Economic Policy and Competitiveness

Research Center• EPCRC was established in 2010.

• Formed by a consortium of Mongolia’s most

recognized and respected companies in response

to our nation’s increasingly globalized economy

and rapid growth.

• EPCRC provides specialized research services:

– Economic and financial modeling

– Survey/Focus group studies and results analysis

– Industry cluster studies

– Policy/ Regulation/ Legal analysis

– Local project management and partnering

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We research and advocate on policy issues that directly affect Mongolia’s

ability to compete in a global, 21st century economy.

July 5-6, 2010: Competitiveness workshop

A workshop “Competitive Mongolia” was held during July 5-6, 2010

in Ulaanbaatar in conjunction with IMD World Competitiveness

Center.

IMD team meeting with the Prime Minister of Mongolia

From left side: Prime minister S.Batbold, Advisor to the PM on foreign affairs O.Och, Senior advisor to the President

P.Tsagaan, translator E.Enkhgerel, Director of IMD S.Garelli, IMD economist Anne-France Borgeaud Pierazzi

Objectives of EPCRC

We convey:

Consistent research (internationally accepted

methodology, IMD WCC)

Reports, presentations

Database

Strategy, research

Public awareness on the issue

.

4Pioneers in Competitiveness since 1989!

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We will advocate for necessary changes in

economic, government, business and infrastructure

policy to ensure our national leaders can make informed

decisions on the ability of Mongolia to compete in a 21st

century world.

Our vision is to enhance Mongolia’s national economic

competitiveness to enable a strong, sustainable business

environment and socio-economic framework; one that

improves the quality of life of all citizens.

We manage the annual publication

of the Mongolia in World

Competitiveness report, produced

in conjunction with Institute for

Management Development (IMD)

and its World Competitiveness

Yearbook (WCY) publication.

The inaugural Mongolia in World

Competitiveness Yearbook launch

event took place in March 2011.

Currently the book is available in

English. Mongolian version will be

published soon.6

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58 NATIONS

327 CRITERIA

54 PARTNER INSTITUTIONS

30 INFORMATION

PROVIDERS

IMD World Competitiveness Yearbook

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Member organizations:

Strategic partners

Partner Institute:

Mongolia Economic Forum 2010

The first Mongolia Economic Forum was held in February 8-9 in Ulaanbaatar under

the motto “together we can!”. EPCRC participated in the Competitiveness sub session.

Mongolia Economic Forum 2010.

From left: Guest of honor, renowned economist Hernando De Soto, President of Mongolia Ts.Elbegdorj

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Mongolia Economic Forum 2011

The second Mongolia Economic Forum took place between March 2-4, 2011 in state

palace, Ulaanbaatar. EPCRC was a co organizer and participated in the Competitiveness sub

panel.

Prime minister S.Batbold delivering opening remarks on the first day of the event

Competitiveness

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"Competitiveness of Nations is a field of economic theory, which analyses the facts and policies that shape

the ability of a nation to create and maintain an environment that sustains more value creation for its

enterprises and more prosperity for its people."

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IMD methodology

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IMD methodology

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4/26/2011Өрсөлдөх чадварын талаар нээллтэй

хэлэлцүүлэгт17

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The Impact of Air Service Liberalization in Mongolia

Purpose of the study was to examine thepotential impact of air service liberalization inMongolia and to provide insights as to howMongolia might approach more liberalized airservices to benefit the economy.

Introduction

Liberalization leads to increased air servicelevels and lower fares, which in turnstimulates additional traffic volumes andcan bring about increased economicgrowth and employment:

LiberalizationNew air

services /

lower fares

Traffic

growth

Economic

growth

Job

growth

Introduction

Liberalization Goals in Mongolia

• Aviation goals of liberalization should:

– Increase Mongolian international network

– Increase domestic flight network

– Reduce airfares

• Broad economic goals of liberalization are to:

– Increase jobs

– Attract investment in Mongolia

– Accelerate infrastructure development

529

1,124

0

200

400

600

800

1,000

1,200

Current Traffic (2010) After Liberalization

Inte

rnati

on

al P

as

se

ng

er

Tra

ffic

(T

ho

usa

nd

s)

595(+112%)

Findings

International traffic to/from Mongolia up by 112%

Liberalization will reduce passenger air fares by an average of 42%.

% Reduction in Average Fare

Total Fare Savings for Mongolians

(MNT)

Total Fare Savings for Mongolians

(US$)

Liberalization Impact

42% 158.4 Billion 121 Million

Findings

Liberalization will add 117,000 additional international visitors per year.

Additional Visits

Total Visitor Spend (MNT)

Total Visitor Spend (US$)

Incremental Visits

117,000 123.1 Billion 94 Million

Findings

Air service liberalization is projected to generate 21,540 full-time jobs in the long term. This represents an increase of approximately 2.1% in total employment in Mongolia.

Employment (FTEs)

Aviation Sector 4,310

Tourism Sector 12,220

Catalytic Impacts 5,010

Total 21,540

Findings

Air service liberalization is forecast to generate US$ 189.9 Million (MNT 253 Billion) in GDP per annum. This equates to an increase of 2.5% in national GDP.

Findings

Moscow

Berlin

Seoul

Tokyo

Beijing

Ulan UdHailar

Scheduled International Routes

Current Air Services in Mongolia

Implementing Liberalization in Mongolia

• Immediate “Open Skies” Not Practical

– Preparation of national carriers

– Negotiation of agreements

– Development of infrastructure

• Phased-In Approach to Liberalization

– Establish target dates and schedule

– Develop liberalization strategy

– Implement limited liberalization

– Adhere to schedule

ECONOMIC POLICY AND COMPETITIVENESS

RESEARCH CENTER

Central tower 1010а, Sukhbaatar district

Ulaanbaatar city, Mongolia

Tel: (976) 11 321927 Fax: (976) 11 321926

email: info@ecrc.mn Website www.ecrc.mn

Thank you for your attention

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