Establishing an ECA for a Vibrant Economy in Mongolia: Lessons Drawn from the Korean Experience

Establishing an ECA for a Vibrant Economy in Mongolia: Lessons Drawn from the Korean Experience

Despite being one of the fastest growing economies in the world, Mongolia suffers from a trade deficit and lagging FDI. With new investment-promoting legislation and cost-reducing infrastructure projects in the works, the country is expected to continue its successful growth track record for many years to come. This positive outlook is considered realistic, given the country s huge natural resources and the government s strong will to expand the economy. Such strengths, coupled with its geographic advantage in Northeast Asia since it has two of the world s biggest buyers, China and Russia, along its borders, put Mongolia on a growth trajectory. Other favorable support is seen in the stable ODAs coming from several countries including Korea. It would be a good idea for Mongolia to promote SME exports and adopt the K-Sure export credit model, which can be used in conjunction with ODAs, for sustainable economic growth of the country.