Assessment Of Special Economic Zone Policy In Mongolia

One of the most important elements of the regional economy are special economic zones(SEZ),which have been successfully functioning abroad for decades.Today SEZ exists in highly developed countries such as Great Britain,USA,France,Japan,in new industrialized countries,in developing countries and countries,moving to market economy.According to some estimations around 1.2 thousand zones operate in the world,about 10%of world trade passes through SEZ.Based on the successful stories of SEZs in other developing countries around the world,demand of SEZs were sought in Mongolia,and accordingly the proposal titled“The Concept of Establishing Free Economic Zone" was approved by the Parliament upon 87th resolution in 1995.Then "Law on Free Zones" was approved by parliament in 2002.After the approval of laws,currently there are 3 projects(1 Special Economic Zone and 2 Free Trade Zones)are established in Mongolia.The success of reforms in Mongolia largely depends on the skillful implementation of industrial and regional policy in priority areas.In its current form,the Mongolian SEZ program suffers from serious conceptual and operational weaknesses that have been found to be highly correlated with failures of these programs in other countries.In our view,ignoring the lessons learned from international experience is not a risk worth taking.Substantial legal and regulatory framework enhancement is required to bring the program to standards of competitiveness and proper positioning at the international level.In the world practice SEZ are also considered as elements of the investment policy of the state,where new mechanisms of economic management can be tested,opportunities to attract investments in the development of priority industries,determining the innovative,resource saving,socially oriented nature of the economy.Assessing the impact of the creation of SEZ on the development of the regional economy should take into account the presence of external factors:a favorable investment climate,including customs,financial,tax benefits and its benefits.Three main objectives of this study is to determine the features of the special economic zones in Mongolia to find the suitable and effective policy model for special economic zones in Mongolia and to establish new effective mode and give suggestions.My choice of research design was reached through careful consideration of the multiple research options available,the main goals of my study,my conceptual framework,and the implications of my SEZ policy of Mongolia.In my process of conducting preferential policy criteria with important key constituents of SEZ Policy utilized the policies and lessons learned from the countries that have benefited from successful FTZs also the Mongolian SEZ history and experiences of FTZ(3)with particular emphasis on what was learned and improved as the policy process evolved and changed.This will be achieved through potential relevant constituents associated with this policy who are willing to volunteer for this study.In conjunction with these literature review and additional data for this study will include collection and analysis of all available/related official policy document.The new effective policy of SEZ in Mongolia can help for strategic "leveling" of the whole SEZ portfolio,effective development of SEZ projects and further functioning.