Impact of Corruption in Mongolia
Prepared by Sant Maral Foundation
Most important socio-political or economic problems in Mongolia today (nationwide)
(each respondent could give two answers; only the ten highest ranking problems are shown)
Nov 2000
Unemployment 25
Poverty 21.3
Manufacturing 19
Education 13.3
National Economy 10.2
Life Level 10.1
Corruption 5.8
Rule of Law 5.7
Alcoholism 5.2
Low Morals 4.9
Nov 1995
Education 34.7
Unemployment 18.6
National Economy 17.0
Life level 12.3
Poverty 12.3
Inflation 9.6
Health 9.3
Youth 6.1
Order 5.2
Law 4.9
Major Problem
33.8%
7.5%
7.4%
7.2%
0.5%
3.9%
6.0%
4.3%
4.5%
0.8%
24.4%
21.5%
7.0%
4.3%
4.0%
3.8%
3.7%
3.4%
2.6%
2.5%
Unemployment
Inflation
Corruption
Poverty
National Economy
Alcoholism
Ecology
Bureaucracy
Living Standard
Low income
Mar-13 Sep-13
2006-2013 trends of highest ranking problem Unemployment against Corruption
Nowadays a big part of Mongolian economy is operating in a shadow out of legal
area or under limited legal coverage. What are the reasons that people avoid
contacts with the legal system? (2000 Feb, “Business community, perception of legal environment”, 1235 respondents,
Each respondent could make up to two choices; ranking is based on a number of cases).
PICS 2004
Extent to which corruption affects personal life, business
environment, and politics
Mar-06
Sep-06
Mar-07
Sep-07
Mar-08
Sep-08
Mar-09
Sep-09
Mar-10
Sep-10
Nov-12
Mar-13
Sep-13
Personal life 2.39 2.11 2.17 2.35 2.22 2.30 2.25 2.26 2.22 2.14 2.24 2.14 2.05
Business Environment 3.15 2.99 3.08 3.16 3.20 3.02 2.93 3.12 3.24 3.19 3.28 3.13 3.11
Political life 3.31 3.17 3.25 3.39 3.41 3.16 3.22 3.36 3.43 3.36 3.48 3.37 3.39
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00To a large extent
(3.00-4.00)
To a moderate extent (2.00-3.00)
To a small extent (1.00-2.00)
Not at all (0.00-1.00)
Public perception of top 5 most corruption affected areas 2006-2013
1 rank 2 rank 3 rank 4 rank 5 rank
Mar-06 Land Utilization Customs Mining Judges Police
Sep-06 Land Utilization Customs Mining Judges Police
Mar-07 Land Utilization Customs Mining Judges
Registry and Permit
Service
Sep-07 Land Utilization Mining Customs Registry and Permit Service Judges
Mar-08 Land Utilization Mining Customs Registry and Permit Service Judges
Sep-08 Land Utilization Mining Customs Judges Prosecutors
Mar-09 Land Utilization Mining Judges Customs Prosecutors
Sep-09 Land Utilization Judges Police Prosecutors Mining
Mar-10 Land Utilization Mining Political Parties Customs Parliament/ Legislature
Sep-10 Land Utilization Mining Judges Customs Political Parties
Apr-11 Land Utilization Mining Judges Customs Political Parties
Nov-12 Land Utilization Mining
Local Procurement
Tenders
Professional Inspection
Agency Political Parties
Mar-13 Land Utilization
State Mining
regulation
Local Procurement
Tenders Political Parties Customs
Sep-13 Land Utilization
State Mining
regulation
Local Procurement
Tenders Political Parties
Private companies in
Mining Sector
In the past three months have you or anyone of your household paid a bribe in any form? (Yes)
In your opinion, who should organize and lead the effort to combat corruption (1 choice)
Change in corruption in the last 3 years and expectations for the next 3 years
Increased a lot 18%
Increased a little
23%
Is the same 31%
Decreased a little
26%
Decreased a lot 2%
Last 3 years
Increase a lot 8% Increase
a little 12%
Remain the same
27%
Decrease a little
44%
Decrease a lot 9%
Next 3 years
Factors hindering fight against corruption (Sep 2013)
Most possible action if asked for a bribe by an official
36%
12% 26%
14%
6% 6%
Sep-13
I will not pay
I will report
I shall pay if I havemoney
I will look for help
I will do nothing justwait
DK/NA
Business
How satisfied or dissatisfied are you with the general business environment in Mongolia?
Verysatisfied
Somewhatsatisfied
Somewhatdissatisfied
Verydissatisfied
DK
Dec-12 2.4% 24.8% 49.7% 17.6% 5.5%
May-13 0.0% 20.3% 52.7% 18.5% 8.5%
Oct-13 1.2% 19.4% 48.5% 23.9% 7.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
In the lastmonth
In the last 2-3months
In the last 4-6months
In the last 7months to a
year
More than ayear ago
Never DK
Dec-12 16.4% 12.1% 8.8% 11.2% 13.0% 10.0% 28.5%
May-13 15.8% 9.4% 9.4% 7.3% 12.4% 7.9% 37.9%
Oct-13 20.0% 19.1% 10.9% 6.4% 7.3% 8.5% 27.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
When was the last time you had personal knowledge of a corruption transaction with government by a company in your sector of
business?
During the last 6 months have investment conditions for company operations improved, worsened or stayed the same?
In the next 6 months, do you expect that company's investment will …?
42.4%
33.3%
30.3%
39.7%
46.4%
39.7%
11.8%
11.5%
23.3%
6.1%
8.8%
6.7%
Dec-12
May-13
Oct-13
Improved Stayed the same Worsened DK
57.0%
58.2%
49.7%
18.2%
23.3%
28.8%
2.7%
1.2%
5.8%
22.1%
17.3%
15.8%
Dec-12
May-13
Oct-13
Improve Stay the same Worsen DK
Main obstacles for businesses*
60.2%
34.8%
24.1%
22.3%
16.0%
11.6%
17.6%
11.3%
10.0%
4.4%
13.8%
16.6%
10.3%
6.3%
4.4%
1.3%
53.8%
23.6%
22.0%
29.5%
17.0%
14.8%
10.5%
9.5%
11.5%
7.5%
14.8%
11.5%
5.2%
11.5%
3.9%
1.0%
56.1%
25.5%
24.2%
21.8%
18.8%
14.8%
11.2%
10.6%
10.6%
10.3%
10.0%
9.1%
6.7%
5.5%
3.9%
6.1%
High taxes
Obtaining, renewing licenses and permissions
Low level of professionalism
Access to credit
Temporary prohibitions, restrictions
Strong competition from other companies
Unofficial charges
Permanent prohibitions, restrictions
Conditions of the labor market
Lack of market research
Availability and cost of transport
Duties, official charges
Availability and accuracy of the information
Standards
Lack of management training
Other
Dec-12 May-13 Oct-13
*Multiple choice
Organizations creating obstacles to businesses
35.4%
28.0%
15.2%
9.9%
6.2%
8.1%
1.2%
2.5%
3.7%
13.7%
29.1%
23.6%
13.3%
10.6%
5.8%
5.2%
1.2%
2.7%
5.8%
20.0%
26.7%
19.1%
13.6%
7.3%
5.8%
3.3%
1.2%
0.6%
4.5%
16.1%
Tax office
Specialized Inspection Agency
Customs
Local authority
Land Utilization Agency
Police
City Regulatory Agency
Hygienic Agency
Other
DK
Dec-12 May-13 Oct-13
In your opinion, how much corruption do you think there is in …
Public sector
A lot SomeA
littleNone DK
Dec-12 42.1% 40.9% 8.8% 0.9% 7.3%
May-13 40.6% 37.6% 10.0% 0.0% 11.8%
Oct-13 46.7% 37.3% 10.6% 0.6% 4.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Private sector
A lot SomeA
littleNone DK
Dec-12 9.7% 22.7% 39.4% 16.1% 12.1%
May-13 7.3% 21.2% 40.0% 15.8% 15.8%
Oct-13 5.8% 20.6% 39.1% 21.8% 12.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Sectors most vulnerable to corruption
50.6%
57.0%
49.1%
15.5%
11.5%
10.9%
10.3%
5.5%
8.5%
54.8%
60.3%
47.3%
10.3%
7.6%
6.1%
4.2%
3.0%
7.0%
67.6%
59.4%
58.2%
11.5%
9.1%
8.8%
8.5%
1.8%
2.7%
Government services
Mining
Construction
Finance
Manufacturing
Electricity, heating and water
Trade
Other private services
DK
Dec-12 May-13 Oct-13
Best three ways to reduce corruption
62.7%
40.3%
40.3%
32.4%
24.5%
23.3%
15.8%
5.2%
60.9%
33.0%
27.6%
30.6%
13.3%
18.8%
7.6%
9.4%
60.0%
35.5%
33.6%
27.9%
21.2%
17.3%
7.0%
11.5%
Use honest business practices at all time
Know the laws and rules of government
Campaign against corrupt political candidates
Never pay bribes
Report corruption to mass media
Report government corruption to the officials
Join a civil society organization
Other
Dec-12 May-13 Oct-13
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