Geography
Area: 1,566,500 sq. km. (604,103 sq. mi.);
slightly larger than Alaska (land boundaries
8,114 km.).
Terrain: Almost 90% of land area is pasture or
desert, of varying usefulness; 1% arable; 9%
forested.
Climate: Continental, with little precipitation
and sharp seasonal fluctuations.
People
Nationality: Noun
and adjective--Mongolian(s).
Population (2008 est.): 2.9 million.
Annual growth rate (2007): 1.5%.
Health (2007): Infant
mortality rate--41/1000
(under one year). Life expectancy--67
yrs.
Ethnic groups (2004): 85% Mongol (predominantly
Khalkha); 7% Turkic (largest group, Kazakh);
4.6% Tungusic; and 3.4% others, including
Chinese and Russian.
Languages: Mongolian, Kazakh, Russian, and
English.
Religions: Tibetan Buddhist Lamaism 90%, Muslim
6% (primarily in the southwest), Christian 4%,
and Shamanism.
Education: Years
compulsory--9 (provided free by the
government). Literacy--more
than 90%.
Government
Type: Multiparty parliamentary form of
government.
Independence: gained in 1921; in 1990,
democratic reform begun and shift from
dependence on the former Soviet Union declared.
Constitutions: 1960 and February 12, 1992.
Branches: Executive--power
is divided between a president (elected by a
popular election in May 2005) and prime minister
(current cabinet nominated by the prime minister
was approved in December 2007 by the State Great
Hural elected in June 2004). Legislative--State
Great Hural (76 deputies). Judicial--Constitutional
Court is empowered to supervise the
implementation of the constitution, makes
judgment on the violation of its provisions, and
solves disputes. Legal code based on Continental
and Russian law. Legal education at Mongolian
State University and private universities.
Mongolia accepts International Court of Justice
jurisdiction.
Political parties: 18 registered political
parties.
Suffrage: Universal at 18.
Administrative subdivisions: 21 aimags
(provinces) and one city (Ulaanbaatar).
Economy
GDP in PPP (2006 est.): $5.8 billion.
GDP growth (2007 est.): 9.9%.
Per capita GDP in PPP (2006 est.): $2,402.
Natural resources: Coal (thermal and
metallurgical), copper, molybdenum, silver,
iron, phosphates, tin, nickel, zinc, wolfram,
fluorspar, gold, uranium, and petroleum.
Agriculture (20.6% of 2007 GDP, livelihood for
about 40% of population): Products--livestock
and byproducts, hay fodder, vegetables.
Industry (36% of 2007 GDP, includes mining
27.4%, manufacturing 6.1%, and utilities
(electricity, gas, and water) 2.5%): Types--Minerals
(primarily copper and gold), animal-derived
products, building materials, food/beverage.
Trade: Total turnover of foreign trade for 2007
was $4.119 billion. Exports--$1.949
billion: minerals, livestock, animal products,
and textiles. Markets--Asian
countries (approx. 75%), European countries
(approx. 10%), and countries of American
continent (approx. 15%). Imports--$2.17
billion: machinery and equipment, fuels, food
products, industrial consumer goods, chemicals,
building equipment, vehicles, textiles. Suppliers--91
countries account for 93.2% of total imports, of
which European countries (47%) and Asian
countries (49%).
Aid received: From 1990-2006, official
development assistance to Mongolia from
bilateral and multilateral donors totaled over
$3.457 billion. Received $175.58 million in
official development assistance in 2007.
Fiscal year: Calendar year.
PEOPLE
Life in sparsely populated Mongolia has recently
become more urbanized. Nearly half of the people
live in urban centers, including the capital,
Ulaanbaatar. Semi-nomadic life still
predominates in the countryside, but settled
agricultural communities are becoming more
common. Mongolia's birth rate is estimated at
21.2 births/1000 people (2007 est.). About
two-thirds of the total population is under age
30, 28.5% of whom are under 14.
Ethnic Mongols account for about 85% of
Mongolia's population and consist of Khalkha and
other groups, all distinguished primarily by
dialects of the Mongol language. Mongol is an
Altaic language--from the Altaic Mountains of
Central Asia, a language family comprising the
Turkic, Tungusic, and Mongolic subfamilies--and
is related to Turkic (Uzbek, Turkish, and
Kazakh), Korean, and, possibly, Japanese. Among
ethnic Mongols, the Khalkha comprise 90% and the
remaining 10% include Dorvod, Tuvan, and Buriat
Mongols in the north and Dariganga Mongols in
the east. Turkic speakers (Kazakhs, Turvins, and
Khotans) constitute 7% of Mongolia's population,
and the rest are Tungusic-speakers, Chinese, and
Russians. Most Russians left the country
following the withdrawal of economic aid and
collapse of the Soviet Union in 1991.
Traditionally, Tibetan Buddhist Lamaism was the
predominant religion. However, it was suppressed
under the communist regime until 1990, with only
one showcase monastery allowed to remain. Since
1990, as liberalization began, Buddhism has
enjoyed a resurgence. About 4 million ethnic
Mongols live outside Mongolia; about 3.4 million
live in China, mainly in the Inner Mongolia
Autonomous Region, and some 500,000 live in
Russia, primarily in Buryatia and Kalmykia.
HISTORY
In 1206 AD, a single Mongolian state was formed
based on nomadic tribal groupings under the
leadership of Chinggis ("Genghis") Khan. He and
his immediate successors conquered nearly all of
Asia and European Russia and sent armies as far
as central Europe and Southeast Asia. Chinggis
Khan's grandson Kublai Khan, who conquered China
and established the Yuan dynasty (1279-1368 AD),
gained fame in Europe through the writings of
Marco Polo.
Although Mongol-led confederations sometimes
exercised wide political power over their
conquered territories, their strength declined
rapidly after the Mongol dynasty in China was
overthrown in 1368. The Manchus, a tribal group
which conquered China in 1644 and formed the
Qing dynasty, were able to bring Mongolia under
Manchu control in 1691 as Outer Mongolia when
the Khalkha Mongol nobles swore an oath of
allegiance to the Manchu emperor. The Mongol
rulers of Outer Mongolia enjoyed considerable
autonomy under the Manchus, and all Chinese
claims to Outer Mongolia following the
establishment of the republic have rested on
this oath. In 1727, Russia and Manchu China
concluded the Treaty of Khiakta, delimiting the
border between China and Mongolia that exists in
large part today.
Outer Mongolia was a Chinese province
(1691-1911), an autonomous state under Russian
protection (1912-19), and again a Chinese
province (1919-21). As Manchu authority in China
waned, and as Russia and Japan confronted each
other, Russia gave arms and diplomatic support
to nationalists among the Mongol religious
leaders and nobles. The Mongols accepted Russian
aid and proclaimed their independence of Chinese
rule in 1911, shortly after a successful Chinese
revolt against the Manchus. By agreements signed
in 1913 and 1915, the Russian Government forced
the new Chinese Republican Government to accept
Mongolian autonomy under continued Chinese
control, presumably to discourage other foreign
powers from approaching a newly independent
Mongolian state that might seek support from as
many foreign sources as possible.
The Russian revolution and civil war afforded
Chinese warlords an opportunity to re-establish
their rule in Outer Mongolia, and Chinese troops
were dispatched there in 1919. Following Soviet
military victories over White Russian forces in
the early 1920s and the occupation of the
Mongolian capital Urga in July 1921, Moscow
again became the major outside influence on
Mongolia. The Mongolian People's Republic was
proclaimed on November 25, 1924.
Between 1925 and 1928, power under the communist
regime was consolidated by the Mongolian Peoples
Revolutionary Party (MPRP). The MPRP left
gradually undermined rightist elements, seizing
control of the party and the government. Several
factors characterized the country during this
period: The society was basically nomadic and
illiterate; there was no industrial proletariat;
the aristocracy and the religious establishment
shared the country's wealth; there was
widespread popular obedience to traditional
authorities; the party lacked grassroots
support; and the government had little
organization or experience.
In an effort at swift socioeconomic reform, the
leftist government applied extreme measures that
attacked the two most dominant institutions in
the country--the aristocracy and the religious
establishment. Between 1932 and 1945, their
excess zeal, intolerance, and inexperience led
to anti-communist uprisings. In the late 1930s,
purges directed at the religious institution
resulted in the desecration of hundreds of
Buddhist institutions and imprisonment of more
than 10,000 people.
During World War II, because of a growing
Japanese threat over the Mongolian-Manchurian
border, the Soviet Union reversed the course of
Mongolian socialism in favor of a new policy of
economic gradualism and buildup of the national
defense. The Soviet-Mongolian army defeated
Japanese forces that had invaded eastern
Mongolia in the summer of 1939, and a truce was
signed setting up a commission to define the
Mongolian-Manchurian border in the autumn of
that year.
Following the war, the Soviet Union reasserted
its influence in Mongolia. Secure in its
relations with Moscow, the Mongolian Government
shifted to postwar development, focusing on
civilian enterprise. International ties were
expanded, and Mongolia established relations
with North Korea and the new communist
governments in Eastern Europe. It also increased
its participation in communist-sponsored
conferences and international organizations.
Mongolia became a member of the United Nations
in 1961.
In the early 1960s, Mongolia attempted to
maintain a neutral position amidst increasingly
contentious Sino-Soviet polemics; this
orientation changed in the middle of the decade.
Mongolia and the Soviet Union signed an
agreement in 1966 that introduced large-scale
Soviet ground forces as part of Moscow's general
buildup along the Sino-Soviet frontier.
During the period of Sino-Soviet tensions,
relations between Mongolia and China
deteriorated. In 1983, Mongolia systematically
began expelling some of the 7,000 ethnic Chinese
in Mongolia to China. Many of them had lived in
Mongolia since the 1950s, when they were sent
there to assist in construction projects.
Chronology of Mongolian History 1921-Present
March 13, 1921: Provisional
People's Government declared independence of
Mongolia.
May 31, 1924: U.S.S.R.
signed agreement with Peking government,
referring to Outer Mongolia as an "integral part
of the Republic of China," whose "sovereignty"
therein the Soviet Union promised to respect.
May-September 16, 1939: Large
scale fighting took place between Japanese and
Soviet-Mongolian forces along Khalkhyn Gol on
Mongolia-Manchuria border, ending in defeat of
the Japanese expeditionary force. Truce
negotiated between U.S.S.R. and Japan.
October 6, 1949: Newly
established People's Republic of China accepted
recognition accorded Mongolia and agreed to
establish diplomatic relations.
October 1961: Mongolia
became a member of the United Nations.
January 27, 1987: Diplomatic
relations established with the United States.
December 1989: First
popular reform demonstrations. Mongolian
Democratic Association organized.
January 1990: Large-scale
demonstrations demanding democracy held in
sub-zero weather.
March 2, 1990: Soviets
and Mongolians announced that all Soviet troops
would be withdrawn from Mongolia by 1992.
May 1990: Constitution
amended to provide for multi-party system and
new elections.
July 29, 1990: First
democratic elections held.
September 3, 1990: First
democratically elected People's Great Hural took
office.
February 12, 1992: New
constitution went into effect.
April 8, 1992: New
election law passed.
June 28, 1992: Election
for the first unicameral legislature (State
Great Hural).
June 6, 1993: First
direct presidential election.
June 30, 1996: Election
resulted in peaceful transition of power from
former communist party to coalition of
democratic parties. From 1998-2000, four prime
ministers and a series of cabinet changes. In
early 2000, Democratic Coalition dissolved.
July 2, 2000: Election
resulted in victory for the former communist
Mongolian Peoples Revolutionary Party (MPRP);
first-past-the-post electoral system enabled
MPRP, with 52% of the popular vote, to win 95%
of the parliamentary seats; formation of new
government by Prime Minister N. Enkhbayar.
June 27, 2004: Motherland-Democracy
Coalition formed in early 2004 to contest the
parliamentary election. Election resulted in
roughly 50/50 split of parliamentary seats
between former communist party and democratic
opposition and formation of new government by
Prime Minister T. Elbegdorj (Democratic Party).
January 2006: MPRP
ministers resigned from the government, and the
government dissolved. A new coalition government
was formed, led by the MPRP with the
participation of four smaller parties.
October 2007: MPRP
ousted its leader, Prime Minister Enkhbold, who
resigned as Prime Minister. The new leader of
the MPRP, Sanjaa Bayar, became Prime Minister.
Prime Minister Bayar formed a new cabinet.
December 2007: Bayar's
cabinet was approved.
July 1, 2008: Two
days after parliamentary elections, and one day
after the ruling MPRP claims a landslide
victory, a sizeable protest outside the MPRP
headquarters turned violent. The MPRP
headquarters was burned beyond repair and
clashes between civilians and security forces
left at least five people dead, 13 missing,
hundreds injured and hundreds in police
detention. President Enkhbayar declared a
four-day state of emergency, imposing a curfew,
a ban on public gatherings, and a broadcast-news
blackout (apart from the state broadcaster).
July and August 2008: Newly
elected members of parliament from the
opposition Democratic Party refused to take the
oath of office, demanding, among other things,
that the nine-member General Election Commission
resign for alleged electoral shortcomings.
GOVERNMENT AND POLITICAL CONDITIONS
Until 1990, the Mongolian Government was
modeled on the Soviet system; only the communist
party--the MPRP--officially was permitted to
function. After some instability during the
first two decades of communist rule in Mongolia,
there was no significant popular unrest until
December 1989. Collectivization of animal
husbandry, introduction of agriculture, and the
extension of fixed abodes were all carried out
without perceptible popular opposition.
The birth of perestroika in the former Soviet
Union and the democracy movement in Eastern
Europe were mirrored in Mongolia. The dramatic
shift toward reform started in early 1990 when
the first organized opposition group, the
Mongolian Democratic Union, appeared. In the
face of extended street protests in subzero
weather and popular demands for faster reform,
the politburo of the MPRP resigned in March
1990. In May, the constitution was amended,
deleting reference to the MPRP's role as the
guiding force in the country, legalizing
opposition parties, creating a standing
legislative body, and establishing the office of
president.
Mongolia's first multi-party elections for a
People's Great Hural were held on July 29, 1990.
The MPRP won 85% of the seats. The People's
Great Hural first met on September 3 and elected
a president (MPRP), vice president (SDP--Social
Democrats), prime minister (MPRP), and 50
members to the Baga Hural (small Hural). The
vice president also was chairman of the Baga
Hural. In November 1991, the People's Great
Hural began discussion on a new constitution,
which entered into force February 12. In
addition to establishing Mongolia as an
independent, sovereign republic and guaranteeing
a number of rights and freedoms, the new
constitution restructured the legislative branch
of government, creating a unicameral
legislature, the State Great Hural (SGH).
The 1992 constitution provided that the
president would be elected by popular vote
rather than by the legislature as before. In
June 1993, incumbent Punsalmaagiyn Ochirbat won
the first popular presidential election running
as the candidate of the democratic opposition.
As the supreme government organ, the SGH is
empowered to enact and amend laws, determine
domestic and foreign policy, ratify
international agreements, and declare a state of
emergency. The SGH meets semiannually for 3-4
month sessions. SGH members elect a chairman and
vice chairman who serve 4-year terms. SGH
members are popularly elected by district for
4-year terms.
The president is the head of state, commander in
chief of the armed forces, and head of the
National Security Council. He is popularly
elected by a national majority for a 4-year term
and limited to two terms. The constitution
empowers the president to propose a prime
minister, call for the government's dissolution
in consultation with the SGH chairman, initiate
legislation, veto all or parts of legislation
(the SGH can override the veto with a two-thirds
majority), and issue decrees, which become
effective with the prime minister's signature.
In the absence, incapacity, or resignation of
the president, the SGH chairman exercises
presidential power until inauguration of a newly
elected president.
The government, headed by the prime minister,
has a 4-year term. The prime minister is
nominated by the president and confirmed by the
SGH. Under constitutional changes made in 2001,
the president is required to nominate the prime
ministerial candidate proposed by a party or
coalition with a majority of members of the SGH.
The prime minister chooses a cabinet, subject to
SGH approval. Dissolution of the government
occurs upon the prime minister's resignation,
simultaneous resignation of half the cabinet, or
after an SGH vote for dissolution.
Local hurals are elected by the 21 aimags
(provinces) plus the capital, Ulaanbaatar. On
the next lower administrative level, they are
elected by provincial subdivisions and urban
subdistricts in Ulaanbaatar and all aimags.
Political Parties
Mongolian People's Revolutionary Party
Democratic Party
Motherland-Mongolian Democratic New Socialist
Party
National New Party
Civil Will Party
Mongolian People's Party
Mongolian Green Party
Mongolian Traditional United Party
Mongolian National Solidarity Party
Mongolian Liberal Democratic Party
Mongolian Republican Party
Mongolian Women's National United Party
Mongolian Liberal Party
Mongolian Social Democratic Party
Freedom Implementing Party
The Civil Movement Party
The Development Program Party
Mongolian Democratic Development Party
Legal System
The 1992 constitution empowered a General
Council of Courts (GCC) to select all judges and
protect their rights. The Supreme Court is the
highest judicial body. Justices are nominated by
the GCC and confirmed by the SGH and president.
The court is constitutionally empowered to
examine all lower court decisions--excluding
specialized court rulings--upon appeal and
provide official interpretations on all laws
except the constitution.
Specialized civil, criminal, and administrative
courts exist at all levels and are not subject
to Supreme Court supervision. Local
authorities--district and city governors--ensure
that these courts abide by presidential decrees
and SGH decisions. At the apex of the judicial
system is the Constitutional Court, which
consists of nine members, including a chairman,
appointed for 6-year terms, whose jurisdiction
extends solely over the interpretation of the
constitution.
Principal Government Officials
President--Nambaryn Enkhbayar
Prime Minister--Sanjaagiin Bayar
Mongolia maintains an embassy in
the United States at 2833 M Street, NW,
Washington, DC, 20007; tel. (202) 333-7117, fax
(202) 298-9227, website - www.mongolianembassy.us.
ECONOMY
Economic activity in Mongolia has traditionally
been based on herding and agriculture. Mongolia
has extensive mineral deposits; copper, coal,
molybdenum, tin, tungsten, and gold account for
a large part of industrial production. Soviet
assistance, at its height one-third of GDP,
disappeared almost overnight in 1990-91 at the
time of the dismantlement of the U.S.S.R.,
leading to a very deep recession. Economic
growth returned due to reform embracing
free-market economics and extensive
privatization of the formerly state-run economy.
Severe winters and summer droughts in 2000-2001
and 2001-2002 resulted in massive livestock
die-off and anemic GDP growth of 1.1% in 2000
and 1% in 2001. This was compounded by falling
prices for Mongolia's primary-sector exports and
widespread opposition to privatization. Growth
improved to 4% in 2002, 5% in 2003, 10.6% in
2004, 6.2% in 2005, 7.5% in 2006, and 9.9% in
2007. Much of the growth was due to high copper
prices and new gold production. Besides
agriculture (20.6% of GDP), dominant industries
in the composition of GDP are mining (27.4%),
trade and service (24.8%) and transportation,
storage, and communication (12.2%). Mongolia's
economy continues to be heavily influenced by
its neighbors. For example, Mongolia purchases
80% of its petroleum products from Russia. China
is Mongolia's chief export partner and a main
source of the "shadow," or "gray," economy. The
gray--largely cash--economy is estimated to be
at least one-third the size of the official
economy, but actual size is difficult to
quantify since the money does not pass through
the hands of tax authorities or the banking
sector. Remittances from Mongolians working
abroad, both legally and illegally, constitute a
sizeable portion. Money laundering is growing as
an accompanying concern. Mongolia settled its
large debt to Russia at the end of 2003 on
favorable terms. Mongolia, which joined the
World Trade Organization in 1997, is the only
member of that organization to not be a
participant in a regional trade organization.
Mongolia seeks to expand its participation and
integration into Asian regional economic and
trade regimes.
Because of Mongolia's remoteness and natural
beauty, the tourism sector has recently shown
signs of rapid growth. With spiking
international commodity prices, there has been a
surge of international interest in investing in
Mongolia's minerals sector despite the absence
of a policy environment firmly conducive to
private investment. How effectively Mongolia
mobilizes private international investment
around its comparative advantages (mineral
wealth, small population, and proximity to China
and its burgeoning markets) will ultimately
determine its success in sustaining rapid
economic growth. Parliament passed a windfall
profits tax on copper and gold that took effect
in mid-2006, and tax reforms enacted on January
1, 2007 helped government revenues jump 33% in
2007. Meanwhile, major amendments to the
minerals law allowed the government to take an
equity stake in major new mines. However, in
late 2007 and early 2008, Mongolia's parliament
proved unable to approve other key amendments to
Mongolia's minerals law; observers called such
amendments crucial for the development of
Mongolia's extractive industries. This failure
frustrated many foreign and domestic investors
and others who hoped to see Mongolia's promising
mining sector grow rapidly.
Environment
As a result of rapid urbanization and industrial
growth policies under the communist regime,
Mongolia's deteriorating environment has become
a major concern. The burning of soft coal by
individual home or "ger" (yurt in Russian)
owners, power plants, and factories in
Ulaanbaatar has resulted in severely polluted
air. Deforestation, overgrazed pastures, and
efforts to increase grain and hay production by
plowing up more virgin land have increased soil
erosion from wind and rain. With the rapid
growth of herds, overgrazing in selected areas
also is a concern. Recent rapid and relatively
unregulated growth in the mining sector for
minerals (gold, coal, etc.) has become the focus
of public debate. A great deal of public
attention is being paid to non-transparency of
the government process of awarding licenses, the
equitable sharing of economic rents between
foreign investors and the Government of
Mongolia, and the potential impact on the
environment. However, the real environmental
concern is the sharp boom in the number of
informal gold miners, who frequently illegally
use mercury, which may lead to an epidemic of
mercury poisoning.
FOREIGN RELATIONS
In the wake of the international socialist
economic system's collapse and the
disintegration of the former Soviet Union,
Mongolians began to pursue an independent and
nonaligned foreign policy. Mongolia is
landlocked between Russia and China, and seeks
cordial relations with both nations. At the same
time, Mongolia has sought to advance its
regional and global relations. Ties with Japan
and South Korea are particularly strong. Japan
is the largest bilateral aid donor to Mongolia,
a position it has held since 1991. Mongolia has
also made efforts to steadily boost ties with
European countries.
As part of its aim to establish a more balanced
nonaligned foreign policy, Mongolia has sought
to take a more active role in the United Nations
and other international organizations, and has
pursued a more active role in Asian and
northeast Asian affairs. Mongolia became a full
participant in the ASEAN Regional Forum (ARF) in
July 1998 and a full member of the Pacific
Economic Cooperation Council in April 2000.
Mongolia is currently seeking to join the
Asia-Pacific Economic Cooperation forum (APEC).
Mongolia is an observer in the Shanghai
Cooperation Organization, but has stated it does
not intend to seek membership. Mongolia, which
has diplomatic relations with both North and
South Korea, has also sought to play a role in
the Six-Party talks. In late 2007, Mongolia
hosted a closed meeting between two Six-Party
members, North Korea and Japan. Mongolia is also
a founding member of the Asia-Pacific Democracy
Partnership (APDP) and hosted the group's
planning meeting in Ulaanbaatar on July 1, 2008.
Mongolian relations with China began to improve
in the mid-1980s when consular agreements were
reached and cross-border trade contacts
expanded. In May 1990, a Mongolian head of state
visited China for the first time in 28 years.
The cornerstone of the Mongolian-Chinese
relationship is a 1994 Treaty of Friendship and
Cooperation, which codifies mutual respect for
the independence and territorial integrity of
both sides. China has objected strongly
to visits since 1990 of the Dalai Lama; during
the 2002 visit, China briefly disrupted railroad
links for "technical" reasons. There are regular
high-level visits and expanding trade ties.
President Hu Jintao visited Mongolia in 2003
(his first international visit as China's
President). President Bagabandi visited China in
2004, and President Enkhbayar visited in 2008.
After the disintegration of the former Soviet
Union, Mongolia developed relations with the new
independent states. Links with Russia and other
republics were essential to contribute to
stabilization of the Mongolian economy. In 1991,
Mongolia and Russia concluded both a Joint
Declaration of Cooperation and a bilateral trade
agreement. This was followed by a 1993 Treaty of
Friendship and Cooperation establishing a new
basis of equality in the relationship. Mongolian
President Bagabandi visited Moscow in 1999, and
Russian President Vladimir Putin visited
Mongolia in 2000 in order to sign the 25-point
Ulaanbaatar Declaration, reaffirming
Mongol-Russian friendship and cooperation on
numerous economic and political issues. In
December 2003, Mongolia finally settled the
Soviet-era debt it owed to Russia with a
negotiated payment of $250 million. In July
2006, Prime Minister Fradkov visited Mongolia
with a large business delegation. The Mongolian
and Russian Governments continue to jointly own
the railroad and the large Erdenet copper mine.
Prime Minister Bayar visited Moscow in April
2008, and the following month President
Enkhbayar met in Moscow with President Medvedev.
U.S.-MONGOLIAN RELATIONS
The U.S. Government recognized Mongolia in
January 1987 and established its first embassy
in Ulaanbaatar in June 1988. It formally opened
in September 1988. The first U.S. ambassador to
Mongolia, Richard L. Williams, was not a
resident there. Joseph E. Lake, the first
resident ambassador, arrived in July 1990.
Secretary of State James A. Baker, III visited
Mongolia in August 1990, and again in July 1991.
Mongolia accredited its first ambassador to the
United States in March 1989. Secretary of State
Madeline Albright visited Mongolia in May 1998,
and Prime Minister Enkhbayar visited Washington
in November 2001. Deputy Secretary of State
Richard L. Armitage visited Mongolia in January
2004, and President Bagabandi came to Washington
for a meeting with President Bush in July 2004.
President Bush, Mrs. Bush, and Secretary of
State Condoleezza Rice visited Mongolia in
November 2005. Defense Secretary Rumsfeld
visited in October 2005 and Speaker of the House
of Representatives Dennis Hastert visited
Mongolia in August 2005. Agriculture Secretary
Johanns led a presidential delegation in July
2006 in conjunction with Mongolia's celebration
of its 800th anniversary. President Enkhbayar
visited the White House in October 2007 and the
two Presidents signed the Millennium Challenge
Compact for Mongolia (see below).
The United States has sought to assist
Mongolia's movement toward democracy and
market-oriented reform and to expand relations
with Mongolia primarily in the cultural and
economic fields. In 1989 and 1990, a cultural
accord, Peace Corps accord, consular convention,
and Overseas Private Investment Corporation (OPIC)
agreement were signed. A trade agreement was
signed in January 1991 and a bilateral
investment treaty in 1994. Mongolia was granted
permanent normal trade relations (NTR) status
and generalized system of preferences (GSP)
eligibility in June 1999. In July 2004, the U.S.
signed a Trade and Investment Framework
Agreement with Mongolia to promote economic
reform and more foreign investment. In July
2007, six members of the U.S. House of
Representatives visited Mongolia to inaugurate
an exchange program between lawmakers of the two
countries. The return visit came in August 2007,
with five members of the Mongolian parliament
traveling to the U.S. In September 2007, the
White House announced the proposed creation of
an Asia-Pacific Democracy Partnership, in which
Mongolia was invited to take part. The
initiative is aimed at providing a venue in
which free nations can work together to support
democratic values, strengthen democratic
institutions, and assist those who are working
to build and sustain free societies.
The U.S. Agency for International Development (USAID)
plays a lead role in providing bilateral
development assistance to Mongolia. The program
emphasizes one major theme: sustainable, private
sector-led economic growth and more effective
and accountable governance. Total USAID
assistance to Mongolia from 1991 through 2008
was about $174.5 million, all in grant form.
USAID Mongolia's FY 2007 budget of $6.625
million a year promotes: a) economic growth by
focusing on activities that support
macroeconomic policy reform, energy sector
restructuring, financial sector reform, and
micro and small enterprise development; and b)
governing justly and democratically by focusing
on activities supporting judicial sector reform,
electoral reform, parliamentary reform, and
anti-corruption.
In most years since 1993, the United States
Department of Agriculture has provided food aid
to Mongolia under the Food for Progress and
416(b) programs. The monetized proceeds of the
food aid ($4.2 million in 2006) are used to
support programs bolstering entrepreneurship,
herder livelihood diversification, and better
veterinary services.
The United States has also supported defense
reform and an increased capacity by Mongolia's
armed forces to participate in international
peacekeeping operations. Mongolia has
contributed small numbers of troops to coalition
operations in Iraq and Afghanistan since 2003,
gaining experience that enabled it to deploy
armed peacekeepers to both UN and NATO
peacekeeping missions in 2005. With U.S.
Department of Defense assistance and
cooperation, Mongolia and the U.S. jointly
hosted "Khan Quest 06," the Asian region's
premier peace-keeping exercise, in the summer of
2006 and "Khan Quest 07" a year later.
The Peace
Corps has
approximately 100 volunteers in Mongolia. They
are engaged primarily in English teaching and
teacher training activities. At the request of
the Government of Mongolia, the Peace Corps has
developed programs in the areas of public
health, small business development, and youth
development. In 2005 and 2006 Mongolian
Government officials, including President
Enkhbayar and Prime Minister Elbegdorj,
requested significant increases in the number of
volunteers serving in country. The Peace Corps
has responded with a commitment to make modest
annual increases until 2010.
Mongolia was one of the first countries eligible
for the new Millennium Challenge Account
initiative that began in 2004, administered by
the Millennium Challenge Corporation (MCC).
MCC's program focuses on providing grant support
to countries that perform above the median in
their income peer group on key indicators in
three broad policy categories: ruling justly,
investing in people, and encouraging economic
freedom. MCC-eligible countries propose projects
that will significantly reduce poverty in their
countries through stimulating economic growth.
On October 22, 2007, at a White House signing
ceremony, President Bush and President Enkhbayar
signed a Millennium Challenge Compact for
Mongolia that calls for $285 million to be spent
on four projects over a five-year period
beginning in September 2008. The Compact will
support efforts to broaden and deepen economic
development in Mongolia by focusing on four key
areas, including rail modernization, property
rights, vocational education, and health.
Implementing the program will enable key
institutions and infrastructure to better
support the country's burgeoning urbanized,
market-based economy and help Mongolians to
increase their incomes by becoming healthier and
better trained, by using their land assets more
productively, and by increasing their capacity
to trade with the world.
Principal U.S. Embassy Official
Ambassador--Mark
C. Minton
The U.S.
Embassy is
located in Micro District 11, Big Ring Road,
Ulaanbaatar; tel. [976] (1) 329-095 or 329-606,
fax 320-776. Consular and commercial information
are available at the embassy's web site: http://mongolia.usembassy.gov.