Friday, November 21, 2008

Financial Crisis and Mongolian Economy

David Dollar on current financial crisis and how it could provide an opportunity for reform (?!) in Mongolia:

Much of the discussion among parliamentarians, government, and civil society reflected a sense that the global economic turmoil presents Mongolia with both challenge and opportunity. Gaidar spoke of the current troubles as a "window of opportunity for reform." During the boom, Mongolia’s decision-makers dithered about reaching agreement with the big international mining firms to develop world-class copper and coal deposits that are as yet untapped. Now, the global environment for mining is much less favorable, so to some extent Mongolia missed an opportunity. But Mongolia can still reach agreements that would be highly favorable to the country once prices rise again -- as they inevitably will some day. Cleverly structured contracts can ensure that Mongolia gets a fair share of future windfalls.

via Mongolian Matters

Addendum: The Global Financial Crisis: How to protect Mongolia?; Mongolia Economic Policy Conference
+ What the Recession Means for Foreign Policy by Richard Haass