Mongolia

1
Mongolia

• MIS 648
• November 6, 2006
• Prepared by
• Rico Jimenez
• Heather Ryan
• Jason Stanyer

2
Agenda

• Background/Historical Information
• Business Venture 1 PC Remanufacturing/Leasing
• Business Venture 2 Cattle Tracking System

3
Background/Historical Information
4
Government Background

• Gained independence from China in 1921, with
  Soviet assistance
• Communist regime installed in 1924
• Communist Mongolian Peoples Revolutionary Party
  (MPRP) won elections in 1990 and 1992
• Democratic Union Coalition defeated the MPRP in
  1996
• MPRP returned to power in 2000 and produced a
  coalition govt. in 2004 (mixed parliamentary/presi
  dential)

5
Geographic Background

• Situated between Russia and China
• Landlocked, with no coastlines
• Limited natural resources, including freshwater
• Topography
• Vast semi-desert and desert plains, grassy
  steppe, mountains in west and southwest Gobi
  Desert in south-central
• Climate
• Desert
• Continental large daily and seasonal
  temperature changes - hot summer days, 60 degrees
  below Fahrenheit in winter

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Demographic Background

• Very nomadic 50 of the population
• Population 2,832,224 (July 2006 est.)
• 68 between ages 15-64
• Median age 24.6 years
• Literacy rate - age 15 can read and write
  97.8
• Health
• Infant mortality rate 55.45 - 46th out of 179
  countries surveyed
• Life Expectancy
• Male 62.64 yrs - 158 out of 224 countries
  surveyed
• Female 67.25 yrs 162 out of 224 countries
  surveyed

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Economic/Industrial Background

• Traditionally based on herding and agriculture
  (42 of labor force, 2003)
• GDP
• 20.6 agriculture
• 21.4 industry
• 58 services
• Per Capita - 1,900 (2005)
• Real Growth Rate 6.2 (2003)
• Labor force 1.488M
• Unemployment rate 6.7 (2003)
• Population below poverty line 36.1 (2004 est.)
• GINI Index 44 (1998)
• Inflation Rate - 9.5 (2005 est.)
• Settled 11B w/Russia in 2003

8
Communications Background

• Telephones
• Main lines in use 142,300 (2004) 6.5 phones
  for each thousand persons
• Mobile/Cellular 404,400 (2004) two wireless
  providers
• Internet
• Hosts - 192 (2005)
• ISPs - 5 (2001)
• Users - 200,000 (2005) approximately 7 of
  population

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Why Mongolia?

• Young nation with a relatively healthy and
  well-educated population
• Close proximity to Asia-Pacific region
• Good relations with Russia and China, including
  most-favored-nation-status
• Cheap labor force
• Open economic policy
• Govt. and Donor support for ICT development

10
Foreign Investment

• Over 1400 foreign companies, representing 70
  countries
• More than 300 million US dollars
• Majority are Chinese, Japanese, Russian and US
  companies
• Trade and Food sectors are leading areas of
  investment

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Mongolia Web Sites

• Mongolias Official Tourism Website
• Mongolias US Embassy Website

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Business Venture 1

• PC Remanufacturing and Leasing Program

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Need

• No data on number of computers in
  schools/educational institutions (expected to be
  low)
• Low income levels not allowing for purchase of
  new PCs
• Low cooperation between govt. and educational
  institutions in this area
• Low levels of education in ICT

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Proposal

• Remanufacture old PCs from external sources
• Sell systems to citizens at low costs
• Lease systems to educational institutions,
  allowing for updated systems as budgeting allows
• Start up internship programs were University
  Students teach and mentor elementary students in
  use of technology

15
Funding

• Computers
• Donations from businesses, local and abroad
• Educational institutions primarily abroad
• Purchase cheaply from PC recycling companies
• Software
• Donations from software companies private
  business
• Academic licenses for educational institutions
• Monies
• Possible partnership with govt. of Mongolia
• Charitable organizations
• Bank loans
• Partnerships with educational institutions

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Business Venture 2

• Cattle Tracking System

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Government

• http//www.mongolianembassy.us/eng_government/gove
  rnment7.php
• Create favorable legal environment
• Sustainable management for
• pasture utilization and ownership
• increase fodder production
• improve the resilience of livestock to natural
  disasters through enhancing quality of veterinary
  service
• selected breeding and introducing cattle
  insurance system

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Radio Frequency IDentification (RFID)

• Automatic identification method
• RFID tags or transponders.
• Can be attached to or incorporated into a
  product, animal, or person
• Tags contain silicon chips and antennas
• Passive tags No Internal Power Source
• Active tags Internal Power Source

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Active vs Passive

• Passive
• Very inexpensive
• Short Range (feet)
• Active
• Roughly 10/tag
• Long Range (hundreds of yards)

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The Tale of 2000

• 850,000 cattle, horses and other livestock
  perished
• 350,000 animal deaths were reported in one week
• Temperatures on the steppes dropped to negative
  60F
• Limited Veterinary Care
• Many families lost entire herds
• No Insurance
• Theft became common

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Current Usage

• Canadian Cattle Identification Agency
• bovine's herd of origin
• used in Wisconsin and by US farmers on a
  voluntary basis.
• USDA developing its own program
• Colorado Elk Herd
• CWD

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Why?

• Identification for New Governmental Insurance
  Programs
• Theft Prevention
• Disease Eradication/Prevention/Tracking
• Animal Tracking During Winter Storms
• Saving even a few cattle or recovering costs will
  pay for full system implementation
• Paves way for future expansion

23
Funding

• Bank loans
• Partnership with insurance companies

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Questions