IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Managing Mongolia’s resource boom

  • Asel Isakova

    (EBRD)

  • Alexander Plekhanov

    ()

    (EBRD)

  • Jeromin Zettelmeyer

    (EBRD)

With two very large mining projects expected to reach full production this decade, Mongolia is entering a commodity boom. History teaches us that commodity revenues offer unique opportunities for development but can also depress long-term economic prospects by increasing macroeconomic volatility, reducing incentives to invest in physical and human capital and undermining economic and political institutions. This paper surveys what Mongolia can do, building on reform steps it has already taken, to avoid a “resource trap”. It argues that (i) cash transfers to the general population should be linked directly to the performance of the underlying mining assets to create a domestic constituency for good governance in the mining sector; (ii) social spending should be de-linked from resource revenues, better targeted and fully incorporated into the budget; (iii) macroeconomic volatility could be reduced by operationalising the fiscal stabilisation fund, issuing GDP-indexed debt instruments, and through financial sector reforms; and (iv) major infrastructure and industrial development projects should seek private sector co-investments to ensure that public money is well spent.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ebrd.com/downloads/research/economics/workingpapers/wp0138.pdf
Download Restriction: no

Paper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 138.

as
in new window

Length: 36 pages
Date of creation: Jan 2012
Date of revision:
Publication status: Published in Working papers 138, European Bank for Reconstruction and Development
Handle: RePEc:ebd:wpaper:138
Contact details of provider: Postal: One Exchange Square, London EC2A 2JN
Web page: http://www.ebrd.com/pages/research/publications/workingpapers.shtml

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Emmanuel Skoufias & Vincenzo Di Maro, 2008. "Conditional Cash Transfers, Adult Work Incentives, and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 935-960.
  2. Cally Ardington & Anne Case & Victoria Hosegood, 2007. "Labor supply responses to large social transfers: Longitudinal evidence from South Africa," Working Papers 59, Economic Research Southern Africa.
  3. Alzúa, María Laura & Cruces, Guillermo & Ripani, Laura, 2012. "Welfare Programs and Labor Supply in Developing Countries: Experimental Evidence from Latin America," IZA Discussion Papers 6959, Institute for the Study of Labor (IZA).
  4. Martin Wittenberg, 2002. "Job Search In South Africa: A Nonparametric Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 70(8), pages 1163-1196, December.
  5. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
  6. Guriev, Sergei & Kolotilin, Anton & Sonin, Konstantin, 2008. "Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data," CEPR Discussion Papers 6755, C.E.P.R. Discussion Papers.
  7. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
  8. Erik Berglof & Yevgeniya Korniyenko & Alexander Plekhanov & Jeromin Zettelmeyer, 2010. "Understanding the Crisis in Emerging Europe," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(6), pages 985-1008, September.
  9. Eduardo Borensztein & Olivier Jeanne & Paolo Mauro & Jeromin Zettelmeyer & Marcos Chamon, 2005. "Sovereign Debt Structure for Crisis Prevention," IMF Occasional Papers 237, International Monetary Fund.
  10. Amin, Mohammad & Djankov, Simeon, 2009. "Natural resources and reforms," Policy Research Working Paper Series 4882, The World Bank.
  11. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-26, October.
  12. Alexander Plekhanov & Sergei Guriev & Konstantin Sonin, 2009. "Development based on commodity revenues," Working Papers 108, European Bank for Reconstruction and Development, Office of the Chief Economist.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ebd:wpaper:138. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Olga Lucas)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.