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The Asia Foundation Releases USAID-Funded Study of Private Perceptions of Corruption (STOPP)

Ulaanbaatar, Mongolia, December 9, 2013 — The Independent Authority Against Corruption, The Asia Foundation, the Sant Maral Foundation, and Mercy Corps Mongolia (MCM) today released the Study of Private Perceptions of Corruption (STOPP) as part of the United States Agency for International Development (USAID)-funded Strengthening Transparency and Governance in Mongolia (STAGE) project at the roundtable discussion on the private sector’s anti-corruption initiatives. The Commissioner of the Independent Agency Against Corruption (IAAC) N. Ganbold, the U.S. Ambassador to Mongolia, Piper Anne Wind Campbell, and the Deputy Director of the Chamber of Commerce and Industry M. Oyunchimeg opened the event.

The project aims to strengthen democratic governance by building a more transparent and accountable regulatory and legislative environment while promoting principles of checks and balances.

Implemented since December 2012, the STOPP survey has captured data on the experiences of the business community to find out how corruption debilitates the business environment. The survey interviewed 330 senior-level managers of Mongolians businesses in Ulaanbaatar in October 2013. This report reflects the third round of the survey conducted under the STAGE project. A total of four STOPP surveys are to be implemented through the end of the project in September 2014.

During the public launch, the U.S. Ambassador noted: “I believe the private sector can play a major role in furthering reform. In maturing economies, the private business sector plays an ever increasing role in shaping the conduct of government. Good government, in my view, demands good corporate citizenship.”

It is expected that the survey will kick start critical debates between the state actors and the business sector to promote good governance in their exchanges which in turn will foster the business enabling environment. Commissioner N. Ganbold said, “The IAAC is fully committed to work with the private sector to promote good governance.” The Foundation has been disseminating the survey findings in partnership with the IAAC, the MCM’s USAID-funded Active Partnerships and Public Engagement for Accountable Localities (APPEAL) project, and the networks of the private sector associations in Mongolia.

Scope  
STOPP survey

  • First survey among private business focused on corruption;
  • Administered for the third time in October 2013, first time was in December 2012;
  • Encourages business to get pro-active in developing solutions to corruption;
  • Takes into account the growing interconnectedness between politics and business;
  • Randomly selected 330 firms from among those not selected in December 2012 and May 2013; and
  • Structured questionnaire used.

Findings
STOPP survey

  • The number of respondents who consider existing laws and regulations to be “not at all effective” decreased from 26.4 percent to 18.8 percent. The number who see the steps taken by the Mongolian government to eradicate overall corruption as “somewhat effective” increased slightly, from 13.3 percent to 16.7 percent.
  • More businesses spent time and resources to overcome non-productive obstacles than they did in the May 2013 survey. The positive trend that was observed between December 2012 and May 2013 did not continue.
  • Among the surveyed respondents, 73 percent said they “always” or “often” encounter corruption in public sector tender and contracting, an increase of 3.9 percentage points since May 2013.
  • Female majority companies reported twice as many cases of corruption as male majority companies (12.6 percent vs. 6.2 percent).

Read more about The Asia Foundation and its work in Mongolia.

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