{
  "title": "From Natural Resource Boom to Sustainable Economic Growth: Lessons for Mongolia",
  "publication": "IMF Working Papers, April 30, 2015",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/from-natural-resource-boom-to-sustainable-economic-growth-lessons-for-mongolia-42851",
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  "summary": "Some resource-rich developing countries are in the process of harnessing immense mining resources towards inclusive growth and prosperity.",
  "sections": [
    {
      "heading": "Summary and context",
      "content": "- Some resource-rich developing countries are in the process of harnessing immense mining resources towards inclusive growth and prosperity.\n- Tapping into natural resources can be challenging because of:\n  - large front-loaded investment,\n  - volatile capital flows,\n  - exposure to global commodity markets.\n- Public investment is needed to remove often-large infrastructure gaps and unlock economic potential.\n- Excessively rapid fiscal outlays can push the economy to its limit of absorptive capacity and increase macro-financial vulnerabilities.\n- This paper applies a structural model-based approach to analyze macroeconomic impacts of different public investment strategies on fiscal and non-fiscal variables."
    },
    {
      "heading": "Methodology",
      "content": "- The analysis utilizes a structural model-based approach.\n- The model evaluates macroeconomic impacts of different public investment strategies on key variables such as:\n  - debt,\n  - consumption,\n  - sovereign wealth fund,\n  - real exchange rates.\n- The model is applied to Mongolia as a case study."
    },
    {
      "heading": "Main findings",
      "content": "- Fiscal policy adjustment is required to maintain macroeconomic and external stability.\n- Moderating infrastructure investment is necessary to avoid exceeding absorptive capacity and to limit macro-financial vulnerabilities.\n- Optimizing investment efficiency is needed to boost long-term sustainable growth for Mongolia."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Moderate the pace of infrastructure investment to align with the economy’s absorptive capacity.\n- Optimize investment efficiency (improve the efficiency level/index of public investment projects).\n- Implement fiscal policy adjustments and fiscal consolidation where appropriate to support debt sustainability and stability.\n- Use a sovereign wealth fund and other fiscal instruments prudently as part of managing resource revenues and macroeconomic stabilization.\n\n---\n\n Content in this bundle\n\n- wp1590\n  - wp1590 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1590 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/from-natural-resource-boom-to-sustainable-economic-growth-lessons-for-mongolia-42851"
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    "Authors: Pranav Gupta, Grace B Li, Jiangyan Yu",
    "Published: April 30, 2015",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475570632.001",
    "Some resource-rich developing countries are in the process of harnessing immense mining resources towards inclusive growth and prosperity.",
    "Tapping into natural resources can be challenging because of:",
    "Public investment is needed to remove often-large infrastructure gaps and unlock economic potential.",
    "Excessively rapid fiscal outlays can push the economy to its limit of absorptive capacity and increase macro-financial vulnerabilities.",
    "This paper applies a structural model-based approach to analyze macroeconomic impacts of different public investment strategies on fiscal and non-fiscal variables.",
    "The analysis utilizes a structural model-based approach.",
    "The model evaluates macroeconomic impacts of different public investment strategies on key variables such as:",
    "The model is applied to Mongolia as a case study.",
    "Fiscal policy adjustment is required to maintain macroeconomic and external stability.",
    "Moderating infrastructure investment is necessary to avoid exceeding absorptive capacity and to limit macro-financial vulnerabilities.",
    "Optimizing investment efficiency is needed to boost long-term sustainable growth for Mongolia.",
    "Moderate the pace of infrastructure investment to align with the economy’s absorptive capacity.",
    "Optimize investment efficiency (improve the efficiency level/index of public investment projects).",
    "Implement fiscal policy adjustments and fiscal consolidation where appropriate to support debt sustainability and stability.",
    "Use a sovereign wealth fund and other fiscal instruments prudently as part of managing resource revenues and macroeconomic stabilization.",
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