BTI 2012- Mongolia Country Report, Research Paper Example

This article gives the transformation that took place recently in Mongolia. First, it gives a change in the presidential election results where an incumbent president did not make his bid for re-election. The new president led Mongolia in a peaceful transition to a democratic regime from a socialist one (Bertelsmann 5). Second, we find a change in the party system of Mongolia. We also have a significant economic event- the signing of an investment- Oyu Tolgoi agreement. The fact that there is prevailing democracy can easily allow business between Mongolia and the U.S. Stable political regime will attract U.S. investors as well as tourists to the country. Democracy and peace in a country is co crucial in marketing a country in the international arena.

Solar Power- Mongolian Herders

This is a feature story about how 70% of Mongolian herders had their lives transformed by a solar energy program. The off-grid solar systems are capable of generating enough power for televisions, lights, small appliances, radios and mobile phone charging. The Mongolian government with the help of the Government of Netherlands and the World Bank launched the program (World Bank 2).

Mongolia Overview

This gives the various challenges in the Mongolian economy. These challenges include the transformation of mineral endowment into renewable assets for broad-based and sustainable development and the natural resource curse. The report argues that the competency and quality of institutions and economic policies will determine Mongolia’s exploitation of the opportunity (World Bank 1). Government policies have contributed to the economic crisis in the past. Fiscal rules will help Mongolia move out of the crisis. The country should also look into the sustainable management of its cultural and natural resources. The U.S. can start its investment banks to help Mongolia in its lack of competency and thus do business through this.

Mongolia: Avian and Human Influenza

The Response and Preparedness Project for the Human Influenza and Avian Control of September 2008- November 2011 helped to strengthen the capacity of emergency departments, veterinary services and public health in Mongolia. The country can thus detect and respond to any potential infectious disease outbreaks such as human pandemic and avian influenza. Mongolia is a land-locked country, between China and Russia, both of which had reported outbreaks of avian influenza thus endangering Mongolia (World Bank 1).  The country carried out a program to strengthen agency capacities involved in Human and Avian influenza. The result was so successful that the country can now handle any outbreaks. This report attracts business people form the U.S. as there will be no fear of avian and human influenza attacks. This markets Mongolia environment positively among investors worldwide.

Mongolia: Infrastructure development project for information and communications

Mongolia has the least population density in the world- 2.8 million people are living across 1.5 million sq kilometers. The country has challenging geography, which makes high  cost of rural communications infrastructure provision. This report tells the efforts by the Mongolian government with the help of World Bank in supporting information and communications technology sector, development in rural Mongolia. Private sector operators received subsidies from the World Bank to help expand their coverage area, and as a result, mobile voice services have reached all 335 soums (World Bank 2). In addition, there are 34 prime soums, which have internet access via broadband for private and public users. The U.S. can take advantage of its advanced information and communication technologies and sell to the Mongolian economy. This report shows the opportunity for investors in the Mongolian young economy.

Project Profile: Reducing Mongolian Vulnerability of Rural Communities

This report gives the Sustainable Livelihoods Project II of 2008-2012 with the aim of enhancing sustainability and livelihood security by scaling up mechanisms of institutions, which reduce Mongolian communities’ vulnerability. The project benefited 1,763,432 people and about 505,745 households (World Bank 3). The results of the project were enormous. These included improvement in pastoral management where there was an increase by 57% of households making winter preparations. There was upgrading and funding of 1,088 hospitals with medical equipment, which were non-existent before. The donations by the World Bank may hamper U.S. business in Mongolia because it will not enjoy monopoly in offering facilities necessary for people. This report attracts private sectors in the international market.

Like a Hummingbird – From Chile to Mongolia

This is a growth and crisis blog article showing increased cooperation and cross learning among developing countries. In the recent experience of South-South cross learning, Mongolia benefited by learning crucial lessons from Chile. Mongolia engaged World Bank and IMF to help them out of the economic plight they faced when there was a downturn in global copper prices (Canuto 2). Chile did not suffer from the downturn because it had institutional frameworks and fiscal rules commensurate with the natural wealth. The dialogue between Chile and Mongolia brought enormous results for Mongolia in economy. The U.S. does not benefit since it does not enter into any negotiations with Mongolia. The report shows Mongolia as one of the fastest growing world economies.

Procurement in Mongolia

This article argues that effective public procurement will be crucial in transforming underground non-renewable mineral assets to sustainable capital assets. Mongolia’s public procurement scale has increased rapidly from about 130 million USD in the year 2006 to above 1 billion USD in the year 2010 (Hasnain and Audrey 1). There is a need to increase transparency, technical capacity and accountability in public procurement. The U.S., because it is influential in world politics can win tenders for Mongolian contracts.

Mongolia: What are the risks for an economy that is growing at 20%?

The article pictures impending doom that Mongolia might suffer owing to its overdependence on the copper mineral exports to China. Mongolia is a small open economy, which depends on mining. It has to rely on borrowing large sums to develop its infrastructure to access mineral areas (Van den Brink 2). This will lead to large sums to be paid back to the donors. Efforts through policymaking and fiscal rules will save the Mongolian economy from experiencing a second crisis. The U.S. may suffer a crisis as well if it over depends on Mongolia who is a small and open economy. This shows a seriously vulnerable economy to investors.

Transport in Mongolia

This article gives the situation of the transportation network in Mongolia. The roads and highways are not so developed. Main roads connect Ulaanbaatar and aimag centers. Although rail freight has increased, it is still insufficient to transport all the freight available. Air transport, the most crucial to Mongolian economy faces frequent closures due to sand or snowstorms, strong winds or unacceptable visibility (World Bank 1).

How the topics can affect US businesses in Mongolia

The US is one of the interested investor in the Mongolian rapid growing economy. As we have seen in some of the topics, the US has immense opportunities to thrive well in business in Mongolia. For instance, the readiness to respond to the attacks of human and avian influenza enables US tourists to travel to the country. Through this, the US airlines will be able to make profits. In addition, investors will come, in full swing, to put up their businesses in the country for there will be no worry.

According to Mongolia country report, political changes and growth of democracy will attract US businesspersons to Mongolia. There will be no fear of any adversity.  Solar energy will open markets for U.S. products such as solar cells and accompanying products such as phones and other electronics. The report markets Mongolia’s young economy by attracting more donors as it shows that there is still a need. The US has had an interest of revenue from the Mongolian mining, but with increased aids from other international community, the US might no longer benefit as it wanted. The U.S. suffers the plights of frequent air travel closures, which hampers a lot the US airline business to Mongolia. The international market for Mongolia suffers as well as tourists may avoid visiting it.

It is also worth to note prevailing bureaucracy in Mongolia. This makes the growth of US businesses by investors grow up too slow. This, in turn, affects aspects including setting up of businesses, issuing invoices, hiring staff and paying taxes. We also note high illiteracy levels in the country. This makes US investors find a difficulty in hiring staff to work in their companies because it is so hard to find the right persons to work. In Mongolia, businesses are growing so fast that it has been a challenge finding the right talent pool to work.

Works Cited

Bertelsmann Stiftung. Mongolia Country Report. Gutersloh: Bertelsmann Stiftung, 2012. Print.

Canuto, Otaviano. “Like a Hummingbird- From Chile to Mongolia”. World Bank blog: World Bank, 2012. Web. 7 Sept. 2012.

Hasnain, Zahid and Sacks Audrey. “Voluntarily Tying Government’s Hands: Civil Society Oversight of Procurement in Mongolia”. World Bank blog: World Bank, 2012. Web. 7 Sept. 2012.

The World Bank. “Better Prepared for Avian and Human Influenza”. World Bank News and Views: World Bank, 2012. Web. 7 Sept. 2012.

The World Bank. “Information and Communications Infrastructure Development Project”. World Bank News and Views: World Bank, 2012. Web. 7 Sept. 2012.

The World Bank. “Mongolia Overview”. World Bank News and Views: World Bank, 2012. Web. 7 Sept. 2012.

The World Bank. “Project Profile: Reducing Vulnerability of Rural Communities in Mongolia”. World Bank News and Views: World Bank, 2011. Web. 7 Sept. 2012.

The World Bank. “Solar Power Lights up Future for Mongolian Herders”. World Bank News and Views: World Bank, 2012. Web. 7 Sept. 2012.

The World Bank. “Transport in Mongolia”. World Bank.org: World Bank, 2012. Web. 7 Sept. 2012.

Van den Brink, Rogier. “Mongolia: what are the risks for an economy that’s growing at 20%?” World Bank blog: World Bank, 2011. Web. 7 Sept. 2012.