Mongolia

Mongolia a nation bordered to the north by

Russia and to the south by China, where it
shares a border with the Inner Mongolia
Autonomous Region, is known for vast,
rugged expanses and nomadic culture. With a
population of under 3.3 million people and a
Country Flag
land area of 1,564,116 square kilometres
(603,909 square miles), it is the world's most sparsely inhabited sovereign nation. The capital
and largest city, Ulaanbaatar, is home to about half of Mongolia's population. Approximately
30% of the population is nomadic or semi-nomadic. The country uses Mongolian tögrög as
its medium of exchange (currency).

Political System

Mongolia declared independence from the Republic of China in 1911 and attained full
independence in 1921. The country was soon made a satellite state of the Soviet Union,
which had helped it gain independence from China. The Mongolian People's Party (MPP;
formed 1920) steadily solidified power following the success of the Soviet-backed revolution
in Mongolia in July 1921. In 1924, the MPP convened a national parliament known as the
State Great Khural, which enacted the country's first constitution and established the
Mongolian People's Republic. Mongolia staged its own peaceful democratic revolution in
early 1990, following the anti-Communist uprisings of 1989. As a result, a multi-party system
was established, a new constitution was adopted in 1992, and the country transitioned to a
market economy.

Administratively, the country is divided into 21 aimags (provinces) and the hot (municipality)
of Ulaanbaatar, which has independent administrative status. Governors are nominated by the
prime minister, while local assembly (khural) chairmen are elected in local government
elections held every four years. The mayor of Ulaanbaatar is also the governor of Ulaanbaatar
municipality. The provinces are divided into sums (districts) and bags (subdistricts), with
Ulaanbaatar divided into many düüreg (urban districts).
Current Heads

Mongolia's President is the country's Executive Head of State. The

current president is Ukhnaagiin Khürelsükh.
Powers –
1) Nominating a Prime Ministerial candidate, who is either
approved or rejected by the State Great Khural (parliament). President of Mongolia

This is a ceremonial role, as the Khural will almost certainly reject any
nomination who is not its own pick - in fact, the Khural appoints the prime
minister.
2) Vetoing the Khural's legislation (can be overridden with a two-thirds majority)
3) Approving judicial appointments
4) Appointing the chief judge of the Supreme Court of Mongolia
5) Acting as commander-in-chief of the armed forces

Mongolia is a NATO global partner and a member of the United Nations, Asia Cooperation
Dialogue, G77, Asian Infrastructure Investment Bank, Non-Aligned Movement, and Asian
Infrastructure Investment Bank.

International Trade

According to the Economic Complexity Index, Mongolia was the 128th most complex
economy in the world in terms of GDP (current US dollars), the 95th in total exports, the
124th in total imports, the 114th in GDP per capita (current US dollars), and the 125th in total
imports in 2019. (ECI).

Trade of Products

1) Exports
Mongolia's top exports are coal briquettes ($3.07 billion), copper ore ($1.79 billion),
gold ($1.04 billion), iron ore ($572 million), and crude petroleum ($365 million),
 primarily to China ($6.59 billion), Switzerland ($700 million), the United Kingdom
($296 million), Singapore ($155 million), and Italy ($74.2 million).

2) Imports
Mongolia's top imports are refined petroleum ($1.15 billion), cars ($384 million),
delivery trucks ($383 million), large construction vehicles ($208 million), and planes,
helicopters, and/or spacecraft ($165 million), primarily from China ($1.9 billion),
Russia ($1.78 billion), Japan ($594 million), South Korea ($287 million), and the
United States ($270 million).

Trade of Services

Mongolia exported $1.23 billion in services in 2019. Personal travel ($464 million),
transportation ($389 million), other business services ($226 million), computer and
information services ($50.1 million), and business travel ($49.3 million) were Mongolia's
major exports in 2019. Transportation ($983 million), personal travel ($917 million), other
business services ($772 million), financial services ($212 million), and construction services
($146 million) were the major services imported by Mongolia in 2019.

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 www.oec.world.com

Legal

Mongolia's judicial system is divided into three levels: first-instance courts in each provincial
district and each Ulaanbaatar district; appellate courts for each province and the Capital
Ulaanbaatar; and the Supreme Court of Mongolia's court of last resort (for non-constitutional
cases).

Economy

Manufacturing
Mongolian industry is primarily dominated by the processing of native raw materials. Foods
(meat, beverages, dairy goods, and flour); apparel (cashmere, wool, hides, skins, and furs);
and wood items (ger frames and furniture) are among the products. Soft drink brewing,
distilling, and bottling has increased, as has construction material manufacturing.

Finance
The financial sector, which had been anchored on the monopoly of the State Bank of the
Mongolian People's Republic—later renamed Mongolbank (the Bank of Mongolia)—and its
foreign branch, the Trade and Development Bank, under the socialist system, underwent a
fundamental overhaul after 1990. Mongolia's central bank is still the Bank of Mongolia and is
responsible for regulating the national currency, the tugrik (tögrög).

Major Issues

COVID-19
Mongolia has also been impacted by COVID-19 along with rest of the world. The Mongolian
economy dropped by 5.3 percent in 2020, its biggest decline since the early 1990s, due to the
severe and widespread economic impact of the COVID-19 pandemic. External factors that
harmed the mining-led economy included a dramatic drop in global demand for major
commodities and border restrictions with China. Containment measures, which helped
Mongolia avoid the worst possible health effects of the epidemic, took a toll on the services
sector domestically. While a series of generous government relief and stimulus initiatives in
the form of tax relief and income support served to soften the impact of COVID-19 on people
and businesses, the cost to the budget was significant. The three-year fiscal gains have been
rapidly erased, with the overall budget deficit climbing to 9.5 percent of GDP.

Poverty
Since 2010, Mongolia's official national poverty rate has varied. During the economic boom
from 2010 to 2014, the poverty headcount rate dropped dramatically from 38.8% to 21.6
percent. However, between 2016 and 2018, poverty reduction was unequal, with rural
poverty dropping while urban poverty did not. Rural growth was faster and more beneficial to
the poor, helping to reduce rural poverty from 34.9 percent in 2016 to 30.8 percent in 2018,
thanks to increased livestock prices and the development of poverty-targeted social protection
programmes.

Future Prospects

Mongolia's Long-Term Development Policy Vision 2050 was introduced in reaction to the
pandemic's setbacks. It aspires to transform Mongolia into a leading regional power by 2050
by combating poverty, developing a green economy, boosting education and gender equality
for increased employment access, and rethinking Mongolian social strategy to be more
citizen-centered. It lays forth nine policy goals (Human Development, Good Governance,
Peaceful and Secure Society, Green Growth, National Shared Values, Life Quality and the
Middle Class, Regional Development, and People-Centered Cities) as well as 50 particular
targets to be met during the medium-term.

If Mongolia achieves all of its Vision 2050 targets, the country would undergo a tremendous
shift over the following several decades. To begin, Mongolia intends to combat corruption,
redefine governance, establish e-government models, alter the country's power allocation,
promote civil society-private-public interaction, and improve the quality of Mongolia's
democratic system and principles. In the area of employment, the EU and Mongolia are
working together to help small enterprises and create long-term skilled jobs, allowing
Mongolia to develop a more diversified and vibrant economy.

Mongolia's Vision 2050 presents an opportunity not just for Mongolia, but also for its foreign
partners, as the country strives to become a green democracy.