Are Mongolia’s riches making its poor poorer?

Posted on September 26, 2013 by Meredith

An article published last year in the New York Times describes the harsh reality of Mongolia’s recent resource boom. Mongolia’s rich deposits of coal, copper, and gold have changed the face of the country, as mining has caused a huge surge in her economic development. Today, Mongolia has one of the world’s fastest growing economies and the capital city of Ulaanbaator is almost unrecognizable from twenty years ago. However, the standard of living for the common Mongolian people has not risen, rather the gentrification of their capital has resulted in widespread corruption and the destruction of long-held traditions.

 

The new Mongolian wealth has not been invested in the country’s development, but has been lining the pocket’s of the nation’s oligarchs and foreign mining companies and investors. The New York Times article explains that “government officials say they are working hard to avoid the ‘resource curse’ that bloats the bank accounts of a corrupt elite at the expense of the wider public,” but the opposite seems to be happening, as standard of living seems to be deteriorating for Mongolia’s lower classes.

 

The article can be found here: New York Times article.

 

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