The Global Competitiveness Report 2015-2016 was published on September 30, yet Mongolia still remains steady compared with the previous years.
Open Society Forum NGO introduced the Mongolian rankings at the Global Competitiveness Report 2015-2016.
China holds in 28th place with 4.89 score while Russia ranks 45th place with 4.44 score.
The Global Competitiveness Report assesses the competitiveness of 140 world economies. Using a mixture of quantitative and survey data, it ranks countries overall by combining 113 indicators grouped under 12 pillars of competitiveness: institutions; infrastructure; macroeconomic environment; health and primary education; higher education and training; goods market efficiency; labour market efficiency; financial market development; technological readiness; market size; business sophistication; and innovation.
Mongolia has joined the Global Competitiveness Report in 2015 and enabled to compare its competitiveness with other countries.
This year, no progress were made to the Mongolia`s competitive strengths. Mongolia collects 3.8 score out of 7 and ranks 104th place out of 140 countries.
After joining the report, Mongolia has collected 3.2-3.9 score which proves that Mongolia has not made significant changes to its competitive strengths.
Mongolian ADVANTAGE - Cellular Phone Users, Internet Speed and number of Internet users
Mongolia showed progress in following five indicators in 2015 compared with the previous years
- Technological readiness - 0,5 score,
- Market size - 0,3 score,
- Institutions and Innovation - 0,2 score,
- Higher education and training - 0,1 score.
Increase in cellular phone users, internet speed and number of internet users has affected the technological readiness progress.
Progress in intellectual property protection, state property usage, legal, judicial independence, effectiveness of the legal environment of government regulatory complaints has affected the institutions indicator.
Mongolian DISADVANTAGE - Macro economic instability
Following three competitiveness indicators have dropped:
- Macro economic instability (macroeconomic environment) - 0,6 score,
- Financial market development - 0,2 score,
- Health and primary education - 0,1 score.
Due to budget deficit in 2014 and gross domestic product (GDP) reached 11 percent, share of national savings to GDP declined to 24.3 percent, share of government debt to GDP reached 75.5 percent, inflation rose and state credit rating downgrades caused the macroeconomic environment indicator.
Five indicators including macro-economic stability, infrastructure, financial market development and innovation did not reach 50 percent score that must be taken.
Mongolia is higher than its competitivness in higher education and training, technological readiness compared with the Asian developing countries. However, competitivness in infrastructure, financial market development and market size is lower than Asian developing countries.
The most problematic factors for doing business in Mongolia
Respondents to the Executive Opinion Survey are asked every year to identify and rank the five most problematic factors for doing business in their country. The scores calculated on the basis of the 2015 data are presented in the country profiles at the end of this Report.
The most problematic factors for doing business in Mongolia in 2015:
- Government instability,
- Government bureaucracy,
- Access to financing,
- Inflation,
- Inadequately educated workforce,
- Policy instability.
Finally, Mongolia receiving just more than half out of total scores witnessed that our country must take substantial measures to improve competitiveness. Especially, need to focus on priority issues such as institutions including interest conflicts of public officials and use of state property.
However, it is difficult to believe that the Global Competitiveness Report will be implemented.
Open Society Forum was delivering the Global Competitiveness Report annually to the Ministry of Economic Development and the Ministry reflected the report on its policy. Unfortunately, Ministry of Economic Development was abolished and no one is paying close attention to the competitiveness report.
We hope that the Global Competitiveness Report will contribute to hold discussion on improving the competitiveness between the Government and business, civil society organizations
The Global Competitiveness Report 2015-2016 was published on September 30, yet Mongolia still remains steady compared with the previous years.
Open Society Forum NGO introduced the Mongolian rankings at the Global Competitiveness Report 2015-2016.
China holds in 28th place with 4.89 score while Russia ranks 45th place with 4.44 score.
The Global Competitiveness Report assesses the competitiveness of 140 world economies. Using a mixture of quantitative and survey data, it ranks countries overall by combining 113 indicators grouped under 12 pillars of competitiveness: institutions; infrastructure; macroeconomic environment; health and primary education; higher education and training; goods market efficiency; labour market efficiency; financial market development; technological readiness; market size; business sophistication; and innovation.
Mongolia has joined the Global Competitiveness Report in 2015 and enabled to compare its competitiveness with other countries.
This year, no progress were made to the Mongolia`s competitive strengths. Mongolia collects 3.8 score out of 7 and ranks 104th place out of 140 countries.
After joining the report, Mongolia has collected 3.2-3.9 score which proves that Mongolia has not made significant changes to its competitive strengths.
Mongolian ADVANTAGE - Cellular Phone Users, Internet Speed and number of Internet users
Mongolia showed progress in following five indicators in 2015 compared with the previous years
- Technological readiness - 0,5 score,
- Market size - 0,3 score,
- Institutions and Innovation - 0,2 score,
- Higher education and training - 0,1 score.
Increase in cellular phone users, internet speed and number of internet users has affected the technological readiness progress.
Progress in intellectual property protection, state property usage, legal, judicial independence, effectiveness of the legal environment of government regulatory complaints has affected the institutions indicator.
Mongolian DISADVANTAGE - Macro economic instability
Following three competitiveness indicators have dropped:
- Macro economic instability (macroeconomic environment) - 0,6 score,
- Financial market development - 0,2 score,
- Health and primary education - 0,1 score.
Due to budget deficit in 2014 and gross domestic product (GDP) reached 11 percent, share of national savings to GDP declined to 24.3 percent, share of government debt to GDP reached 75.5 percent, inflation rose and state credit rating downgrades caused the macroeconomic environment indicator.
Five indicators including macro-economic stability, infrastructure, financial market development and innovation did not reach 50 percent score that must be taken.
Mongolia is higher than its competitivness in higher education and training, technological readiness compared with the Asian developing countries. However, competitivness in infrastructure, financial market development and market size is lower than Asian developing countries.
The most problematic factors for doing business in Mongolia
Respondents to the Executive Opinion Survey are asked every year to identify and rank the five most problematic factors for doing business in their country. The scores calculated on the basis of the 2015 data are presented in the country profiles at the end of this Report.
The most problematic factors for doing business in Mongolia in 2015:
- Government instability,
- Government bureaucracy,
- Access to financing,
- Inflation,
- Inadequately educated workforce,
- Policy instability.
Finally, Mongolia receiving just more than half out of total scores witnessed that our country must take substantial measures to improve competitiveness. Especially, need to focus on priority issues such as institutions including interest conflicts of public officials and use of state property.
However, it is difficult to believe that the Global Competitiveness Report will be implemented.
Open Society Forum was delivering the Global Competitiveness Report annually to the Ministry of Economic Development and the Ministry reflected the report on its policy. Unfortunately, Ministry of Economic Development was abolished and no one is paying close attention to the competitiveness report.
We hope that the Global Competitiveness Report will contribute to hold discussion on improving the competitiveness between the Government and business, civil society organizations