Mongolia Constraints Analysis Report has been launched

2017-05-01 10:16:54
Ulaanbaatar /MONTSAME/ Produced by National Secretariat for the Development of the Second Compact Agreement between the Government of Mongolia and the Millennium Challenge Corporation (MCC) of the USA with technical assistance from the MCC, "Mongolia Constraints Analysis Report" was disclosed on April 28.

According to the report, main constraints of economic growth in Mongolia was related to a weak and unstable macroeconomic environment, inconsistent laws and policies, health impacts of air pollution in Ulaanbaatar, limited and costly access to water in productive sectors and poor communities.

Going further into details, Mongolia’s medium term outlook looks promising. However, the weak and unstable macroeconomic environment appears to be the most binding constraint to economic growth in Mongolia in the short-term. And following each election and conflicts of interest among policy makers, wholesale turnover of the civil service left the private sectors concerned, resulting in an unpredictable business environment. Meanwhile, studies have shown that the economic impacts of air pollution range from 18 - 28% of Ulaanbaatar’s GDP and 8 - 13% of Mongolia’s GDP. As for the access to water, costs are significantly higher and consumption significantly lower in ger districts. This imposes financial, time, health and environmental costs on these communities.

Other constraints including education, finance, energy, transport and property rights were not deemed to be binding constraints, but the team recognized significant challenges in each. 

Link to the full report: Mongolia Constraints Analysis Report