As I noted back in January, resource-rich Mongolia has been planning to unleash an arsenal of institutional weaponry to avoid the resource curse and, instead, use its natural bounty to be a catalyst for growth. News out this morning confirms some of the country's plans. Indeed, according to the Bloomberg,
Mongolia plans to set up a new sovereign wealth fund with $600 million after the countrys June elections, Vice Minister of Finance Ganhuyag Chuluun Hutagt said at a conference in London today.
The country also plans to raise the size of its existing stabilization fund to $500 million from $200 million by the end of the year, he told reporters at the Mongolia Capital Markets Day conference at the London Stock Exchange.
The new fund, which will finance pensions, is set to be created on July 1, Ganhuyag said.
Welcome, Mongolia, to the SWF club!