A/HRC/43/45/Add.2 has the potential to affect the economy and the progressive realization of economic, social and cultural rights using the maximum of the State’s available resources. Measures such as true economic diversification are thus key to ensure the sustainability of the social and economic model and to prevent the human rights of the population from being affected. 96. Facing significant debt and macroeconomic challenges, Mongolia entered in an extended arrangement under the IMF Extended Fund Facility in 2017. Under the economic recovery programme, a range of measures were put in place, including fiscal consolidation, orthodox monetary policy and adjustment reforms. Some social programmes, such as the Child Money Programme and the Poverty Benefit Programme, were particularly affected despite having been in place for years, with potentially important impacts on the human rights of their beneficiaries. 97. Although the level of public debt is not alarming, further economic challenges may arise as external private debt remains high. Regarding debt management, it is essential that a holistic and human rights-based debt sustainability analysis is systematically carried out. Taxation remains an important issue, with the current individual flat tax rate being regressive and reforms in corporate taxes of concern. As highlighted by the Financial Action Task Force, despite recent progress, there is also a need to deploy further efforts to combat illicit financial flows and money-laundering, including for the purposes of continuing to strengthen the independence of institutions, addressing tax fraud, and dealing with the occurrence of corruption in both the public and the private sectors. 98. It is vital that economic, social, tax, financial, monetary and debt policies are fully consistent with and actually promote the realization of human rights. One notable tool in this regard is the regular conduct of human rights impact assessments of economic reforms in line with the guiding principles (A/HRC/40/57). 99. The mining sector has the potential to play a truly transformative role and serve as a catalyst to spur social and economic development, which should be intergenerational, equitable, respectful of the environment and conscious of pastoral and nomadic heritage. The Independent Expert commends the State for the adoption of the Fiscal Stability Fund and the Future Heritage Fund to ensure macroeconomic stability and a fairer share of the mining sector’s spin-offs in the future. To accompany this important initiative, it is essential to deploy consistent macroeconomic, monetary, regulatory, tax, social, environmental and industrial policies. The capture, management and sharing of mineral revenue should be implemented with a view to catalysing the sector’s spin-offs and ensuring fair benefits for the population.104 It is also essential that robust independent environmental impact assessments are duly conducted prior to natural resource exploitation projects, in consultation with potentially affected communities. 100. While Oyu Tolgoi has a great potential in terms of promoting growth and development in Mongolia, there are also serious risks involved, particularly for local communities. An agreement was reached between parties, following the complaints submitted by a group of local herders. However, the largest phases of the project are still to come and the mine is expected to be in operations for decades. It is thus vital that independent ex ante and ex post human rights, social, health and environmental impact assessments of the various phases of the project are regularly conducted, potential adverse consequences prevented and affected communities given access to adequate remedy. It is essential that contemporary and future potential issues, including in connection with tax management, are addressed in a timely manner from a human rights perspective while ensuring the participation of and consultation with local communities, particularly herders. 104 18 See Pascale Hatcher, Etienne Roy Grégoire and Bonnie Campbell, “The political economy of enhancing children’s rights through mineral rents: the case of Mongolia”, Working Paper 2016–2017 (Geneva, UNRISD, 2016).