Publication: Mongolia - Consolidating the Gains, Managing Booms and Busts, and Moving to Better Service Delivery : A Public Expenditure and Financial Management Review - Core Report
Loading...
Date
2009-01-02
ISSN
Published
2009-01-02
Author(s)
Editor(s)
Abstract
Mongolia's external economic outlook is dramatically changing as it faces sharp reductions in the copper price, caused by the financial crisis and global downturn. This compels the government now to drastically cut spending to prudently manage the budget. The budget is extremely dependent on mining revenues. Government is taking the right step in proposing a balanced budget for 2009. But further adjustments will be needed given the continuing fall in copper prices. A prudent fiscal stance will also be needed to manage inflation, which accelerated in the past year to over 30 percent. The current situation highlights the need to manage mining revenues better than in recent years. Mongolia saved little during the boom years, but instead dramatically increased expenditures on wages and salaries, and poorly-targeted social transfers. Adopting a multi-year fiscal framework-which enforces saving during the boom years, sets limits to expenditure growth and debt, and ensures transparency to the public-can help. Since much of the past windfall revenues have been spent, the country enters the down-turn with little savings and high inflation, forcing it to cut expenditures with every drop in the copper price. To avoid such situations in the future, the government has the opportunity to adopt a transparent, multi-year budget framework for expenditures and investment. This includes adopting a new fiscal responsibility law. It will ensure that the government saves during the 'boom' years, so that it can continue to spend during the 'bust' years. It will also set limits to expenditure growth and public debt. Within the limits set by this framework, parliament can then exercise its constitutional rights to amend the budget.
Link to Data Set
Citation
“World Bank. 2009. Mongolia - Consolidating the Gains, Managing Booms and Busts, and Moving to Better Service Delivery : A Public Expenditure and Financial Management Review - Core Report. © World Bank. http://hdl.handle.net/10986/3017 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Malawi Public Expenditure Review(Washington, DC, 2013-11)This public expenditure review (PER 2013) is prepared in response to a request by the Government of Malawi (GOM). It is aligned with the fifth country assistance strategy (CAS) FY2013-FY16. The PER offers policies to improve public expenditure efficiency defined in the context of Malawi as delivering similar or improved level and quality of government services with constrained overall resource envelope as described in the new GOM fiscal framework. The PER has four main objectives. First, it supports the government to enhance the quality and efficiency of public financial management and provide inputs to the preparation of its budget. Second, it complements the on-going public finance and economic management (PFEM) reforms. Third, it provides development partners in Malawi with analytical inputs into their operations. Fourth, the PER is expected to become a crucial component of the implementation of the fiscal framework, underpinning the new extended credit facility (ECF) agreed with the International Monetary Fund (IMF) in July 2012. The PER 2013 consists of seven chapters. The first two chapters focus on the overall macro-fiscal framework, planning, and budgeting processes. Chapters 3 to 7 analyze the allocative, technical efficiency, and equity of sectoral public expenditures in agriculture, transport, education, health, and social protection respectively.Publication United Republic of Tanzania Public Expenditure and Financial Accountability Review 2008(Washington, DC, 2009-06)Rising inflation represents a serious challenge for the government, including fiscal policy. By December 2008, inflation has risen to 13.5 percent, far above the government target of five percent since 2004. It is important the government continue its effort to reduce inflation through monetary and fiscal policies, including reducing inflationary pressures on the budget by controlling wage bill growth in line with medium-term pay policy. The 2008-09 Medium-Term Expenditure Framework (MTEF) projected optimistic targets for domestic revenue and, at a same time, pessimistic targets for foreign aid. Although domestic revenue has been rising over the recent past, the targeted 18.5 percent of Gross Domestic Product (GDP) in revenue effort is high given the fact that revenue has increased by only one percent of GDP annually in the past five years. It is important to improve reliability of the macro-framework by sustaining efforts to develop capacity in macro-fiscal policy and macro-modeling, which is an important tool for the government to properly assess expected levels of domestic revenue collection over the medium term. Although some major achievements have been obtained in capacity building program, priority areas for intervention have also been identified for 2009. These areas are: (i) strengthening of macroeconomic model (MACMOD) and the macro policy framework paper, taking into account the world economic crisis as well as new data developments in Tanzania; (ii) initiating MTEF upgrades (both central and sector) as well as program budgeting starting with the ministry of health and social welfare; and (iii) preparing the second edition of the budget background and medium term framework for 2009/10 - 2011/12.Publication Lao PDR Economic Monitor, November 2006(Vientiane, 2006-11)Lao PDR economic performance has continued to improve during 2006. Real GDP grew at 7.0 percent in 2005 and is now expected to be slightly higher at 7.3 percent in 2006. This growth is in large part due to foreign investment inflows in mining and hydro-power and growing mineral exports, but the share of non-mining contributions has increased this year, reaching 4.9 out of 7.3 percent. Agriculture, manufacturing and services sectors are expected to sustain growth, due to rising FDI in agriculture, manufacturing, and increasing trend in services (especially tourism). Inflation (of Consumer Price Index) has continued to remain in single digits: after rising early this year it has dropped remarkably during the last few months, to 5.5 percent in September and 3.7 percent in October 2006. This paper includes the following headings: introduction; part 1 recent economic developments -- the macroeconomic situation, elaboration and implementation of the Poverty Reduction Strategy; part 2 structural reforms -- public expenditure policy and management, reform of state-owned enterprises, financial sector reform, trade reform, and private sector development; and part 3 donor assistance to the reform agenda -- public sector governance; reform of state owned enterprises & financial sector; trade reform; and private sector, tourism development, and land reform.Publication Sierra Leone(Washington, DC, 2015-02)This agriculture public expenditure review (AgPER) provides key background information and guidance in this endeavor by presenting and analyzing historic data on public spending on agriculture, examining the efficiency of spending, and identifying areas where additional funds can be applied effectively to achieve national agricultural policy and comprehensive Africa agriculture development program (CAADP) objectives. The goals of the AgPER in Sierra Leone are as follows: gain a better understanding of the countrys performance in the context of the 2003 Maputo declaration; draw lessons from the past in terms of budget execution in the agricultural sector and identify bottlenecks, inefficiencies, and deviations from goals; seek and recommend corrective actions for existing and future programs with a view to improving their impact and making them more efficient and equitable; initiate the implementation of the databases and methodology required for conducting similar reviews regularly and thus contribute to the institutionalization of the process; help the government establish an environment and capabilities for results-based management, with particular emphasis on improving planning, execution, and monitoring and evaluation; and increase visibility for the government and the financial and technical partners over the sectors absorptive capacity so that the decision may be made to allocate more resources to agricultural development. This report consists of five chapters: first chapter introduces the strategic and institutional context; second chapter studies the level of public agricultural expenditure in Sierra Leone; third chapter analyzes the economic and functional composition of public agricultural expenditure (allocative efficiency); fourth chapter assesses the technical efficiency of the processes of preparation, execution, and monitoring and evaluation of agricultural budgets; and fifth chapter contains our findings and recommendations.Publication Lao PDR : Public Expenditure Review Integrated Fiduciary Assessment(Washington, DC, 2007-05-15)The key challenge of the Lao People's Democratic Republic (Lao PDR) is to make full use of both physical and human assets to accelerate growth and improve the living standards of the population. To achieve the country's development goals, laid out in the sixth National Socioeconomic Development Plan (NSEDP) and the National Growth and Poverty Eradication Strategy (NGPES), improvements in public financial management and public expenditure policy aimed at increased efficiency, equity, and accountability - will be critical. This report assesses the current situation and provides a way forward. The report looks at public expenditure in the agriculture, roads, education, health, and environment sectors.
Users also downloaded
Showing related downloaded files
Publication Media and Messages for Nutrition and Health(World Bank, Washington, DC, 2020-06)The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication South Asia Development Update, April 2024: Jobs for Resilience(Washington, DC: World Bank, 2024-04-02)South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.Publication Remarks at the United Nations Biodiversity Conference(World Bank, Washington, DC, 2021-10-12)World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.Publication Economic Recovery(World Bank, Washington, DC, 2021-04-06)World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.