Reuter reports that Mongolian government withdraws Ivanhoe Mines pact. I wonder why it took so many days to report. The news was reported in Mongolian press last week.
According to the agency, Bayar called for an international body to help negotiate Oyu Tolgoi on the Mongolian government's behalf. That advisory body would probably include the World Bank, the European Development Bank, and other multilateral institutions, a World Bank official in Ulan Bator said.
I do not think this is a good idea. I do not have much trust in international organizations such as World Bank. I happen to know how the organizations work. Also I fear that professional consultants hired by World Bank would be biased toward big multinationals. Because some day, they might be hired the multinationals. Nowadays,there are many young Mongolian investment bankers and financial analysts who work for big-name financial institutions. We should ask for their help.
4 comments:
good word
re: your comment about 1 year to get IA -- it's possible, but I think that S. Bayar & Parliament will try hard to push IA through before the June 2008 election so that he can use that platform to get re-elected. He wants to stay in office and will have to prove that he delivers. - Aoi Obi
Yes, Bayar may try hard. But there is hardly enough time to get it passed through the parliament let alone to reach an agreement with IM.
It is really mad policy if we take national interest into consideration. In Mongolia there are many good, educated, experienced, talanted, devoted, promising experts in this field, but top leaders do not know them or they do not want to hire them with adequate level of fees. Instead, it is easy and better for them to beg international institutions such as IMF, WB or EBRD etc..If something will be wrong, it is nice to blame them (indeed no one) afterevent. On the other hand, once Mr. Enkhbayar hired good educated Mongolian youngsters (M, Su.B, O etc) to the top level of the government (at least vice ministerial level), they used these positions other way around since they are smarter than Mr. Big Brother in this sense. Thus youngster became very rich within very short period of time.
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