Development of the Private Sector in a Small Economy in Transition. The Case of Mongolia. East Asia and Pacific Region Series

摘要

This paper attempts to identify the overall reform issues affecting the private sector in Mongolia. The paper, first, provides a detailed description of the structure and characteristics of the private sector in Mongolia. Further, an assessment of how the private sector evolved is made, focussing on Mongolia's privatization process. The paper, then, examines private sector development issues in Mongolia. It identifies four impediments to private sector growth: (a) managerial and corporate governance issues relating to the privatization process; (b) distortions in the (domestic) distribution process through the use of centralized procurement; (c) lengthy export regulations and licensing requirements that hinders private sector exports; and (d) state control over imports that constrain private sector access to imported raw materials. The paper, finally, examines the medium and long-term structural and institutional needs of the private sector, including measures that affect private sector access to credit from the commercial banking system.