Formalization of the Informal Economy Project
A position paper by the Mongolian national chamber of commerce and industry
Reducing bureaucracy in public services is a crucial step towards creating a favourable business environment. Businesses operating in Mongolia frequently encounter bureaucratic challenges when obtaining permits, registrations and official references from government agencies. These challenges include multiple approval stages, duplicative requirements, unclear regulations and lengthy processing times. Such bureaucratic inefficiencies increase the cost of doing business, erode trust, act as a deterrence to compliance, and negatively impact economic growth and the competitiveness of the private sector.
The Mongolian National Chamber of Commerce and Industry (MNCCI) is committed to protecting business interests, strengthening public–private cooperation, and fostering a competitive and favourable business environment. In collaboration with the ILO, the MNCCI conducted the Redtape Index Survey in 2024. The study, which surveyed 975 business across Mongolia, including small and micro enterprises, identified key obstacles and challenges that businesses face in relation to public services.
This document presents the key findings of the study and proposes policy recommendations aimed at reducing bureaucracy and increasing the efficiency of public services. One of the major challenges of doing business in Mongolia is the complex, slow and redundant government service processes, along with a lack of transparency in information and an unstable policy environment. According to the 2024 Red tape Index Survey, the bureaucratic burden of public services related to business operations was rated at 2.85 (out of 5 points), showing slight improvement from the 2021 survey, but still failing to return to the pre-pandemic ratings seen in 2018.
Additional details
Author(s)
- Mongolian national chamber of commerce and industry
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