According to risk analysts at the World Economic Forum, the current social and economic crisis caused by the coronavirus outbreak is the worst since World War II, and called for a "Great Reset" in the economy.
Mongolia was hit by the largest economic crisis caused by the pandemic in 2020, since the collapse of the system in 1990. The crisis is still continues in the first half of this year.
The crisis has hit 548,000 jobs, and by 2020, Mongolia's GDP shrank by 5.3 percent. More than 80 percent of businesses affected by the crisis are SMEs which have up to 9 employees only.
MNCCI is launching the “Post-Covid Economic Recovery Great Reset” initiative to overcome the social, economic and business crisis in a short period of time to revive and intensify the economy.
The initiative includes,
- Economic adjustment through tax, social insurance, and Violation Exemption support (exemption and reduction of social insurance premiums and tax liabilities and penalties, improve the classification of business entities and individuals in the database of the Bank of Mongolia)
- Reduce the value-added tax rate
- Radical reform and privatization of governance and management systems of state-owned and partly state-owned enterprises
- Adopt a Law on Permits to reduce the number of permits, simplify and make the licensing process more transparent
- Provide equal opportunities in the aftermath of the economic crisis caused by Covid
- To establish a specialized unit or institution to stimulate the economy