Immigration: Aside from internal migration, as rural dwellers head to the cities in search of higher paid jobs, we also expect Mongolia in general, and Ulan Bator in particular, to see a large influx of immigrants as the mining boom gathers steam. Indeed, aside from foreign labour for the mines, we also expect non- Mongolians to arrive in order to work in construction, banking, retail and the services sector. ...Being a democracy: On balance, we believe the fact that Mongolia is a democracy is overwhelmingly positive from the point of view of political and economic stability. This will make citizens feel included as their country undergoes massive change, encourage the government to spread the wealth of the mining boom more evenly, provide a safety valve for the airing of grievances and make the exploitation of the massive mineral resources for the benefit of a small elite less likely. That said, the fact that Mongolia is a democracy does have some drawbacks. ...
...mongolia Q- ---- core Views The formation of the super coalition government in early December ---- has improved the policy-making process in Mongolia, as the various parties set aside their differences to tackle the multitude of problems faced by the slowing economy. ...mongolia Q- ---- core Views The formation of the super coalition government in early December ---- has improved the policy-making process in Mongolia, as the various parties set aside their differences to tackle the multitude of problems faced by the slowing economy. However, we are forecast- ing real GDP growth of -.- in ---- as the investment and export outlook remain weak, moderating from the double digit average of --.- per annum registered in the past four years. ...
...The Mongolian government will face major domestic challenges over the coming decade as the country s mining boom takes off and it seeks to strike a balance between distributing the revenues in a way that is ac- ceptable to the population, while avoiding stoking inflation. Moreover, we believe it will face a tough task in managing the social change that the mining boom will create, including immigration and the growing gap between rich and poor. ...Mongolia will experience one of the fastest rates of economic growth in the world over the next ten years, a development that will have huge social and economic consequences and therefore pose key challenges for policymakers. The deluge of foreign investment, attracted by the country s vast mineral wealth, will transform the country from a largely rural (and often nomadic) society, with a large section of the population employed in agriculture, to an increasingly urban and industrialised one. Moreover, the growth of the mining sector will dwarf other areas of the economy, leading to an increasing concentration of labour and wealth in this industry. ...
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