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 People’s 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/presidential) Source: CIA Factbook, World Health Organization

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 Source: CIA Factbook, www.mongolianculture.com

6. 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 Source: CIA Factbook, World Health Organization

7. 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 Source: CIA Factbook

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 Source: CIA Factbook

9. 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 Source: CIA Factbook, www.witsa.org/profiles/monita.htm

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 Source: CIA Factbook, World Health Organization

11. Mongolia Web Sites • Mongolia’s Official Tourism Website • Mongolia’s US Embassy Website

12. Business Venture 1 PC Remanufacturing and Leasing Program

13. 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

14. 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

16. Business Venture 2 Cattle Tracking System

17. Government • http://www.mongolianembassy.us/eng_government/government7.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 Source: Mongolian US Embassy website

18. 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 Source: www.wikipedia.com

19. Active vs Passive • Passive • Very inexpensive • Short Range (feet) • Active • Roughly $10/tag • Long Range (hundreds of yards) Source: www.cattle-traq.com

20. 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 Source: http://www.telegraph.co.uk/

21. 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

22. 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

24. Questions