Public Disclosure Authorized 2019. 5. 28.¢  industry, (ii) meat, and (iii) leather. These industry¢â‚¬â„¢s

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    【定版出血】世界�行2019.pdf 1 2019/4/29 16:31:11

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  • Report No: AUS0000216

    Mongolia Central Economic Corridor Assessment

    A Value Chain Analysis of the Cashmere-Wool, Meat, and Leather Industries

    May 2019

  • 2017 The World Bank H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org

    Some rights reserved

    This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

    Rights and Permissions

    The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given.

    Attribution—Please cite the work as follows: “World Bank. 2019. Mongolia Central Economic Corridor Assessment, A Value Chain Analysis of the Cashmere-Wool, Meat, and Leather Industries. © World Bank.”

    All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org.

    Cover photo: Baku Jambal. Permission required for reuse.

  • Acknowledgments

    This report was prepared by a team led by Julian Latimer Clarke (Senior Economist, GMTP1) and Marcin Piatkowski (Senior Economist, GFCPN), with inputs from John Arnold and Mendsaikhan Ganbat (Consultants). Jigjidmaa Dugeree (Senior Private Specialist, GMTIP) provided valuable comments. This task was prepared under the overall guidance of Deepak Mishra and Irina Astrakhan. The support of the World Bank’s Country Managers, James Anderson and Andrei Mikhnev, is gratefully acknowledged.

    The report benefited from discussions with government officials from Mongolia’s Ministry of Foreign Affairs (MoFA) and comments from Chimguundari Navaan-Yunden, ambassador-at-large at the MoFA. It also had discussions with the Ministry of Finance, Ministry of Food, Agriculture and Light Industry, Ministry of Road and Transport Development, and the General Agency for Specialized Investigation (GASI). The report also benefitted from the valuable comments from Jean-Pascal Nguessa Nganou and Davdalaai Batsuri.

    The authors would like to acknowledge the editorial input from Otgonbayar Yadmaa, who also provided logistical and administrative support.

  • Acknowledgments …………………………………………………………………… 1

    Acronyms …………………………………………………………………………… 1

    Executive Summary ………………………………………………………………… 3

    Great promise, modest performance: The role of economic corridors and industry value

    chains ……………………………………………………………………………………………… 3

    Economic corridors underutilized and underdeveloped……………………………………… 4

    Making logistics more efficient ………………………………………………………………… 5

    Bridging the standards gap ……………………………………………………………………… 5

    Making the trade facilitation regime more predictable ……………………………………… 5

    Enhancing the value chains ……………………………………………………………………… 6

    Main short-term and medium-term recommendations ……………………………………… 6

    Chapter 1: The Unutilized Potential of the Central Economic Corridor ……… 8

    Concept of Economic Corridors ………………………………………………………………… 8

    Background of the CEC ………………………………………………………………………… 8

    Transport ……………………………………………………………………………………… 10

    Trade Facilitation ……………………………………………………………………………… 10

    Trade Competitiveness ………………………………………………………………………… 14

    Key Findings from the CEC Study …………………………………………………………… 15

    Impact of Transport Performance on Modal Choice ……………………………………… 16

    Improving Supply Chain Performance ……………………………………………………… 16

    Tripartite Mongolia-Russia-China Agreement ……………………………………………… 17

    Economic benefits of transit trade …………………………………………………………… 17

    Chapter 2: Fragmented value chains undermine the development of an efficient Central Economic Corridor ……………………………………………………… 20

    The CEC’s Limited Impact on Value Chains ………………………………………………… 23

    The Need for a New Business Model from the Private Industry ………………………… 24

    Cluster Development …………………………………………………………………………… 26

    Improvements in Logistics and Trade Facilitation ………………………………………… 26

    Trade Finance ………………………………………………………………………………… 26

    Exchange of Information ……………………………………………………………………… 27

    Connecting Farmers and Producers to Markets …………………………………………… 28

    Industry-specific Recommendations ………………………………………………………… 29

    Table of Contents

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    M ongolia C

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    orridor A ssessm

    ent

    Chapter 3: Multiple constraints slow the transition to higher-value exports of cashmere-wool …………………………………………………………………… 31

    Livestock ………………………………………………………………………………………… 31

    Supply of Inputs ………………………………………………………………………………… 32

    Processing of Cashmere ……………………………………………………………………… 33

    Production of Cashmere Goods ……………………………………………………………… 35

    Survey Results …………………………………………………………………………………… 37

    Summary and Recommendations …………………………………………………………… 37

    Chapter 4: There is a significant untapped potential for expansion of meat exports …………………………………………………………………………… 39

    Collecting Meat ………………………………………………………………………………… 39

    Processing Meat ………………………………………………………………………………… 41

    Exports …………………………………………………………………………………………… 42

    Summary and Recommendations …………………………………………………………… 44

    Chapter 5: The leather value chain needs a fundamental upgrade …………… 46

    Opportunities, Threats, and Policy Options ………………………………………………… 47

    Summary and Policy Recommendations …………………………………………………… 48

    Chapter 6: Summary and Conclusions ………………………………………… 49

    Annex I. TTFA Concepts and Methodology …………………………………… 51

    Organization of the Survey …………………………………………………………………… 52

    The Concept of Supply Chains ……………………………………………………………… 53

    Supply Chains, Span of Control, Transactions ……………………………………………… 55

    Supply chain structure ………………………………………………………………………… 55

    Supply Chains ………………………………………………………………………………… 56

    Transactions and Organization ……………………………………………………………… 57

    Span of control