Selling for 7,000 tugriks, the Mongolian edition of Cosmopolitan has arrived in Ulan Bator. Stephen Colbert tells us that, “With their Cosmopolitan subscriptions, Mongolian women get half off the newsstand price, plus a free goat bladder phone.” (You can watch the entire clip here.)
Although per capita income is close to $2,000 and the ratio of livestock to people is 16 to 1, Mongolian women can shop at Louis Vuitton, Hugo Boss, Burberry and Emporio Armani at their new Ulan Bator luxury mall.
It is all about copper, gold, coal and uranium. Home of massive mineral deposits, Mongolian wealth has begun to soar. With foreign investment from the Australian-British corporation, Rio Tinto and Canadian based, Ivanhoe Mines, the Mongolian government has received $1/2 billion in taxes and fees.
Other Mongolian facts: GE has begin selling MRI equipment to Mongolian hospitals. Education? 98% literacy rate. Ease of doing business? The World Bank gives it #73 out of 183 countries. A stock market? The London Stock Exchange is managing the Mongolian Stock Exchange.
The Economic Lesson
Previously known for its nomads and high quality cashmere, now, the Mongolian economy is changing. The world wants Mongolia’s resources. In response, how will the Mongolian economy evolve?
U.S. economic development unfolded during 2 centuries.
It was fueled by:
- agriculture (early 19th century),
- capital formation (later 19th century),
- consumer goods 1st half 20th century)
- services (contemporary)
An Economic Question: As a Mongolian political leader, how would you manage the emergence of Mongolia’s economy?