As mentioned in my last post, I was in Asia just a few weeks ago, and one (favorite) destination was Beijing.
Small and Medium-Sized Enterprises
We are finally starting to see some positive news around the East Asia and Pacific region, but it is too soon to begin to speak of "green shoots" of economic activity or reaching the bottom of the economic downturn in Asia. Although the Swine flu (one disease originating from animals that did not come from Asia!) and the nervousness about the condition of U.S. banks had a slightly negative impact on financial markets in Asia this past week, the stock markets are still up by about 12% for the year – led by Indonesia (21.6%), Korea (11.8%), and China (9.4%).
|Restaurants in Mongolia can face fines for not having the right number of forks.|
One area fully in Government control is business inspections. This is an important function: inspections protect the health and safety of the general public. But when inspections run wild, they can become a major burden to businesses, especially small ones. Inspections can impose large costs on businesses in terms of time and money, encourage firms to bribe their way out of violations, and even encourage entrepreneurs to operate in the shadows. That means less tax revenue and potentially dangerous products and services being offered to the public.
Is this a problem in Mongolia? Absolutely.