Mongolia

Agriculture, particularly herding, is the traditional foundation of Mongolia’s economy and culture. Even today, the sector supplies 20% of GDP and employs 35-40% of its population. But the transition to modernity has been jarring, with Soviet experiments in collectivised farming and a modern emphasis on producing for export. Cashmere wool has been the true success story here, earning $180m in...

The Mongolian construction industry has seen a surge of activity in the past two years. The driver is government spending, particularly the New Development Programme, which will address roads, railways, affordable housing, rural development and industrial development schemes, with a price tag of some $28.6bn. One key part of this is the 100,000 houses project, which represent an attempt to offer...

Landlocked in part by its rapidly industrialising neighbour, China, Mongolia’s potential for manufacturing and other industry is limited by factors beyond its control. The government has responded to these challenges by focusing on areas of competitive advantage. Cashmere, for which Mongolia could supply up to 30% of the world, has proven an excellent export commodity, and producers are hoping to...

The communications sector in Mongolia has grown rapidly, with wireless telephony saturating the market within a decade of its introduction. The challenge now for providers is figuring out how to further monetise their customers, who generally have low incomes. Some companies are focusing on bundling, offering internet access and television along with phone subscriptions. On the IT side, the...

As a landlocked and historically underdeveloped country, Mongolia’s transport challenges are steep. Airports are dilapidated, roads are cracking, and railways need updating. The government is planning major investments on all fronts, including upgrading roads to serve the huge freight trucks that travel to and from mining sites, rehabilitating Ulaanbaatar’s urban network. Some $5bn will be spent...

Mining is the driving force of the Mongolian economy, contributing 30% of GDP, and upcoming projects will surely increase this ratio. The two biggest are Tavan Tolgoi, a massive coal mine, and Oyu Tolgoi, a copper and gold mine, which should both be in full operation by 2013. In addition, Mongolia has potentially viable deposits of rare earth minerals, although extraction has yet to begin for...