MONGOLIA IN INTERNATIONAL FINANCIAL AND LOGISTICS CHAINS

Abstract

The article is devoted to the methodological and practical aspects of assessing the specifics of developing countries, including Mongolia, in estimate of the performance of financial and logistics chains. The relevance and significance of the study is that decisions on the investment program (Vision 2050) are made on the basis of traditional assessments of investment projects, its’ economic and social effects. Based on a generalization of available information and data, the article presents the author’s approach to justifying the need to change traditional assessment methods. The necessity of taking into account in models the costs of diversification and forecasting changes in the place in value chains when implicit costs arise in the future has been proven. Ignoring the fact that the costs of international trade are passed on to consumers in small commodity economies often leads to recessions and the need for constant debt refinancing. The article examines the structure of Mongolia’s exports and imports not in traditional estimates, but from the position of influence on future growth of expenses in the absence of sources to cover them. Particular attention is paid to the growing inefficiency and irrationality of budget expenditures in the traditional forecasting of the effects and benefits from the implementation of the project. In relation to the research topic, the use of the terms «budget liquidity», «fictitious financial flows», «disguise of commodity flows» is justified. An approach to the classification of factors that distort the picture of the movement of financial and logistics flows from the point of view of influence on national economic interests is proposed. In conclusion, a conclusion is drawn about the possibility of practical application of the proposed approaches for the analysis of financial and logistics flows of other countries, as well as the existing assumptions in the application of this model.