Reform in the Mongolian Economy
The Mongolian economy is about to take off in a very big way. Massive mineral reserves are about to transform the wealth of this landlocked country and the implications both for the Mongolians and for foreign investors are huge.
Such new found massive wealth is not without its drawbacks. As I have discussed in my previous articles, the potential pitfalls in Mongolia are also very real.
However, reform is happening at a frantic pace, and this is already having a major impact on the wealth of the Mongolians and the opportunities now presenting themselves in terms of selling to thismarket. Getting the wealth from thenation’s mineral reserves is not goingto be an easy task. At least 50 percentof Mongolians are nomads, essentially involved in agriculture through the raising of herds of goats, sheep and other animals. Byproducts such as cashmere and other meat and dairy produce are still a major industry in Mongolia, albeit one that is largely fragmented. Within a territory the size of Western Europe, some 1.3 million Mongolians retain their nomadic culture and use the land to raise livestock. Uniting them is no easy task.
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