Whose resources are they anyway? ‘Development assistance’ and community development agreements in the Mongolian mining sector

Abstract

This is a case study of ‘development assistance’ that demonstrates how the interests of the supposed beneficiary of such assistance – Mongolia – were discarded as soon as there appeared to be the slightest risk that, if served, those interests might have jeopardized the economic or political interests of the donor country (Switzerland) and/or those of its (Western) trading partners and their mining corporations. Donor interests were deemed to be put at risk by a government and donor sponsored research report that made a case for strengthening mining legislation pertaining to community development agreements in Mongolia. The offending research report also challenged the establishment view of the aetiology of the ‘resource curse’, emphasizing the predisposing conditions established by neoliberal design and international financial institutions and the roles of foreign mining corporations, which are rarely mentioned in conventional accounts. The case provides further evidence for the view that Western ‘development assistance’ rendered by state capitalist ‘democracies’ (and others) is first and foremost designed, directly or indirectly, to serve the interests of the countries providing such ‘assistance’ and that development rhetoric and practice is intended to create an impression of altruism where, in reality, little or none exists.