Mongolian Credit Co-ops In Trouble

This report, dated September 21st, is written by Patricia Cheng of Bloomberg News for the pro-globalist International Herald Tribune.

Ever since Soviet Russian troops left Mongolia in the 90's, this land-locked nation has been selling state-owned assets - like Red China did under Deng Xaiopeng - as well as attract foreign capital for investment. As Cheng reports, the banks in this country charge higher interest for loans to small and micro-businesses. The savings and credit co-ops do not, but many are suspected of over-extending themselves.

The report also claims many credit co-ops have become rife with corruption. The government set up a commission this year to oversee these finance co-ops, as well as insurance companies. The first commissioner was murdered in June by a director of one of these suspected corrupt co-ops.

A Distributist economy and society is only as good as the morals of the people who run it. It is sad that the government in Ulan Bator, where one-third of all Mongolians live, must now step in and reign in these corrupt and failing co-ops. But the good ones who remain can only strenghten the nation's economy, and keep both Marxism and big business from making a mess of things.


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