The Economic Policy and Competitiveness Research Center (EPCRC) has released the 6th annual Provincial Competitiveness Report based on the comparative economic performance of Mongolia’s 21 provinces.
The purpose of the report is to make a comparative evaluation of the current competitiveness of 21 provinces in Mongolia and define provincial competitiveness in a comprehensive way. This study identifies the strengths and weaknesses of each of the province and evaluates their potential to compete. In addition, the EPCRC is also creating a complex database which is useful for developing a stable, long‑term development policy. Further information on this can be found at www.aimagindex.mn.
In previous years, we were generally seeing an improvement in average competitiveness scores, rising from 62 in 2012 to 70 in 2016. However this year, the average competitiveness score declined from 70 to 65.
Figure 1 - Average score of competitiveness by year (2012-2017)
Figure 2 - Ranking of provincial competitiveness 2017
This decline in the regional competitiveness scores was greatest in Western provinces and were lowest in Central provinces. Overall, Orkhon was the best performing province, with the number 1 ranking. Govi-Altai was at the bottom of the provincial rankings (21st).
Figure 3 - Changes in the four main factors
Figure 3 highlight the four main competitiveness
factors. As can be seen, the largest
decline was in the ‘government efficiency’ factor, reflecting a decreased level
of public trust in government
In the last year, the competitiveness score increased by 6 points in Dornod province, by 1 point in Uvurkhangai province and also by 1 point in Govisumber province. On the other hand, the score declined by 15 points in Sukhbaatar province, 13 points in Khovd province and 10 points in Umnugovi province.
Figure 4 -
Provinces with the most changes in scores
The increase in Dornod province’s competitiveness score is explained by several factors, including economic growth, increase in income generated in the communications sector, increased level of assets in banks, decreases in the number of non-performing loans and increases in loan availability.
Sukhbaatar’s dccline in competitiveness can be explained by reduced construction works, decreased opportunities for entrepreneurs, lower transparency in local government and the increase in debt from non-performing loans
Vulnerability Indicators: Khuvsgul province scored highest in “Number of people per physician” compared to other provinces. In other words, Khuvsgul is facing a shortage of physicians.
Provincial Competitiveness Scores 2017
For more information: The Economic Policy and Competitiveness Research Center
Phone: 321926, 88012589