General background: The Mongols entered history
in the 13th century when under GENGHIS KHAN they conquered
a huge Eurasian empire. After his death the empire was
divided into several powerful Mongol states, but these
broke apart in the 14th century. The Mongols eventually
retired to their original steppe homelands and came
under Chinese rule. Mongolia won its independence in
1921 with Soviet backing. A Communist regime was installed
in 1924. During the early 1990s, the ex-Communist Mongolian
People's Revolutionary Party (MPRP) gradually yielded
its monopoly on power to the Democratic Union Coalition
(DUC), which defeated the MPRP in a national election
in 1996. Over the next four years the DUC put forward
a number of key reforms to modernize the economy and
democratize the political system. However, the former
Communists were a strong opposition that stalled additional
restructuring and made implementation difficult. In
2000, the MPRP won an overwhelming victory in the legislature
- with 72 of the 76 seats - and completely reshuffled
the government. While it continues many of the reform
policies, the MPRP is focusing on social welfare and
public order priorities.
Area comparative:
Slightly smaller than Alaska
Climate:
Harsh weather conditions with both wind and cold
Terrain: Flat to rugged hilly country
Population: 2.6 million
Ethnic groups: Khalkh Mongols (86%), Kazaks
(2%), Chinese (2%), Russian (2%), about a dozen other
groups
Religions: Tibetan Buddhism, Muslim, Shamanism
Language: Mongolian, Turkic, Russian, Chinese
Government type: Parliamentary
Capital: Ulaanbaatar
Legal system: Blend of Russian, Chinese, Turkish,
and Western systems of law that combines aspects of
a parliamentary system with some aspects of a presidential
system; constitution ambiguous on judicial review
of legislative acts; has not accepted compulsory ICJ
jurisdiction.
Economic overview: Economic activity traditionally
has been based on agriculture and breeding of livestock.
Mongolia also has extensive mineral deposits: copper,
coal, molybdenum, tin, tungsten, and gold account
for a large part of industrial production. Soviet
assistance, at its height one-third of GDP, disappeared
almost overnight in 1990-91, at the time of the dismantlement
of the USSR. Mongolia was driven into deep recession,
prolonged by the Mongolian People's Revolutionary
Party's (MPRP) reluctance to undertake serious economic
reform. The Democratic Coalition (DC) government has
embraced free-market economics, easing price controls,
liberalizing domestic and international trade, and
attempting to restructure the banking system and the
energy sector. Major domestic privatization programs
were undertaken, as well as the fostering of foreign
investment through international tender of the oil
distribution company, a leading cashmere company,
and banks. Reform was held back by the ex-Communist
MPRP opposition and by the political instability brought
about through four successive governments under the
DC. Economic growth picked up in 1997-99 after stalling
in 1996 due to a series of natural disasters and declines
in world prices of copper and cashmere. In August
and September 1999, the economy suffered from a temporary
Russian ban on exports of oil and oil products, and
Mongolia remains vulnerable in this sector. Mongolia
joined the World Trade Organization (WTrO) in 1997.
The international donor community pledged over $300
million per year at the last Consultative Group Meeting,
held in Ulaanbaatar in June 1999. The MPRP government,
elected in July 2000, is anxious to improve the investment
climate; it must also deal with a heavy burden of
external debt. Falling prices for Mongolia's mainly
primary sector exports, widespread opposition to privatization,
and adverse effects of weather on agriculture in early
2000 and 2001 restrained real GDP growth in 2000-01.
Communication/Telephone system: Very low density.
Places of interest: Nomads travel the vast
plains. Wild horses are still roaming the area.
Travel tips:
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