The Assessment of Mongolian Sovereign Funds

Mongolia is the one of the resource rich countries facing natural resource curse, relatively transparent with satisfactory resource governance. Some would argue establishing sovereign wealth fund (SWF) is beneficial those countries with natural resource curse while others against it. Mongolian government established several SWFs and namely Human Development Fund (HDF- afterwards renamed as Future Heritage Fund) and Fiscal Stability Fund (FSF) but still facing to create an efficient SWF. Some scholars would agree that it is important to find causal relations between management of SWF and its efficiency to establish an efficient and beneficial SWFs. There are several ways to reveal such relations, however, most research centres are using following major methods such as Resource Governance Index (RGI), Truman scoreboard and Linaburg- Maduell Transparency Index (LMTI) and Santiago Principles. This paper is examined Mongolian SWFs namely Human Development Fund (HDF) and Fiscal Stability Fund (FSF) using some of these methods.

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Devil’s excrement or manna from heaven?

International Journal of Development Issues ◽

10.1108/ijdi-01-2014-0005 ◽

2015 ◽

Vol 14 (1) ◽

pp. 2-25 ◽

Cited By ~ 3

Author(s):

Ronald U. Mendoza ◽

Harold J. MacArthur ◽

Anne Beline Ong Lopez

Keyword(s):

Natural Resource ◽

Resource Curse ◽

Extractive Industries ◽

Content Type ◽

Natural Resource Curse ◽

Academic Literature ◽

The Many ◽

The One ◽

Main Message ◽

Practical Implications

Purpose – This paper aims to provide an updated review of policy literature and evidence on the development implications of extractive industries. Design/methodology/approach – It synthesizes the main lessons drawn from an extensive review of policy and academic literature on this topic. It outlines the risks attached to the natural resource curse as well as the associated solutions, as demonstrated by empirical evidence and policy experience. Findings – Based on the authors’ review of case studies and multi-country empirical analyses, there is a mixed picture on the link between extractive industries and inclusive growth. The authors find that, on the one hand, significant risks are commonly associated with the natural resource curse faced by countries that wish to tap this wealth for development. On the other hand, the mixed results also suggest that the many challenges related to expanding extractive industries are not necessarily unavoidable. Practical implications – For policymakers, the main message is that some countries that have taken important steps to improve the governance of their wealth as well as channel these toward productive investments – notably human capital – appear to have transformed the natural resource curse into a boon for development. Originality/value – The main contribution of this paper is that it provides the most comprehensive review to date on this body of the policy and academic literature. It will serve as a guide for policymakers, civil society and other stakeholders working on issues linked to extractive industries.

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Mechanisms of Resource Curse and Economic Policy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2007-6-4-27 ◽

2007 ◽

pp. 4-27 ◽

Cited By ~ 11

Author(s):

V. Polterovich ◽

V. Popov ◽

A. Tonis

Keyword(s):

Real Exchange Rates ◽

Resource Curse ◽

Budget Deficits ◽

Resource Abundance ◽

Fuel Prices ◽

Use Of Resources ◽

Resource Wealth ◽

The One ◽

The Right ◽

Rich Countries

This paper compares various mechanisms of resource curse leading to a potentially inefficient use of resources; it is demonstrated that each of these mechanisms is associated with market imperfections and can be "corrected" with appropriate government policies. Empirical evidence seems to suggest that resource abundant countries have on average lower budget deficits and inflation, and higher foreign exchange reserves. Besides, lower domestic fuel prices that are typical for resource rich countries have a positive effect on long-term growth even though they are associated with losses resulting from higher energy consumption. On top of that resource abundance allows to reduce income inequalities. So, on the one hand, resource wealth turns out to be conducive to growth, especially in countries with strong institutions. However, on the other hand, resource abundance leads to corruption of institutions and to overvalued real exchange rates. On balance, there is no solid evidence that resource abundant countries grow more slowly than the others, but there is evidence that they grow more slowly than could have grown with the right policies and institutions.

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A Multivariate VAR Model for Evaluating Sustainable Finance and Natural Resource Curse in West Africa: Evidence from Nigeria and Ghana

Sustainability ◽

10.3390/su13052847 ◽

2021 ◽

Vol 13 (5) ◽

pp. 2847

Author(s):

Olatunji Abdul Shobande ◽

Joseph Onuche Enemona

Keyword(s):

Natural Resource ◽

Critical Role ◽

Resource Curse ◽

Policy Implications ◽

Vector Autoregressive ◽

Natural Resource Curse ◽

Cointegration Tests ◽

Sustainable Finance ◽

Private Investors ◽

Sustainable Financing

The financial sector plays a critical role in society by mediating resources and assets within the economy between surplus and deficit units. Therefore, they have a great responsibility for the sustainability and prosperity of natural endowments. This study aimed to determine whether sustainable finance matters for the natural resource curse in Nigeria and Ghana. The empirical evidence is based on the Bayer and Hanck combined cointegration tests and Vector Autoregressive/Vector Error Correction Granger causality tests. The study highlights the importance of sustainable financing in natural resources management. Our findings also confirmed the existence of the financial resource curse in Nigeria and Ghana. Likewise, the medium through which sustainable finance affects the natural resource curse has been identified as the human development index (economic welfare). This current study has critical policy implications that suggest the need to establish a vibrant, sustainable financing strategy to assist domestic private investors with a strong interest in natural resource exploration and development, taking into account macroeconomic sustainability. Additionally, it also important to build a strong financial market which allows for policies designed to promote natural resource management.

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The Policy Framework of Natural Resource Management in Oil-Dependence Countries

Economies ◽

10.3390/economies9010025 ◽

2021 ◽

Vol 9 (1) ◽

pp. 25

Author(s):

Basem Ertimi ◽

Tamat Sarmidi ◽

Norlin Khalid ◽

Mohd Helmi Ali

Keyword(s):

Resource Management ◽

Natural Resource Management ◽

Natural Resource ◽

Empirical Studies ◽

Resource Curse ◽

Policy Framework ◽

Ecological Resources ◽

Starting Point ◽

Oil Revenues ◽

Rich Countries

A variety of critical empirical studies are interested in and focused on complex issues related to natural resource management and resource curse, whilst less can be found combining diverse factors that affect the dynamics of this curse and mitigate it. The case study of Norway is used as the benchmark policy framework in oil-rich countries to invest oil revenues and set correct fiscal policies. In this study, an analytical framework was structured to evaluate the coherence of resource management with sustainability as a starting point, contributing to further assessments of how the adaptation of such policies is incorporated in resource management to mitigate the resource curse. The analysis also suggests that oil-rich countries can learn from Norway’s experience to mitigate this resource curse and utilize oil revenues in the interest of the country. In addition, the analysis helps in effective management and the protection of ecological resources as these are becoming an increasingly important strategic part of natural wealth. This study aimed to provide an overarching framework designed to help conceptualize key issues of natural resource management and the resource curse in oil-rich countries and understand the challenges facing those countries in managing the natural resources.

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Breaking the Resource Curse: The Role of Natural Resource Funds

THE SPIRIT OF SOCIETY JOURNAL ◽

10.29138/scj.v4i2.974 ◽

2021 ◽

Vol 4 (2) ◽

pp. 99-109

Author(s):

Isaiah Adeleke ◽

Umaru Mustapha Zubairu

Keyword(s):

Natural Resource ◽

Management Strategy ◽

Resource Curse ◽

Future Research ◽

Effective Management ◽

Journal Articles ◽

Special Purpose Vehicle ◽

Resource Governance ◽

Effective Role

Studies have shown that the paradox of “the more resource-rich the poorer” otherwise known as “resource curse” has been prevalent in many countries endowed with natural resources. To mitigate this trend, a revenue management strategy called Natural Resource Funds (NRFs) - a government owned special-purpose vehicle to ensure effective management of the country’s natural wealth was embraced in some nations. This paper critically reviewed the roles of NRFs in breaking the resource curse. The Systematic Quantitative Assessment Technique (SQAT) was adopted in identifying and reviewing sixty-seven (67) peer reviewed journal articles that had researched on NRFs in the last decade. The findings were that NRFs have played an effective role in some advanced countries (Chile and China), while they have failed, especially in Africa, Middle East and Latin America due to poor institutional framework and governance. A globally set code of resource governance was recommended to strengthen the role of NRFs and enhance their effectiveness. Resource revenue maximization other than revenue utilization would be a good area for future research.

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