Mongolia joined the IMF and the World Bank in 1991. It is also a member of the Asian Development Bank and receives aid from the EU Technical Assistance Program. During the period 1991-2000, foreign countries and international organizations pledged $ 2.6 billion in aid, including non-commercial loans, technical assistance and subsidies. Most of this money has been spent in the country’s new infrastructure – in banking and financial restructuring, energy and communications, municipalities and other services. The government is now concentrating its efforts on the development of social infrastructure and agriculture, which desperately need help.
Focusing on local needs, setting up training programs and assisting in the creation of small businesses are part of ongoing donor-supported health and education restructuring programs.
These programs are complemented by direct government assistance to the most vulnerable groups (national poverty reduction program).
In recent years, Mongolia has been able to meet its targets for GDP growth (3.5% in 1998, 6% in 2002). The inflation rate has fallen and the decline of the Mongolian currency, the tögrög, has slowed down, keeping at around 1178T for $ 1 (September 2007). In 1999, the IMF finally paid the second annual provision of almost $ 20 million for the banking reform, which had previously been handed over due to problems with the privatization of banks. Since then, more loans have been secured.
During the years of Soviet rule, the Mongolian economy was among the most assisted by COMECON and since the subsidies evaporated, the country has exchanged this aid against the support of the IMF and other international financial institutions, than that, generous, of individual donor countries. The total aid to the country in 1991-1998 was $ 1.5 billion, of which 714.7 were loans and 813.9 were grants. The 8th Rally of Assistance to Mongolia, held in Paris in June 2000, provided the country with record assistance of $ 330 billion for one year. Until 1994, 62% of the aid was emergency aid to help transition to a market economy; this rate fell to 25 per cent of the total between 1995 and 1998 as assistance to capital and project finance increased. The shift towards financing long-term projects is proof of the country’s growth and stability. In the 60% of the GDP are already generated by the private sector. The long-term goals are to replace international aid with foreign investment, including gold, rare and non-ferrous metals, crude oil and tourism.
Sources: Bradt Mongolia Guide, by Jane Blunden
Here are some reference websites to keep you up to date:
Mongolian government site – select Links – here
Mongolian NGO website in English here
BM World Bank in Mongolia here
IMF Monetary Fund International in Mongolia, here
Asian Development Bank, select Regions, then East Asia, Mongolia here
And for the most important international development NGOs in Mongolia:
UNDP Mongolia website, www.undp.mn/new/
USAid, in English www.usaid.gov/mn/
GTZ Mongolia, www. gtz.de/en/weltweit/asien-pazifik/612.htm
JICA Mongolia, in English www.jica.go.jp/english/countries/ea/mongolia.html
WWF Mongolia, in English
www.panda.org/about_wwf/ where_we_work / asia_pacific / where / mongolia / index.cfm
Amnesty International English www.amnesty.mn/en/index.php
Red Cross Society, in English www.redcross.mn/index.php?lang=en
My name is Tunga. I’ve been working as a guide for four years. I am very proud of my beautiful country, especially when tourists are happy to have come to Mongolia, when they have felt this impression of true freedom in the infinity of wide open spaces. What touches them the most? The sincerity, the tranquility of the nomads; the authenticity of this life; this wild nature, populated by free-ranging animals and galloping horsemen where they want to …
In fact, I feel that I appreciated less all this. The delight of the tourists made me see with a fresh look the beauty of my country and gave birth to me the pride to be born here and the love of my country.
It is true that there are things to improve, to develop and also to avoid. That’s why we have to see through the eyes of people from outside, I think. As for the preservation of nature, the maintenance of nomadic life, the legacy of our traditions …
Most tourists tell me they want to come to Mongolia before it is changed, that it has lost its authenticity.
What makes me think … I wish with all my heart that Mongolia retains its traditions, its nomadic civilization so authentic in front of a world that is becoming more and more global every day.
During a trip, I really like visiting nomads, so that my tourists feel this sincerity of people, the warm atmosphere of their family. And while proud of it, I have a slight fear: I would like the nomads to be always like that, hospitable … without becoming tourist.
In my opinion, they remain very faithful to their way of life of nomadic breeder, even if the climate and these conditions of life are really hard for them. They are always in harmony with nature since they believe that nature is alive. In order not to hurt the ground, one must choose the site of the encampment, such as not to put at the source of a water point.
I am glad that foreigners admire Mongolia, but when they are interested in my country commercially, I have chills.
It must be the legacy of my ancestors Huns, this feeling of having to protect this land inherited from our ancestors!
One of our legends tells us that the chief of the Chinese peoples adjoining the Huns one day asked Shanui, our emperor, his favorite horse. The Emperor realized his desire, saying that he could capture another horse as long as horses gallop freely in the Mongolian steppes.
The neighbor chief asked him then his wife the most beloved. Shanui agreed, replying that he could find one as long as beautiful Mongolian women existed. For the third time, the neighboring chief asked him for land. Shanui entered into mad anger, took up arms and decreed, “Never give any part of our land to anyone, even to the gods! “