Doing Business by World Bank Group

The ease of doing business index is an index created by the World Bank Group. Doing Business 2017 is the 14th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Mongolia is ranked 62 among 190 economies in the ease of doing business in 2017 ratings. Distance to frontier score of Mongolia resulted 68.15 from 100 scores.

 

 

Most improved business area was Paying Taxes, climbed to 35 in 2016 from 73 in 2016, by introducing an electronic system for filing and payment of taxes. Mongolian economy occupied 26^th place in Protecting Minority Investors, 29^th place in Dealing with Construction Permits and 36^th place in Starting Business.

How Mongolia and comparator economies rank on the ease of paying taxes

 

Investment Attractiveness Index by Fraser Institute

The Fraser Institute, an independent, non-partisan research institute, conducts a survey every year among mining companies, and attempts to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. Investment Attractiveness Index is constructed by combining the Policy Perception Index for 40 percent, and Best Practices Mineral Potential Index for 60 percent. In 2016, Mongolia was rated at 81 out of 104 countries for its attractiveness for foreign direct investment.

Investment Attractiveness Index of Asian countries, by ranks

Asian countries	Score					Rank
	2015	2014	2013	2012/ 2013	2011/ 2012	2015	2014	2013	2012/ 2013	2011/ 2012
China	58.49	48.89	58.69	54.5	61.07	64/109	94/122	62/112	63/96	59/93
India	55.47	58.26	52.13	58.69	50.34	73/109	68/122	84/112	53/96	82/93
Kazakhstan	74.66	50.84	63.45	62.5	61.27	20/109	88/122	53/112	42/96	58/93
Kyrgyzstan	45.91	40.69	37.5	55.27	55.71	91/109	109/122	107/112	62/96	75/93
The Law PDR	54.44	67.06	47.22	*	57.91	77/109	45/122	91/112	*	69/93
Mongolia	50.03	49.22	53.25	67.04	67.18	85/109	93/122	80/112	31/96	41/93
Myanmar	48.92	61.7	53.32	*	*	87/109	60/122	79/112	*	*
Vietnam	53.96	55.62	48.77	56.45	41.64	78/109	78/122	89/112	59/96	91/93

According to the report of Investment Attractiveness Index 2011/2012, 2012/2013 for Mongolia was 67, and then declined to 53.2 in 2013, however, recently it was fluctuating at 49.2 in 2014, 50 in 2015, and 49.42 in 2016.

The Fraser Institute pointed out uncertainty concerning disputed land claims, uncertainty concerning protected areas and availability of labor and skills are all the factors that cause drop in policy perception index.

The Resource Governance Index by Natural Resource Governance Institute

The Resource Governance Index by the National Resource Governance Institute (formerly known as Revenue Watch Institute) assists the people of the country to understand benefits of oil, gas and mineral resources by providing technical recommendation and advocacy services, conducting thematic studies and policy analysis as well as strengthening capacity. The 2017 RGI assesses how 81 resource-rich countries govern their oil, gas and mineral wealth. The index composite score is made up of three components. Two measure key characteristics of the extractives sector - value realization and revenue management – and a third captures the broader context of governance – the enabling environment. These three overarching dimensions of governance consist of 14 subcomponents, which comprise 51 indicators, which are calculated by aggregating 133 questions.

№	Set indicators	Number of subcomponents	Number of indicators	Rank	Score
1	Value realization	4	35	17	63
2	Revenue management	3	16	22	54
3	Enabling environment	7		13	73
Index score				15	64

Mongolia’s mining sector scores  a satisfactory 64 of 100 points in the 2017 RGI, placing it 15^th among 89 assessments and 1^st among 9 countries assessed in the Eurasia region. Mongolia has 18 million metric tons of copper reserves, representing 2% of global reserves. These copper reserves have attracted considerable investment over the past decade. It has developed a number of policies to manage resouce revenues, including the establishment of a sovereign wealth fund and distribution of revenues via direct cash transfer, however, the recent fall of commodity prices has pushed the country in to a debt crisis.

In previous report, 2012 RGI, Mongolia was ranked 26th among 58 participating countries by receiving 51 points.