Mongolia has made policy mistakes behind its development, moving from prosperity to hardship

Mondo International Updated on 2024-01-19

In the process of national development, strategic focus and stable policies have become crucial, otherwise they will face serious consequences, and the development path may be like a roller coaster, falling from the peak to the abyss, and finally unable to extricate themselves. A striking example is Mongolia, once a country with high hopes but declining in a sharp policy U-turn.

Population imbalance, resource enrichment and ***

Mongolia has three major characteristics, the first is that there are more women than men, which leads to an imbalanced demographic structure, and many Mongolian women marry to Inner Mongolia. Second, the land is vast and rich in resources, worth tens of trillions of dollars, enough to support the country's prosperity for hundreds of years. Thirdly, Mongolia is protected by two great powers and enjoys the safest position in the world, and no country dares to act rashly unless it is asking for trouble.

* Ten years: the prosperity of Mongolia and the expectations of the West.

It is on this basis that Mongolia has ushered in a period of development, especially in the first decade of the 2010s. At that time, Mongolia attracted a large amount of foreign investment through continuous innovation and opening up, relaxed investment restrictions, and China invested billions of dollars to actively exploit Mongolia's rich mineral resources. For ten consecutive years, Mongolia's economy has maintained double-digit growth and has become the focus of the world's attention, and the West has even placed high hopes that it will become a "second Dubai" and reach the level of affluence and development.

A dramatic turn: a sharp turn in policy.

However, starting in 2012, Mongolia began a dramatic turn as the "second Venezuela", and the country was on the verge of bankruptcy and its future was in jeopardy. So, what caused this change?

In fact, Mongolia's problem lies in the sharp turn in policy. When Mongolia saw its rapid development, it had a mentality of wanting to curb Chinese investment, so it issued a decree restricting foreign investment. This policy immediately led to a sharp drop in foreign investment from $3.5 billion to $0$300 million, a 90% drop.

The Great Retreat of Foreign Investment: The Beginning of an Economic Downturn.

With the change of policy, 6,000 Chinese companies have withdrawn, and Mongolia's economy has been declining like a deflated balloon. At the same time, the country's previous external debt has been rising, leaving the country in a near-impossible predicament. Today, Mongolia's external debt is already several times its gross domestic product (GDP), and the country is unable to make ends meet and even has to consider declaring bankruptcy.

The Cost of Self-Inflicted Sin: The Dilemma of Mongolia.

Thus, Mongolia became a developing Waterloo, sliding directly from the "second Dubai" to the "second Venezuela", becoming a typical example of self-inflicted evil. Mongolia failed to realize that it must rely on cooperation with China to achieve sustainable development, or it was doomed to decline. However, it is too late to regret it, and Mongolia is still destitute.

Reflection and Prospects: China is the Only Way Out

In the face of Mongolia's current situation, we cannot help but reflect on the importance of policy coherence and stability for the country's development. Mongolia's experience teaches us that blind restrictions on foreign investment can lead to disastrous consequences. At the same time, as a major player in the global economy, a strong cooperative relationship with China may be the only way out of Mongolia's predicament.

Conclusion: Learn from experience and embrace the future.

In the tide of world development, every country has its own path of development. The story of Mongolia is a vivid reminder of the need to be cautious in our policymaking, to stay steadfast and stay away from the risk of a change in time. Only in this way can the country's development be sustained and steady, and the instability of policies will not be hidden under the appearance of prosperity. It is hoped that Mongolia's lessons can be used as a reference for other countries to meet the challenges of the future.

Taking Mongolia as an example, this paper profoundly reflects the great impact of policy factors in national development on economic trends through the interpretation of its development trajectory. First of all, the article presents the fundamentals of Mongolia to readers by highlighting the three characteristics of more women than men, resource enrichment and ***. This kind of introduction subtly introduces the prosperity of Mongolia for a time, and makes the reader pay more attention to its subsequent developments.

In the development of the article, the author uses the early 2010s as a time node to describe Mongolia's economic achievements, and the first decade of this period has indeed brought Mongolia into the world's attention. However, the arrival of a turning point makes the plot of the article even more fascinating. The sharp policy turn, especially the introduction of a decree restricting foreign investment, which led to a major withdrawal of foreign investment, is a key step in the country's economic downturn. This depiction is a true reflection of the direct impact of policy changes on national economies, and a reminder to other countries to be cautious in their policymaking.

When discussing the development dilemma of Mongolia, the article fully demonstrates the author's point of view. It can be said that Mongolia is self-inflicted and fails to understand that its development needs depend on cooperation with China. This view is enlightening for the reader and provokes deep reflection on the fact that policy short-sightedness can lead to long-term national development problems, especially in the area of international cooperation.

In the reflection and outlook section of the article, the author makes clear the point that policy coherence and stability are essential for the development of a country. By summarizing the experience of Mongolia, it presents readers with a rational and profound way of thinking. Moreover, by pointing out that China may be the only way out of Mongolia's predicament, the importance of international cooperation is further emphasized.

Overall, the article is solid in content and clear in its perspective, and through an in-depth interpretation of a country's development experience, it provokes deep thinking about the important role of policy in the direction of the country. For readers, this commentary** is a useful revelation and a profound reflection on the formulation of national development policies.

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