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    BCM Football Cup, July 2013

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    Best company of the year 2013, MSM Co,.Ltd, from left side: B.Byambasaikhan, Chairman of BCM, David Reiner, CEO at MSM Co., LTD, Jim Dwyer, Executive Director of BCM

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    December 2013, New member companies representatives

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    BCM Board Director's meeting, February 2014

  • BCM FOOTBALL CUP 2014
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    International Coal Investors Conference and Exhibition "COAL MONGOLIA-2014"

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    BCM admin team, at the 6th year anniversary, Nov 2013

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    Signing of MoU between BCM and Oxford Business Group, Feb 2014

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    February  2014, New member companies representatives

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    Signing of MoU between BCM and Invest Mongolia Agency, March 2014, S.Javkhlanbaatar, Director of Invest Mongolia Agency, B.Byambasaikhan, Chairman, Business Council of Mongolia

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    BCM meeting with former British PM Tony Blair, March 20, 2014, from left side: Ch.Saikhanbileg, Member of Parliament, Arshad Sayed, President, Peabody Mongolia & India, Former British PM Tony Blair

  • BCM FOOTBALL CUP 2014

Mongolia needs schools and hospitals: why talk about savings?

Source: World Bank Blogs
Mongolia's mining revenues are set to soar in the coming years, but here people talk about the need to save for the future. To prevent boom-bust cycles, saving some of the revenues in good times is part of effective natural resources management.
“If natural resource booms are well managed they can be a blessing,” said Eric Parrado, former head of Chile's Economic and Social Stabilization Fund, adding, “an important general lesson is that governments should avoid temptation to spend significant temporary surpluses.”
There are four challenges Mongolia will surely have to face. The first is natural resource revenues are volatile and uncertain. They are also exhaustible, so the benefits must be made to last by transferring some (and not all) for future generations. The export of commodities such as coal and copper will have direct implications to the domestic economy to sectors other than mining. Finally, the country will have to keep corruption in check as mineral wealth often is tempting for officials looking to climb to the top.
In good years government should run a fiscal surplus for savings. That saved money can be used in the tough years preventing cuts to important areas of expenditure such as education, health and infrastructure while reducing the need to borrow and incur interest costs. Mongolia has a stabilization account and a Fiscal Stability Law limiting budget deficits, but improvements are needed. In 2012 and 2013 the government bypassed the stability law and procedures by spending off-budget.
Chile is joined by Norway, Timor-Leste, Botswana, Trinidad and others in utilizing savings for success in natural resource management. No story is perfect and in each instance policy makers muddled through, enhancing the design of their savings instruments and improving institutions in an iterative and incremental manager. Short-term and unsustainable gains versus medium-to long-term sustainable benefits are optimal, but it is up to Mongolians to decide on the trade-off: which way is best for Mongolia?

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