Well...personally, hard to disagree with those words. Would find it interesting if any others might read this and have some note on areas mentioned such as IT and communications, science, fashion...

I've always seen any area that involves linguistics in a core sense to be a great potential. Such as the big move towards off shoring call center operations. But that is but one small piece of the full potential of the people. Also, I have met those who noted the fast comprehension skills of many in Mongolia with regards to programming, also an offshore market that would have little concern for the handicap of being landlocked.

Point of companies obligation to shareholders hits very close to home for me. I’ve been in a few jobs where even the treatment of the employees was very poor and turnover or job satisfaction was of little concern. Specific statements such as, “we can always find another hot body to fill the seat” were personally offensive yet part of a publicly traded image that sometimes accompanies the (bottom line) driven mentality. So yes, it is important for individuals to stay aware and informed of deals being made between government and international companies. Those on the top will reap rewards and money regardless of any potential fall-outs. If any suffer it will often be those below in society.

Thanks for the lengthy but interesting reply to post.

“What are some areas that might be best for Mongolia in the area of foreign trade and long term stability?”

To try and answer this question, it is first necessary to look to history, to see if there are similar parallels elsewhere. Two possible examples might be the indigenous peoples of the Americas and Australia. Compare the quality of their lives today with that of the relative newcomers who now control these areas. How has mineral exploitation benefited the majority of these indigenous peoples? Who really benefits?

It does not take much effort today, to observe the rapidly increasing polarization of mongolian society. The impression is, that in the past, the people of Mongolia had greater social and economic equality when the country was largely dependent upon nomadic pastoralism. Alcoholism, feral children and a sense of “giving up” now pervade the streets of UB while convoys of gleaming Landcruisers hurtle past carrying the chosen few.

There are many mongolians who clearly recognise the dangers and are working hard to both address and communicate these issues of inequality. But there are also those who would turn Mongolia into a glorified theme park in order to attract foreign investment and a paltry few dollars from the wealthy western “poverty tourism” industry.

At the moment, things do look rather bleak as it seems the “easy option” of selling out to very powerful international mining corporations is the road that has been started down. But always remember a corporation’s first responsibility is to its shareholders.
First and foremost, Mongolia has to stop looking to highly industrialised countries for all of the answers. Western “dog eat dog” business models are surely not fit for purpose in the 21st century. For example, again looking to history, the source of much wealth in the UK can be traced back to gains from slavery, war and the captive markets of colonialism. Back to the present and on a more positive note, there are some small countries that seem to be thriving and perhaps worth closer study, for example Denmark. Certainly, some types of business would be relatively unaffected by Mongolia’s climatic extremes, such as the IT and communications industry. I have always been impressed by mongolian artistic and linguistic skills so maybe investment in education and training in the new media areas may have long term potential. Other niche areas might be as diverse as the clothing fashion industry and perhaps also international science-funded astronomical observatories in the more remote areas with predictable weather and extremely clear skies. Certainly, I am convinced that a greater diversity of realistic business ideas should be encouraged.

There is now an opportunity for Mongolia to take the lead and indeed teach the west a few things about how to take society forward into a very different world. But this will require a new generation of politicians and business people who can capture the imagination and innate skills of the people. From a pragmatic economic viewpoint, the mineral extraction industry will continue to expand for some time but this needs to be carefully regulated to protect the delicate ecology. However, implementing environmental protection will require an integrated approach that also includes a real commitment to establishing closer social and economic equality across both urban and countryside populations. This is essential for long-term stability because people need to feel involved and have a sense that their opinions and wishes do actually count for something.

Good points.
Sometimes government looks at what makes them look good and at times what fills their own pockets.
NGOs do good but can at times be counterproductive to long term solutions.
The point of learning from those who have the best knowledge first hand and from generations can be invaluable.

Question to ontstaan. What are some areas that might be best for Mongolia in the area of foreign trade and long term stability?

I can’t see mining alone as a stand alone option. Agriculture may have some limitations to act as a lead in this category...

What are the “considerable possibilities for expansion” of international trade in animal and plant products when Mongolia’s fragile ecosystem will not support intensive farming? Already there are problems with over-grazing of pasture land as if mother nature will simply accomodate ever-growing herd populations. Nomadic herders and their families who have generations of experience to call upon will know the land and understand the limitations of that land. Accountants, businessmen and politicians who would propose such an expansion give the impression that they do not understand what they are asking of nature. Moreover, what will the same men in smart suits do when the next Zud arrives and takes away most of the animals?