This document summarizes the results of surveys on perceptions of corruption in the business environment in Mongolia from 2012 to 2016. Some key findings: - Satisfaction with the general business environment decreased over time, with over 75% being dissatisfied by 2016. - Perceptions that investment conditions had worsened increased substantially, with over 55% believing this by 2016. - Obtaining/renewing licenses and permits and high taxes were most commonly cited as the top obstacles to investment. - The tax office and customs were most often seen as the government agencies most affected by corruption. - Over 75% saw at least 'some' level of corruption in the public sector in 2016.

1. Trends in business
environment 2012 -2016
Findings of STOPP – Study of Private Perceptions of Corruption Survey
2016
OFFICIALLY RELEASED ON NOVEMBER 30, 2016
“Strengthening Transparency through Democratic Participation in
the Public Sector in Mongolia” project funded by Global Affairs
Canada

2. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-12 May-13 Oct-13 Apr-14 Sep-14 Sep-15 Sep-16
DK 5.5% 8.5% 7.0% 5.2% 6.1% 3.3% 1.8%
Very dissatisfied 17.6% 18.5% 23.9% 20.0% 17.3% 19.7% 24.8%
Somewhat dissatisfied 49.7% 52.7% 48.5% 62.4% 56.1% 63.0% 61.2%
Somewhat satisfied 24.8% 20.3% 19.4% 12.4% 18.8% 13.3% 11.8%
Very satisfied 2.4% 0.0% 1.2% 0.0% 1.8% 0.6% 0.3%
How satisfied or dissatisfied are you with the general business environment
in Mongolia?

3. Dec-12 May-13 Oct-13 Apr-14 Sep-14 Sep-15 Sep-16
DK 6.1% 8.8% 6.7% 7.6% 3.9% 6.1% 3.6%
Worsened 11.8% 11.5% 23.3% 32.1% 31.5% 51.5% 56.7%
Stayed the same 39.7% 46.4% 39.7% 39.4% 43.9% 32.7% 29.7%
Improved 42.4% 33.3% 30.3% 20.9% 20.6% 9.7% 10.0%
During the last 6 months have investment conditions for company
operations improved, worsened or stayed the same?
Improved Stayed the same Worsened DK

4. Current business environment situation vs. FDI
-0.58
-0.76
-0.8
-0.95
-0.73
-0.91
-1
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Balance of assessment of business
environment
(from -2 "Very dissatisfied" to +2 "Very
satisfied") 4620.1
4407.8
2098.1
276
110.2 35.2
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2011 2012 2013 2014 2015 2016
Foreign direct investment
(in mln USD)

5. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-12 May-13 Oct-13 Apr-14 Sep-14 Sep-15 Sep-16
DK 22.1% 17.3% 15.8% 20.6% 16.1% 15.5% 17.60%
Worsen 2.7% 1.2% 5.8% 7.9% 8.8% 18.5% 14.80%
Stay the same 18.2% 23.3% 28.8% 32.7% 37.3% 40.3% 41.20%
Improve 57.0% 58.2% 49.7% 38.8% 37.9% 25.8% 26.40%
In the next 6 months, do you expect that company's investment will …?

6. 58.2%
49.7%
56.1%
52.4%
50.0% 50.0%
63.6%
21.5%
27.3%
21.8%
27.0%
25.2%
26.4% 26.1%
33.6%
21.8%
25.5%
27.3%
16.7%
20.9%
17.0%
Dec-12 May-13 Oct-13 Apr-14 Sep-14 Sep-15 Sep-16
Top 3 obstacles for investments
High taxes Access to credit Obtaining, renewing licenses and permiss

7. 2.4%
2.7%
3.3%
3.9%
4.5%
6.7%
9.4%
17.3%
18.2%
25.5%
27.6%
29.1%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
The Authority for Fair Competition and C
Other
Mineral Resources Authority
Social Welfare service
Immigration agency
Court Decision Implementation agency
Police
Government Independent Procurement agenc
Land utilization agency
Customs
Specialized Inspection agency
Tax office
In your observation, derived from your business activity which of the following state
service, agencies is most affected by corruption? (Three responses allowed)

8. Dec-12 May-13 Oct-13 Apr-14 Sep-14 Sep-15 Sep-16
DK 7.3% 11.8% 4.8% 9.1% 11.2% 6.7% 9.4%
None 0.9% 0.0% 0.6% 0.6% 0.6% 0.3% 0.3%
A little 8.8% 10.0% 10.6% 10.3% 11.2% 9.4% 8.8%
Some 40.9% 37.6% 37.3% 36.1% 38.5% 33.9% 33.6%
A lot 42.1% 40.6% 46.7% 43.9% 38.5% 49.7% 47.9%
Corruption in Public Sector
A lot Some A little None DK
Dec-12 May-13 Oct-13 Apr-14 Sep-14 Sep-15
DK 12.1% 15.8% 12.7% 13.6% 12.4% 9.4%
None 16.1% 15.8% 21.8% 23.6% 25.2% 25.2%
A little 39.4% 40.0% 39.1% 38.5% 37.9% 39.7%
Some 22.7% 21.2% 20.6% 17.9% 19.7% 20.0%
A lot 9.7% 7.3% 5.8% 6.4% 4.8% 5.8%
Corruption in Private Sector
A lot Some A little None DK

9. Most effective ways to decrease corruption
62.7%
60.9%
60.0%
67.9%
63.6%
60.6%
62.4%
40.3%
27.6%
33.6%
40.6%
30.3%
42.4%
38.8%
32.4%
30.6%
29.4%
37.3%
32.7%
33.6%
34.2%
40.3%
33.0%
35.5%
33.9%
39.7%
30.3%
33.6%
Dec-12
May-13
Oct-13
Apr-14
Sep-14
Sep-15
Sep.2016
Know the laws and rules of government Never pay bribes
Campaign against corrupt political candidates Use honest business practices at all times

10. 9.7%
14.2%
19.4%
17.0%
13.9%
15.5%
14.8%
74.8%
70.6%
73.6%
77.0%
78.5%
77.6%
78.2%
15.5%
15.2%
7.0%
6.1%
7.6%
7.0%
7.0%
Dec-12
May-13
Oct-13
Apr-14
Sep-14
Sep-15
Sep-16
Does your company have any written policy or rule about dealing with corruption within
your organization?
Yes No DK

11. Thank you!