Recent wealth in Mongolia isn’t felt by all

Posted on October 3, 2013 by Meredith

Although numbers suggest that Mongolia’s economic growth is booming, an article in an online Mongolian newspaper, the UB Post, explains that the numbers do not necessarily reflect Mongolia’s actual situation.
 
“According to Mining Minister D.Gankhuyag, the mining industry accounts for 20 percent of the country’s gross domestic product, 40 percent of the government’s budget income, 85 percent of the country’s total investment, and more than 90 percent of exports. And yet, the mining industry provides only around 5 percent of the jobs available in the country, as of last year.”
 
This economic situation has come to result in a rapidly growing disparity between the very rich Mongolians and the rest of the population. “This is because the backbone of Mongolia’s economic growth is [the mining industry] that is beneficial to only a few, and it’s one that is heavily reliant on technological advances rather than manpower.”
 
Further compounding the economic problem, “Mongolia scared off its foreign investors with tighter regulations and resource nationalist policies,” including its largest consumer, China. -AP

 

For more information, read the article here!

 

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