This document discusses the need for investor protection reform in Mongolia to increase foreign investment. It notes that political risk is a major constraint according to investor surveys. Specifically, political risk can result in lost investment, opportunity costs from risk premiums, and costly disputes between investors and states. Mongolia faces issues like adverse regulatory changes, breach of contracts, and expropriation that have reduced FDI. The proposed IFC project would help by tracking investment grievances, establishing a grievance management mechanism, and resolving issues early to prevent escalation into costly legal disputes. The overall goal is to increase investment retention, reduce disputes, and improve Mongolia's investment climate and reputation.