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Mongolia
SNAPSHOT
Date of independence: 1921
Capital: Ulaanbaatar
Population: 2.55 million
Annual income per person: $690
Source: World Bank Development Indicators 2005
USAID in Mongolia
http://www.usaid.gov/mn
CONTACTS
USAID Representative
Barry Primm
USAID/Ulaanbaatar
PSC 461, Box 300
FPO AP 96521-0002
Tel: 976-11-312-390
Deidra Winston
Mongolia Desk Officer
Tel: (202) 712-5377
Email: dwinston@usaid.gov
A veterinarian in rural Uvurhangai province shows off the livestock fodder he has learned to make. In the winter, Mongolian herders battle below-freezing temperatures and hunger to keep their herds alive until spring. USAID supports the Gobi Initiative’s training programs to help herder cooperatives develop business plans, improve their animals’ diets, and find markets for their products. Overview
Mongolia provides an important example to others in East and Central Asia, as well as other parts of the region, on how to manage an economic transition from a centrally planned to a free market economy within a democratic political framework. The United States values Mongolia’s contribution to stability in a potentially volatile part of the world, its positive example in promoting economic reform and democracy, and its visible support for the war on terrorism. Mongolia’s strategic location between Russia and China—two traditional rivals, nuclear powers, and major global players—adds to Mongolia’s significance. However, it’s harsh climate, small domestic market, landlocked status, and underdeveloped infrastructure are formidable challenges. USAID programs focus on two of Mongolia’s most pressing concerns: growing the economy and improving governance.
Programs
Economic Growth: Economic Opportunity
Approximately 75% of the Mongolian economy is in private hands, up from virtually nothing at the beginning of the 1990s. After several years of stagnation and decline, GDP growth has been strong since 2002, with average annual growth between 2002-2006 exceeding 6%. This encouraging trend suggests that Mongolia’s hard-won political stability is beginning to have an economic impact.
USAID promotes private sector-led economic growth in Mongolia by supporting legal and regulatory reforms that are conducive to private investment and enterprise development at the sector and firm level. At the legislative level, USAID works closely with all parts of the political spectrum to develop bipartisan tax reform legislation and legislation to improve Mongolia’s investment climate—both designed to increase production and create new jobs. Other areas of focus include energy sector commercialization and market structure reform, including support for the Energy Regulatory Authority; establishment of a housing finance corporation; facilitating the establishment of a private equity fund; and promotion of exports ranging from cashmere to blueberries. USAID also works to improve trade policy analysis and implementation, and co-finances the provision of specialized technical assistance to businesses and business associations, particularly those with high export potential.
In spite of impressive macroeconomic performance in recent years, Mongolia’s poverty rate remains high at 33%. USAID targets disadvantaged Mongolians by providing business training to those who have migrated to the capital and other urban areas and to herders and businesses still located in rural parts of the country. During the past year alone, USAID helped create or strengthen over 1,250 small businesses and helped almost 2,500 people, including almost 1500 women, find jobs.
Governing Justly and Democratically: Judicial Reform and Accountable Governance
The judicial system is a major focus of USAID’s work to improve governance in Mongolia. Following the introduction of new civil and criminal codes, USAID launched a series of training programs for every judge in the country. This improved case management, introduced new ideas to continuing legal education, and helped reduce corruption in the legal system. All of Mongolia’s courtrooms are now fully automated, and public access to information has increased dramatically. Public terminals in each court make case information available to lawyers, litigants and the public. Because of USAID's assistance in establishing a special investigative unit, more judicial crimes were reported last year than in the previous four years combined. USAID’s partners also produce the popular and effective television show “Legal Hour”, informing the public of their legal rights.
A second focus of USAID's governance work is to make Mongolian political processes more competitive, effective, and transparent. In the 2004 parliamentary elections, USAID's training of poll watchers and of Mongolia's major political parties dramatically improved proportional representation in parliament. Parliamentary procedures have also been significantly improved with the assistance of U.S. congressional experts.
In addition, in 2005 USAID launched a new initiative to combat corruption by drawing public attention to the issue and providing technical assistance to draft legislation on corruption. With the passage of a new anti-corruption law in 2006, USAID is now focused on providing support to bring Mongolian law into line with the UN Convention Against Corruption (UNCAC). At the same time, USAID is supporting the enactment and enforcement of new legislation on ethical standards for high-ranking government officials.
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