Mongolia’s Proposed Sovereign Wealth Fund in the Broader Fiscal Framework
The government of Mongolia has presented the creation of a new sovereign wealth fund designed to invest in domestic assets, to be managed in whole or in part by state-owned mining enterprise Erdenes Mongol. This new fund will supplement existing extrabudgetary institutions with various macroeconomic and industrial policy objectives, namely the Development Bank of Mongolia LLC, the Future Heritage Fund, and the Fiscal Stability Fund. The fund’s mandate - and consequently its deposit rules, withdrawal rules, and investment guidelines - remain unclear. The fund is being established in a unique macroeconomic and fiscal environment. This brief aims to describe the Mongolian context so that the new sovereign wealth fund can be designed to fit into the existing fiscal framework rather than undermine public financial management systems and public accountability. The brief then provides a set of lessons for the design of strategic investment funds, drawn from case studies around the world.
| Main Author: | |
|---|---|
| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2021
|
| Subjects: | WEALTH FUND, FISCAL RULE, MINERAL REVENUES, EXTRABUDGETARY FUNDS, MINORITY SHAREHOLDING, CORPORATE STRUCTURE, INVESTMENT GUIDELINES, FINANCIAL PERFORMANCE, NONFINANCIAL PERFORMANCE, TRANSPARENCY, |
| Online Access: | http://documents.worldbank.org/curated/en/099325004052224957/P17363103caa4a0800a40401f9a3ef7b3f8 http://hdl.handle.net/10986/37659 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The government of Mongolia has
presented the creation of a new sovereign wealth fund
designed to invest in domestic assets, to be managed in
whole or in part by state-owned mining enterprise Erdenes
Mongol. This new fund will supplement existing
extrabudgetary institutions with various macroeconomic and
industrial policy objectives, namely the Development Bank of
Mongolia LLC, the Future Heritage Fund, and the Fiscal
Stability Fund. The fund’s mandate - and consequently its
deposit rules, withdrawal rules, and investment guidelines -
remain unclear. The fund is being established in a unique
macroeconomic and fiscal environment. This brief aims to
describe the Mongolian context so that the new sovereign
wealth fund can be designed to fit into the existing fiscal
framework rather than undermine public financial management
systems and public accountability. The brief then provides a
set of lessons for the design of strategic investment funds,
drawn from case studies around the world. |
|---|