42 Pages Posted: 19 Sep 2015
Date Written: September 16, 2015
Recently, the direct distribution of natural resource wealth through cash transfers (“resources-to-cash”) has been recommended to help avoid the resource curse. Mongolia is perhaps the only developing country that has actually introduced a resources-to-cash scheme. While the scheme has showed mixed results, overall it has been a failure, losing political and public support because of design and implementation flaws. One should not dismiss the potential benefits of resources-to-cash on the basis of one, poorly designed and implemented instance. Rather the lesson of the Mongolia experience is that resources-to-cash needs to take its place alongside, rather than be favoured over, other policy instruments that have been put forward to avoid the resource curse.
Keywords: Mongolia, cash transfers, resources, poverty, mining
JEL Classification: O1, O2, O13
Suggested Citation: Suggested Citation
Yeung, Ying and Howes, Stephen, Resources-to-Cash: A Cautionary Tale from Mongolia (September 16, 2015). Development Policy Centre Discussion Paper No. 42. Available at SSRN: https://ssrn.com/abstract=2661202 or http://dx.doi.org/10.2139/ssrn.2661202