Harry Li, MAAPPS student // Jan 24, 2015
(Picture credit to CASPER CRUZ2014)
Coal, copper, and gold are the principal reserves mined in Mongolia. Currently, Mongolia exports 80% (expected to rise over 90%) of its mining resources, accounting for 21% of its national GDP. In 2011, Mongolia has been determined to be one of the Global Growth Generators and an emerging global market with most promising growth prospects for 2010–2050. Many resource-rich countries remain poor even after heavy exports, often due to local corruption. This is commonly referred to as the ‘Resource Curse.” EITI is a global Standard promoting openness and accountable management of natural resources. It seeks to strengthen government and company systems, inform public debate, and enhance trust. As a member country, EITI aims to promote transparency in Mongolia in order to prevent the resource curse.
Aside from preventing the resource curse, there are many other benefits in complying with the EITI standard. Barrett, Liz and Okamura argue that even corrupt countries would want to join EITI because governments are concerned about their reputation with international donors and expect to be rewarded by increased aid. Their quantitative analysis demonstrates that EITI countries gain access to increased aid the further they progress through the EITI implementation stages. It takes three stages to become an EITI country: ‘Commitment, Candidacy and Compliance.’ The whole process would take over 5 years and Barrett’s analysis illustrated that the CPI (Corruption Percentage Index from Transparency International) score does improve when a country implement EITI standards overtime.
The Asia Pacific Policy Project on Mongolia mining aims to promote civil society engagement on Mongolian mining, thus improving government’s transparency and democracy building. At the moment, many Mongolian mines are unregulated and the rights of miners are not protected. More civil society engagement would pressure further proper mining regulations from the Mongolian government. In the end, Mongolia would practice‘Responsible Mining,’ benefit local citizens and truly prevent the “Resource Curse.”
I am thrilled to work on this project. I grew up in Inner-Mongolia, China, where mining projects had been a constant problem. Many mines in Inner Mongolia are unregulated with deaths occurring daily. Private mining companies exploit the land resources in cooperation with the corrupted officials. Private mining often forces relocation of Mongolian herders and rural citizens. I have witnessed accounts of Inner Mongolians protesting against mining companies. Thus, promoting the engagement of civil society in Mongolia would prevent tragedies alike.
My first task is to look at another EITI country and investigate how it engages its civil society. If suitable, Mongolia could learn and adapt its method and promote civil society engagement and transparency. I have chosen the Republic of Congo for my investigation.
Reference
David-Barrett, Liz, and Ken Okamura. “The Transparency Paradox: Why do Corrupt Countries Join EITI?.” online],< http://eiti. org/files/The-Transparency-Paradox.-Whydo-Corrupt-Countries-Join-EITI1. pdf>(accessed 9 December 2013). Oxford: University of Oxford (2013).