provide rural populations with the opportunity to enjoy economic advantages of land privatization; privatize land close to markets and nearby main roads;
- Stress attention on land reforms in rural areas and provide general guidelines for regulating land management;
- Promote allocation of land for long-term possession and use to entities specialized in meat and milk production, located close to regional centers, towns and other populated settlements;
- Repair and renovate up to 1,900 wells and dig up to 800 wells of engineering design in the Gobi and steppe regions with the assistance of the state budget, domestic and foreign aid, loans and donations; encourage the participation of local citizens in digging new manually-operated wells;
- Carry out the following activities with the aim of improving regional energy supplies:
Western Region: Build Taishir and Durgun hydro power stations and power transmission lines of high voltage 110 kV in the Altai-Taishir-Uliastai and Durgun-Myangad areas;
Hangai Region: Build power transmission line of high voltage 110 kV between Arvaiheer and Bayanhongor, and small–sized hydro power stations in some soums;
Central Region: Conduct a feasibility study and take preparatory steps to build power and hydro stations with the capacity of up to 100 Mw in central and Khangai regions;
Eastern Region: Create a unified network by linking the eastern region energy system to the central energy system;
- Supply rural herders’ families with reliable sources of solar and wind energy and implement the programs on “100,000 solar gers” and “100,000 solar lights”
- Study wind energy source and conduct preparatory works to set up small and medium sized windmill parks;
- Encourage the establishment of business and trade information centers designed to assist citizens and youth to run businesses in remote aimags and towns;
- Continue the implementation of second–phase projects to develop public utilities in the centers of Arkhangai, Bulgan, Middle Gobi, Eastern Gobi, South Gobi, Dornod, Khentii and Sukhbaatar aimags;
- Connect not less than 40 soum centers to the centralized power supply system. Create combined parks of solar, wind and diesel-generated power in not less than 10 soums and populated settlements; and
- Construct small–size hydropower stations in Bulgan soum of Bayan-Ulgii aimag, Must soum of Khovd aimag, Baruunturuun soum of Uvs aimag, Batshireet soum of Khentii aimag, Tosontsengel soum of Zavkhan aimag, Erdenebulgan soum of Huvsgul aimag and launch construction of hydropower station with capacity of not less than 100 Mw at rivers Egiin Gol or Orkhon.

3. Remoteness of rural areas is to be reduced by improving conditions of roads, bridges and telecommunications that connect rural and urban areas. For this objective the Government will:

- Develop and implement a strategy for the transportation sector development;
- Expand air transport service in rural areas;
- Equip local airports, in compliance with standards and requirements, to accommodate modern, low operational-cost, and small-sized airplanes;
- Increase foreign and private sector participation in renewing airplanes for domestic flight purposes;
- Continue the building of the Millennium Road and intensify works to build bridges and level hills alongside the Road;
- Improve the legal environment targeted at increasing resources for the Road Fund;
- Promote and encourage investment for building and repairing roads and bridges;
- Construct or continue the building of paved roads for the directions of Hovd–Ulaangom–Handgait, Bulgan–Yarant, Erdenet–Bulgan–Unit, and Choir–Sainshand–Zamyn-Uud, Kharkhorin–Tsetserleg–Tosontsengel directions;
- Build the paved by gravel in parts road for Arvaiheer–Bayanhongor–Gobi-Altai–Hovd;
- Continue the paved road building for Baganuur–Undurkhaan and take actions to launch the road and bridge building for Bulgan soum (in Khovd)–Khovd and Undurkhaan–Sumber;
- Conduct feasibility studies to construct international roads, railways and airports, and intensify related negotiations and activities to attract new investment; and
- Continue the building of paved road linking Ulaanbaatar with Erdenesant.

FIVE. ENVIRONMENTAL POLICY

Consistency of policies for protection, proper use and rehabilitation of natural wealth will be improved, and ecologically-oriented social and economic policies will be implemented. Information related to nature and the environment will be made transparent and accessible, and public participation and monitoring in the protection of nature will be increased. For this objective the Government will:

- Pursue policy of allocating some portion of foreign and international aid and financial assistance for funding programs fighting yellow dust storm and desertification;
- Bring policies on forestation and irrigation to a new level; significantly increase public participation in reforestation efforts, especially in rural areas;
- Take specific measures to increase foreign and domestic investments to rehabilitate forests and fully process and utilize properly the forest wealth;
- Promote initiatives of importing wood, wooden materials, and saplings capable to acclimate to natural and ecological peculiarities of the country and supply with imported wood the market demand in wood for industrial purpose;
- Create legal liability system for damage caused to soil, water, air and environment, and promote expansion of activities of entities aimed at broader consumption of environmentally friendly hard, liquid and gas fuel emitting less smoke;
- Increase capacities to protect, prevent and eliminate consequences of natural calamity, and to carry out rehabilitation measures;
- Expand the network of specially protected areas, build the capacity of management and upgrade conditions;
- Attend to the conservation of rare herbal plants with recognized utility and which are used for pharmaceutical and nutritional purposes; attend to the preservation of a diversity of such plants; provide citizens with opportunity to cultivate such plants and generate income;
- In order to protect and ensure a natural balance in forest, pastureland and agricultural areas, apply routine technology works to fight against rodents and insects;
- Intensify reforms of water policy and, with assistance of foreign and domestic investments, start implementation of projects to protect river basins, to optimize use of water, to increase the utilization of surface water, to expand underground water prospecting efforts, to establish large water reservoirs, and to utilize rain and snow water;
- Substantially reduce the harmful waste that slowly dissolves in nature, and support activities at sorting and recycling waste and refuse;
- Catalyze a wide scope of activities to provide ecological education to the entire population, and to inherit national traditions of protecting the earth and nature;
- Introduce information on the environment into local statistics publications;
- Impose penalties for causing environmental damages from a direct polluting source;
- Promote the introduction of modern information technology into natural resource monitoring, and enrich a specialized environmental information database;
- Implement works related to keeping Mongolian eco-system balanced; study species of flora and fauna that play important roles in natural conservation; and re-locate and re-plant them on the basis of scientific research;
- Secure a favorable environment for eco-tourism development and a community-based natural resource management system by linking tourism with natural environment protection efforts;
- Effectively practice environmental protection linked with rehabilitation efforts and incentives and encourage the use of eco-friendly technologies for natural resource exploitation. Strengthen, with this regard, the rights and responsibilities of environmental protection and local authorities. Upgrade the present system of issuance of licenses for utilization of mining deposits on the basis of assessment of impact on environment. Make transparent and accessible for public the monitoring program of mining and exploration of deposits, environmental protection and rehabilitation plan and obligations. Adhere to principle not to allow to implement projects having no environmental impact assessment;
- Develop and implement an integrated plan on development of re-plantation of forests and gardens in urban and populated areas;
- Implement a program on elimination of white dust to reduce the negative impact of Erdenet Mining Corporation on nature and environment;
- Adopt procedures on protection natural spas and springs proved to be able to cure and keep healthy the population and take coordination measures for protection between health, environment and tourism organizations;
- Promote activities taken by individuals and entities to protect the sources of springs and streams and expand grazing land digging wells manually, terminate activities of those individuals, entities and organizations which conduct activities causing harm to nature, and create a system of repayment of compensation for any damage or loss occurred by those who are guilty; and
- Establish a new Government body in charge of water issues in conformity with Law on Water and promote adequate administration and management to implement water related policy at professional level.

SIX. DEFENSE AND DISASTER PREPAREDNESS POLICY

The main objective is aimed at ensuring the independence and sovereignty of Mongolia, providing safety and security of Mongolian citizens, continuing defense and military reform policy and strengthening of disaster management authorities.

1. The defense system will be compliant with a new security environment and regional development concept and consistent with military reform in accordance with state military policy. Military organizations will be upgraded to meet modern requirements and participation of armed forces in United Nations (UN) peacekeeping activities and other international missions will be expanded. For this objective the Government will:

- Create a local defense management system in compliance with the regional development policy, and train local authorities and citizens.
- Extend foreign relations and cooperation in the field of defense sector, and increase Mongolia’s involvement in international and regional security efforts;
- Pursue a policy to upgrade and improve the capacity of military organizations; explore and extend possibilities of armed forces taking part in international peacekeeping operations and other missions abroad;
- Upgrade the social assessment of military labor, and promote participation of armed forces in major efforts to mobilize public participation supported by state policy;
- Conduct policy to develop modern and traditional military science and technology;
- Take step by step measures to upgrade arms and military facilities;
- Endeavor to extensively contribute to efforts made by the world community against threats such as international terrorism, organized crime, illicit drug trafficking and environmental pollution;
- Strive for becoming a member of the North Atlantic Treaty Organization’s (NATO) “Peace for Partnership” program;
- Develop long- and short-term programs and plans to build capacity of the armed forces;
- Accede to the Ottawa Convention against use of landmines, and at initial stage provide transparency of the number and state of landmines in Mongolia;
- Create conditions of receiving international assistance on clearing virgin land which can be used for farming purpose from landmines;
- Provide motor gun battalions that meet UN peacekeeping requirements with needed arms and facilities, and participate in UN-mandated peacekeeping operations; and
- Change the Unified Center of Armed Forces School into the National Military Training Center, which will meet international military training standards.

2. Complex measures will be carried out to strengthen the disaster management authorities and build capacity in areas of prevention, rescue, mitigation and rehabilitation. For this objective the Government will:

- Upgrade the legal framework regulating disaster management efforts;
- Create a system to train professional staff for disaster management, to develop disaster studies, and to educate the public on disaster prevention;
- Improve networks disaster information and communication system and create a database on disasters;
- Extend foreign relations and cooperation, maintain close working ties with international organizations in order increase the national capacity for disaster preparedness and prevention;
- Pay greater attention to the providing specially designated units against disasters with needed technical facilities and sufficient trained manpower;
- Set up proper mechanism for the appropriate disposal of resources and ensure sufficient capacity for disaster prevention, rescue, mitigation and timely rehabilitation;
- Provide special units in charge of rescue, firefighting and rehabilitation with required technology, facilities and equipment; train respective staff on search, rescue and rehabilitation skills;
- Make appropriate types, volume and deployment of provisions needed nationwide and locally; and
- Develop disaster preparedness management educating the public.


SEVEN. FOREIGN POLICY

Mongolia’s position in the international community will be strengthened and the national security concept and principles of foreign policy in accordance with a new world order and new country’s environment will be pursued. Independent, open, multi-lateral foreign policy will be conducted in compliance with the goals of sustainable development. Principles of protecting the basic interests of the country as well as the legal interests of Mongolian nationals and entities in foreign countries will be ensured. For this objective the Government will:

- Strengthen the good neighbor’s relations and partnership with the Russian Federation and People’s Republic of China, while maintaining the traditions and continuity of foreign policy aimed at developing relations and cooperation with all nations worldwide;
- Seek for possibility to export goods and products free of import duties to markets of developed countries; exploit market opportunities in neighboring and other countries;
- Take measures to extend markets seeking Most Favored Nation’s (MFN) and preferential treatment from certain trade partners, enrich bilateral relations with extended trade, economic, business and investment opportunities and develop a mid-term program to cooperate with certain countries;
- Strengthen relations and cooperation with western and eastern developed countries such as the United States of America, Japan, Korea and Germany, with an aim to increase their trade interest in Mongolia, and conclude free trade agreements with these countries; receive aid and assistance within the framework of the Millennium Challenge Account;
- Intensify and continue multilateral relations and ties with the above-mentioned countries within the framework of complete partnership in all sectors as political, economic, cultural and humanitarian and other fields; strive for concluding agreements aimed at extension of international trade and investment;
- Upgrade relationship between Mongolia and the European Union (EU), and extend cooperation within the framework of the Asia-Latin America program (ALA) with aim not to reduce assistance provided by the EU, with deepening existing bilateral collaboration with EU member-countries pursue the policy to extend the framework of developmental cooperation;
- With strengthening bilateral relations and cooperation with Asia Pacific countries select a appropriate form of effective integration into Northeast Asian and Central Asian multilateral processes, negotiations and talks; pursue policy to provide regional stability and development of cooperation in the region;
- Intensify Mongolia’s participation in working groups of APEC and strive for acceding to this organization;
- Strive for deepening and strengthening relationships and cooperation with the United Nations and its specialized agencies, and also with non-alignment movements and other influential international organizations, in order to ensure the security of Mongolia and status of nuclear free country;
- Take certain measures to comply with the decisions issued by the 5th conference of new and restored democracies, and cooperate actively with the countries which take active participation in this movement;
- Upgrade progress achieved in improved relations with countries having traditional ties with Mongolia, and seek for further extension of cooperation;
- Take measures on strengthening Mongolian consulates in foreign countries and protection of the rights and interests of Mongolian nationals living abroad;
- Strengthen the diplomatic service in terms of its legal and economic capacity and its social welfare; provide the diplomatic service with professionally skilled staff having advanced proficiency in foreign languages;
- Take measures to effectively rearrange locations of the Mongolian diplomatic representative offices, and develop a step-by-step plan to improve the working and living conditions of diplomatic personnel; and
- Promote increased awareness of Mongolian history, culture and the present development of Mongolia abroad, promoting a positive image of Mongolia.

EIGHT. STRENGTHENING LAW ENFORCEMENT AGENCIES

1. Local authority power to prevent and fight crime and provide public peace and security will be expanded, and the system on fight organized crime will be upgraded. For this objective the Government will:

- Upgrade the system to fight corruption at all stages of society, and to create an effective system aimed at detection and settlement of cases misusing official positions;
- Resolve issues related to accession to the UN Convention against corruption;
- Make income statement of public officials transparent;
- Support state and non-governmental organizations engaged in crime prevention and fighting, encourage their cooperation and increase citizens’ participation in resolving this issue; improve working conditions for all councils regulating issues of crime prevention;
- Improve cooperation between the police and local authorities;
- Terminate current procedures of imposing fines in cash by the police officers and establish non-cash payment system;
- Increase wages and provisions for law enforcement personnel and upgrade legal requirements to them;
- Upgrade the arrangement and preparedness and enhance efficiency of fight against new forms of organized crime and other new types multinational or transnational threats;
- Establish a tele-camera control system for road traffic and increase citizens’ participation in providing road traffic safety;
- Propose the creation of a unified national database of individuals’ identities, including fingerprints and retinal scans on the basis of research;
- Pay attention to intensification of crime fighting and upgrade the procurement of law enforcement vehicles and communication and information networks; increase the supply of arms and special devices, and provide law enforcement officials with needed technical equipment for criminology;
- Take steps to set up permanent watch points in order to make police services accessible to public;
- Improve the system for providing timely service for civil registration, information, movement, issues on foreign nationals and immigration; enhance the state information service;
- Take measures to upgrade the system of enforcing court decisions and increase the portion of court decisions fulfilled;
- Create a unified database on international agreements, thoroughly study international agreements and other legal instruments; make national legislation compliant with international agreements to which Mongolia has acceded;
- Improve the codification of national legislation, and create the national database on legal information;
- Create a legal basis for the establishment of proper mechanism for compensation for damage and loss caused by crimes and wrongdoings;
- Ensure implementation of the national program on human rights protection;
- Put public control over the allocation and utilization of the state budget, foreign loan and aid, taxes and social insurance fund, and create proper mechanism for redemption of associated debts and payments;
- Improve the bookkeeping and filing of public documents in conformity with international standards; introduce gradually a digital system for archives and enhance the security, storage and signal system of archives;
- Increase the requirements to education, skills and ethics of lawyers, and upgrade the system for their re-training and screening; and
- Ensure radical changes in fighting against animal theft and excessive drinking and alcoholism.

2. Border protection will be strengthened, the provision of border patrol manpower and facilities, technology and financial capacity will be improved, and the capacity of special agencies ensuring the national security will be built. For this objective the Government will:

- Stress great attention on border protection and implement a project “Secure Border”;
- Improve the supply of border protection technology and facilities;
- Enhance border protection capacities in those areas where border violations and cattle theft tend to occur frequently;
- Apply widespread satellite communications and digital technology for enhanced border protection;
- Sharply improve the movement capacity of border patrol officers, and enhance the facilities for border patrol efforts;
- Emphasize human resource development and improve living standards for border patrol officers;
- Pay extensive attention to providing timely public services to people living in remote border areas in order to enhance local population involvement in border protection;
- Promote international efforts to fight terrorism and other threats, in order to provide human security as well as to take integrated nationwide terrorism prevention measures; and
- Emphasize providing the intelligence service with highly skilled professionals and officials and introduce new technical facilities and methods for intelligence gathering





Newsletter on "Korea-India Relations"
(Doing Business with Korea))

April 13, 2004

Consulate General of Republic of Korea in Mumbai

India is growing rapidly and "Shining" in all its glories. Recently, Goldman Sachs has predicted that India would become a member of G-7 countries in next 50 years. Boston Globe predicted that India would be the 3rd country with 13% of the world GDP after China & USA.

For such an important India, Korea is an ideal partner because,

First, Korea and India are historical partners:
India gave her precious daughter to Korea. The princess of Ayodhya married King Suro Kim of the Kaya Kingdom in AD 48, resulting in the spread of Buddhism in Korea Peninsula.

Second, Indians have a good feeling for Koreans:
Tagore's popular poem of 1927, to commemorate the March 1st Movement of Korean freedom struggle predicts the rise of Korea, when he writes "in the golden days of the East, Korea was one of its lamp-bearers, which is waiting to be lighted once again". During the Korean War in 1953, India had helped her by sending troops of 5000 soldiers.

Third, Korea is the fifth FDI investor in India:
Korea became the 5th largest FDI investor in India with an investment of $2.6 billion in 343 projects. About 170 Korean companies are doing business in India. Hyundai Motors has set up a huge plant in Chennai and plans for further expansion, LG Electronics has set p a new factory in Pune, Samsung Electronics has invested in Bangalore and LG Polymers in Andhra Piadesh.

Recently, an important agreement has been signed between ONGC & Hyundai Heavy Industries for the Pipeline project. New Korean companies like Samsung Insurance and Dongnama Shipping have set p offices in Mumbai and there has been a rise of Korean businessmen from 93 to 143.

From 1962 to 2003, India's investments in Korea amounted to $183 million including the Tata Motors' investment in Daewoo Commercial Vehicle of $102 million, last year. This is a welcome change in the perception of Indian industry towards Korea.

Fourth, Korea is a potential trade partner:
Korea's trade with India was at $4.09billion in 2003. Korea's exports were $2.9 billion and imports $1.2billion. Thus, India has become Korea's 13th important export partner & 27 import partner. While, Korea is 9th trade partner and 5th importer for India.

Fifth, the Korean Economy is bright:
Korea GDP in 2003 stood at $605.2billion making it the 12th largest economy of the world. The per capita income stood at $12,646 in 2003. Korea's foreign exchange reserves in March 2004 stood at $162.5billion, which is the 4th highest. Last year, the total Korean trade was $372.2billion, including exports of $194.3billion and imports of $178.8billion. Korea has become an OECD member count교. Korea has organized Olympic games, World Cup Soccer and Asian Games in Busan. Korea is 10th largest financial contributor to the United Nations.

Sixth, Korea-India relations will expand:
In December 2003, the Korean Minister of Foreign Affairs & Trade met his counterpart Indian Minister of External Affairs in New Delhi and agreed upon to expand the bilateral trade to $10billion in 5 years, making India 10th important trade partner for Korea.

Idea for close relations between our 2 Countries:

A. IT Cooperation : India is the 2nd It superpower in the world. The Indian IT market of $10 billion in 2003 is estimated to grow to $24 billion by 2008. While, Korea is an It hardware manufacturing country. The cooperation for synergistic advantages could lead to a win-win situation for both countries.

B. Cooperation in the fields of infrastructure development, science and technology, air travel and agriculture would be potential areas.

C. Joint collaboration for third country exports : the Korean technology and expertise could be combined with the low-cost trained Indian labor for manufacturing products for the third country exports. This would help both the countries in gaining market in countries worldwide.

D. Buddhist tourism : Korean Buddhists consider Indian Buddhist sites holy and would like to visit at least once in their lifetime & therefore significant.


Potential items for imports from Korea :

● IT & related products like Personal computers, LCDs, printers, computer monitors, web receivers, etc.

● Energy sector : generators, transformers, distribution equipments, meters, transmission lines, etc.

● Construction equipments like road rollers, forklifts, excavators, cranes.

● Airport, seaport & railway equipments including elevators.

● Telecommunication equipments including mobile phones.

● Textile machineries and textiles & yarns of man-made fibers.

● Domestic electronics like refrigerators, washing machines, deep freezers, microwave ovens, televisions, water coolers, etc.

● Ships & liquid cargo tankers, oil & gas exploration equipments, defense equipments & CNC machines

● Karaoke machines equipped with popular Indian music and big screen projectors.


For doing business with Korea. refer websites:

Embassy of Republic of Korea
Korea Trade-Investment Promotion Agency
Korea Chamber of Commerce
Korea International Trade Assn.(KITA)
Small & Medium Industry Promotion
Korea National Tourism Organization.

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