Corruption And Corruption In Mongolia

Mongolia is a country that is rich in natural resources such as gold, copper, coal, uranium and oil. This makes the mining sector of great importance to their national economy. In 2010, Mongolia’s mining sector made up 25% of the GDP in 2010. Then Mongolia’s mining sector is a key driver of growth in the country (World Bank: 2015). Therefore, ending corruption in Mongolia’s mining sector could lead to more efficient use of natural resources, and eventually facilitate the redistribution of profits in society. Corruption is bad for the economy as the discretionary issuance of mining permits allows for the practises of bribery and rent seeking to take place. This case study took place at a pivotal time for reform and debate in the sector, as parliamentary elections were approaching and mining sector issues were at the top of the agenda (Nunberg et al: 2012). The major concerns over the sector were in corruption and weak governance in the mining sector, particularly in the issuance of mining permits. This is of utmost importance as under regulation could lead to manipulation over the …show more content…
Openness and transparency form the core of the ABSM. Yet the Bank observed that while members of the private sector were willing to discuss transparency issues in mining operations, they were only willing to discuss them on a superficial level (Nunberg et al: 2010). The Prime Minister, Anti-corruption Agency and Head of Mineral resources supported more comprehensive reforms in the mining sector, such as developing public consultations in the issuance of mining permits. There was no established agreement for reform under the process of the ABSM despite widespread support for reform. The Bank considered the failure in the reforming the mining sector a result of the polarized position of stakeholders (fig 1) and scepticism over the Bank’s anti-corruption policies due to the upcoming

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