Analysis

Fit to print: A wealth of publications points to a growing market for print
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After the fall of communism, the number of available newspapers, as well as readership, blossomed in Mongolia. Although sales started to fall in 2004 as the range of other media grew, they appear to have stabilised. In 2010 sales grew by 3.2%, when the total annual circulation for the 130 newspapers reached 19.83m, according to Mongolian Media Today 2011, published by the independent Press Institute…

Overview

Plenty of potential: Overcoming obstacles is expected to better prepare the sector
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The insurance sector is young but growing rapidly and is characterised by a relatively inexperienced labour pool, incomplete regulations, big plans for regulatory reform and fast growth from a small base. In short, it looks like a typical early-stage insurance sector in any developing country. The sector needs “technical assistance and labour training, new technologies, actuary training and better…

Overview

High flyer: Strong outlook on the back of sound policies and increasing openness
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Forecast to be one of the world’s fastest-growing marketplaces over the next two decades, Mongolia’s economy is developing rapidly. The country’s resource wealth and open, liberalised market are attracting increasing interest from international investors and putting it in the global spotlight. MAIN FOCUSES: The two big stories of 2011 are Oyu Tolgoi (OT) and Tavan Tolgoi (TT). The former…

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The health of wealth: Despite setbacks, the sector looks set to enjoy a steady trajectory
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In the two decades since Mongolia’s economy shifted to capitalism, it has endured several boom-bust cycles in its financial sector, as banking services professionals adjusted to their new paradigm and began learning the basics of risk management. Assets grew at a rapid pace nonetheless, with a compound annual growth rate (CAGR) of almost 32% from 2003 to 2009 according to Resource Capital, an…

Overview

Step by step: The exchange is expected to grow rapidly in the coming years
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In recent years the Mongolian Stock Exchange (MSE) has experienced solid growth, fuelled by capital inflows and foreign investment, in line with emerging economy bourses around the world. At the same time the market is constrained a by shortage of information and low liquidity. Like other frontier economies, Mongolia is in the midst of a long-term programme to modernise and scale up its securities…

Overview

Self-determination: As it did in the past, the country is again forging its own path
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With its multi-party political system and lively level of public debate, Mongolia stands out as a democratic success story in a region not noted for its pluralism. Indeed, the individualism that is so much a characteristic of Mongolian society now underpins a political life that can seem quite at odds with those of its neighbours, both near and far. TRANSPARENCY & STABILITY: This political…

Overview

Ramped up: The sector is poised for substantial expansion despite some early-stage issues
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The year 2012 seems likely to be a defining one for the Mongolian mining sector. The size of the country’s considerable mineral wealth has not yet been determined, but the involvement of many of the world’s largest mining companies is a testament to the sector’s potential. Several milestones are expected in 2012, including the launch of commercial production at Oyu Tolgoi (OT), the copper…

Overview

A step ahead: The government and private sector continue to identify and optimise areas of growth
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Just a few decades after the shift from Mongolia’s communist era to a market economy, the country’s industrial base remains small. Government support for the sector and some significant natural resources work in its favour, but several factors present obstacles to growth. They include geography, infrastructure, corruption and bureaucratic hassle, and the lack of a systematic approach to developing…

Overview

Linking up: Infrastructure is set for an overhaul to tackle historic challenges
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As a large, landlocked country bordering only two others – Russia and China – Mongolia depends on its land and air transport systems to get goods and services to market. Economic development has also meant the country is undergoing rapid urbanisation, placing increasing pressure on its urban transport infrastructure, while boosting a need for better internal links. Indeed, the key new driver…

Overview

Renewed interest: Rapidly growing industrial and urban centres fuel demand for power
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The power and heating, hydrocarbons, renewable and nuclear segments of Mongolia’s energy structure are all undergoing important changes. These are occurring as the country tries to move away from its old dependency on one major fuel source – coal – and on its two giant neighbours – Russia and China. The energy market is beginning to open up, with huge potential for investors. Oil-exploration…