Mongolia-Development Policy Credit

closed

Closed

The objectives of the Development Policy Credit (DPC) Program for Mongolia is to: 1) improve the management of mining revenues, improve capital budget planning and protect the maintenance of basic infrastructure; 2) protect the poor during the downturn by retargeting existing social policies to the poor; 3) strengthen confidence in the financial sector; and 4) clarify the mining policy framework. The DPC supports reforms in the policy areas most affected: (i) fiscal policy and management, given the budget's strong dependence on mining revenues; (ii) social protection, given the impact of the economic downturn on the poor; (iii) the financial sector, which was overheating when the global crisis hit, and which experienced a major bank failure in late 2008; and (iv) the mining sector, given the sector's importance in driving the recovery. The support of Mongolia's multilateral and bilateral development partners comes at a critical time and can have a high impact. This joint support will assist Mongolia to manage the current downturn and set the stage for economic recovery, allowing the country to continue on the path taken since 1990. The risks emanating from the external environment are significant, while domestically, populism could undermine the adjustment efforts and cause social instability. However, the actions so far taken by the current coalition government and approved by both parties in parliament have demonstrated a clear bi-partisan resolve to correct past mistakes and set the stage for improved economic and fiscal policies. This DPC helps to support this resolve.

FY17 - Energy and Extractives,FY17 - Financial Sector,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Metal, Government