From 2005 to 2013, a mining boom quicklypromoted Mongolia from a low-income to a middle-incomecountry. Although the World Bank Group strategy initiallyoverlooked the challenge of the mining boom, the new countrymanagement team that came on board in 2005 decided toprioritize mining issues in a more selective framework. Thisinvolved taking a set of bold steps to support Bank Groupengagement in the extractive industry, including basing forthe first time a senior mining specialist in the field andconducting an in-depth political economy analysis. Buildingon this, the country team was able to design a comprehensiveprogram of outreach to the government, parliament, and civilsociety to build a consensus on the need for efficient andfiscally sustainable management of earnings from therevenues derived from the mineral boom. The IndependentEvaluation Group considers the Bank’s performance to besatisfactory; however, its contribution to outcomes remainsmoderately satisfactory. The Bank revised its strategy toadopt relevant objectives centered on the mining agenda anddesigned an overall effective program. The Bank displayedflexibility and innovation in implementing the program andbuilt awareness about environmental issues. As to results onthe ground, Bank projects have had a highly satisfactoryimpact in improving rural livelihoods and reducing herders’vulnerability. Looking ahead, the Bank Group would need to:(i) build demand and capacity for good governance; (ii)pursue efforts to improve public investment; (iii)strengthen domestic capacity for policy simulation; (iv)assist in the strengthening of the banking system; and (v)support fiscal decentralization. In the interests ofselectivity, the Bank could scale back its support for theurban sector.
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