To this day, we do not understand the value of foreign investment There was a time when the world was fascinated by Mongolia until the rumors that two foreign businessmen were building in Ulaanbaatar to invest in our country with a population of only three million. This is 2010 and 2011. The years when the Oyu Tolgoi project investment started and the project started.
At that time, 6 trillion MNT, or about half of the economy of our time, was flowing to Mongolia, and the economy was growing at an unprecedented rate of 17%, praising the world. This huge influx of investment has put an end to the time when parliamentary candidates were asked to “connect to permanent electricity.”
Unfortunately, after the 2012 election, a group of politicians who wanted to invest in our small country, do business, and grow together, drove away those who came to Mongolia, ridiculed them, and expelled them. As a result, in 2013-2016, we returned to the ground and faced our real situation. That huge economic growth has shrunk fivefold to 3.5%, even pushing for deflation and pushing the country to the bottom it could be.
“That’s just the power of investment. The economy itself grows with consumption and investment.”
However, even today we have not been able to get rid of the above-mentioned village, and Mongolians have not regained consciousness. Investor confidence has not yet been restored, and successive governments have ridiculed the only major investor left, the Oyu Tolgoi project, which has dragged Mongolia’s economy through the plague.
In fact, a study conducted by researchers at the School of Economics at the National University of Mongolia has shown that Mongolia will be able to suck the dust out of this investment from a third neighbor. There are a lot of overt and covert issues, but it is clear that the outcome of this project will determine the future of foreign investment.
The study found that suppliers of the Oyu Tolgoi project were virtually unaffected by the COVID-19 epidemic, with 42% adding jobs. During this period, 27,000 Mongolian enterprises lost income and 98,000 businesses submitted X reports, according to the NSO. The company alone generated 13% of budget revenues during the plague year. The most striking result of the study is that Mongolia’s economy is growing by 0.5% when OT’s fees increase by 1%. In other words, in addition to making such a significant contribution to our country, it shows that Mongolia is so dependent on a single project.
The company alone generated 13% of budget revenues during the plague year. The most striking result of the study is that Mongolia’s economy is growing by 0.5% when OT’s fees increase by 1%. In other words, in addition to making such a significant contribution to our country, it shows that Mongolia is so dependent on a single project.
Because it is not a producer country.
Thus, foreign investment, which exceeded $ 4 billion in 2011, is now less than ⅓.
In the past, if OT had been delayed in some way, state-funded projects could have been implemented. However, in the Mongolian style, our country has been offended and repulsed.
One of them is Mardai deposit. This deposit was approved in 2007 as one of the 15 deposits of strategic importance. As a result, Canada’s Khan Resources agreed to a 58 percent stake and Mongolia and Russia a 21 percent stake.
Tavan Tolgoi is another project that has suffered the most from a mistake in investment policy. In 2015, the then Minister of Mongolia, M. Enkhsaikhan, introduced a scenario for the development of the Tavan Tolgoi deposit by a joint consortium of Japan, Mongolia and China. But it is a sad example of the government’s failure to invest $ 15 billion. Mongolians are also watching the activities of the few French-invested companies left in our country. There are a lot of unsubstantiated and unsubstantiated reports that abnormal offspring are being born, and they are trying to evict a company called Badrakh Energy.
Thus, Mongolia is becoming more and more distant from its third neighbors due to its dark, rude, and unpopular, empty “patriotic” citizens, and it is becoming rare to see investment goods.
Invest Mongolia and Coal Mongolia have not changed much, and the number of people attending their meetings has been declining in recent years.
“Due to all this, foreign investors continue to criticize that “foreign citizens and companies investing in Mongolia are not adequately protected by law”.
To help and support what needs to be done to improve this, IFC conducted a survey of 70 companies in 2013-2014. It addresses investor grievances and their consequences. According to a recent study by the National Development Agency’s Invest in Mongolia – Seoul 2021 e-forum, the total investment at risk of loss due to inadequate investor protection is estimated at $ 1.9 billion, or 90 percent of the total investment. mentioned in the report.
Investors cited policy and regulatory non-transparency, as well as arbitrary decisions by government agencies, as the main factors influencing grievances. In addition, confiscation of property, suspension of rights (45% of respondents), and discrimination (24% of respondents) were considered to be major problems.
Singapore, one of Asia’s four tiger nations, says development will be delayed if investment declines. For them, one of the impetus for today’s development is the ability to successfully attract investment, build everything they can’t with other people’s money, and take their country’s development to a new level.
Needless to say, we have been in a difficult situation in recent years. In the parable of the bad dog’s stomach, Mongolians push the butter in their mouths and push it back and forth.
Recently, two foreign businessmen were fighting in Ulaanbaatar to invest in our country with a population of only three million people.
Source: Zuunii Medee newspaper via Ikon.mn