Mongolia’s First Provincial-Level Assessment of Corruption Risks in the Business Environment from the Private Sector Perspective

A wide range of studies and assessments on corruption, corruption risks, and their impact on the business environment have been conducted in Mongolia. For example, Transparency International annually assesses perceptions of corruption across countries, enabling international comparisons. In Mongolia, numerous studies have also been conducted to understand citizens’ and businesses’ perceptions of the business environment, public services, integrity, and corruption.

However, most of these studies have examined corruption conditions, public perceptions, and integrity at the national level. Prior to this study, no research had specifically assessed corruption risks in the business environment across all 21 provinces of Mongolia from the perspective of private sector organizations, with province-level analysis.

Against this backdrop, the Economic Policy and Competitiveness Research Center (EPCRC), with the support of the Center for International Private Enterprise (CIPE), conducted the “Local Business Environment Corruption Risk: Private Sector Assessment” in 2026. This study is the first of its kind in Mongolia to specifically assess the level, forms, and causes of corruption risks in local business environments, as well as their impact on business activities, based on the perspectives and experiences of private sector organizations operating across all 21 provinces of Mongolia.

This study builds on EPCRC’s longstanding experience in conducting research at the provincial level. Since 2012, EPCRC has conducted the Provincial Competitiveness Index annually, assessing the development and competitiveness of all 21 provinces of Mongolia. The survey has also consistently included indicators related to corruption. What distinguishes the present study is that, rather than examining corruption risk as one component of a broader set of competitiveness indicators, it addresses corruption risk as a standalone research topic, allowing for a more in-depth assessment.

Key Findings

The study covered 204 enterprises across all 21 provinces of Mongolia and collected survey responses from representatives of private sector organizations. The quantitative findings were complemented by expert interviews and an analysis of secondary sources. The assessment covered a total of 18 indicators, measured on a 1–5 scale. For reporting purposes, the results were converted to a 0–100 scale.

The overall assessment of corruption risks in the local business environment was 37.79 points, indicating a below-average level and demonstrating that corruption risks continue to have a tangible impact on business activities. A difference of approximately 10 points between regions and 34.79 points between provinces was observed, indicating significant differences across provinces in the quality of local governance, public services, and policy implementation.

At the regional level, the Central Region received 44.83 points, followed by the Eastern Region with 41.66, the Northern Region with 37.92, the Western Region with 35.44, the Gobi Region with 34.84, and the Khangai Region with 34.77 points.

The study found that the processes most strongly associated with corruption risks include permits and licenses, land allocation, inspections, and public procurement. In addition, informal payments, networks of personal connections, and unfair competition remain persistent challenges in the local business environment, as highlighted by both survey respondents and experts.

Comparison with Corruption-Related Indicators from the Provincial Competitiveness Index

One of the key contributions of this study for EPCRC is that it enabled a comparison with the average scores of the corruption-related indicators previously measured through the Provincial Competitiveness Index.

EPCRC’s Provincial Competitiveness Index includes eight indicators related to corruption. In this study, the average scores of these eight indicators were compared with the results of the “Local Business Environment Corruption Risk: Private Sector Assessment” across all 21 provinces.

The comparison shows that, despite being measured using different data sources and methodologies, the overall picture of corruption risks across the 21 provinces was relatively consistent. In other words, provinces that received relatively favorable assessments of corruption risks in this study also tended to perform relatively well on the corruption-related indicators included in the Provincial Competitiveness Index. Conversely, provinces with weaker corruption risk assessments tended to have lower scores on the corresponding competitiveness indicators as well. The study concludes that this suggests a certain degree of relationship between corruption risks and provincial competitiveness, while also noting that the relationship was not equally evident across all provinces.

This comparison further demonstrates that corruption risk is not solely a governance issue, but also an important factor associated with the local business environment, economic activity, and competitiveness.

Study Findings Presented in Washington, D.C.

On June 24, 2026, the EPCRC research team participated in the international conference “From Risk to Resilience: Building Transparent and Secure Investment Ecosystems,” hosted by the Center for International Private Enterprise (CIPE) in Washington, D.C., United States, where the team presented key findings from the “Local Business Environment Corruption Risk: Private Sector Assessment.”

Research Report

For detailed information on the state of corruption risks in local business environments, differences across provinces, processes vulnerable to corruption, private sector experiences, expert assessments, and policy recommendations, please refer to the full research report.

To access the full report, “Local Business Environment Corruption Risk: Private Sector Assessment,” Please click here.

The study was conducted by the Economic Policy and Competitiveness Research Center (EPCRC) with the support of the Center for International Private Enterprise (CIPE).