Mongolia’s over-reliance on natural resources has put a strain on its economy, and a deal with the IMF offers the best hope of easing the country’s budgetary pressures. Jacopo Dettoni reports.

The collapse of commodity prices continues to drag down the Mongolian economy, though an IMF loan could provide a short-term solution.

Faced with a highly nationalistic electorate, particularly where China is concerned, resource-rich Mongolia has introduced a new foreign investment law aimed at protecting its natural assets. However, as its recent dispute with state-owned Chinese firm Chalco shows, the results could damage the country's international reputation.

Across central Asia, from China to Kazakhstan, economies are set to benefit from the re-opening of trade routes along the historic Silk Road. Significant investment has already been made to improve the infrastructure along the route, but further investment, more cohesion between the central Asian countries involved and more politically stability in the region as a whole is needed if this great passageway between Asia and Europe is to return to its former glory.