Mongolia’s evolving foreign investment regime

Part of the Mongolian Oyu Tolgoi copper mine, a joint venture between the Malaysian government, Rio Tinto and Canadian company Ivanhoe Mines. (Photo:AAP).

Author: Julian Dierkes, UBC

In April 2012, Chinese miner Chalco launched a takeover bid for South Gobi Resources.

The bid prompted the Mongolian parliament to pass a new foreign investment law distinguishing between bids made by private companies and bids made by state-owned enterprises (SOE) and introducing monetary thresholds for different kinds of reviews. Read more…

Governance and corruption in Mongolia: mixed messages

A view of the central square of Ulaanbaatar, Mongolia. International condemnation relating to the Enkhbayar trial is misleading in the face of the deafening silence regarding the arrest and sentencing of four former policemen, whose human rights were more blatantly breached. (Photo: AAP)

Author: Amy Dowler, ANU

On the evening of 1 July 2012, three days after parliamentary elections were held, a large number of Mongolians gathered in Ulaanbaatar’s Sukhbaatar square, Mongolia’s equivalent of Beijing’s Tiananmen Square, to release floating lanterns commemorating the lives lost in violence following the 2008 election.

In 2008, suspicions that the incumbent Mongolian People’s Revolutionary Party, which has since changed its name to the Mongolian People’s Party (MPP), had rigged the polls triggered street protests by supporters of the opposition Democratic Party (DP). Read more…

Mongolia’s 2012 parliamentary election

Mongolians cast their votes at a polling station during the parliament elections in Ulan Bator, Mongolia, 28 June 2012. (Photo: AAP)

Author: Li Narangoa, ANU

A total of 544 candidates from 11 parties and 2 coalitions contested the 76-seat parliament in Mongolia’s 2012 parliamentary election.

Preliminary results show that the Democratic Party received the highest number of votes (approximately 31–32), followed by the current ruling party, the Mongolian People’s Party (approximately 27–28), and the Justice Coalition (11). Read more…

Mongolia: electronic counting but no trust

Voters waiting in line at a polling station outside of Ulaanbaatar (Photo: Julian Dierkes)

Authors: Julian Dierkes and Brandon Miliate, UBC

The results from Mongolia’s 28 June 2012 parliamentary election on are in — sort of. The General Electoral Commission (GEC) announced the preliminary results on 30 June, with official results set to be announced by 13 July. No party won an outright majority, which would require 39 seats in the 76-member State Great Khural.

The Democratic Party (DP) won 31 seats, thus becoming the most Read more…

Whither Mongolian democracy?

US President George W. Bush and then Mongolian President Nambaryn Enkhbayar at Government House in Ulan Bator on Nov. 2005. (Photo: AAP)

Author: Todd Landman, University of Essex

Mongolia has always been an unlikely case of democratisation.

A sparsely populated, poor country sandwiched between Russia and China, it defied all odds with a relatively peaceful democratic transition in 1990. Since then, it has had regular elections and transfers of political power between the main political parties, Read more…

Asia’s regulatory reawakening

The courts in Bali, an example of regulatory reawakening? (Photo: AAP)

Author: Veronica Taylor, ANU

Visual images of regulatory failure in Asia are a staple of mainstream media in the west: contaminated food killing children; humanitarian disasters magnified by ramshackle construction; industrial landscapes thick with sulphurous smoke; corrupt officials facilitating transactions from traffic fines to people smuggling.

In policy literature these acute social, economic and environmental issues are attributed to deficient national and local governance and a lack of regulatory capacity. Read more…

Calls for a Sino-Mongolia strategic partnership

A Mongoiian Lama Buddhist monk tends to the solar powered electricity generator at a monastery deep in the Gobi desert in Mongolia, 10 August 2007. (Photo: AAP)

Author: Mendee Jargalsaikhan, UBC

The Chinese Foreign Minister’s brief visit to Mongolia on 24 February, like the Chinese Premier’s visit last June, did not trigger any negative public debate or protests in the streets of Ulaanbaatar.

Rather, an op-ed by well-known columnist Baabar on the repression and marginalization of Chinese ethnic minorities during the communist era received wide attention. Read more…

Chinese investment in Mongolia: A sequel

The Parliament of Mongolia, Ulaanbaatar. (Flickr user: ‘aka-nolimit’)

Author: Justin Li, ICE

Julian Dierkes’ thoughtful response to my essay on Chinese investment in Mongolia obliges clarification of some of my earlier points. I confess my ignorance of ‘Third Neighbour’ policy and, though one commentator suggests that it ante-dates large-scale Chinese investment in Mongolia and therefore cannot really be perceived as responding to that, it certainly helps to contextualise aspects of Mongolian foreign investment and trade policy.

It is important to take a closer look at the decision behind the controversial ‘east-west’ railway project approved by the Mongolian Parliament. Read more…

Mongolia’s ‘third neighbour’ policy and its impact on foreign investment

Russian President Dmitry Medvedev (L) attends a welcoming ceremony with Mongolian President Tsakhiagiin Elbegdorj (R) in Ulan Bator in 2009. Medvedev arrived in Mongolia for a two-day visit focused on sealing a series of investment deals including one on a joint venture in uranium mining. (Photo: AAP)

Author: Julian Dierkes, University of British Columbia

Justin Li’s 2 February 2011 post is welcome in that it attempts to analyse the economic development of Mongolia in its political context. It is also significant in that it raises an important aspect of China’s perceived rise in standing and its newly assertive foreign policy, namely that this has a very specific impact on regional (security) dynamics and popular perceptions.

Li’s essay mainly focuses on the extent to which politics and populism have got mixed up (I assume that’s how he might see it) with investment decisions. This ignores another political arena entirely: foreign policy. Read more…

Chinese investment in Mongolia: An uneasy courtship between Goliath and David

Trucks carry copper ore from a quarry at a state-owned mine in Erdenet, Mongolia. The copper mine is one of the ten largest in the world. All of the copper produced here is exported to China. (Photo: AAP)

Author: Justin Li, ICE

The investment and trading relationships between China and Mongolia seems like a marriage made in heaven. Landlocked and poverty-stricken, Mongolia has an abundance of coal, copper and iron ore that China craves to feed its rapid industrialisation. Mongolia’s proximity to China, its largest customer, also offers it considerable cost advantages against other major commodities suppliers such as Australia and Brazil.

The trade and investment figures between these two countries certainly bear witness to a strong and complementary relationship. China has been the largest investor in Mongolia since 1998 and its largest trading partner since 1999, and it has retained these positions ever since. Read more…

Semi-presidential democracy in East Asia

Author: Benjamin Reilly

East Asia contains three of the world’s semi-presidential democracies (as pointed out in the latest APEC Economies Newsletter here) : Taiwan, Mongolia, and East Timor. Each of these countries is an unusual case of democratisation: Taiwan is one of East Asia’s famous ‘tiger’ economies and the world’s only Sinitic democracy, but faces an ongoing crisis of nationhood; Mongolia is one of the few unambiguous cases of a successful transition to democracy and a market economy in the post-Communist world; while East Timor is both Asia’s poorest nation and its newest democracy. Prior to their democratic transitions, each was also under the influence of a large foreign power be it Russia in relation to Mongolia, Indonesia in East Timor, or China’s claim to sovereignty in relation to Taiwan. This is not a propitious starting point for a transition to democracy; indeed, in different ways, each country seemed to lack some of the essential preconditions for successful democratisation.

Nonetheless, each has succeeded to the extent that successive free elections and peaceful changes of power have now occurred.As part of their transitions to democracy, East Timor, Mongolia and Taiwan each chose semi-presidential constitutions. Semi-presidentialism is an increasingly popular constitutional model which combines a directly elected president with significant powers as well as a prime minister chosen by the legislature. France and Portugal are long-standing examples, along with many new democracies in Eastern Europe and Southern Africa. In Asia, East Timor, Mongolia and Taiwan are all clearly semi-presidential in the sense of having ‘a popularly elected, fixed-term president existing alongside a prime minister and cabinet who are responsible to parliament’.

Read more…