Donald Kerry: This Draft Might Scare Investors Off
With relevance to draft law on amendments to minerals law, we got views of Mr. Donald Kerry, Staff of C-consultancy LLC of the United States who came for research in mining sector of Mongolia at the request of Barrick Gold Corporation, one of mining giants in the world.
You’ve mentioned that you undertake research in mining sector of Mongolia. Could please give us some detail on it?
It is good that world companies are interested in investing in Mongolian mining sector. One of them is the Barrick Gold operation in your country. I’ve just happened on the time to make amendments to the minerals law. We are studying Mongolia’s legal environment. As for me, I carry out researches only.
Is there any result of your research?
There were things I don’t feel satisfied with when getting acquainted with draft law. In comparison to the law ratified in 1997, I made a conclusion that Mongolia discuss a draft law which let foreign investors feel careful.
Why the draft law might let foreigners feel careful?
According to this draft law, state interference dominates. I take Mongolia as a country which respects economic and business freedom and undertakes democratic route. But state property domination in business again means Mongolia goes back to authoritarianism economy in political terms.
You think that investment would decrease in Mongolia due to ratification of this draft law?
Investors will become more careful.
The people of Mongolia support this draft law. Isn’t the positive outcome of increasing budget due to state ownership is important?
It is one-sided to think that social life would become better thanks to money in the budget. Instead power and force of politicians increase. I didn’t mention it randomly because it has been proved in USA and Europe for 200-300 years. Corruption and bureaucracy bloom in case of state property domination.
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