Background: Long a province of China 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. In 1996 the Democratic Union Coalition (DUC) defeated the MPRP in a national election and has attempted to establish a number of reforms to modernize the economy. However many former communists retain key posts and implementation has been difficult.
Environment Current issues: limited natural fresh water resources; policies of the former communist regime promoting rapid urbanization and industrial growth have raised concerns about their negative effects on the environment; the burning of soft coal in power plants and the lack of enforcement of environmental laws have severely polluted the air in Ulaanbaatar; deforestation overgrazing the converting of virgin land to agricultural production have increased soil erosion from wind and rain; desertification and mining activities have also had a deleterious effect on the environment
Legal system: blend of Russian Chinese Turkish and Western systems of law that combines aspects of a parliamentary and presidential system; constitution ambiguous on judicial review of legislative acts; has not accepted compulsory ICJ jurisdiction
Legislative branch: unicameral State Great Hural (76 seats; members elected by popular vote to serve four-year terms)
Judicial branch: Supreme Court serves as appeals court for people's and provincial courts but to date rarely overturns verdicts of lower courts judges are nominated by the General Council of Courts for approval by the State Great Hural
Political parties and leaders: Democratic Union Coalition or DUC (includes the MNDP and the MSDP); Independence Party [leader NA]; Mongolian Conservative Party or MCP [JARGALSAIHAN]; Mongolian Democratic New Socialist Party or MDNSP [B. ERDENEBAT chairman]; Mongolian Democratic Renaissance Party or MDRP [BYAMBASUREN chairman]; Mongolian National Democratic Party or MNDP [R. AMARJARGAL chairman; B. DELGERMAA general secretary]; Mongolian People's Revolutionary Party or MPRP [N. ENKHBAYAR chairman; L. ENEBISH general secretary]; Mongolian Republican Party or MRP [B. JARGALSAIHAN]; Mongolian Social Democratic Party or MSDP [Radnaasumbereliyn GONCHIGDORJ chairman; N. ALTANKHUYAG general secretary]; Mongolian United Heritage Party or UHP [B. JAMTSAI] (includes the United Party of Herdsman and Farmers Independence Party Traditional United Conservative Party and Mongolian United Private Property Owners Party); Mongolian United Private Property Owners Party [leader NA]); United Party of Herdsman and Farmers [leader NA]; Traditional United Conservative Party [leader NA]; Workers' Party [leader NA]
International organization participation: AsDB ASEAN (observer) CCC ESCAP FAO G-77 IAEA IBRD ICAO ICFTU ICRM IDA IFAD IFC IFRCS ILO IMF IMO Intelsat Interpol IOC ISO ITU NAM OPCW UN UNCTAD UNESCO UNIDO UPU WHO WIPO WMO WToO WTrO
Flag description: three equal vertical bands of red (hoist side) blue and red; centered on the hoist-side red band in yellow is the national emblem ('soyombo' - a columnar arrangement of abstract and geometric representation for fire sun moon earth water and the yin-yang symbol)
Economy 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 which was prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Union Coalition (DUC) 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 have been undertaken as well as fostering of foreign investment through international tender of the oil distribution company a leading cashmere company and banks. Reform has been held back by the ex-communist MPRP opposition and by the political instability brought about through four successive governments under the DUC. 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. Public revenues and exports collapsed in 1998 and 1999 due to the repercussions of the Asian financial crisis. In August and September 1999 the economy suffered from a temporary Russian ban on exports of oil and oil products. 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.
Exports: $316.8 million (f.o.b. 1998) Commodities: copper livestock animal products cashmere wool hides fluorspar other nonferrous metals Partners: China 30.1% Switzerland 21.5% Russia 12.1% South Korea 9.7% US 8.1% (1998)
Imports: $472.4 million (f.o.b. 1998) Commodities: machinery and equipment fuels food products industrial consumer goods chemicals building materials sugar tea Partners: Russia 30.6% China 13.3% Japan 11.7% South Korea 7.5% US 6.9% (1998)