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.
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