Mongolia Water Compact - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Report for the Mongolia Water Compact highlights the following binding constraints to economic growth:

1. A weak and unstable macroeconomic environment;
2. Inconsistent laws and policies, resulting in an unpredictable business environment;
3. Health impacts of air pollution in Ulaanbaatar; and 
4. Costly access to water and sanitation in productive sectors and communities.