Monday, January 23, 2012

Collusion in Mongolia

Mongolia is in the midst of a mining boom, with big copper, gold and coal reserves. It will likely fall victim to the resource curse, sometimes called the paradox of plenty, that resource-rich countries tend to be worse off than their neighbors. This is caused by a variety of factors, including mismanagement and corruption caused by political populism, promising government payoffs in exchange for votes.

To combat this, the major parties in Mongolia have agreed on a "no handouts" policy. I suspect it will last as long as Newt Gingrich's pledge not to attack his fellow Republicans.

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