Mongolia in Perspective

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Chapter 3: Assessment

1. Mongolia has been slow to privatize its banking system, with most banks still
   under state control.

FALSE

Mongolia’s banking system consists of the Bank of Mongolia (the Central Bank) and
16 commercial banks (two of which are in bankruptcy proceedings). All but one of
the banks are privately owned.

2. Most of Mongolia’s tourism trade currently revolves around ecotourism and
   adventure travel.

TRUE

Ecotourism and adventure travel make up a significant portion of Mongolia’s tourism
sector. The Mongolian tourism office estimates that roughly three-quarters of all
tourists fall in the “backpacker” category.

3. Mongolia’s most important energy resource is coal.

TRUE

Coal generated nearly 19% of Mongolia’s total export revenues in 2009 compared to
less than 3% in 2006. Most of Mongolia’s coal that is not exported to China is used
internally to run the nation’s five power plants and to fuel home stoves used for
heating and cooking.

4. Mongolia’s forests are plagued by illegal harvesting of trees.

TRUE

Most legal tree harvesting in Mongolia goes toward fuel needs, with only a small
amount allotted for private or industrial uses. Because the harvesting limits are
significantly lower than actual usage of wood products, illegal logging is a persistent
problem.

5. Mongolia has numerous mineral resources, foremost of which is tungsten.

FALSE

Mongolia is richly endowed with mineral resources. Its copper deposit is the second-
largest in Central Asia. Mongolia’s other mineral resources include gold, coal,
uranium, iron ore, and oil.