Recent review
The impact of corruption on the local
economy in Mongolia
• Mongolia has
experienced impressive economic growth in recent years thanks to natural
resources such as copper, gold, and coal. But government corruption has damaged
public trust and foreign investors.
• Cases such as the theft
of funds from the National Coal Fund have caused public outrage, widespread
protests, and a decline in trust in state institutions.
Harm to foreign investment
• Previous governments
have tried to change agreements signed with mining companies to increase
royalties, which has caused an exodus of investors and a sharp decline in
foreign investment.
• International companies
fear political interference, regulatory instability, and unprofessional
appointments to key positions.
Narrow economic base
• The Mongolian economy
relies almost entirely on minerals. When commodity prices fell, the country
fell into crisis. Corruption exacerbated the situation, as state revenues did
not reach the general public but were instead absorbed into corrupt mechanisms.
Direct consequences:
|
Domain |
Impact of corruption |
|
Foreign Investment |
A sharp decline in trust and
willingness to invest |
|
State Budget |
Low liquidity, waste of public
funds |
|
Employment |
Slowdown in projects, layoffs in
the mining industry |
|
Infrastructure Development |
Delays, poor quality, abandoned
projects |
Attempts at correction
• The current president
is calling for constitutional reforms that would limit terms of office and
increase budgetary oversight. He will encounter strong political opposition, so
it is not certain that he will be able to promote these reforms.
• There are initiatives
to establish an independent authority to fight corruption, but they are
encountering opposition from powerful political elements. The government
authority to fight corruption is completely infected with the corruption bug,
as are the police, and also the government body for internal security in
Mongolia
• The only solution in
sight is a strong public voice. As the weather begins to cool down towards the
coming winter, fewer people will join the public opposition to corruption in
front of the Mongolian parliament in the city of Ulaanbaatar.
