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Opinion: Mongolia must push to privatise

Date: 12 Feb 2010

The country’s financial markets remain vastly undeveloped, to the detriment of its economy and population. The government must modernise the country's capital markets and privatise more state-owned enterprises if it is not to be left behind by the rest of Asia.

Keywords (click to search): [Mongolia] [stock exchange] [privatisation] [IPOs] [Sukhbaatar Batbold ]

Aaron Pan

Many of Asia’s countries have emerged from the global financial crisis in a stronger position than ever before. But one country has been unable to join in the party: Mongolia.

The country of 2.7 million inhabitants has watched on in envy as neighbours such as China, Russia and even Kazakhstan have surged ahead in economic development.

Despite boasting vast amounts of unpolluted territory and huge amounts of natural resources at its disposal, the country more closely resembles a 19th Century agrarian-based economy than a 21st Century market-based one.

Yet until the global financial crisis unfolded Mongolia was enjoying steady GDP growth, thanks largely to its wealth of natural resources. The country posted GDP growth of 10.2% in 2007 and 8.9% in 2008.

But its economy badly stumbled last year when commodity prices took a tumble. The World Bank estimates Mongolia’s GDP only grew 2.7% in 2009....

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