"IMPLEMENTING BUSINESS ENVIRONMENT REFORMS FOR ECONOMIC RECOVERY
Mongolia’s economic growth performance has been impressive though volatile in the last decade. Despite significant progress, Mongolia needs to strengthen the business enabling environment for a level-playing field and a more productive private sector beyond mining. The Government of Mongolia (GoM) has recognized the need for a more conducive investment climate and implemented several significant reforms. The recently adopted New Recovery Policy (NRP) aims to further address binding constraints to medium-term economic development. Even though the business environment is only one of the elements of a country’s competitiveness, it often “sets the tone” for an attractive investment climate. The quality of the business environment has also become a critical element of the competition between countries aiming to offer an attractive legal environment for investors.
In this context, this report reviews the existing policy and regulatory framework impacting enterprise creation and development in Mongolia and provides a set of recommendations to improve the impact of the NRP. This report is a call to arms for a new approach to business and investment climate reform and private sector development in Mongolia. First, focus on increasing competition amongst firms to foster the necessary innovation pushing firms towards the frontier and exploiting possibilities that new business processes, products, markets, and technologies can offer. Second, is the focus on government services key for functioning markets. Third, a focus on reducing barriers to international trade and facilitating the domestic manufacturing of goods to boost non-mining productive sectors and support foreign investment."
This report was developed by the staff of the International Bank for Reconstruction and Development/The World Bank with external contributions. Click here to access its full version.
Source: Musuku,Thilasoni Benjamin; Bold Erdene,Javkhlan; Ganbat, Erdenebulgan; Tumur,Sukhchimeg. Mongolia Business Environment and Competitiveness Assessment Report : Implementing Business Environment Reforms for Economic Recovery (English). Washington, D.C. : World Bank Group.