Investment Reform Map for Mongolia : A Foundation for a new Investment Policy and Promotion Strategy

The Investment Reform Map (IRM) is an exercise of analytics and dialogue to develop the investment policy needed to attract the type of FDI that can help a country fulfil its development vision. In the case of Mongolia, this goal is closely linked to the ability of FDI to facilitate the diversification of the productive structure. The IRM is grounded on two analytical concepts of the investment policy framework designed by the WBG. The first is the investment lifecycle, which sees FDI as a dynamic relationship with the host economy, and not merely as a one-time transaction. This view corresponds to an investment policy capable of addressing issues along various stages of the relationship between foreign investors and the host economy, including FDI attraction, entry, retention and expansion, and linkages. Second, this framework sees FDI as a heterogeneous phenomenon, which can be broadly categorized along four types: natural resource-seeking, efficiency-seeking, domestic market-seeking, and strategic asset-seeking. With the previous framework in mind, this IRM is a tool to help the Government of Mongolia (GoM) to capitalize on these FDI opportunities. It provides policymakers the key analysis they need to consider their FDI policy reforms options and priorities.