Economic Policy and Competitiveness Project

AECOM International Development, under a subcontract to Chemonics International, is participating in the implementation of a USAID-funded project in Mongolia that will accelerate and deepen the policy liberalization process currently under way in the country and promote increased competitiveness of the Mongolian economy. AECOM International Development is working on tax reform, reducing barriers to trade, increasing competitiveness in market sectors, and investment promotion. To reach USAID objectives under these components, AECOM International Development is working to assist in the formulation of a concept of Mongolia’s economic development strategy through 2020 and identifying economic policy priorities; evaluate policy instruments to accomplish main strategy objectives; elaborate a tax reform package and assess its effect on Mongolia’s major development strategy objectives; and assist in the implementation of the tax reform package.

AECOM International Development has undertaken benchmarking studies of Mongolia’s tax policies; made specific recommendations for tax policy reform; and collected data on tax policies, tax reforms, and their effects for formulating assumptions and estimating coefficients to build tax impact models. AECOM International Development is currently building these tax impact models by constructing a database with international and Mongolian tax data; creating a set of interactive computer models estimating effects of alternative tax reform measures; making recommendations for reforms to be included in the package; and presenting the results to the Tax Reform Working Group, which is composed of senior members of the parliament and other policy makers.