Economic Policy and Competitiveness Research Center celebrated its 10^th year anniversary in 2020. In this past 10 years, we compared and evaluated the development of 21 provinces of Mongolia and the Provincial Competitiveness Report was published for the 9^th year in 2020. In this report, the strengths and weaknesses of development across 21 provinces are underlined; thus, making this report a critical source of information for policymakers in assessing current situation of development, its circumstances and identify problems that need addressing so that they can make more effective policies for their respective provinces.

Highlights from the report:

The Provincial Competitiveness research had been conducted using the “National Statistical Book 2019”, which reflected the information before COVID-19, published by National Statistical Office in July,2020 and the surveys taken from business owners in 21 provinces in September, 2020; thus, accounts for the COVID-19 pandemic effects on the competitiveness.

Overall Competitiveness Index

Orkhon province is ranked first in this year’s report and last year’s report as well. Dornogobi, Darkhan-Uul, Umnugobi are ranked 2^nd, 3^rd, 4^th respectively. Bayankhongor, Gobi-Altai, Bulgan are ranked in bottom 3 for their competitiveness.

Changes in the Competitiveness Index from previous year

The average provincial competitiveness score of all provinces has decreased by 5 points from the last year. Governance efficiency and infrastructure scores have fallen while economic strength and business efficiency scores have gone up. Out of the 21 provinces, 7 have improved their competitiveness score and 13 have had their score decline.

7 Provinces that improved scores:

• Arkhangai
• Bayan-Olgii
• Gobisumber
• Uvurkhangai
• Selenge
• Uvs
• Khovd

13 Provinces with decline in scores:

• Bayankhongor
• Bulgan
• Gobi-Altai
• Darkhan-Uul
• Dornogobi
• Dornod
• Dundgobi
• Zavkhan
• Umnugobi
• Sukhbaatar
• Tüv
• Khuvsgul
• Khentii

Khovd and Uvs, which are west regional provinces, improved their competitiveness scores the most while Gobi-Altai and Zavkhan provinces from the same region and Tüv province from the central region had the most decline in scores. The improvement in scores for Khovd and Uvs is attributed to the development of business efficiency and infrastructure in the provinces. The decrease in infrastructure, labor market performances in Zavkhan, in governance and in technological performances in Tüv, and in governance and in economics performances contributed to the declining of overall competitiveness score in their respective provinces.