Challenges and opportunities in Mongolia’s economic diversification

Abstract

Mongolia, rich in natural resources, faces a significant challenge in reducing its dependence on a single sector and diversifying its economy. This study, therefore, aims to evaluate the current state of economic diversification and develop targeted strategies. To this end, the value chain of the non-mining processing industry was mapped, key issues at each stage of the chain were identified, and recommendations for sector development were proposed. The development of the processing industry, particularly in non-mining sectors, is critical for economic diversification. Value chain mapping of non-mining production reveals numerous challenges across stages, which must be addressed to foster a competitive processing industry and a diversified economy. Prioritizing the resolution of issues within the livestock sector, as a primary source of raw materials for non-mining processing, is essential. At the same time, implementing strategies to boost competitiveness, such as adopting modern techniques and technologies, providing financial and investment support, and enhancing logistics and infrastructure, will play a vital role in advancing economic diversification.