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Mongolia is being dug up and sold to China [Quote]


From The Economist:

Our correspondent travels to Ulaanbaatar, capital of the country likely to grow faster than any other in the next decade. Mongolia has a chance of becoming a Qatar or a Brunei: a country that has only a small population but almost all of it, in global terms, loaded.

To pay for these dreams, Mongolia is being dug up and sold to China. Already, more than 80% of its exports are minerals, a proportion expected to rise in a few years to 95%…

…Not everyone in Mongolia looks at the growth projections and goes giddy with delight. Many worry about the economic, environmental, social and strategic costs of becoming “Minegolia”. Economists fret about a “resource curse”, or “Dutch disease”. If even the Netherlands can be vulnerable to this—whereby wealth floods in as natural resources are exploited, pushes up the exchange rate, inflation, or both, and renders other industries uncompetitive—how is poor Mongolia to cope?

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  12. batsuurig said: I’m a Mongolian and I find this story so sadly true. I personally HOPE that some other country would just annex Mongolia.
  13. theeconomist posted this