Ulaanbaatar, Mongolia, May 29, 2009
—IFC, a member of the World Bank Group, today signed an agreement with Mongolia to help the country reform the way it inspects businesses. This project is expected to benefit all Mongolian businesses, especially smaller businesses, by making inspection rules and practices more transparent and appropriate, and less costly.
The project, which will be implemented by IFC and Mongolia’s Office of the Deputy Prime Minister and the General Agency for Specialized Inspections, will specifically target inefficiencies in inspections processes and procedures that make it costly and difficult for businesses to comply.
Relevant legal and regulatory changes will also be introduced as the project progresses over the coming two years.
A memorandum of understanding was signed by Mongolia’s Deputy Prime Minister, Miegombo Enkhbold, who will head a high-level steering committee to oversee the reform process, and Russell Muir, IFC Head of Advisory Services for East Asia and Pacific.
Deputy Prime Minister Enkhbold said, “Business inspections are critical for protecting the health and safety of the public. However, they must be conducted in a manner that is transparent and fair so as not to place a heavy burden on businesses, especially smaller ones. Inspectors should help businesses by providing information on how to comply with regulations. We expect this reform will bring significant improvements that will be felt throughout Mongolia’s economy.”
IFC’s Russell Muir said, “IFC is extremely pleased to provide assistance to Mongolia’s government to improve the business climate. Governments can help ease the negative impact of the current global economic and financial crisis by making it easier for local businesses to operate. If inspections can be done more effectively and with fewer compliance costs, both businesses and the public will benefit.”
IFC will implement the project with funding from IFC and the Netherlands-IFC Partnership Program (NIPP), a Dutch-sponsored facility for financing IFC advisory projects in support of private sector development in least developed countries. Worldwide, IFC is currently implementing over $150 million in projects aimed at improving the business climate in client countries.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. It fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. New investments totaled $16.2 billion in fiscal 2008. For more information, visit
www.ifc.org
.