Investment Articles

Darwin is a modern, vibrant city in the top end of Australia. Tourists love visiting the top end with its best fishing, National Parks and thousands of years of indigenous culture. Darwin NT has a harbor size six times larger than Sydney harbor with 39 cruise ships visiting per year. It has a well advanced convention centre that hosted 94 conventions since its opening in June 2008. Also there is a top class international airport accommodating 2 million passengers per year which can be expanded to 40 million. This capital city with both territorial and unitary administration offers a multi-level economy and a vibrant multicultural youth population. Army, navy, air force and northern command are there for the protection of the country. Darwin boasts the serving of the best food in the nation. These factors provide the basis for well-paid tenants. So, if you are a potential investor looking forward to get rich from property investing, Darwin would be a sure place to consider.

Real estate has always been attracting millions of investors who work hard to make profit. There have been a lot of changes in real estate trends in this rapidly changing world. For instance it was once believed that people who want a big future in Australia must relocate to Sydney or Melbourne but now the statuesque has changed. Darwin NT is gaining wide popularity and importance. Darwin is about to boom in economic, infrastructural and business opportunities and of course investing in property there will benefit the people with immense profits when the boom occurs. There is solid evidence to prove that Darwin is going to be an economic hub in Australia within a short timeframe.

There are a lot of factors that can be considered as the basic indicators for Darwin’s growth into an economical and business hub and right now there is an oil and gas boom.

The Darwin port is a major one. It provides access to the wide markets of Asia and thus Darwin becomes Australian investors’ gateway to the Asian economy. The latest statistic put Darwin at a population growth of 2.2%, which is the third highest rate in Australia. The fully fledged infrastructure of the port city includes investments from companies such as inpex, prelude, abattoir, Darwin gaol and includes housing construction and a marine supply base. The unemployment rate here is only 3.7% which is the lowest in the country and there has been a great increase in the residential buildings approval by 10.3%. These facts will ensure that Darwin is going to be a great business centre where lots of investors across the world are flocking to and you can be assured that it will be profitable to invest in property in Darwin.

Darwin is the focus of much attention as there are still more factors which makes this port city the best place to make your investment. There are large investors currently focusing on iron, gas, coal, petroleum, phosphate and gold, a great sign for the city’s industrial development. Huge developments are taking place in the rail and road transportation facilities. Also, the government is supporting commercial estates which will have a great role in the economic development and growth of the region. The Wickham industrial estate and the Darwin business park are top class in this area.

As with any investment it is advised to get professional advice from a financial planner and seek assistance form a trusted mentor before you invest in any property that goes without saying and the advice you will be given is to do your homework and any probable problem that you feel you may encounter such as fire, damage, loss of rent and cyclones and factor these into your investment strategy. This also includes the possibility of job loss, and to efficiently tackle these risk factors, you should look for expert advice on investing in property. You should have a thorough understanding of the secrets and benefits of the investment. It would be essential for you to get a mentor to assist you in the investment. As mentioned above, Darwin will surely become an economic hub connecting Australian and Asian economies, which in turn result in a huge foreign investment at Darwin port. So, if you are looking forward to get rich from property investing, Darwin NT will be a promising city.

Australian Property Investment Mentor Elly Graham has available free market updates and Property Investment Magazine Subscription.

If you would like more information about creating long term wealth through investing in rental properties and saving through property invesmtnet tax provided by Australian Property Investment mentor Elly Graham you can visit her website where she provides free advice and an opprtunity to subscribe to her Property Investment Magazine. You will find good information on how to retire young through smart investing for early retirement if that is what you desire. Good luck with your goals and plans for your financial freedom.

Here we list some of the best investment ideas and tackle the challenge of finding the best safe investments for 2012. What might appear to be one of the best investment ideas to the uninformed could turn out to be one of the worst.

Looking at the big picture for investment ideas in 2012, moderation in asset allocation and a balanced investment portfolio will be the most basic key to success. There are 4 asset classes, and average investors need to spread their money across at least the first three to keep their overall portfolio risk moderate. The 4 categories in asset allocation are: safe investments, bonds, stocks and alternative investments like gold and real estate (optional). Asset allocation can be simplified, because there are mutual funds available to average investors that represent each of the 4 asset classes. Now let’s get more specific about the best investment ideas for 2012 starting with safe investments.

Safe investments earn interest and do not fluctuate in price. You will need to look outside of mutual funds in 2012 to find the best safe investments because record low interest rates have taken yields on money market securities (and hence money market funds) down to just about zero. One of the best investment ideas if you have an account with a discount broker or major mutual fund company is to shop for one-year CDs paying higher rates if you can’t get competitive rates from your local bank. Do not tie your money up for longer periods just to earn a little more interest. One of these days interest rates will go back up and you will be locked in at a lower rate and face penalty charges if you cash in early.

Finding the best safe investments will be truly challenging in 2012, but here are some more investment ideas. If you are in a retirement plan like a 401k that has a fixed or stable account option do not overlook it. You can often get a much higher interest rate there (maybe 4% to 5%) than anywhere else outside of your retirement plan. If you own an older retirement annuity or universal life insurance policy, it might have a fixed account you can add money to that is guaranteed to never pay less than 3% or 4%. Remember, truly safe investments like U.S. Treasury bills and bank money market and savings accounts are paying WAY LESS than 1%!

Over the past 30 years bonds and bond funds have become a favorite with investors because they have been consistent performers and returned on average about 10% per year… basically about equal to what stocks have returned, but with considerably less risk. Many investors have fallen in love with their bonds funds and consider them to be among the world’s best safe investments. Bond funds are NOT safe investments. They have performed well since 1981 (when interest rates and inflation were at record highs) for one primary reason. Both inflation and interest rates have been falling for 30 years, which has sent bond prices higher. Loading up on bond funds now is NOT one of the best investment ideas for 2012. In fact, it is one of the worst investment ideas.

When interest rates and/or inflation turn around and head upward bond funds, especially those that hold long-term bond issues, will be losers. That’s how bonds work. One of the very best investment ideas for 2012 is to sell your long-term bond funds if you own any, and switch to funds holding bonds with average maturities of about five years. These are called intermediate-term bond funds; and average investors should have some money invested here as part of their asset allocation strategy to add balance to their investment portfolio. These are not truly safe investments, but they are much safer than long-term funds.

My best investment ideas in the stock department focus on stock funds. Do not go heavily into the more aggressive funds that invest primarily in growth and/or small company stocks. These pay little if anything in dividend income and tend to be more risky and volatile than the average stock fund. Go with funds that invest in high quality large-company stocks with excellent dividend paying histories. Look for funds that are paying 2% or more in dividends. One of the best investment ideas for 2012 and beyond: invest in no-load funds with low yearly expenses. No-load means no sales charges, and low expenses mean higher net returns to the investor.

Alternative investments include the likes of real estate, gold and other precious metals, natural resources, commodities, foreign investments and so on. One of the best investment ideas for managing a truly balanced investment portfolio is to include this fourth asset class as well. The simplest way for the average investor to add these alternatives to their portfolio is with mutual funds that specialize in these areas or sectors. My best investment ideas here: don’t go heavily into any one area, and don’t chase after a sector (like gold) just because it’s hot. Real estate and natural resources funds would be my picks as two of the best investment ideas in the alternative investments asset class.

Moderation and diversification across the asset classes will be the key to asset allocation in 2012. I have also listed some specific best investment ideas for keeping the average investor in the game and out of serious trouble should the investment scene turn ugly. Above all else memorize this: long-term bond funds are not among the best safe investments for 2012. They are not safe investments, period.

Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim’s 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com. Learn how to invest.

Earlier this month, Nepal announce that it will unveil 50 projects from foreign investments at the Nepal Investor Forum in 2012. Forestry is one of the areas these foreign funds will be directed.

Around the same time, People’s Daily Online reported that a total of $1.5 billion of foreign loans and grants have been invested in China’s forestry sector between 1985 and the end of 2010. According to the Sate Forestry Administration, the foreign investments, along with domestic funding of 8.7 billion yuan (about $1.37 billion) have resulted in 5.82 million hectares of afforestation.

Forestry funds, however, have to be careful and anticipate some challenges when dealing with initiatives overseas — lack of transparency, local political and economic conditions and corrupt practices. All of these can jeopardise the overall project performance, efficacy and, subsequently, investor returns.

Forestry investments are lon-term investments. Therefore, an effective and transparent monitoring and performance evaluation system is essential. It will continuously follow the financial as well as strategic development of the project, while making sure that the investment is, indeed, working and returning revenue. Reputable financial and auditing consultancies need to be involved, so that they can stingently evaluate and report back to investors on the state of the assets and the financials of the corporation.

When investing in a foreign country, there are external factors, which can influence project performance and evaluation and tamper with transparency. One of these factors is local politics, which can meddle with forestry management to a high extent. Some forests are state-owned. In the case with China, all forests are owned by the government. This means, more often than not, government interests are involved in the monitoring and reporting process, and larger political goals can result in asset misrepresentation. In a global economic recession, fear of losing foreign investments can force governments in developing countries to put pressure on local project management to misrepresent facts and figures. This misleading practice creates a snowball effect and, by the time the fraud is unveiled, investors could have lost millions.

Aside from political interests, the current state of the economy in the particular country can also play a role in forestry project management and regulations. Instability and currency volatility can cause asset values to fluctuate, making evaluation and reporting quite challenging.

And last, but not least, corrupt practices are also not unlikely in developing economies. They can severely compromise the effectiveness of the forestry operations. At the same time, greed and subsequent misuse of position and power at the highest level can rise, just as it has been observed in the last few years with corporations in some developed economies.

Investing in forestry funds overseas can be rewarding — not only monetarily, but also ethically. Many forestry projects provide jobs and income for local communities in the developing countries, thereby helping their sustainability. So when forestry projects are not functioning properly, the lives of indigenous communities are adversely affected.

Therefore, forestry funds have to use extra precaution when they put investor money in projects overseas. Commissioning an independent evaluation by a trusted third party, which is not fiscally tied to the particular forestry project, is important at the pre-investment stage as well as periodically thereafter.

Much of the confidence in Brazil investment opportunities comes from the perception that Brazil has a strong government led by determined leaders. President Dilma Rousseff is one such leader and this week, she captures takes the spotlight on the international stage.

Dilma’s higher than usual profile this week is US-based. The Brazilian President features on the front cover of Newsweek in its American edition and Dilma will the first woman head of state to open a United Nations General Assembly. In addition, she will receive the Woodrow Wilson Public Service Award.

This stream of accolades comes as recognition of Dilma’s decided leadership of Brazil, currently a leading light in times of global uncertainty. Dilma’s international acknowledgment will also serve to further corroborate Brazil as a destination for some of the best investments for 2011, particularly when it comes to political and economical security.

Brazil in Control

Newsweek, under the title “Don’t mess with Dilma”, details the President’s personal and political life. The article emphasises Brazil’s economic growth and Dilma’s part in this. The recent visit by Barack Obama when he referred to Brazil and the US as “equal partners” and Dilma’s inauguration of the UN General Assembly confirm Brazil’s presence in the world arena.

When asked what differentiates her country from the rest of the world, the Brazilian President highlights Brazil’s strong political and banking controls. For Dilma, these controls mean Brazil can counteract slower economic growth or even global stagnation, unlike many other countries.

Recent statistics back this theory – Brazil barely suffered the effects of the 2008 global recession and currently has record levels of employment and middle class growth. Direct foreign investment in Brazil is also seeing the highest rates ever with private investment in equity at the top.

The latest Ernst & Young Capital Confidence Barometer Brazil recently concluded that when it comes to Brazilian investment opportunities, “the pluses far outweigh the minuses”. This sentiment is echoed by foreign companies active in Brazil, many of whom have noted that 2011 has been a year with intense investor interest and activity.

Centre Stage

In addition to her front cover presence, Dilma is also receiving the prestigious Woodrow Wilson Public Service Award. For Jane Harman, CEO of the Woodrow Wilson Center, “President Rousseff’s story has inspired millions of women throughout the world to reach for leadership”.

Shortly after receiving the award, Dilma will open the General Assembly at the UN in New York where she will be the first female head of state to do so. After just nine months as President of Brazil, Dilma is proving to be an immensely influential leader, capable to leading her own country and others. Brazilian investment is undoubtedly in safe hands.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as social housing, residential real estate and construction. Obelisk gives investors security, profitability and diversity thanks to a combination of close attention to our clients’ investment requirements and high quality in-house research and analysis.

For more information on Brazilian investments and to find out about Obelisk International’s latest opportunities for investment in Brazil, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com. Follow us on Twitter – @obeliskinvest and Facebook. Join the Obelisk International network on LinkedIn.

A big investment pitfall can be summed up in one word: greed. A major challenge when investing in stocks, ETFs or mutual funds is to remain with a working system, a methodology that produces results.

Too often new or even experienced investors get caught up in the “investing game”, the hype about what can be, the success story flowing from some sensational, but self-promoting newsletter or advertisement. There are dozens of ways to invest in the markets, not just stocks or ETFs or mutual funds, but using options or margin, buying and selling commodities, are amongst the many.

The key, as I have previously written, is to learn what suits you best and then to stick with it. Find a software program that works for you, based on your available time and the amount of risk you can afford.

Too often situations crop up that tempt you to sway from your path. These temptations can be:

• A friend telling you about new ways to invest money• Volatile markets in which you aren’t recording gains but advertisements make it seem like going a different direction will make you bundles of dough• Publicity and reports about new trends, like technology or foreign investments that tempt you to change course or even abandon your present methods

This doesn’t mean that there are not other methods to investment your money; it just means it is not a simple as the promoters or friends make it out to be. Switching tactics takes time to properly figure and evaluate the best tactics. Switching to totally new types of investments or investing styles can involve weeks and months of learning and studying.

So the question becomes: is it worth the time? Are the tradeoffs worth it?

If the methods you are using for investing are not working when everyone else is making money then, yes, you need to re-evaluate. But if your current methods do work, then perhaps they just need to be tweaked to make more money or perhaps the grass is not greener on the other side of the hill and you should stick with what you have.

If you are not satisfied with the results of a particular software program or you must work to make it work with your lifestyle then, yes, start looking for another investment software program. Don’t be afraid to contact your current software provider or any new one to see if you can do better with the program; in other words are there ways to boost performance that you may not know of but the authors are willing to share?’

Simply switching to new ways or places to invest can cost you money because of lost time and investment losses while you are learning so proceed cautiously and ask lots of questions.

Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana. View his software at: http://www.dynamicinvestorpro.com

Foreign funds, particularly dollars, have been pouring into Brazil this year. The record influx indicates that investment in Brazil is seen as a safe haven for funds.

Brazilian investment ranked fifth in the world in 2010 for foreign direct investment (FDI). Amounts this year appear to be increasing on 2010. Flows of FDI into Brazil during the first six months of this year were the highest since 1947 when the Brazilian Central Bank records began.

Foreign investment in Brazil from January to June totalled US$32.5 billion, 67% of the total FDI in 2010. The business magazine Istoe Dinheiro attributes the rise in foreign funds to the forthcoming World Cup and Olympics plus big investment in Brazil’s oil and gas industries.

Investment Oasis

Against a background of global economic uncertainty, investment in Brazil is seen as an opportunity. Istoe Dinheiro calls Brazil “an oasis in the midst of the global drought”, a perception shared by many foreign investors, particularly because Brazil represents such good investment potential across a wide range of options.

These options encompass equity, commodities, agriculture and real estate in Brazil offering timescales for every portfolio. Funds for short-term investments are attracted to Brazil because of the profits to be made on high interest rates. Long-term investments find appeal in Brazil’s expanding consumer market.

Brazilian investment is also perceived as a safe haven from doubts over US debt and the second Greek bail out. The buoyant Brazilian domestic market with its fast-growing middle classes is a magnet for consumer-orientated investment and Brazil’s strategic position in Latin America brings many other emerging markets such as Chile, Colombia and Peru within easy reach.

Brazilian Investment Abroad

Parallel to the huge influx of FDI into Brazil is Brazilian investment abroad, also experiencing record levels. Central Bank statistics reveal a massive increase this year – from January to July, Brazilians invested US10.53 billion outside Brazil, 91% of the 2010 total. Total Brazilian assets abroad are expected to reach US$300 billion by the end of this year.

Most Brazilian investment outside Brazil is direct participation in foreign companies, followed by equity and portfolio investment. Perhaps surprisingly given the booming Brazilian property market is the size of real estate investment by Brazilians abroad. The largest group of foreign buyers of real estate in Miami are Brazilians who are buying 9% of property there.

For international investment experts, the latest FDI figures for Brazil are indicative of the country’s consolidation as an investment destination. Against a background of global economic insecurity, many analysts expect to see further investment in Brazil and other solid emerging markets. The phenomenon of bigger Brazilian investment abroad is seen as a sign of greater Brazilian wealth and of Brazil’s increasingly important international presence.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as residential real estate, construction and social housing. Obelisk gives investors security, profitability and diversity thanks to a combination of close attention to our clients’ investment requirements and high quality in-house research and analysis.

For more information on Brazilian investments and to find out about Obelisk International’s latest opportunities for investment in Brazil, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com. Follow us on Twitter – Obelisk International and Facebook.

The EB-5 Investor green card has been introduced with the aim of attracting more foreign investments and creating and preserving jobs in the US. The green card through investment, also known as Fifth Preference, is attainable to those persons who make investments of a certain amount of money, which would have an ameliorating effect on the US economy and would also open up a predetermined number of jobs benefiting qualified personnel within the country.

The amount of the venture capital varies depending on the nature of business it is invested into. Investments of 1 million dollars or more in a new business or aggrandizing an existing business which employs at least 10 US workers are qualified for filing for the EB-5 Investor Visa.

Direct investments of $500,000 or more in certain “targeted employment areas” are also qualified for filing for the EB-5 investor visa. This investment can be utilized to either set up a new business or to purchase and reconstitute an existing business which employs 10 full time US workers. One important detail to be noted here is that family members of the investor cannot be counted among the 10 US workers. If the existing business happens to be a debilitated one, then one may be exempted from the employment requirement of creating 10 jobs.

An interesting feature about the green card through investment is that several investors can join together to create or acquire an existing business. In such a case each investor will qualify for a green card through the single business, although the individual investments of each investor cannot be less than the minimum eligible amount. The number of new jobs to be created then would be the number of investors multiplied by ten.

The investments are to be held in the US for a minimum period of three years. The investor will be subject to US taxation even on his income from other parts of the world. The investor also requires special permission if he needs to remain outside the US for more than one year at a time.

The source of the investment funds can come from any legal foreign or US source. This includes gifts, loans, trusts and even divorce settlements. Investment funds that are borrowed qualify as long as they are not secured through the assets of the EB-5 investment business,

The green card through investment grants permanent residency to the spouse and the offspring (unmarried and under 21 years of age at the time of filing for EB-5 Visa.) of the applicant. This further gives one the option to live, work and retire in the United States. College and University education of the offspring can be availed of at the same cost as for US residents. An investor approved for the EB-5 Visa receives a conditional green card. The only difference between a normal green card and the EB-5 approved green card is that the latter needs to be revalidated or reissued every two years.

Foreign investment in Brazil in 2010 was the fifth highest in the world. Within South America, Brazilian investment is the main focus for foreigners.

In the latest World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD), Brazil lies in fifth position in terms of the world’s top host economies. Ahead of Brazil in investment are the US, China, Hong Kong and Belgium.

With US$86 billion last year in foreign investment, Brazil has climbed ten places up the global ranking, this clearly indicating Brazil’s higher profile among investors, which is being reinforced this year. According to UNCTAD, foreign direct investment (FDI) into Brazil from January to April this year reached US$23 billion, three times higher than the same period in 2010.

Biggest Player in South America

South America was a magnet for FDI in 2010 when investment levels were 56% higher than the previous year with Brazil attracting the bulk of foreign interest. According to UNCTAD, there was an “unprecedented surge of investment” in Brazil and Latin America as a whole from developing Asian countries, particularly China and India.

FDI inflows to Brazil were concentrated in two main areas – equity capital and the manufacturing sector. Equity capital investment in Brazil doubled during 2010 and FDI into manufacturing grew by 16%. Substantial amounts of foreign equity capital have entered Brazilian real estate funds, which have grown 355% since 2004.

Investment in Brazilian equity capital has continued to be strong during 2011. Intra-company loans have also attracted high levels of FDI along with Greenfield projects. UNCTAD expects FDI to remain buoyant during the rest of this year.

Investment by Brazilian companies abroad was also strong in 2010 when outflows reached US$11.5 billion. Acquisitions in developed countries by household names such as Vale, Gerdau and Petrobras made up the core of Brazilian investment overseas.

Emerging Markets New Powerhouses

UNCTAD highlights the growing importance of emerging markets for both inflows and outflows of FDI. The report finds that these new markets are increasingly dominating levels of FDI globally. This tendency mirrors the world economy where emerging markets gradually account for higher percentages of economic growth.

The report states that in 2010, “developing and transition economies together attracted more than half of global FDI flows”. The rise in FDI leads UNCTAD to call emerging markets “new FDI powerhouses”, an opinion shared by many analysts given the economic strength and booming consumer markets in countries like Brazil, India and China. Brazil is expected to continue to feature among the world’s top five nations for investment over the next few years.

About Obelisk International: Obelisk International offers select investment opportunities in Brazil in a range of sectors such as residential real estate, construction and social housing. Obelisk gives investors security, profitability and diversity thanks to a combination of close attention to our clients’ investment requirements and high quality in-house research and analysis.

For more information on Brazilian investments and to find out about Obelisk International’s latest opportunities for investment in Brazil, contact us on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com. Follow us on Twitter – Obelisk International and Facebook.

Investment is the best strategy to secure your finances, specially when recession is ready to rock your boat. The unrelenting negative economic news of past two weeks have painted a grim picture of global finances. Recession predictions have started proliferating faster than reality shows. It’s the indication to make a shift in your investment decision, and think differently; rather smartly.

Following are some core investment strategy to encounter the negative effects of recession:

Stocks

Recession is a part of economic cycle. It can be considered as a natural part of growth, wherein the cycle comes to rest and creates a breathing room for economy to regain its strength. If you are smart enough and have a long term investment plan, recession can be one of the best opportunities for buying stocks.

Foreign currency exchange

From investors point of view, investing in foreign currency is a very attractive option. Such investments offer diversification as the individual currencies have low correlation amongst themselves, and in general they also do have low correlation with other asset classes. There are different ways to diversify into foreign currency, and the most recommended is Forex Investment Market.

Equity in other countries

Investment on other countries whose economy is more independent, makes a sense during recession. Such investments can be helpful for investors hoping to diversify their business portfolios. The Asian markets are least correlated to the U.S. stock market globally, and unfurls a great opportunity for foreign investment.

India is amongst the most preferred destinations for global investors. The country in the past has shown great resilience during the global meltdown which started in USA in 2007. Investing in India can be a wise decision because of the encouragement provided government of India to the foreign investors. FDI (Foreign Direct Investment) initiatives and liberal foreign investment policies makes India the destination of choice for global investors.

Real estate

Real estate can be one of the major investments during the tough time of recession. During the time of financial uncertainty, it is recommended to focus on attaining cash-flow from the investment made in property rather than appreciation.

Investment in gold

Gold is a proven, quality, long term asset with universal acceptability. The precious metal serves as a wealth store during a slide into deep crisis. Buying gold purely protects the wealth and tend to multiply the investment with the passage of time. It has been observed that value of gold has been constantly rising in recent months as many investors are spooked with the fear of inflation and financial turmoil.

http://finance.indiamart.com/

The land feared by many because of their aggressive horseback riding nomadic warriors led by the great Mongol Emperor Genghis Khan back in 13th Century which nearly occupied the most of central Asia has gone through several economic reforms past few years.

This landlocked country, sandwiched between People’s Republic of China and Russia, has a population of approximately of about 2,736,800. The country popular for its nomadic population where the per capita income of approximately $3,300(2010 est.) has moved from state controlled economy to free market economy after the downfall of Soviet Union.

Although, this landlocked nation situated in the steppes with only one trading partner, China, which received three fourths of Mongolia’s exports where most of the trades was controlled by China is now trying to reduce its dependence on the Chinese Market.

With its vast mining resources, Mongolia has projected itself as an emerging market in the mining industry among other Central Asian states. “In October 2009, the government passed long-awaited legislation on an investment agreement to develop Mongolia’s Oyu Tolgoi mine, considered to be one of the world’s largest untapped copper deposits” (CIA factbook).

However, for this emerging nation one of the biggest hurdles in its mining development has been lack of proper infrastructure, namely transportation. To overcome this development issue and develop its mining industry, Mongolian Government has recently set up a Development Bank under the supervision of Development Bank of Korea and Development Bank of Japan.

The reason behind this establishment is to improve its railway network to open up its vast mining resources thereby creating job market for the local unemployed population. With an aim to attract foreign investments, the Development Bank of Mongolia has planned to issue 800bn (in Tugriks) government bonds, which is equivalent to US $700,000,000, to build its railway industry to further explore the mining area. The bonds being issued are rated “B1 by Moody’s which is below the investment grade.”

However, with rising foreign investment, recent contract with US and Japan Government to establish a newer international airport and development of the mining industry, Mongolian government expects that the average Mongolian is expected to become wealthier than the average Shanghainese by 2014 due to a proposed sharing of equity to all Mongolian nationals in state-owned assets due to be privatized at that time.

Similarly, the recently established Mongolian Stock Exchange has been going through several reforms with the help of London Stock Exchange and Hong Kong Stock Exchange. This overall restructuring of country’s economic outlook is giving Mongols hope for better financial future.

The Emerging Market Scholar

http://www.pennysniff.com