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Original Articles

Resources, Sovereignty, and Governance: Can Mongolia Avoid the ‘Resource Curse’?

Pages 170-185
Published online: 30 Aug 2011
 
Translator disclaimer

The revenue generated from Mongolia's natural resources has the potential to transform the Mongolian state and society. Indeed, investment in mining has already led to a spate of urban growth in Ulaanbaatar and rural development throughout the rest of the country. Yet Mongolia's natural resources could also contribute to a ‘natural resource curse’ if not properly managed. Effective governance in relation to the state's natural resource sector is, therefore, essential. This article examines Mongolia's sovereignty in order to determine whether or not the state is capable of ‘good governance’ in relation to the mining sector.

Notes

1. The New Zealand administrative reform can be summarised as follows: ‘Virtually every element of reform has been designed to establish or strengthen contract-like relationships between the government and ministers as purchasers of goods and services and departments and other entities as suppliers. Hundreds of contracts are formally negotiated each year; the typical contract specifies the resources that one side will provide and the performance the other side will produce. Ministers are always on the resource-providing side of the relationship; chief executives can be on either side, depending on the role they are playing. A chief executive provides resources in negotiating employment contracts with managers but promises results in negotiating purchase agreements with ministers and performance agreements with the State Services Commissioner’ (Schick, 1998 Schick, A. 1998. Why most developing countries should not try New Zealand's reforms. World Bank Research Observer, 13(1): 123131. [Crossref], [Web of Science ®] [Google Scholar]: 124).

 

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