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Private Sector Development

Mongolia: Crisis increases demand for corporate governance

David Lawrence's picture

The President of Mongolia, Elbegdorj Tsakhia, sat at the table behind a Greek salad. We were at a lunch hosted by the Corporate Governance Development Center, an NGO which brings international best practices in corporate governance to Mongolia. Also present were the Minister of Education, the Director of the Financial Regulatory Commission (FRC), the Deputy Chief of Party of the USAID-funded Economic Policy Reform and Competitiveness Project (EPRC), which helped to establish the Center with the Institute of Finance and Economics, and CEOs of leading Mongolian firms. Several International Finanace Corporation (IFC) clients were among them.

The salad looked delicious, but it would have to wait. President Elbegdorj was speaking about the role of corporate governance in Mongolia. "Corporate governance is important for Mongolia's competitiveness," he said. I was delighted. I've been waiting a long time for this moment.

Improving investment climate important to boost economic growth in Thailand

Xubei Luo's picture

The investment climate is the fundamental socio-economic framework in which firms operate – the macroeconomic and trade policies they face, the labor and financial markets in which they recruit and raise money, the available infrast

Solomon Islands: Bringing agriculture and infrastructure services to rural island communities

Edith Bowles's picture

The expense of operating outboard motor boats means that visits to each community are few and far between.
In December 2008, I spent two and a half days traveling around the Solomon Islands with officers from the government’s Ministry of Agriculture and Livestock, which is implementing components of the World Bank’s Rural Development Program (RDP) in Western Province. Jointly funded by the EU and Australia, RDP is the World Bank’s biggest project in Solomon Islands.

In December, the project was just beginning to get going in the provinces. The agriculture workers were looking to the RDP to help restore agriculture extension services. Practically speaking, this means purchasing small boats, outboard motors, fuel, or rehabilitation of offices. At the Ag offices, I was told about the series of dead outboard boat motors lining one wall – including provenance and whatever series of incidents had rendered them inoperable.

China's presence on Fortune's Global 500 list grows, despite economic crisis

James I Davison's picture

Another example of China’s respectable growth, despite the global economic crisis, is apparent in this month’s Fortune magazine, with its Global 500 list of the world’s largest companies.

Philippines offers insight into future of mobile banking and the poor

James I Davison's picture

It’s now evident that people in developing countries have access to the internet and mobile phones like never before, which (as I recently wrote about) may lead to increased economic growth, job creation and good governance. A huge piece of this broad puzzle is mobile banking, and utilizing mobile phones to bring financial services to people who wouldn't otherwise have access to banks ("unbanked").

A new study, released last month by the Consultative Group to Assist the Poor (CGAP) and GSMA, estimates that there are more than one billion people worldwide who are unbanked, yet have access to mobile phones. And by 2012, that number is expected to grow to 1.7 billion people.

Mongolia's growing shantytowns: the cold and toxic ger districts

David Lawrence's picture

 

Children breathe thick, toxic smog from thousands of stoves in Ulaanbaatar's ger districts, which are home to 60 percent of the city's population.
There’s no capital city anywhere in the world with a housing problem like Ulaanbaatar, Mongolia. Imagine a city of one million people. Then imagine 60 percent of them living in settlements without water, sanitation or basic infrastructure, often in traditional Mongolian felt tents, known as gers. Then imagine these people relying on wood- or coal-burning stoves for cooking and heating, with fuel costs eating up 40 percent of their income. Then imagine the discomfort of having to get up in the middle of the night when it’s -35 degrees Celsius to go to the bathroom – outdoors.

Worst of all, imagine you and your children breathing the thick, toxic smog from thousands of stoves 24 hours a day, seven days a week. Unfortunately, this is not imagination, this is the real situation for over a half million people living in the ger districts of the capital. Not a pretty picture.

Mongolian government takes action to support small businesses (or Inspections Gone Wild)

David Lawrence's picture

 

Restaurants in Mongolia can face fines for not having the right number of forks.
Mongolia's done a good job in reforming its business environment since the collapse of communism in the early 1990s. In Doing Business 2009, the country ranked 58th out of 181 economies and outperformed its neighbors, Russia and China, by significant margins. Well done. But that doesn't mean that things are easy for small businesses here. The overall business environment is a serious drag on Mongolia's development prospects, and the situation keeps getting worse as the financial crisis sinks its claws into the economy.

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.

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