For the first time, Mongolia's representative (Nyamaa Enkhbold) attended the EU-based Asia-Europe Meeting (ASEM), which is held every two years. Benito Ferrero-Waldner praised Mongolia's progress. New aid in the amount of Euro 17 million (USD 23 million) over the next three years almost doubles the earlier annual aid levels of Euro 3 million. In addition, Mongolia will enjoy duty-free access to EU markets.
On a less official note, it looks like “the beautiful people” may soon be able to get their very own Mongolian condominium. Global real estate speculation is on its way. In general, this kind of investment is built to attract foreign investors who come to the state–and is usually grossly overbuilt, becoming part of the “casino capitalism” in resource booms, and a sign of economic wilt when the boom slows down and the buildings lose occupancy.
To manage this tide, Mongolia needs to check and make explicit some specific zoning laws. So far, Mongolia's privatization of public property has been incomplete–in that the issues between traditional economies, individual rights, and income benefits have not been equalled out. Unfortunately, not everyone who travels overseas wants to immerse themselves in that state's culture. The Mongolian government should acknowledge that but also keep it in mind when granting concessions. Investors also need to beware that boom-and-bust mentality.
