AKIPRESS.COM - The government approved the resolution on declaring 2024 as the Year to Support Regional Development at the regular session on December 27. 22 years have passed since the adoption of the Resolution on the "Regional Development Concept of Mongolia", Montsame reports.

46% of Mongolia's population resides in the capital city of Ulaanbaatar, 75.8% of enterprises and 84% of trade and services are focused in the capital city and 63% of GDP is produced there. Meanwhile, 53.2% of the total population lives in rural areas, 24.2% of enterprises and 16% of trade and services operate there and 37% of GDP is produced in the countryside.

The gap between urban and rural development is a major cause of labour shortage and lack of economic diversification in rural areas in contrast to an excessive concentration of population in Ulaanbaatar, increasing congestion, smog, air and soil pollution, and a decrease in access to social services.

Within the framework of the Year to Support Regional Development, Deputy Prime Minister and Minister of Economy and Development of Mongolia Ch. Khurelbaatar was tasked to develop and monitor the implementation of Mongolia's Medium-term Development Policy or Regional Development Program considering proposals from cabinet members and relevant organizations of provinces and the capital.

Minister of Finance B. Javkhlan will sign the Financial Agreement between Mongolia and the European Investment Bank on the implementation of Phase I of Provinces (Aimags) and Districts (Soums) Green Regional Development Investment Program, which was established between Mongolia and the Asian Development Bank on February 28, 2023.

Under this program, $735 million in loans and grants will be spent for building engineering infrastructure, construction of transport and logistics centers, and green financing to support agricultural production in 52 districts of 17 provinces.