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Avoiding the "Resource Curse" in Mongolia

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  • Theodore H. Moran

    ()
    (Peterson Institute for International Economics)

Abstract

Located in north central Asia, Mongolia is on the verge of an economic boom as foreign investors extract and exploit its rich deposits of natural resources, among them copper, gold, and coal. But the onset of a mining boom in Mongolia has also generated widespread concerns about the potential damage to traditional agriculture and the environment, the lack of infrastructure and water resources, and the dangers of increased economic inequality, inflation, fiscal instability, corruption, and lack of transparency. The reelection of President Tsakhiagiin Elbegdorj on June 26, 2013, provides an opportunity to reassess how the country has fared in dealing with the mining boom and identify the best policy options to avoid the "resource curse."

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Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB13-18.

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Date of creation: Jul 2013
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Handle: RePEc:iie:pbrief:pb13-18

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  1. Theodore H. Moran, 2011. "Foreign Direct Investment and Development: Launching a Second Generation of Policy Research: Avoiding the Mistakes of the First, Reevaluating Policies for Developed and Developing Countries," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6000.
  2. Ian Bannon & Paul Collier, 2003. "Natural Resources and Violent Conflict : Options and Actions," World Bank Publications, The World Bank, number 15047, October.
  3. Asel Isakova & Alexander Plekhanov & Jeromin Zettelmeyer, 2012. "Managing Mongolia’s resource boom," Working Papers 138, European Bank for Reconstruction and Development, Office of the Chief Economist.
  4. Robert S. Pindyck, 2009. "Sunk Costs and Risk-Based Barriers to Entry," NBER Working Papers 14755, National Bureau of Economic Research, Inc.
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