Law on the National Sovereign Wealth Fund and Its Implementation: Risks and Policy Options - Policy brief №50

In 2024, Mongolia enacted the National Sovereign Wealth Fund Law, establishing a fund composed of
three components: the Future Heritage Fund, the Development Fund, and the Savings Fund. These funds
are designed to accumulate, invest, and distribute income from natural resources to support development
and ensure fair, equitable benefit-sharing in line with constitutional principles. They aim to promote
inclusive, sustainable growth and improve citizens’ livelihoods.

However, past failures of similar initiatives—such as the Human Development Fund, the National
Development Fund, the SME Support Fund, and the Development Bank—highlight critical risks. The law,
passed hastily, lacks clear provisions on governance, transparency, and oversight, particularly for the
Savings and Development Funds. As a result, concerns about political interference, corruption, conflicts of
interest, and inefficient spending persist.