RE:Economist's opinion
The core cause of all of Mongolias economic problems are goverment policy. That is why they have to pay double digit interest rates and the Mongolia stock market does not work. Who in their right mind would lend them any money or buy anything listed on that stock market under current government policy?? The market answers that question every day and the nswer is - NO ONE!!. That economist is correct with respect to the ownership issue as most other government are smart enough to realize that collecting royalties and taxes while having policies that encourage developement are the way to go. They also realize that the best way to encourage development is through reasonable royalties and taxes and stability. Mongolia has not yet figured out that as a soveriegn nation even if a company has 100% so called ownership of a deposit, all it means is that the company takes 100% of the risk in funding the development and gets the profits minus the rolalties and taxes and all the other benefits that revert to Mongolia like infrastructur, jobs, and spin off industries. The Deposit is still a soveriegn part of Mongolia that is managed through a contract. They seem to confuse soverenty with ownership rights.
They make a big deal of ownership and "can not see the forest for the trees" as the saying goes.
As the games continue!!!!