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. Its strategic location
between Russia and China, two traditional rivals, nuclear powers and major
global players, adds to Mongolia’s significance. However, Mongolia’s
harsh climate, small domestic market, land-locked status and lack of infrastructure
are formidable challenges. USAID’s programs focus on two of Mongolia’s
most pressing concerns: strengthening the economy and improving governance.
Mongolia's Economy Grows, Creating Jobs and New Businesses
Approximately 75 percent 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, Giri growth rates reached 3.9 percent
in 2002 and 5.6 percent in 2003. This encouraging trend suggests that
Mongolia’s hard-won political stability is beginning to have an
economic impact.
However, the poverty rate remains high at 33 percent. USAID’s work
helps the economy to continue growing and encourages leadership by private
firms. USAID is working closely with both sides of the political spectrum
to develop bipartisan legislation to reform the tax system and improve
Mongolia’s investment climate. The legislation is also designed
to increase production and create new jobs. Because the expiration of
the Multi-Fiber Agreement will have a deep impact on the textile industry,
that is also an area of emphasis. USAID will continue to help the government
privatize key state-owned enterprises, including the national cashmere
company and an electricity distribution network.
In addition, USAID provides business training to migrants from rural
to urban areas and to those living in more remote areas. During the past
year, USAID helped create or strengthen over 500 small businesses and
helped more than 1,500 people, including almost 800 women, find jobs.
Judicial Reform and More Representative Political Processes Lead to
More Effective and Accountable Governance
The judicial system is one 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.
In addition, 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.
The second focus of USAID's governance work is to make Mongolian political
processes more competitive, effective and transparent. USAID's training
of poll watchers and of Mongolia's major political parties recently led
to dramatically improved proportional representation in parliament. Parliamentary
procedures have also been significantly improved with the assistance of
U.S. congressional experts.
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