![]() Adopting international principles was a significant step in creating necessary conditions for foreign investments”.ĭue to the strong investment flow, the Mongolian economy started experiencing symptoms of Dutch disease. Furthermore, investors must be treated equally and be able to exchange its currency and withdraw freely. Thus, the first principle is not to discriminate against foreign investors by giving an advantage to domestic investors. He continued, “By opening our economy, we have to compete with around 200 countries. In 20, Mongolia was able to attract the highest foreign investments, largely due to the Oyu Tolgoi project.Įconomist S.Javkhlanbaatar pointed out that under an open policy the basic principles of foreign investments were stipulated in the law enacted in 1993. In the UNCTAD report of 2000, 12 percent of the total foreign investments went to developing or to transitional economies. Globally, the flow of foreign direct investments started increasing from 2000. The amount of foreign investment did not change dramatically. Between 20 on average 5,636 companies with foreign investment registered in a year. ![]() Mongolia did not get much attention from the world until the beginning of the new millennium when the mineral commodity prices began increasing and exploration of mineral resources began taking place. The state barely managed the operation of power plants, kindergartens, schools with loans from other countries and donor organizations, and grant aid. Thus, they had to pay the civil servant’s salary through foreign debt and aid. Foreign investment amounts to 10 million USD, or at most 25-30 million USD in a year.įrom 1990 to 2000, the Mongolian government, in broad terms, had no income from exports or tax. In correlation with the transition to a free market, the Law on Foreign Investment was adopted in 1993 which enhanced Mongolian foreign trade. ![]() Perhaps, at that time, Mongolia was not yet aware of its investment environment. The dramatic growth was the result of the Investment Agreement concluded on October 6, 2009, which brought investments amounting to seven billion USD to the Oyu Tolgoi project. However, in reality, it was a lesson rather than an accomplishment. Some people still proudly talk about this growth. In 2011, the Mongolian GDP growth reached 11.5 percent which seemed shockingly high to the rest of the world.
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