DOCSLIB.ORG

MONGOLIA CONSTRAINTS ANALYSIS a Diagnostic Study of the Most Binding Constraints to Economic Growth in Mongolia

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
MONGOLIA CONSTRAINTS ANALYSIS a Diagnostic Study of the Most Binding Constraints to Economic Growth in Mongolia The production of this constraints analysis was led by the partner governments, and was used in the development of a Millennium Challenge Compact or threshold program. Although the preparation of the constraints analysis is a collaborative process, posting of the constraints analysis on this website does not constitute an endorsement by MCC of the content presented therein. 2014-001-1569-02 MONGOLIA CONSTRAINTS ANALYSIS A diagnostic study of the most binding constraints to economic growth in Mongolia August 18, 2016 Produced by National Secretariat for the Second Compact Agreement between the Government of Mongolia and the Millennium Challenge Corporation of the USA With technical assistance from the Millennium Challenge Corporation i Table of Contents Contents Table of Contents ............................................................................................................................................... i List of Figures ............................................................................................................................................... iv List of Tables ................................................................................................................................................ vi Glossary of Terms .......................................................................................................................................... viii 1. Executive Summary .................................................................................................................................. 1 Country context ............................................................................................................................................. 1 Summary of binding constraints to growth ............................................................................................... 2 1. A weak and unstable macroeconomic environment .................................................................... 2 2. Inconsistent laws and policies, resulting in an unpredictable business environment .............. 3 3. Health impacts of air pollution in Ulaanbaatar ............................................................................. 3 4. Costly access to water and sanitation in productive sectors and poor communities .............. 3 Detailed description of binding constraints .............................................................................................. 4 1. A weak and unstable macroeconomic environment .................................................................... 4 2. Inconsistent laws and policies, resulting in an unpredictable business environment .............. 6 3. Health impacts of air pollution in Ulaanbaatar ............................................................................. 8 4. Limited and costly access to water in productive sectors and poor communities ................... 9 Other constraints considered..................................................................................................................... 11 5. Education ......................................................................................................................................... 11 6. Finance .............................................................................................................................................. 11 7. Energy ............................................................................................................................................... 11 8. Transport .......................................................................................................................................... 12 9. Property Rights ................................................................................................................................ 12 2. Background .............................................................................................................................................. 13 Macroeconomic context ............................................................................................................................. 13 Productive Sector Analysis ......................................................................................................................... 17 Foreign Investment ..................................................................................................................................... 20 Foreign Trade ............................................................................................................................................... 23 Demography ................................................................................................................................................. 23 i Mongolia Constraints Analysis Table of Contents Poverty .......................................................................................................................................................... 25 3. Methodology ............................................................................................................................................ 28 Background .................................................................................................................................................. 28 The HRV Method ....................................................................................................................................... 28 The Four Tests ............................................................................................................................................ 29 Comparator Countries ................................................................................................................................ 30 4. Cost of Finance ....................................................................................................................................... 32 Background .................................................................................................................................................. 32 Analysis ......................................................................................................................................................... 35 Conclusion .................................................................................................................................................... 37 5. Quantity of Finance ................................................................................................................................ 38 Background .................................................................................................................................................. 38 Analysis ......................................................................................................................................................... 38 Conclusion .................................................................................................................................................... 41 6. Financial Intermediation ........................................................................................................................ 42 Background .................................................................................................................................................. 42 Analysis ......................................................................................................................................................... 43 Conclusion .................................................................................................................................................... 46 7. Natural capital ......................................................................................................................................... 47 Background .................................................................................................................................................. 47 Analysis ......................................................................................................................................................... 54 Conclusion .................................................................................................................................................... 57 8. Education ................................................................................................................................................. 58 Background .................................................................................................................................................. 58 Analysis ......................................................................................................................................................... 60 Conclusion .................................................................................................................................................... 64 9. Health ....................................................................................................................................................... 66 Background .................................................................................................................................................. 66 Analysis ......................................................................................................................................................... 69 Conclusion ...................................................................................................................................................
Load more

Recommended publications
  • Doing Business G in Mongolia 2012
    www.pwc.com/mn Doing Business Guide 2010 - 2011 Doing Business Guide in Mongolia 2012 - 2013 Doing Business Guide 2012 - 2013 CONTENTS KEY STATISTICS 1. MONGOLIA – APROFILE 1.1 Introduction ..............................................................................................................................................................................................................................65 1.2 Government structure.......................................................................................................................................................................................86 1.3 Legal System ................................................................................................9 1.4 People ..........................................................................................................9 1.5 Economy ....................................................................................................11 1.6 Foreign Trade ............................................................................................13 1.7 Mining in Mongolia....................................................................................13 2. BUSINESS ENVIRONMENT 2.1 Business Climate........................................................................................15 2.2. Free Trade Zones................................................................................................................................................................................. 1615 2.3 International Agreements..........................................................................16
    [Show full text]
  • THE ALTAY SAYAN ECO-REGION – the LAND of SNOW LEOPARD Travel Itinerary 30 July-8 August, 2018
    THE ALTAY SAYAN ECO-REGION – THE LAND OF SNOW LEOPARD Travel itinerary 30 July-8 August, 2018 Altay-Sayan Ecoregion (ASER) located in the center of Eurasia linking together Russia, Mongolia, China and Kazakhstan, lies on of the last remaining areas of practically pristine nature in the world. Encompassing an area the twice the size of France, the ecoregion hosts Snow leopard, Siberian lynx, Saiga antelope and one of the world largest sheep, the Altai argali. The area is also considered as one of the cradles of human origin and an extinct species or subspecies of human in the genus Homo – the Denisovan or Denisova hominin (currently carries the temporary names Homo sp. Altai, or Homo sapiens ssp. Denisova) – was first found in the remote cave in the Russian part of the Altai Mountains. Today, the ASER is a home to diverse ethnic groups that differ in their origins, religions, languages, household traditions, custom and economic activities since the ancient time. OUR TRIP THROUGH THE ASER The land of Snow leopards will be around 1100 kms over 9 days. The trip will start on 30 July with the arrival in Khovd town of Khovd province and will end on 7 August in Ulaangom town of Uvs province. This programme is only for general guidance and could be tailored to the actual circumstances on the ground. Trip route map DAY 1 TRIP TO KHUSTAI NATIONAL PARK & 30 July 2018 FLY OUT TO KHOVD CITY (~approximately 5 hours of net driving & 3 hours of flying) The accompanying team D. Batbold – the Country Representative of WWF Mongolia, B.
    [Show full text]
  • Investment in Mongolia
    Investment in Mongolia KPMG in Mongolia 2016 Edition CONTENTS 1 COUNTRY OUTLINE 6 1.1 Introduction 6 1.2 Geography and climate 6 1.3 History 6 1.4 Political system 7 1.5 Population, language and religion 7 1.6 Currency 8 1.7 Public holidays 8 2 BUSINESS ENVIRONMENT 10 2.1 Mongolian economy overview 10 2.2 Economic trading partners 11 Exports 11 Imports 11 2.3 Business culture 11 2.4 Free trade zones 12 2.5 Foreign exchange controls 12 3 INVESTMENT CLIMATE FOR FOREIGN DIRECT INVESTMENT 14 3.1 Foreign investment opportunities 14 3.2 Foreign investment legislation 14 3.3 Commencing business in Mongolia 15 Practical considerations 15 Registration 15 Mergers, acquisitions and restructurings 16 Exit strategy 16 3.4 Financing 17 3.5 Intellectual property 17 Copyright 17 Trademarks and trade names 17 Patents 18 4 REPORTING, AUDITING AND THE REGULATORY ENVIRONMENT 20 4.1 Financial reporting 20 4.2 Auditing 21 4.3 Regulatory environment 21 Competition law 21 © 2016 KPMG Audit LLC, the Mongolian member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. 2 / Investment in Mongolia Corporate governance 22 Land ownership and use 22 Anti-corruption law 23 Arbitration 23 5 TAXATION 25 5.1 General tax law 25 Overview 25 Rights and duties – taxpayers and tax authorities 26 Tax reporting and payments 26 Tax audits 26 Debt collection 27 5.2 Corporate tax 27 Overview of the corporate tax system 27 Taxable income 28 Losses 28 5.3 Transfer pricing 29 5.4 Double tax agreements
    [Show full text]
  • Strategic Nodes and Regional Interactions in Southern Eurasia
    MARLENE Laruelle STRATEGIC editor NODES Central Asia Program REGIONAL Institute for European, Russian and Eurasian Studies and INTERACTIONS Elliott School of International SOUTHERN A airs The George Washington University in EURASIA STRATEGIC NODES AND REGIONAL INTERACTIONS IN SOUTHERN EURASIA Marlene Laruelle, editor Washington, D.C.: The George Washington University, Central Asia Program, 2017 www.centralasiaprogram.org The volume provides academics and policy makers with an introduction to current trends in Southern Eurasia. At the collapse of the Soviet Union, Western pundits celebrated the dramatic reshaping of regional interactions in Southern Eurasia to come, with the hope of seeing Russia lose its influence and be bypassed by growing cooperation between the states of the South Caucasus and Central Asia, as well as the arrival of new external powers. This hope has partially failed to come to fruition, as regional cooperation between the South Caucasus and Central Asia never started up, and cooperation within these regions has been hampered by several sovereignty-related and competition issues. However, a quarter of century after the disappearance of the Soviet Union, strategic nodes in Southern Eurasia have indeed deeply evolved. Some bottom-up dynamics seem to have taken shape and the massive involvement of China has been changing the long-accepted conditions in the wider region. Islamic finance has also emerged, while external actors such as Turkey, Iran, the Gulf countries and Pakistan have progressively structured their engagement with both Central Asia and South Caucasus. Another key node is centered in and around Mongolia, whose economic boom and strategic readjustments may help to shape the future of Northeast Asia.
    [Show full text]
  • Results of Radiation Level Study in Some Territories of Mongolia D
    ¨¸Ó³ ¢ —Ÿ. 2006. ’. 3, º 1(130). ‘. 111Ä115 “„Š 621.039 RESULTS OF RADIATION LEVEL STUDY IN SOME TERRITORIES OF MONGOLIA D. Shagjjamba1, P. Zuzaan2 Nuclear Research Center of the National University of Mongolia, Ulaanbaatar The outdoor terrestrial gamma-ray background in the urban environment of provincial centers and several cities of Mongolia was studied in order to assess the absorbed gamma dose rates in the open air and determine the activity concentrations of 238U, 232Th and 40K in soil samples, collected from the selected locations. ˆ§ÊÎ¥´ É¥··¨Éμ·¨ ²Ó´Ò° Ëμ´ £ ³³ -¨§²ÊÎ¥´¨Ö ¢ £μ·μ¤¸±μ° μ±·Ê¦ ÕÐ¥° ¸·¥¤¥ ´¥¸±μ²Ó±¨Ì ¶·μ- ¢¨´Í¨ ²Ó´ÒÌ Í¥´É·μ¢ ¨ £μ·μ¤μ¢ Œμ´£μ²¨¨. Í¥´¥´ ³μдμ¸ÉÓ ¶μ£²μÐ¥´´μ° ¤μ§Ò £ ³³ -¨§²ÊÎ¥´¨Ö ´ μɱ·ÒÉμ° ³¥¸É´μ¸É¨ ¨ μ¶·¥¤¥²¥´ ±μ´Í¥´É· ꬅ · ¤¨μ ±É¨¢´ÒÌ Ô²¥³¥´Éμ¢ 238U, 232Th ¨ 40K¢ ¸μ¡· ´´ÒÌ μ¡· §Í Ì ¶μ΢Ò. INTRODUCTION Mongolia is situated in the northern part of Central Asia and covers an area of 1.5 million km2 and it extends from 40 to 52 northern latitudes. In general, Mongolia is a mountain country. Its mean elevation is 1500 m above sea level. The total population of Mongolia is 2.5 million. The radiation situation in Mongolia is mainly determined by the geographic location and the elevation above sea level. The global radioactive fallout from nuclear and thermonuclear weapon tests depends on the latitude. A study of environmental radiation level in Mongolia during the 1980s was performed with respect to scientiˇc and health aspects. Within the scope of this study, the Nuclear Re- search Center (former Nuclear Research Laboratory) of the National University of Mongolia carried out investigations of the radioactivity in samples of air, soil, different types of coals, building materials and other environmental samples.
    [Show full text]
  • Tuul River Mongolia
    HEALTHY RIVERS FOR ALL Tuul River Basin Report Card • 1 TUUL RIVER MONGOLIA BASIN HEALTH 2019 REPORT CARD Tuul River Basin Report Card • 2 TUUL RIVER BASIN: OVERVIEW The Tuul River headwaters begin in the Lower As of 2018, 1.45 million people were living within Khentii mountains of the Khan Khentii mountain the Tuul River basin, representing 46% of Mongolia’s range (48030’58.9” N, 108014’08.3” E). The river population, and more than 60% of the country’s flows southwest through the capital of Mongolia, GDP. Due to high levels of human migration into Ulaanbaatar, after which it eventually joins the the basin, land use change within the floodplains, Orkhon River in Orkhontuul soum where the Tuul lack of wastewater treatment within settled areas, River Basin ends (48056’55.1” N, 104047’53.2” E). The and gold mining in Zaamar soum of Tuv aimag and Orkhon River then joins the Selenge River to feed Burenkhangai soum of Bulgan aimag, the Tuul River Lake Baikal in the Russian Federation. The catchment has emerged as the most polluted river in Mongolia. area is approximately 50,000 km2, and the river itself These stressors, combined with a growing water is about 720 km long. Ulaanbaatar is approximately demand and changes in precipitation due to global 470 km upstream from where the Tuul River meets warming, have led to a scarcity of water and an the Orkhon River. interruption of river flow during the spring. The Tuul River basin includes a variety of landscapes Although much research has been conducted on the including mountain taiga and forest steppe in water quality and quantity of the Tuul River, there is the upper catchment, and predominantly steppe no uniform or consistent assessment on the state downstream of Ulaanbaatar City.
    [Show full text]
  • Introduction on Dry Ports in Mongolia
    Introduction on Dry Ports in Mongolia 2017.11.14 Dry Ports Significance for Introduction Land‐Locked Countries Mongolia is an ideal environment for the development of Dry Ports. With fast growing local industries and volumes of cargo exchanged with our world, with no access to a sea but with a relatively good connection to neighboring ports of Russia and China calls for an erection and development of respective hubs, even with reflection of the vast territory of the country and a minor‐but‐growing intensity of settlement. Dry Ports Significance for Dry Ports Significance for Land‐Locked Land‐Locked Countries Countries as Mongolia • Mongolia ratified the Intergovernmental Agreement on Dry Ports on 23 April 2016. • The Agreement identifies a number of existing and potential dry port locations that are to be the basis of a coordinated effort to creates modes along an international integrated intermodal transport and logistics system. Dry Ports Significance for Dry Ports in Mongolia Land‐Locked Countries o Altanbulag (border with Russian Federation) o Ulaanbaatar o Sainshand o Zamyn-Uud (border with People`s republic of China) o Choibalsan (potential dry port) Dry Ports Significance for Dry Ports in Mongolia Land‐Locked Countries Dry Ports Significance for Dry Ports in Mongolia – Access to the Sea Land‐Locked Countries Dry Ports Significance for Dry Ports in PRC&RF - Significance for Mongolia Land‐Locked Countries CHINA • Erenhot South International Logistics Center, Erenhot • Manzhouli New International Freight Yard, Manzhouli • (altogether 17 ports, the above 2 have a direct connection with Mongolia). Dry Ports Significance for Dry Ports Significance for Land‐Locked Land‐Locked Countries Countries Nominated as Dry Ports /inland ports/ in Mongolia ALTANBULAG and ZAMYN-UUD are respectfully key parts of a wider Altanbulag and Zamyn-Uud Special Economic Zones.
    [Show full text]
  • The Later Han Empire (25-220CE) & Its Northwestern Frontier
    University of Pennsylvania ScholarlyCommons Publicly Accessible Penn Dissertations 2012 Dynamics of Disintegration: The Later Han Empire (25-220CE) & Its Northwestern Frontier Wai Kit Wicky Tse University of Pennsylvania, [email protected] Follow this and additional works at: https://repository.upenn.edu/edissertations Part of the Asian History Commons, Asian Studies Commons, and the Military History Commons Recommended Citation Tse, Wai Kit Wicky, "Dynamics of Disintegration: The Later Han Empire (25-220CE) & Its Northwestern Frontier" (2012). Publicly Accessible Penn Dissertations. 589. https://repository.upenn.edu/edissertations/589 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/edissertations/589 For more information, please contact [email protected]. Dynamics of Disintegration: The Later Han Empire (25-220CE) & Its Northwestern Frontier Abstract As a frontier region of the Qin-Han (221BCE-220CE) empire, the northwest was a new territory to the Chinese realm. Until the Later Han (25-220CE) times, some portions of the northwestern region had only been part of imperial soil for one hundred years. Its coalescence into the Chinese empire was a product of long-term expansion and conquest, which arguably defined the egionr 's military nature. Furthermore, in the harsh natural environment of the region, only tough people could survive, and unsurprisingly, the region fostered vigorous warriors. Mixed culture and multi-ethnicity featured prominently in this highly militarized frontier society, which contrasted sharply with the imperial center that promoted unified cultural values and stood in the way of a greater degree of transregional integration. As this project shows, it was the northwesterners who went through a process of political peripheralization during the Later Han times played a harbinger role of the disintegration of the empire and eventually led to the breakdown of the early imperial system in Chinese history.
    [Show full text]
  • Land Acquisition and Resettlement Plan Progress Report MON
    Land Acquisition and Resettlement Plan Progress Report Annual Report December 2020 MON: Southeast Gobi Urban and Border Town Development Project–Additional Financing Prepared by Project Management Unit for the Ministry of Construction and Urban Development of Mongolia and the Asian Development Bank. This land acquisition and resettlement plan progress report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. L3388-MON: Southeast Gobi Urban and Border Town Development Project-Additional Financing Land Acquisition and Resettlement Plan Progress Report Project Management Unit December 2020 TABLE OF CONTENTS I. INTRODUCTION AND PROJECT BACKGROUND II. SCOPE OF THIS REPORT . III. PROJECT DESCRIPTION . 1. A1.1 Arkhangai WWTP and ancillary services 2. A1.4 Uvurkhangai WWTP and ancillary services 3. A1.1 Umnugovi WWTP and ancillary services 4. A1.1 Dornogovi WWTP and ancillary services 5. A1.1 Khujirt soum, Uvurkhangai WWTP and ancillary services IV. GRIEVANCE REDRESSAL MECHANISM V. CONCLUSION Attachment: Photos ABBREVIATIONS ADB Asian Development Bank AP Affected Person / People PMU Project Management Unit LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan LACUDD Land Affairs, Construction and Urban Development Division PUSO Public Utilities Service Organization WWTP Wastewater Treatment Plant GRM Grievance Redressal Mechanism I.
    [Show full text]
  • Austria. Moments of Bliss
    www.austria.info 3 2 Klosterneuburg Austria. Vienna Salzburg 1 Innsbruck Moments of Bliss Graz A singular journey, a lifetime of memories. Ornate palaces. Imperial grandeur. Echoes of Mozart. Austria has long captured Email us for your new 2013 Austria Magazine “Moments of Bliss” at the spirit of a magnificent bygone era – but lately visitors have discovered the [email protected] country’s cutting edge, as well. Alongside the exploding wine scene, a sophisticated culinary movement has taken off. Farmers, chefs and innkeepers are For more information visit revisiting – and updating – their historical appreciation for all things seasonal and austria.info/au local. Meanwhile an art and design renaissance has captured attention around the Connect with us on world, and again shot Austria to the continent’s cultural centre. Let your clients facebook.com/austriatravelinfo know that they can enjoy numerous “Moments of Bliss” in Austria – read on below and catch a glimpse what Austria has to offer. 2_Castle of 3_Baroque Visionary Adventure Splendid things happen The mighty, 900-year-old when heaven and earth meet. fortress of Hohenwerfen, set in Truly one of the architectural a beautiful alpine setting high jewels of Austria, the baroque above the Salzachtal valley Klosterneuburg Monastery near Salzburg, allows visitors to bordering Vienna, has been a delve into military history, take centre of spiritual, economic, social and cultural life for 900 1_Dine on the move a tour of historic interiors, enjoy impressive falconry displays years. It is Austria’s oldest Historic, charming, legendary. This is how the Viennese like to and visit Austria’s first Falconry winery, and as the country’s describe their Giant Ferris Wheel, one of Vienna‘s most famous Museum.
    [Show full text]
  • Mongolian European Chamber Of
    MONGOL Since 1991 the MESSENGER 500 ¥ No. 07-08 (1076-1077) MONGOLIA’S FIRST ENGLISH WEEKLY PUBLISHED BY MONTSAME NEWS AGENCY Friday, February 17, 2012 Mongolia Economic Happy Tsagaan Sar! Forum planned for early March The Mongolian Economic Forum 2012 will run on March 5-6. At a February 10 press conference, organizers of the forum reported about the preparations and measures for the forum. As of information given by MP S. Oyun; Deputy Finance Minister Ch.Gankhuyag; Ch.Khashchuluun, head of the National Development and Innovation Committee; and P.Tsagaan, senior advisor to the President, the forum that is to be organized for the third time, will run this year under the motto ‘Together for Development’. The forum will have sub-meetings under themes on economic development, social policy and competitiveness, and bring together over 1000 foreign and domestic participants. During the forum, it is planned to publicly introduce Mongolia’s development forum until 2021 issued by Open Society. MP S. Oyun said, “In reality, why isn’t poverty decreasing while the economy has grown over the past five or six years. We believe that issues on how to decrease poverty and what should be done for the fruits of economic growth to improve livelihoods will develop into hot discussions during the forum. For instance, the statistical figures on poverty percentages are very confusing. The National Statistical Committee evaluates the poverty rate at 39 percent while the World Bank says it is lower using a different methodology to evaluate poverty. Therefore,
    [Show full text]
  • Silk Road Air Pass: a CAREC Proposal
    Silk Road Air Pass: A CAREC proposal Revised Draft, 1 August 2020 This proposal/study was prepared for ADB by Brendan Sobie, Senior Aviation Specialist and Consultant for CAREC Table of Contents: Concept Introduction ……………………………………………………………. Page 2 Summary of Opportunities and Challenges …………………………… Page 3 Historic Examples of Air Passes and Lessons Learned ……………. Page 4 Silk Road Air Pass: The Objective …………………………………………… Page 9 Silk Road Air Pass: Regional International Flights …….…………… Page 11 Silk Road Air Pass: Domestic Flights ………………….…………………. Page 14 Silk Road Air Pass: Domestic Train Travel ..…………………………… Page 18 Silk Road Air Pass: the Two CAREC Regions of China ………….. Page 19 Silk Road Air Pass: Promoting Flights to/from CAREC …………… Page 21 Silk Road Air Pass: Sample Itineraries and Fares…. ………………. Page 23 Conclusion: Why Now? ……………………………………………………….. Page 26 Conclusion: Possible Conditions to Facilitate Success …………. Page 27 Addendum: Embracing New Technology ..………………………….. Page 28 Concept Introduction: Air passes have been used for over three decades by the airline and travel industries to facilitate travel within regions by offering a block of several one-way flights at a discount compared to buying the same flights separately. They are typically sold to tourists from outside the region planning a multi-stop itinerary. By selling a package of flights, often on several airlines, air passes can make travel within a region easier and more affordable, enabling tourists to visit more countries. While their overall track record is mixed, air passes have succeeded in the past at stimulating tourism in several regions, particularly regions that were suffering from high one-way air fares. In recent years one-way air fares have declined significantly in most regions, limiting the appeal of air passes.
    [Show full text]