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Mongolian Harvard Elites Aim for Wealth Without ‘Dutch Disease’

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Mongolian Harvard Elites Aim for Wealth Without ‘Dutch Disease’

Feb. 16 (Bloomberg) — Mongolia’s billions of dollars worth of copper, gold, uranium and coal reserves promise the greatest influx of wealth for the country since Genghis Khan conquered much of the known world in the 13th century.

They also may spawn a crisis. Sudden prosperity can overwhelm an economy, exposing it to commodity-price swings. Mongolia’s leaders, some educated at Harvard and Cambridge, say they are

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determined to avoid this syndrome, known as « Dutch Disease » — a sudden surge in wealth that ultimately hampers expansion.

Working with the Washington-based World Bank, they are dispatching officials to nations such as Chile, which successfully harnessed its copper resources to help drive growth. They are also leveraging their democratic system to build support for policies including greater investment in transportation and a new budget law aimed at curbing the impact of volatile metals prices.

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