Ulaanbaatar /MONTSAME/ On the second day of the Mongolian Economic Forum (MEC) Thursday, a director of the “Mongol ID” LLC Kh.Khaliunbat delivered a “Business environment in Mongolia” report.

Mr Khaliunbat is confident that the past and present of the business environment, its reasons and solutions must be studied. He said the current difficulties in the business environment have been caused by the business people themselves, "an example are the construction and financial markets".

The competitiveness is the way of overcoming the difficulties, plus, a young generation is a big factor, "in other words, latest high tech and jobs can be developed easily when there is the competition," he said.

"Our construction sector has many years of history. Demand is several times higher than the supply. Right now there are many empty houses at the market. Most importantly, an increase in the supply causes price drop, according to the market principle. However, housing prices have not decreased yet. We stuck MNT 8.7 trillion in this market". 

"There is no country, successfully implemented the mortgage loans. Construction sector is heading to the wrong way. There are many rude businesses that have no research and marketing analysis,” the report says quoted by gogo.mn website.

“As we concern on financial market, 88 percent of the bank sector is owned by four banks. ATMs or the cash machines are the most unproductive expenses of this sector. ATMs of all banks crowded the entrance of any shops and stores. All things in Mongolia have no logic. Bank bought the 91.6 percent of total bonds released by the government. Monopoly seems the image of the business environment in Mongolia. It is related not only to bank sector but also to all sectors.

“To sum up, business environment has not capability, it is unprofessional and politicized. At the beginning of the 20th century, we were all similar. We changed from that time by wearing suits and using iPhones.

"The world connects to all types of infrastructure. But we are staying behind. Mongolia has three million people, one million of which are employed. There are still 700 thousand people an employment of whom is unknown. Therefore, one of every three works. A reason of the unemployment is that we grant too much welfare. The investment is the vital spirit of Mongolia.

"Competition creates new technology and employment, so the competition is the only solution and way to follow. Businesses must accept and agree with this. The competition is needed greatly in the state service.

"Mongolia needs to stop giving welfare and to liquidate unprofitable government units. Our next hope is the young generation," it says.