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Mongolia
SNAPSHOT
Date of independence: 1921
Capital: Ulaanbaatar
Population: 2.6 million (2006)
Annual income per person: $880
Source: World Bank Development Indicators 2007
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
No work space, no regular work orders, and low income are problems faced by Mongolian women who sew at home. With support from the USAID-funded GER Initiative/CHF project, these Mongolian women began working as a business group. After a number of trainings and consultations, the sewing business group Mongol Goyol was able to start continuous operation at a rented facility, which attracted consumers and increased sales. The seamstresses understood well the importance of working together to solve their problems. (Photo: Odkhuu Buyankhishig) Overview
Mongolia provides an important example to others in East and Central Asia on how to manage an economic transition from a centrally planned economy to a free market 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 terror. Mongolia’s strategic location between Russia and China adds to its significance. However, its harsh climate, small domestic market, landlocked status, and poor infrastructure are major challenges. USAID programs focus on growing the economy and improving governance.
Programs
Economic Growth: Economic Opportunity
Over 80 percent of the Mongolian economy is in private hands, up from virtually nothing in the early 1990s. The gross domestic product growth rate has been strong—at almost 10 percent in 2007 and 8.5 percent, on average, during the past five years—due to political stability that has attracted investment and favorable world commodity prices. Mining is booming, and Mongolia is making a concerted effort not to follow in the path of other resource-rich countries where corruption and a lack of transparency threaten political and economic stability.
USAID promotes economic growth by supporting policy reforms that encourage private investment and enterprise development at the sector and firm level. USAID works closely with all parts of the political spectrum to develop bipartisan legislation for tax reform and to improve the investment climate. Both efforts are designed to lower the tax burden on businesses, increase production and create new jobs. Other areas of USAID involvement include energy sector restructuring and financial market reform, including support for the Energy Regulatory Authority; establishment of a second-tier housing finance corporation; housing finance assistance for lower- and middle-income families; improvement in cross-boundary transportation; and promotion of exports and tourism. USAID also works to improve trade policy analysis and implementation, and co-finances the provision of specialized expertise to businesses and business associations, particularly those with high export potential.
Despite its impressive macroeconomic performance, Mongolia’s poverty rate remains high at 32 percent. USAID targets disadvantaged Mongolians by providing business development training and consultations, as well as loan facilitation and information services. During the past year, USAID helped create or strengthen over 7,000 small businesses; facilitated loans to over 1,600 microenterprises with a combined value of nearly $2 million; and increased the availability of business information to 500,000 people.
Governing Justly and Democratically: Judicial Reform and Accountable Governance
USAID is creating a more accountable and transparent judiciary through improved case management, access to information, and automation. All of Mongolia’s courtrooms are now fully automated, and public terminals in each court make case information available to lawyers, litigants, and the public. USAID has helped train Mongolian judges and has developed the prosecutors’ capacity through automation and training. It has helped the Ministry of Justice and Home Affairs to administer the first qualification exam for legal professionals, as well as to develop a legal clinic and a groundbreaking trial skills course for law schools. USAID also assists a special investigative unit that handles 600 cases per year regarding abuse of power by the justice system. USAID is producing popular and effective media programs that inform the public of their legal rights.
Another focus of USAID's governance effort is to make domestic political processes more competitive, effective, and transparent. Parliamentary procedures have been improved with the support of U.S. congressional experts. USAID has increased political participation through the establishment of the non-partisan Women’s Partnership in Politics and Governance nongovernmental organization (NGO) and has helped ensure that elections are conducted in accordance with democratic voting procedures.
With USAID support, Mongolia passed an Anti-Corruption Law in 2006. This law created the Independent Authority Against Corruption (IAAC) that is leading prevention, public awareness, and other anti-corruption efforts. USAID assistance supported the development of a public campaign to engage and inform citizens, and hundreds of corruption complaints have been registered via an IAAC hotline. USAID has supported NGOs and leading experts in developing an ethics and anti-corruption curriculum that is now mandatory coursework at educational institutions. The impact is reflected in USAID’s semi-annual benchmarking survey, which indicates a growing public awareness and confidence in the IAAC.
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