ECON. TRANS. SUP.CRE

closed

The objective of the Economic Transition Support Credit Project is to finance imports and technical assistance to Mongolia in order to maintain and develop key sectors of its economy. It will finance the import of equipment, materials, spare parts and other inputs needed in coal and copper mining and the transport sector. Mongolia has one of the lowest population densities in the world. In addition, the geography and infrastructure of the country make access to foreign markets difficult and costly. Mongolia followed the Soviet model of a centrally planned command economy. In 1990 an elected coalition began a program of economic transformation to a market based economy. The economy has suffered from external shocks, although a pickup in activity in the emerging private sector, industry and agriculture production has been constrained by shortages of intermediate goods and spare parts. The government has been implementing privatization, price liberalization, changes in laws and regulations to stabilize and transform the economy since 1990. This project's scope and content takes into account assistance planned or already underway by other bilateral and multilateral agencies.