The Latest Political Risk Advisory Briefing from KCS Group Europe focuses on Mongolia.
As the second largest landlocked country in the world, hemmed in by two superpowers, it is not a surprise that Mongolia’s politics has been dominated by outside influence for centuries, from Beijing and then from Moscow. Now, between these two resurgent powers, Mongolia’s position is once again in a state of flux, this time for the better.
Social, political and economic change in Mongolia is gathering momentum, despite enduring problems and frequent setbacks. A country that has for centuries passed under the radar, trapped by geography and the politics of others, can now point to real areas of promise and growth, centred around natural resources.
Naturally, problems remain, stubbornly enduring despite widespread discontent among the population. Corruption at the highest echelons of power, aided by weak checks and balances, is the primary barrier to Mongolia’s success. Similarly, providing infrastructure in the most sparsely populated country on the planet is a unique challenge that has yet to be overcome. This is compounded by the fact that almost half of all Mongolians live in Ulaanbaatar, the most polluted capital in the world, severely limiting the economic impact of necessary infrastructure projects.
The presence of an increasing number of multinational firms with interests in the resource rich country (primarily copper and coal) has kick-started much-needed investment. Levels of debt, specifically owed to China, will be a concern for the country moving forward. Conversely, the resulting infrastructure projects will help exploit resources as the country attracts more private foreign investment. With solid growth in recent years, following something of an economic meltdown, companies should be interested in Mongolia, but must be aware of the pitfalls, risks and staggering levels of untapped wealth.
This latest report includes:
- Economy & Business Environment
- Foreign Affairs
- Corruption & Freedoms
- Criminal Element & Terrorism