Earticle

In this essay I am outlining the major features of Mongolian economic performance during the last decade and sketch out the most promising avenues of development in the future. It appears that sticking to a smart policy of managing windfall profits resulting from the copper export boom in the future is going to be the main challenge for the Mongolian government to face in the next decennium. Channeling those profits into the public infrastructure and productive investment would make a stark difference between long-term growth and stagnation characteristic of the less fortunate victims of the Dutch disease such as Turkmenistan. The development of ger neighborhoods in the vicinity of Ulaan Baataar is another challenge the Mongolian economy will have to face. Specifically, the problems of ensuring smooth transition of the ger areas into the apartment complexes is going to take a long time, while during this transition major infrastructural problems will have to be addressed. In the last section of this essay I am arguing that the introduction of microfinance system similar to the one implemented by the Grameen bank in Bangladesh would help solve a lot of these transitional problems.