Mongolia Economic Growth
Mongolian
Ten Items that affect Capita
1. Most Mongolians raise livestock
2. 80% of the total area is either grasslands or semideserts
3. <1% of the land is suitable for farming
4. Extreme continental climate leading to short summers and long winters
5. Most Mongolians are nomadic herders, with one third living in the capital
6. 30% live in poverty
7. Main export is Cashmere wool and Copper
8. Inflation
9. Unemployment
10. Rising food costs
News Articles
Back in the saddle?
After years of delays, the development of the Oyu Tolgoi mine in the Gobi desert is back on track. This is good news after a long period of mismanagement of the economy and foreign investor relations. Between 2012 and 2015 direct foreign investment fell by 85%. So the this news a major milestone for the country.
Climate change in Mongolia destroying pastures on which nomadic herders rely
Mongolia is going through a dzud, which is a natural disaster where a summer drought is followed by a heavy winter. This phenomenon usually occurs about once a decade, but they have started to occur every few years. This has been blamed on climate change and human activity that ends up with increased herd sizes.
Business Cycle Location
In my opinion Mongolia is currently either on the contraction or the trough of the business cycle. This is because of the natural disaster of the dzud, and mismanagement of the economy by the government. It may be at the trough because with the development of the Oyu Tolgoi being continued it might soon be past the contraction.
Capital Deepening
- Increase infrastructure
- move a large portion of the population from nomadic herders to the city
- Put money into mining Mongolia's natural resources
Savings & Investment
- Weed out corruption and incompetence to make money usage more efficient
- Fund Projects that can have a good outcome for the economy
- Invest in infrastructure
- Seek foreign investors for businesses
Technological Progress
- Invest in technology that increases efficiency
- promote entrepreneurs
- move citizens from nomadic herders to urban areas