Official Site - The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.
The 2009 Legatum Prosperity Index
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50

Mongolia  


Fast Facts

Population 3.0 mn (2009 est.) GDP (per capita) $3,200 (2008 est.) Inflation 9% (2007)
Life Expectancy 56 years (2003) GDP (PPP) $9.5 bn (2008 est.) Unemployment 3% (2007)
Average Life Satisfaction 4/10 (2008) GDP (growth) 9% (2008 est.) Freedom House Rating Free (2009)
Political System Parliamentary (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index50th / 104
Average Life Satisfaction Ranking93rd / 104
Per Capita GDP Ranking82nd / 104
WEF Global Competitiveness Index117th / 133
UN Human Development Index112nd / 179
Heritage/WSJ Economic Freedom Index69th / 178
TI Corruption Perceptions Index102nd / 180
Vision of Humanity Global Peace Index89th / 144

 

Regional Ranking:
Asia-Pacific

6 Australia
10 New Zealand
16 Japan
18 Hong Kong
23 Singapore
24 Taiwan
26 South Korea
39 Malaysia
44 Thailand
45 India
50 Mongolia
55 Philippines
58 Sri Lanka
61= Indonesia
75 China
76 Kazakhstan
77 Vietnam
87 Bangladesh
90 Nepal
92 Uzbekistan
93 Cambodia
99 Pakistan

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Economic Fundamentals - Ranked 57th

Mongolia has strong economic fundamentals, but suffers from a high dependence on raw material exports

Physical capital per worker in Mongolia is high and unemployment is extremely low, at a rate of 2.8%, ranking the country seventh on this variable. However, the inflation rate is among the worst at just over 9%. The domestic savings rate is very high in Mongolia, a figure of 39% of GDP, and Mongolia’s domestic market seems attractive to foreign investors, drawing foreign direct investments equivalent to 8% of its GDP. Mongolia has a moderately efficient banking sector, with an interest margin of nearly 5.5 percentage points. There is a high dependence on raw material exports in Mongolia, with concentration levels approaching 40%.

Entrepreneurship and Innovation - Ranked 70th

Few barriers to entry may encourage new businesses, but poor infrastructure and funding restrict innovation

There are eight start up procedures required for new businesses in Mongolia, a low number, internationally. In terms of value added by the service industry, Mongolia performs very poorly, ranking among the 10 lowest countries. Despite an average rate for personal computer ownership, at 14 personal computers per 100 people, the internet bandwidth is low and the country has relatively few secure internet servers with only 43 per 10 million people. In Mongolia, ICT and high-tech exports, as a proportion of total exports, are extremely low, at 1% and 2%, respectively. Additionally, R&D expenditure, as measured in proportion to GDP, is largely insignificant at less than 0.2%, ranking the country in the bottom quintile worldwide.

Democratic Institutions - Ranked 44th

Although Mongolia is largely democratic, the Mongolian executive has few political constraints due to limited checks and balances

Mongolians have high levels of political rights and civil liberties. Mongolia is classified as a complete democracy, characterised by high levels of competition and regulation. However, there are no constraints on the power of the executive, meaning that political actors can easily push through legislation that is not necessarily representative of their constituents. Elections for the executive branch are characterised by free and fair competition, there is a high level of regulation of the electoral process, and the judiciary is independent of the executive branch. However, competition for the legislative branch is not as open, with one party claiming more than 75% of the power in the Mongolian government. Mongolia ranks below the global average for regime stability, having had a fundamental change to the political system within the last 20 years.

Education - Ranked 53rd

Large class sizes and low educational expenditure keep Mongolia’s educational system from performing above the global average

Mongolia ranks below the global average with regard to primary enrolment rates. With only one teacher per 32 students, Mongolia places in the bottom quartile on this variable; however, both secondary and tertiary enrolment rates are above the global averages at 89% and 47%. Mongolia has 108 girls for every 100 boys enrolled in school. The average number of years of both secondary and tertiary education for Mongolian workers is around the global median, but funding per student is in the lowest third of countries internationally.

Health - Ranked 76th

Although there is a large proportion of medical practitioners in Mongolia, low life expectancy and high infant mortality need to be significantly improved

There are 26 doctors and nurses and 75 hospital beds for every 10,000 citizens in Mongolia, a high number, internationally, positioning Mongolia within the top 30 according to these variables. However, health-adjusted life expectancy is only 56 years and one-fourth of all citizens are undernourished, placing the country 90th on the latter variable. Infant mortality rates are also high, at 36 deaths per 1,000 live births. While only half of all Mongolians have access to improved sanitation facilities, as many as 72% are happy with the quality of their water.* Less than three-quarters are satisfied with their general level of health, and 28% of citizens feel they have ongoing health problems; both figures rank in the bottom quartile.* However, 71% feel they are well rested, a high proportion, globally, and only 15% of those polled reported being in pain the previous day, ranking the country the fifth-highest on this variable.*

Safety and Security - Ranked 35th

Mongolia has few national security concerns, however, the country’s domestic crime rate is a serious problem

Mongolia has no security challenges related to refugees. There are, however, minor issues related to group grievances, targeted violence towards certain communities, and human flight, and Mongolia ranks in the top 25 for all three variables. Despite occasional reports of state-endorsed violence, such as political imprisonment or torture of citizens, no Mongolians were killed due to civil and ethnic strife in 2008. Contrastingly, Mongolia’s domestic crime rate is well above the global average, as is the number of respondents who reported being assaulted in 2008.* The number of people who have had property stolen is also very high, at 22%, while less than half of all Mongolians feel safe walking in their local area at night, ranking the country in the bottom quintile on both variables.*

Governance - Ranked 86th

A low level of trust and an inefficient bureaucracy characterise Mongolia’s weak governance

In Mongolia, rule of law is often applied unequally and arbitrarily. The quality of regulation in the commercial and economic sector is also relatively poor, ranking the country in the bottom third worldwide, and the Mongolian civil service is very inefficient at implementing government policies. Citizens’ right to self-determine is limited to some degree, and this is reflected in the fact that only 21% are satisfied with the honesty of the country’s elections, and just 37% have confidence in the country’s legal system.* The vast majority of Mongolians believe there is widespread corruption in local businesses, while 95% believe there is corruption present in the local government, both extremely poor performances.* Confidence in the military is higher, with over three-quarters being satisfied with the country’s armed forces, a percentage that ranks above the global average.*

Personal Freedom - Ranked 59th

Despite reported high levels of freedom, Mongolian citizens feel that they have limited freedom to choose in their daily lives

Mongolians have significant freedoms of speech, religion, and movement; however, only 63% of the population are satisfied with the level of choice in their daily lives, ranking the country in the bottom quintile, globally.* Mongolia also ranks poorly on variables related to tolerance for diversity: just 60% would recommend their area for ethnic minorities to live, while less than half would suggest that their neighbourhood is a suitable place for immigrants, ranking the country in the bottom quintile on both variables.*

Social Capital - Ranked 42nd

Mongolians benefit from high levels of charitable donations and voluntary contributions, but are not involved in religious networks

Mongolia is one of the least religious countries worldwide, scoring very low on religiosity variables, suggesting limited engagement in religious support networks.* However, nine out of 10 Mongolians feel they can rely on their family and friends in times of need.* One-third of all citizens reported they had donated to charity in the previous month, ranking the country above the global average, and Mongolia’s volunteering rate places the country in the top 25, internationally. However, only 32% said they had helped a stranger in the last month, placing the country in the bottom quintile on this factor.* Data on the importance of friends, social trust, and group membership were unavailable.

* Data taken from the Gallup World Poll