Introduction » Training Judges, Providing Computers Improves Confidence in Judiciary » Parliament Becomes More Professional and Open Through Training, Aid » After Mongolia's Harsh Winters, Herders Learn to Boost Dairy, Cashmere Sales » Warm Ger Felt Makes Money for Mongolian Herders »
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Mongolia

Mongolia Builds Economy After 70 Years of Communism

Gobi Initiative staff work on business plan development with a herder client.

ULAANBAATAR, Mongolia - A small USAID mission with a modest budget opened in Mongolia in 1991 and has worked steadily for 15 years with judges, political parties, banks and herders.

Mongolia is about the size of Alaska but sparsely populated, with only three million people. Nearly all are ethnic Mongols of whom half are Buddhist and nearly as many have no religion. The landlocked country lies between China and Russia.

"We are probably one of the few, if not the only mission that can say that we've literally trained every judge and equipped every court room in this country," said former USAID Representative Leon “Skip” Waskin.

The country has about 400 judges and 61 courts. USAID works to improve the judiciary's accountability, ethical standards, and independence.

The mission’s 2006 budget was $7.5 million and the 2007 budget was expected to be $5.6 million. Two-thirds is spent promoting economic growth through policy reform and business development projects. The rest of the budget promotes judicial and parliamentary reform. A few small projects in HIV/AIDS, environment, and civil society are funded with regional and central resources.

The Mongols gained fame in the 13th century when, under Chinggis Khan, they established a huge Eurasian empire which broke apart in the 14th century. The Mongols eventually retired to their original steppe homelands and later came under Manchurian rule.

Mongolia won its independence in 1921 with Soviet backing. A communist regime was installed in 1924. The former communist Mongolian People's Revolutionary Party (MPRP) won elections in 1990 and 1992, but was defeated by the Democratic Union Coalition (DUC) in 1996. Since then, elections returned the MPRP to power in 2000 and produced a coalition government in 2004.

USAID has worked to improve transparency and strengthen political parties and the parliament.

Economic activity in Mongolia has traditionally been based on herding. Economic growth was at 11 percent in 2004 and 5.5 percent in 2005, largely because of high copper prices and new gold production.

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