Reuters: Mongolia’s task – avoid Nigerian resource curse

In much of the developing world, natural resources seem to offer a handy way out of poverty. But they also present a curse. Mongolia, where the center-right Democratic Party led last week’s elections on a wave of resource nationalism, would be wise to avoid the mistakes of Nigeria and other nations. Government and private fingers can get sticky, the bonanza wasted and non-resource activity burdened and disincentivized. Mongolia is the world’s newest member of the commodity boom. The country wedged between Russia and China has enjoyed spectacular growth in GDP – close to 17 percent in the first quarter from a year earlier – largely on the back of exploration and construction related to its massive Oyu Tolgoi gold and copper mining project. From August, Oyu Tolgoi will begin producing revenue, and from 2013 it will turn into a massive cash generator with relatively low employment. To read the full article, click hereMongolia’s task – avoid Nigerian resource curse

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