COMPETITIVENESS OF MONGOLIA AND MINING SECTOR

Economic Policy and Competitiveness

Research Center

• Established in 2010

• Formed by a consortium of Mongolia‟s most recognized and

respected companies in response to our nation‟s increasingly

globalized economy and rapid growth.

• EPCRC provides specialized research services:

– Economic and financial modeling

– Survey/Focus group studies and results analysis

– Industry cluster studies

– Policy/ Regulation/ Legal analysis

– Local project management and partnering

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We research and advocate on policy issues that directly affect Mongolia’s

ability to compete in a global, 21st century economy.9/8/2011 DM 2011

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Founders & Member organizations:

Mr. BOLDBAATAR, Ts.; Mr. TSAGAAN, P.,

Strategic partners

Partner Institute:

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We will advocate for necessary changes in economic,

government, business and infrastructure policy to ensure

our national leaders can make informed decisions on the

ability of Mongolia to compete in a 21st century world.

Our vision is to enhance Mongolia’s national economic

competitiveness to enable a strong, sustainable business

environment and socio-economic framework; one that

improves the quality of life of all citizens.

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Objectives of EPCRC

Consistent research (internationally accepted

methodology, IMD WCC)

Reports, presentations

Database

Strategy, research

Public awareness on the issue

. 5Pioneers in Competitiveness since 1989!9/8/2011 DM 2011

July 5-6, 2010: Competitiveness workshop

A workshop “Competitive Mongolia” was held during July 5-6, 2010

in Ulaanbaatar in conjunction with IMD World Competitiveness

Center.

IMD team meeting with the Prime Minister of Mongolia

From left side: Prime minister S.Batbold, Advisor to the PM on foreign affairs O.Och, Senior advisor to the President

P.Tsagaan, translator E.Enkhgerel, Director of IMD S.Garelli, IMD economist Anne-France Borgeaud Pierazzi9/8/2011 6DM 2011

We manage the annual publication

of the Mongolia in World

Competitiveness report, produced

in conjunction with Institute for

Management Development (IMD)

and its World Competitiveness

Yearbook (WCY) publication.

The inaugural Mongolia in World

Competitiveness Yearbook launch

event took place in March 2011.

Currently the book is available in

English. Mongolian version will be

published soon.79/8/2011 DM 2011

Competitiveness

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"Competitiveness of Nations is a field of economic theory, which analyses the facts and policies that shape

the ability of a nation to create and maintain an environment that sustains more value creation for its

enterprises and more prosperity for its people."9/8/2011 DM 2011

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58 NATIONS

327 CRITERIA

54 PARTNER INSTITUTIONS

30 INFORMATION

PROVIDERS

IMD World Competitiveness Yearbook

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IMD methodology

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IMD methodology

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Mongolia Economic Forum 2010

The first Mongolia Economic Forum was held in February 8-9 in Ulaanbaatar under

the motto “together we can!”. EPCRC participated in the Competitiveness sub session.

Mongolia Economic Forum 2010.

From left: Guest of honor, renowned economist Hernando De Soto, President of Mongolia Ts.Elbegdorj9/8/2011 18DM 2011

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Mongolia Economic Forum 2011

The second Mongolia Economic Forum took place between March 2-4, 2011 in state palace,

Ulaanbaatar. EPCRC was a co organizer and participated in the Competitiveness sub panel.

Prime minister S.Batbold delivering opening remarks on the first day of the event9/8/2011 DM 2011

Impacts of mining to real sectors

• Direct: very low except to transportation

• Indirect:

– Hot money and inflation

– Volatile exchange rate

– Pollution & corruption

– Brain drain from other sectors

– Getting more consumer society

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Key messages

• Mining is the engine for further growth

• But danger of „resource curse‟

• Also Dutch disease

• Lack of economic diversification

• Early signs: head hunting

• Inflation and volatile exchange rate

• Dual economy: official vs. hidden, globality vs. proximity,

• Not dual but trial mining: big „correct‟ , medium sized „hidden‟ free riders, artisanal miners

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For more competitiveness

(from foreign investors)

• Better CSR

• Big mining companies should lead to make

Mongolian business community more

transparent and social responsible

• Triple down effect of good standards and

ethics (and other luxury costly)

• Value chain or more domestic participation

(private equity funds, incubation centers etc)

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For more competitiveness

(from Mongolian state)

• Clear and predictable legal environment

• Set standards and good compliance

• Coordinated monitoring (registration, taxation,

environmental and social standards)

• Invest in skill (especially non mining sectors)

• Monetary and fiscal policy should by counter

cyclical

• Cut the inefficient public cash transfer

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For more competitiveness

(domestic industry)

• Research and development in technical issues

• Innovations in green technology

• Increase the value add here in Mongolia

• Invest in skill and good management

• Pay more attention in education sector

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ECONOMIC POLICY AND COMPETITIVENESS

RESEARCH CENTER

Central tower 1010а, Sukhbaatar district

Ulaanbaatar city, Mongolia

Tel: (976) 11 321927 Fax: (976) 11 321926

email: info@ecrc.mn Website www.ecrc.mn

Thank you for your attention

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