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Mongolia|opinion & analysis|July 15, 2015 / 11:01 AM
Slowdown in Mongolian economy remains heavily dependent on country's natural resources – Minority Rights Group International

AKIPRESS.COM - Mongolia-Ulanbator-1 Though in recent years Mongolia has been one of the fastest growing economies in the world, 2014 saw a dramatic reduction in foreign direct investment and a fall in its GDP growth rate, according to a reports prepared by Minority Rights Group International.

The slowdown in the Mongolian economy, which remains heavily dependent on the country's natural resources, has been partly attributed to concerns among foreign companies over stalled negotiations between the Mongolian government and Turquoise Hill Resources, a subsidiary of Rio Tinto, over the development of the controversial Oyu Tolgoi copper and gold mine. The multi-billion-dollar mining project, located in the south of the country, has been opposed by local herders and civil society organizations due to the destructive impact the development will have on the surrounding environment. In February 2015, however, following a national text message referendum, Mongolia agreed to further development of the mine, despite opposition from environmental groups. Pastoralist livelihoods are threatened not only by the mine itself, but also by the infrastructure connecting it to China, which runs through traditional grazing and pasture lands. Herders have consistently complained about inadequate compensation for their land.

Rising nationalism, linked in part to resentment of the role of international companies in mining and natural resource extraction, has intensified anti-foreigner sentiment in Mongolia, particularly towards Chinese nationals. This is reflected in regular incidents of abuse and even violence towards migrants, foreign minorities and visitors. In April 2014, for instance, three foreigners were attacked at a rock concert in Ulaanbaatar, while in early 2015 reports emerged of the ill-treatment of Chinese tourists by Mongolian nationalists. In May the Mongolian parliament announced that it would begin discussing anti-discrimination legislation to supplement the relevant provisions in the Constitution. However, critics have argued that the proposal does not go far enough to include a specific category for hate crimes.

Mongolia's Tuvan minority's language and culture remain under threat, despite government support and a modest subsidy. Already, growing numbers of Tuvan children are travelling to attend schools in the capital where they cannot study in their native language. These challenges are especially acute for the Dukha (also known as Tsaatan) community, a Tuvan sub-group and Mongolia's smallest ethnic minority, with fewer than 50 families remaining in the far west of the country. Nevertheless, there have been efforts to support the preservation of Dukha language and culture. In December 2014, the Mongolian National Museum premiered a documentary about Oyunbadam, a Dukha educator who established a grassroots language and culture school for Dukha children.

Mongolia's recent transition to a market economy, as well as limited livelihood opportunities in the countryside, has also driven rapid urban growth in the country's capital, Ulaanbaatar – a process that has unfortunately outpaced the development of public services and infrastructure. In certain districts more than half of the population live in ger, traditional nomadic yurts of wool and felt, in lots for which they do not hold land titles. Forced evictions continue to occur against a backdrop of rising property prices and increasing competition for space, with families evicted without consultation and communities harassed by real estate companies, which have even cut off water and electricity supplies to pressure them to leave. Ger residents also have limited access to essential services such as sanitation, education and health.

Many are families of former herders who have been pushed to the city by desertification and the harsh winters of the steppe. Following a period of extreme cold in 2010 – known as a dzud, meaning 'white death' – that resulted in the deaths of millions of livestock, thousands of herders moved into gers on the edge of the city. They continue to make up a significant proportion of those migrating to the city each year. The increasing settlement of rural and formerly nomadic Mongolians around Ulaanbaatar has contributed to the erosion of their traditional lifestyles. In addition to migration in order to find work, herders are also moving closer to markets in towns, particularly near Ulaanbaatar, because they are switching from subsistence husbandry to raising animals for sale. Many residents of poorer areas of Ulaanbaatar rely on herders for their food supply, which results in more seasonal migration to the city; a number of such in-migrants return to the countryside for the summer months.

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