Daily Business News Mongolia

“Mongolia stands at a crossroads in its development. The economic policies adopted in the immediate future will be the basis for prolonged growth in the long-term. World Growth encourages the adoption of policies that put Mongolia on a high-growth path that will raise living standards and generate new wealth for all Mongolians.”

Ambassador Alan Oxley, Chairman of World Growth     

Economic Growth Key to Mongolia’s Future

World Growth believes that Mongolia should set itself on a high growth path to raise living standards and generate new wealth for the people. The economic future of Mongolia can be bright but the right policies need be adopted today by the Government.

Achieving economic freedom, a principle of World Growth’s Path to Prosperity Project, is realized when government policies support free markets and open trade and promote policies that give protection to domestic and foreign investors(companies).

The economic growth rate in Mongolia was 9.9 percent in 2007 according to the World Bank. The prospects for economic growth remains promising but government policies and institutions need be reformed to promote private sector investment from both domestic and foreign investors (companies).

In recent years, due in large part to rising commodity prices, mining has increasingly has played a positive role in the growth of Mongolia’s economy.

Economic Impact of Mining in Mongolia

In 2006, mining activity contributed nearly 200$ million in foreign direct investment compared to just $40 million in 2002. This increase in investment has been stimulated by high commodity prices.

·         Mongolian Foreign Investment and Foreign Trade Agency reported that 48.4 percent of all foreign direct investment in 2006 was in the mining sector.

·         Mining contribution to public revenues is increasing according to the World Bank (World Bank Mongolia Quarterly, February 2008, G.Boyreau, Country Economist).

Mining represents one of the most important opportunities that can bring economic growth and prosperity to all Mongolians. World Growth encourages a real public discussion about the benefits mining can bring to the people of Mongolia like jobs, improved social services and infrastructure investment.

We Urge the Government and Parliament to Support Mining and Economic Policies that reduce Poverty, Raise Living Standards and Create New Jobs.

About World Growth

World Growth is a non-profit, non-governmental organization established with an educational and charitable mission to expand the education, information and other resources available to disadvantaged populations to improve their health and economic welfare. At World Growth, we embrace and celebrate the new age of globalization and the power of free trade to eradicate poverty and improve living conditions for people in the developing world. For more information on World Growth, visit www.worldgrowth.org

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