The U.S. Agency for International Development (USAID) plays a lead role in providing bilateral American assistance to Mongolia. The program emphasizes two main themes: sustainable, private sector-led economic growth; and more effective and accountable governance. Every USAID-funded project in Mongolia is organized around at least one of these two mutually re-enforcing goals.

USAID launched its first program in Mongolia in November 1991 with a grant of $10 million to provide emergency supplies and spare parts to the country's power plants. By 1998, USAID had provided an additional $50 million in supplies, equipment and technical assistance to help strengthen and sustain Mongolia's crucially important energy sector. Other early programs focused on health and emergency food supplies. In addition, USAID funded a variety of training and other projects aimed at promoting economic reform and advancing civil society.

More recently, USAID had significant impact in terms of privatization and financial sector development. USAID helped establish XacBank, and funded the management contract that 'rescued' AgBank and turned it into one of Mongolia's premiere financial institutions. Similarly, working with the State Property Committee (SPC), USAID helped privatize several state-owned enterprises. Together, these privatizations raised almost $50 million and hold out the promise of nearly $60 million in additional private and local investment over the next several years.

Total USAID assistance provided from 1991 through 2004 approached $150 million, all of it in grant form. The program is managed by a nine-person USAID Mission based at the American Embassy in Ulaanbaatar. Specific projects are implemented through a network of contractors and grantees in cooperation with both public and private sector Mongolian partners.

Current Program

The current USAID strategy in Mongolia covers the period 2004-2008. This strategy explicitly links the two main themes of good governance and private sector-led economic growth.

Strategic Objective One, "To Accelerate and Broaden Sustainable, Private Sector-led Economic Growth,” consists of three main activities:

Economic Policy Reform and Competitiveness Project: Implemented by Chemonics, Inc., EPRC provides the U.S. Government with a quick-response mechanism for addressing a wide range of economic policy reform and private sector development issues. Working in conjunction with the Prime Minister's office, technical experts provide information and analysis on key issues related to trade, investment, and private sector development. Specially targeted emphases include commercialization of the energy sector, and strengthening industries such as tourism and cashmere where Mongolia has a competitive advantage.

The Gobi Initiative: Implemented by Mercy Corps International, the Gobi Initiative promotes economic growth by developing and strengthening rural businesses. Activities include facilitating financial transactions with local banks; technical support for herders and small and medium-sized enterprises; and providing expanded business information services through various media, including radio programs and the monthly magazine Rural Business News.

The GER Initiative: Implemented by CHF International, this project promotes business development and employment services for poor residents of Mongolia's four largest urban centers of Ulaanbaatar, Darkhan, Erdenet, and Choibalsan.

Strategic Objective Two, "More effective and accountable governance," consists of two main activities:

Judicial Reform Project: Implemented by the National Center for State Courts, this project focuses on improving the professional and institutional capacity of the judiciary, including greater accountability, improved ethical standards, increased professionalism, and greater judicial system independence. Technical assistance, training and equipment financed by the project focus on case management, court assistance, legal education and legal ethics. As a result of the project, nearly all of the court case load is now fully automated and the judiciary has become significantly more effective, transparent, and accountable.

Parliament and Political Party Strengthening Project: Implemented by the International Republican Institute (IRI), this project works towards the consolidation of democracy in Mongolia as an open and pluralistic political system. It works with all political parties to achieve a balance of power, and with Parliament to make it more effective and accountable.

Special Projects

• A limited scholarship training program administered by the Academy for Educational Development (AED);
• The eastern steppes gazelle project implemented by the Wildlife Conservation Society (WCS);
• Two NGO development programs, one supported by Mercy Corps International and the other by the International Human Rights Law Group;
• An Energy Partnership between the Energy Regulatory Authority and the Delaware Public Utilities Commission arranged by the US Energy Association (USEA); and
• Short-term training scholarships arranged by Cisco Systems and the US Technology Training Institute (USTTI).
• A pilot project implemented by PACT to increase public awareness about and help prevent the spread of HIV/AIDS.

Past Programs

Prior programs of interest that have been completed include the Lake Hovsgol Park Management Project implemented by the US Department of Interior; the Wind Energy Assessment Program administered by the US Department of Energy that resulted in a detailed wind atlas for Mongolia; and the Vocational Center for Disadvantaged Mongolians project to support the construction and equipping of the Don Bosco vocational training school in Ulaanbaatar.