Mongolia has abundant pasture land and the potential for mineral and hudrocarbon exploitation. About 80% of Mongolia is suitable for extensive animal husbandry, and traditional herds include cattle, horses, camels, goats and sheep. Intensive crop cultivation is limited by the short growing season and sharp daily fluctuations in temperature.
The country is rich in mineral resources including coal, iron, tin, copper, gold, silver, tungsten, zinc, fluor spar and molybdenum, as well as semiprecious stones. Thermal power, produced from indigenous coal and imported diesel oil, and traditional sources of fuel are supplemented by electricity imports from the Soviet grid. Recently one of the largest reserves of copper and gold was found in Oyutolgoi, South Gobi province, Both domestic foreign direct investments have flown into mining sector of Mongolia due to its rich natural resources.
In 1990, the Government of Mongolia decided to abandon central planning with the intention to move to a marked-led system. The new economic structure was to be achieved through privatization of state assets, tight monetary and fiscal policy and liberalization of prices and tariffs. With the establishment of the Mongolian Stock Exchange in 1991, the process of privatization and the establishment of a secondary stock market started. Almost 100% of training, catering and service entities and animal husbandry has been privatized. Housing privatization started in 1997. Land privatization started in 2001 onlyt in urban areas, but the process is still quite sluggish.
Other flourishing economic areas include banking sector, service and tourism.
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