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PROVINCIAL COMPETITIVENESS REPORT 2014 (Based on the Statistics of 2013)

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PROVINCIAL COMPETITIVENESS REPORT 2014 (Based on the Statistics of 2013) MONGOLIA: PROVINCIAL COMPETITIVENESS REPORT 2014 (based on the statistics of 2013) www.aimagindex.mn ECONOMIC POLICY AND COMPETITIVENESS RESEARCH CENTER ÝÄÈÉÍ ÇÀÑÃÈÉÍ ÁÎÄËÎÃÎ, ªÐѪËÄªÕ ×ÀÄÂÀÐÛÍ ÑÓÄÀËÃÀÀÍÛ ÒªÂ DDC 338.9 À-366 THE PROVINCIAL COMPETITIVENESS REPORT ULAANBAATAR 2015 ECONOMIC POLICY AND COMPETITIVENESS RESEARCH CENTER San Business Center, 9th floor, Prime Minister Amar street 29, Sukhbaatar duureg, Ulaanbaatar, Mongolia Tel: 976-11-321927 Fax: 976-11-321926 Provincial competitiveness report website: www.aimagindex.mn E-mail: [email protected] Website: www.ecrc.mn Facebook page: http://www.facebook.com/ecrcmn Twitter page: http://twitter.com/ursulduhchadvar ISBN 978-99973-63-49-7 © All rights reserved. No part of this publication may be transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. Nor may any part of this publication be included as a reference in any other work without authorization. FOREWORD Renowned for its rich agricultural and mineral resources, Mongolia has a vast terrain comprised of an exquisite combination of towering mountains, golden desert and vast steppe. Should we manage these resources which can be found in all parts of the country, efficiently and with a good vision, we will be able to improve our competitiveness and achieve prosperity. Although Mongolia has experienced rapid economic growth in recent years, the economic livelihood of its people remains lagging. In addition, there is an ever-increasing development gap between urban and rural communities. Until a comfortable and substantive livelihood can be guaranteed for all Mongolians, regardless of location is met, an important measure of competitiveness will remain unmet. Three years have passed since the Economic Policy and Competitiveness Research Center (EP- CRC) first published the Provincial Competitiveness Report. This annual report compares the strengths and weaknesses of all 21 provinces in Mongolia. Based on the outcomes of these indicators, decision makers can then formulate and implement robust and issue-specific devel- opment strategies aimed at improving regional and national competitiveness. It is imperative that as part of this process, provinces are able to establish a platform on which to discuss with one another their experiences and concerns, working together to solve com- mon problems. As such, in October 2014, the EPCRC held the first Provincial Competitiveness Forum, an event where government and local community leaders from the 21 provinces came together to engage in a cooperative discussion. I am glad to report that through this, we are able to propose a wide array of opportunities that may promote a more effective dialogue among provinces of Mongolia. By working with local representatives and business communities, we can advance the self-sufficiency of provinces. This in turn will facilitate sustainable socio-economic development, based on investment in infrastructure and microeconomic reform that will reinvigorate economic and social growth. In 2015, we are also happy to announce the launch of a website dedicated to better promot- ing and dissecting information on provincial competitiveness. The website, www.aimagindex. mn, contains useful information from all previous Provincial Competitiveness reports, allowing for cross-sectional and historical comparative analysis for provincial competitiveness. I trust that the work of the EPCRC continues to serve as a valuable tool and guide for your endeavors. Puntsag TSAGAAN Chairman of the Board RESEARCH TEAM Economic Policy and Competitiveness Research Center Mr. Tsagaan Puntsag, Chairman of the Board Ms. Lakshmi Boojoo, Director Ms. Odonchimeg Ikhbayar, Manager Mr. Ganbat Chuluun, Researcher Ms. Tungalag Erdenebat, Researcher Mr. Bilegsaikhan Tumursukh, Researcher Ms. Yesunchuluu Khuderchuluu, Researcher Mr. Otgon-Erdene Khandaa, Researcher Ms. Orgilmaa Ganbat, Researcher www.ecrc.mn ACKNOWLEDGEMENTS Dear Reader, I am happy to present to you the third annual edition of Provincial Competitiveness Report. I am also pleased to highlight the growing trend of regionalized economic growth and cooperation in Mongolia, which will undoubtedly facilitate a favorable environment for a long-term, constructive cooperation. In line with these developments, we are placing more importance in disseminating our products to the wider public. We are extremely grateful to the growing number of organizations that understand the importance of research-based decision making, and who support the work of the EPCRC. In particular, I would like to thank The Asia Foundation for providing a significant level of support for this project. Moreover, on behalf of the research team, I would like to express my sincere gratitude to our colleagues at the Konrad Adenauer Foundation who co-organized the first Provincial Competitiveness Forum in October 2014, as well as the representatives of the 21 provinces, the Mongolian National Chamber of Commerce and Industry, its local chapters, and the survey respondents for participation in the event. On behalf of the EPCRC team, I wish the best of success to our partner organizations and our readers. Boojoo LAKSHMI Director General PARTNER ORGANISATIONS Mongolian National Chamber of Commerce and IndustryRegional Branches The Asia Foundation STATISTICAL DATA SOURCES National Statistical Office Bank of Mongolia PROVINCIAL COMPETITIVENESS REPORT 2014 CONTENTS Abbreviations ...............................................................................................................9 DEVELOPMENT FOR EVERYONE ...................................................................... 10 PRINCIPLES OF ANALYSIS AND METHODOLOGY ....................................... 13 PROVINCIAL COMPETITIVENESS SCOREBOARD .......................................... 19 Competitiveness factors .......................................................................................... 20 Overall competitiveness scoreboard 2014 ........................................................ 21 Competitiveness structures ..................................................................................... 27 PROVINCIAL COMPETITIVENESS PROFILES .................................................... 31 STATISTICAL TABLES .............................................................................................117 1 Economic Performance .................................................................................119 2 Government Efficiency ...................................................................................131 3 Business Efficiency ..........................................................................................141 4 Infrastructure ....................................................................................................153 MULTI-DIMENSIONAL ENVIRONMENTAL VULNERABILITY INDICATOR ............................................................................................................175 ANNEXES ................................................................................................................185 The fundamentals of competitiveness ................................................................186 Data sources and notes .......................................................................................188 7 PROVINCIAL COMPETITIVENESS REPORT 2014 Provincial Competitiveness Profiles ARKHANGAI………………………………………… ..........32 BAYAN-ULGII ……………………………………… ...........36 BAYANKHONGOR ………………………………...……... 40 BULGAN …………………………………………….. ..........44 GOBI-ALTAI ……………………………………….. ............48 GOBISUMBER ……………………………………….. ........52 DARKHAN-UUL ……………………………………….. ....56 DORNOGOBI …………………………………………. .....60 DORNOD …………………………………………….. .........64 DUNDGOBI …………………………………………... ......68 ZAVKHAN ……………………………………………… ........72 ORKHON………………………………………………. .........76 UVURKHANGAI ………………………………………… ....80 UMNUGOBI …………………………………………… .....84 SUKHBAATAR …………………………………………... ....88 SELENGE …………………………………………….............92 TUV ………………………………………………….. ...............96 UVS ………………………………………………….............. 100 KHOVD ………………………………………………… ...... 104 KHUVSGUL…………………………………………….. ..... 108 KHENTII ……………………………………………… ......... 112 8 PROVINCIAL COMPETITIVENESS REPORT 2014 Abbreviations BoM Bank of Mongolia EPCRC Economic Policy and Competitiveness Research Center GDP Gross domestic product MNT Mongolian national currency (tugrug) NSO National Statistical Office SME Small and medium enterprises 9 PROVINCIAL COMPETITIVENESS REPORT 2014 DEVELOPMENT FOR EVERYONE “Alone we can do so little, together we can do so much”, Helen Keller For any country, improving national Government efficiency: Sukhbaatar province competitiveness and advancing the livelihoods of topped this category, while Dundgobi province its citizens is essential. As part of this, the quality was ranked last with a mere 13 points. The and availability of publicly-provided services such primary difference between these two provinces as healthcare and education, as well as basic can be found in the contrasting rankings guarantees like a reasonable price for goods and given by each for the survey question “Local services, should be comparable regardless of government policies and decisions are on the where in the country it is being delivered. Each spot, transparent, and effectively contribute to and every citizen of Mongolia should expect local development”. an equitable living environment, whether they Business efficiency: Orkhon province was again reside in the
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