Mines and Minds
Mines represent Mongolia’s present, while minds - broadly defined to include people and institutions - are its future. Current policies are excessively focused on preserving the mining-driven prosperity at the risk of future stagnation. Such complacency is ill-timed when climate change concerns and the COVID-19 shock require an acceleration of structural transformation. Mongolia faces deep-rooted, interrelated challenges: macroeconomic policy mistakes have amplified external shocks, an oligopolistic ownership structure and limited competition have led firms to become more inward-looking and less inclined to innovate, and gross underutilization of human capital - evident by an unprecedented exodus of young and educated workers to foreign countries - has eroded the foundation of a diversified economy.
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| Format: | Report biblioteca |
| Language: | English |
| Published: |
World Bank, Ulaanbaatar
2020-09
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| Subjects: | VOLATILITY, MACROECONOMIC POLICY, PROCYCLICAL POLICY, PRODUCTIVITY GROWTH, MINING, HUMAN CAPITAL, NATURAL CAPITAL, |
| Online Access: | http://documents.worldbank.org/curated/en/273001600370275964/Mines-and-Minds-Leveraging-Natural-Wealth-to-Invest-in-People-and-Institutions https://hdl.handle.net/10986/34551 |
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| Summary: | Mines represent Mongolia’s present, while minds - broadly defined to include people
and institutions - are its future. Current policies are excessively focused on preserving
the mining-driven prosperity at the risk of future stagnation. Such complacency is
ill-timed when climate change concerns and the COVID-19 shock require an acceleration
of structural transformation. Mongolia faces deep-rooted, interrelated challenges:
macroeconomic policy mistakes have amplified external shocks, an oligopolistic ownership
structure and limited competition have led firms to become more inward-looking and
less inclined to innovate, and gross underutilization of human capital - evident by an
unprecedented exodus of young and educated workers to foreign countries - has eroded
the foundation of a diversified economy. |
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