The Report: Mongolia 2014

Book excerpt: Since the country’s transition from communism two decades ago, the Mongolian economy has experienced rapid liberalisation. Sectors including ICT and insurance are expanding quickly and, while the mining sector has been responsible for making Mongolia a rising star in the global economy, there is great potential for further growth in all economic sectors. Politically stable and rich with natural resources, Mongolia has emerged as a bellwether for investor confidence in recent years. The 2013 commercialisation of the Oyu Tolgoi gold and copper mine is helping to diversify Mongolia’s mineral exports away from coal, while the government is working to improve the investment environment by adopting the new Investment Law, among other measures. Challenges do exist, however, from the long harsh winters that slow construction to the difficulty of connecting the sparsely populated nation through ICT and transport systems. In response, the government has partnered with the private sector on a number of fronts in order to promote economic diversification and competitiveness.