Polder Model—a framework which also held up very well during the 2008 global financial crisis.
Mongolia has laid a strong legal foundation for a similar macroeconomic and fiscal framework in the three rules which form the basis of the Fiscal Stability Law passed with overwhelming majority in parliament in June 2010. The three rules put strict limits and ceilings on the fiscal deficit, expenditure increases and public debt. However, the essence of the FSL only kicks in 2013, when a structural fiscal deficit of no more than 2 percent of GDP needs to be adhered to. In the transition period, Mongolia would do well to heed the lessons from Holland: curing the Dutch Disease can be long and painful. Preventing the Dutch Disease to afflict the economy in the first place would be the wiser path to take, and, if the story of the Polder Model holds true, will also reward the politicians associated with this path.
See the Annex to Mongolia Quarterly Economic Update - August 2011