Mongolia is, by all accounts, resource rich. Just one of its mineral deposits is said to be the size of Manhattan. As of 2011, its untapped precious metals and minerals were estimated at $1 trillion. Its capital Ulan Bator has a vibrancy reminiscent of South East Asia’s ‘tigers’ in the 1990s. It is clear that amid its vast potential mineral wealth, Mongolia is on the cusp of fully engaged economic and geopolitical relationships with its neighboring economic trading partners – no small feat considering they are Russia and China.
Emerging market currencies are in disarray. Since the last spring meeting of the International Monetary Fund and the World Bank, Brazil’s bonds have been downgraded to ‘junk’ status, China’s stock market has faltered, and the Russian rouble has lost over half of its value against the US dollar.
Ahead of this week’s IMF and World Bank meetings in Lima, Peru, two issues will take centre stage: tighter US monetary policy and China’s slowdown. On both counts, this is an opportunity for the IMF to call for better coordination of exchange rate policy amongst the world’s major economic powers.
As the dust settles on yet another Greek election, calls for economic reform from Brussels are getting ever louder. While improving tax collection is well known to be top of the government’s to-do list, there are other urgent priorities for the administration to pursue: cutting red tape, and leading a serious inquest into the domestic factors that led to the crisis.