Liberation Without a Theory
- Amar Adiya
- 6 minutes ago
- 3 min read
Mongolia's prime minister is deregulating with one hand and directing with the other. The question is whether he knows the difference.
Prime Minister Nyam-Osoryn Uchral arrived in office with the vocabulary of an economic reformer. His flagship Business Freedom Bill, tabled recently, promises to cut state-issued permits, extend license validity, allow foreign retail banks to operate in Mongolia for the first time, and offer 20-year tax stabilization to large investors. There are mixed reactions of enthusiasm and cautiousness.
The caution stems from a pattern that has become visible within months of the Uchral government's formation. When the cabinet evaluated bids for the Borteeg section of the Tavan Tolgoi group of coal deposits, it set a threshold demanding a 70 percent return to the state and up to $1 billion upfront.
Chinese giants Baowu and China Energy, among the world's largest mining companies, failed to clear the bar in spite of offering a 51 percent return with $1 billion upfront payment.
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