I am gratified to be here today, at the invitation of the Asia Society, to speak about recent developments in US-Mongolian relations, from my perspective as the American Ambassador in Ulaanbaatar. I have entitled my presentation: A New Era of Comprehensive Partnership. This title reflects, I believe, the expanding and deepening cooperation between our two countries and peoples. It is truly an exciting time to be representing President Bush and serving the American people in Mongolia.
In my profession, we often measure the importance of relationships by the number of visits -- particularly high-level ones -- that take place in both directions, as well as by the nature of the issues under discussion. In my first year as the chief of mission, my staff and I have hosted several high-level U.S. officials. In 2004, Chairman of the Joint Chiefs of Staff General Richard and Mrs. Myers, Deputy Secretary of State Richard Armitage, and the Comptroller General David Walker. These were the highest-level USG visitors to Mongolia since 1998.
In the return direction, President Bagabandi paid an official visit to the United States in July at the invitation of President Bush, the first such visit by a Mongolian president in twelve years. For the first time in many years, the Minister of Finance visited Washington at the invitation of the Department of the Treasury and the Mongolian Minister of Defense was hosted, together with other defense ministers of the Multi-National Coalition in Iraq, by Secretary of Defense Rumsfeld.
Mongolia in the past has enjoyed special attention from individual members of the U.S. House and the Senate. But congressional visitors to Mongolia, unfortunately, have become a rarity in recent years. I – and Mongolian Ambassador Bold – hope to encourage the resumption of these exchanges. In July, during the visit of President Bagabandi, Congressmen Joe Pitts (PA) and Joe Wilson (SC) hosted a reception to mark the official establishment of the “Mongolia Caucus” in the U.S. Congress. I believe this will serve both to strengthen and deepen our bilateral relations and I look forward to hosting congressional delegations in 2005.
In the eighteen years since the establishment of diplomatic relations (January, 1987), the US-Mongolia relationship has become broader and deeper. Mongolia’s decade-long peaceful and simultaneous transition from authoritarian communism to democratic governance and free-market economics is often cited as one of Asia’s success stories. Indeed, the Mongolian people have made great strides – but much remains to be done to consolidate these gains and raise the quality of life for all Mongolians.
Mongolia is today a valued friend and partner of the United States. It is in the national interests of the United States that Mongolia be a democratic, independent, secure and prosperous country that promotes friendly relations with its neighbors and is an active participant in regional and international economic, political, and security fora. Mongolia plays a supportive role, both in the global war on terrorism and in promoting stability and peace in Asia, particularly Northeast Asia.
On July 15, 2004, when the two Presidents met in Washington, they issued a Joint Statement in which they “declared a new era of cooperation and comprehensive partnership between their two democratic countries based on shared values and common strategic interests.” (www.whitehouse.gov/news/releases/2004/07/print/20040715-13)
By “shared values” we mean a commitment to democratic governance and to a private sector-led, free-market economy. Mongolia is a valued member of the larger community of democracies and serves as a role model for other Central and East Asian societies struggling to follow the same course.
By “common strategic interests” we mean a commitment to combat international terrorism and to work for stability and peace in Northeast Asia, including for the de-nuclearization of the Korean Peninsula. In particular, President Bush applauded Mongolia’s participation in the stabilization and reconstruction of Afghanistan and Iraq, including its peacekeeping commitment to the Multinational Force in Iraq.
By any measure, the United States is an important partner of Mongolia.
Let me just run down a few statistics. In 2004:
- The US was Mongolia’s third largest trading partner (behind China and Russia) and had a trade deficit with Mongolia. Mongolia's exports to the United States are given preferential access through the Generalized System of Preferences. In 2003, two-way trade with Mongolia totaled $204 million, with key exports of apparel and minerals from Mongolia to the United States. In 2004, Mongolia's exports to the U.S. grew by nearly 31% up to $267 million, including exports of $227 million of apparel products. However, indications in the first months of 2005 foreshadow a downturn in Mongolian exports to the U.S., due to the expiration of the WTO Multi-Fiber Agreement at the end of 2004. The expiration of the so-called quota system means that Mongolia and many other small producers will now have to compete for the international garment/apparel market with more efficient producers and unlimited Chinese exports.
- The US, with approximately $135.4 million invested, an increase from $115 million in 2003, was Mongolia’s third largest investor (10.5% of total investment, behind China and Canada).
- The US was Mongolia’s third largest bilateral donor (after Japan and Germany), with an annual economic assistance program of about $17 million (from USAID and USDA).
- Since 2000, the US has provided Mongolia almost $3 million in assistance to the Mongolian Armed Forces to develop a UN-standard international peacekeeping capability. Since August 2003, Mongolia has sent over 550 peacekeepers to Iraq and seven teams of trainers to Afghanistan.
- I would also like to note that in 2003, the number of Mongolian students studying in the US increased by 29% over the preceding year, to 740 full-time registered students. (Numbers for 2004 forthcoming.)
Democracy and Good Governance
Mongolia has often been cited as a role model for other Asian countries. Its peaceful transformation from an authoritarian to a democratic form of governance in less than a decade is remarkable and virtually unmatched inthe world. Mongolia has held multiple peaceful elections for parliament and for the presidency; political power has been transferred peacefully from one party to another on three occasions.
As noted in our 2004 Human Rights Report for Mongolia, released by the Department of State on February 28, 2005, (www.state.gov/g/drl/rls/hrrpt/2004/index) Mongolia is still in the process of consolidating its democracy. The June 27, 2004 election for the 76-seat national parliament served to highlight the need for significant election and political party reform to keep pace with the voters’ demand for greater transparency and accountability. In a national election widely regarded as flawed, seventy-six percent of the eligible voters turned out on June 27. The results surprised the contestants as well as the pundits, but not the voters -- who voted for a more even balance between the two major political forces. The results split the seats between the incumbent Mongolian People's Revolutionary Party (MPRP) and the Motherland-Democracy Coalition (MDC, comprised of the Democratic Party, Mongolian Democratic New Socialist Party and the Civic Will Party); three independents and the small Republican Party (one seat) were also elected. (Note: MPRP went from 72 to 37 seats; MDC/”opposition” went from 4 to 35 seats. Difference between 2000 and 2004 is due largely to decision of opposition to contest the 2004 election as a coalition; unlike in 2000 when opposition competed with each other. Popular vote for the two was basically the same in both 2000 and 2004: 51% MPRP and 49% non-MPRP.)
Despite the widespread dissatisfaction with the conduct of the election, there was no violence; disputes were channeled through the courts, consistent with the law. Most significantly, the two political forces agreed to accept the results and to form a "50/50" Grand Coalition Government,unprecedented inMongolia's 14-year democratic history. The Speaker of Parliament (and number two in the chain of command after the President) and the Prime Minister (number three in the chain of command) are from different parties, as are the ministers and vice ministers of each of the thirteen ministries. Several new parliamentary standing committees and ministries, as well as a new Deputy Prime Minister position, were created to accommodate the need for balance between the political forces. As a further measure of balance, the positions of Speaker, Prime Minister (and Deputy Prime Minister) will change parties in 2006.
And, despite the dissolution of the Motherland-Democracy Coalition in December, 2004, the two main political forces – bowing to popular demand -- reached an agreement in January that will maintain government stability and policy continuity.
Significantly, the Government adopted – and Parliament approved -- an ambitious four-year Action Plan. The new government has many challenges ahead but I am optimistic that in the spirit of good will and dedication to serving the public that elected them, the two political forces will see the benefits of working together -- not against each other -- to accomplish these laudable goals.
In May, Mongolia will conduct its fourth presidential election. Incumbent President Bagabandi will complete his second consecutive four-year term and step down, consistent with the Constitution which limits the number of terms. The five parties which contested and won seats in the June, 2004 parliamentary election are eligible to nominate candidates. As of today, four of the five parties have registered candidates.
As we did before and during the June election, the US Government (Embassy), through its USAID implementing partner, the International Republican Institute, is conducting poll watcher training for all five parties in all 21 aimags/provinces, and will be observing the election in selected, random districts. Local and international NGOs will also be monitoring the election. I would refer you to two excellent Mongolian NGO websites: the Open Society Forum (www.opensocietyforum.mn) and Globe International Mongolia (www.globeinter.org.mn)
The U.S. supports Mongolia’s goal of raising its international profile as a functioning, democratic role model. Mongolia is among the original members of the Community of Democracies and, since 2003, has also been the president of the UN’s New and Restored Democracies initiative. Mongolia’s leading role in both organizations presents a unique opportunity for Mongolia to influence other peoples/governments and to advance the growth of democracy and good governance around the world, and most particularly in its immediate neighborhood of Northeast Asia.
I should also mention that Mongolia has committed to take steps to combat trafficking in people. While not on the scale of its immediate neighbors, there has been a steady increase in the number of Mongolian women and girls who are being recruited under false pretenses and forced into prostitution in China, South Korea and some European countries. We are working with Mongolia to nip this problem in the bud. In addition to strengthening its domestic laws and enforcement, Mongolia has committed to sign and ratify in the near future the Palermo Protocol to Suppress and Punish Trafficking in Persons, especially Women and Children, a supplement to the UN Convention against Transnational Organized Crime.
Private Sector-led Market Economy
When the Mongolian people decided to break with the former communist style of government in the early 1990s, they chose to pursue a free market economy. It has not been an easy road. Mongolia’s geographic isolation, extreme weather conditions, and sparse population present many challenges. When the former Soviet Union withdrew in the early 1990s, they also withdrew their economic subsidies and assistance, personnel, and access to markets in Central Europe. All over Mongolia, factories closed and people were forced back into agriculture – livestock herding. For the roughly 40% of the Mongolian labor force who earn their livelihood as herders, this remains a largely subsistence-level existence. (Note: Herders made up 15% of the population and 40% of the labor force.)
During the severe winters of 2000 and 2001, hundreds of thousands of head of livestock died. While unfortunate, many would argue that it was unavoidable – and can happen again. There are too many people trying to raise too many animals on too little pasturage. As a result of a combination of global warming trends and serious overgrazing, desertification and ecological degradation are now serious concerns in much of south, west, and central Mongolia and will affect the livelihood of current and future generations.
Macro-Economic Stability: In 2004, Mongolia posted a 10.6% growth rate (up from 5.6% in 2003. Most of the growth has been generated by the mining sector and higher-than-average world prices for copper and gold, with two percentage points stemming from a revaluation of productive livestock census numbers. For 2005 these one-time increases will dramatically reduce the growth rate in comparison to 2004.
Mongolia and World Bank statistics indicate an official GDP of $1.4 billion in 2003. But unofficially, estimates of the “shadow or gray” economy suggest that the real GDP could be as much as $2 billion. (Note: CIA’s World Factbook figure of $5 billion is based on a purchasing power parity methodology. By the same methodology, Mongolia’s per capita GSP is $1,900.) Much of the capital fueling the construction boom and other economic activity in UB, for example, comes from remittances from Mongolians working abroad and money held by Mongolians in foreign bank accounts, a figure the central bank estimates to be $200 million but is more likely nearly double that amount. Most of this capital does not pass through the hands of the tax collector or the local banker, so there are no solid figures. Capturing these financial transactions has been a challenge for the government. Tax reforms – to reduce the incentive to cheat – are high on the agenda of the new coalition government.
Mongolia’s external and domestic debt bears watching. At the end of 2004, Mongolia’s external debt stood at 96% of GDP. Most of this is on concessional terms. But the short-term debt incurred by the government to repay the $250 million debt to Russia at the end of 2003 has added to the overall burden.
Mongolia has reduced its overall budget deficit in 2004 thanks to a combination of chronic underestimations of revenues and a windfall of a 75% increase in copper prices. However, although the underestimation has been balancing out poor expenditure controls, government expenditures still make up 40% of GDP – high compared to other transitional economies. The Government recognizes the need to reduce the size and cost of government and to “release” the private sector through improved tax and investment policies.
Foreign Assistance: Over the past fifteen years, Mongolia has received large infusions of economic assistance in the form of loans and grants. Initially the assistance was to avert a “humanitarian crisis” brought on by the sudden withdrawal of the Russian subsidies. But since the late-1990s, this assistance has become more targeted and designed to create the institutions and practices that will enable Mongolia to develop and eventually “graduate” from a dependence on foreign assistance.
From 1991-2002, aid commitments totaled over $2.3 billion or about $196 million per year. If you do the match, you will see that on a per capita basis, Mongolia is one of the best-endowed aid recipients in the world, roughly $80/person per year during the decade.
At the last annual Donors Conference, held in Tokyo in November, 2003, Mongolia and its major donors – the World Bank, Asian Development Bank, Japan, Germany, and the United States – concluded that Mongolia has entered a new stage of economic development, one that requires greater planning and coordination on the part of both Mongolia and donors. Discussion in Tokyo focused on the fact that while Mongolia is one of the best endowed – in terms of foreign assistance on a per capita basis – aid recipients in the world; it is also among the “least efficient” in terms of the return on that assistance. It has not yet achieved significant or sustainable development and today remains among the “poorest” in the developing world.
Transparency, Good Governance, AntiCorruption: Poverty reduction is Mongolia’s stated highest priority and, with assistance from the UN Development Program (UNDP) and other international programs and international organizations, it has developed a set of Millennium Goals to achieve poverty reduction. One of the major obstacles to alleviating poverty and achieving sustainable growth in Mongolia -- identified by international donors and Mongolians alike – is the corrosive effect of corruption. There are ample studies that demonstrate a linkage between poverty and corruption. Former Secretary of State Colin Powell, in an article in the January/February 2005 edition of Foreign Policy magazine, argues that the best way to lift millions of people out of poverty is to challenge the leaderships of developing countries to take their nations’ futures into their own hands.” The endemic corruption and bad government that help sustain poverty can, if reversed, help sustain growth and development and will benefit the poor.
The Mongolian public and civil society have become more outspoken in their demands for corrective action. These demands are not just “exaggerations” generated by the media or by disgruntled politicians. Surveys conducted by credible international organizations over the past five years and anecdotal evidence indicates that corruption is not only perceived to be – but is -- a growing problem in Mongolia. In 2004, for the first time since 1999, Mongolia was included in the Corruption Perceptions Index conducted by the international NGO, Transparency International. This Index measures public perception of corruption. The survey indicated that corruption is perceived by Mongolian citizens as a growing and widespread problem: in 2004, Mongolia ranked 85 of 145 countries – with an index of 3.0 (out of 10) – putting it near or in the “rampant” category.
To its credit, the current political leadership of Mongolia recognizes that corruption, insufficient transparency, and poor governance are problems and has pledged to take action. The new Government and Parliament have prioritized anti-corruption in their 2004-2008 Action Plan. In particular, Mongolia committed to sign and ratify the UN Convention Against Corruption this year as a first, concrete step.
We applaud Mongolia’s decision to sign the Convention on April 29, 2005. But signing is the easy part. The real commitment will come with ratification of the Convention and legislative, administrative, and judicial reforms to translate the words of the Convention into effective action.
Signing, ratifying and implementing the Convention will help to change entrenched corrupt behavior and eliminate “unacceptable norms.” One thing the global nature of the Convention demonstrates is that there is no “cultural” defense for corruption. One of the most common arguments against implementing effective anti-corruption measures, voiced by some Mongolian politicians, is that because of Mongolia’s small population and intertwined family connections, it is impossible to root out corruption. Such arguments are not defensible. Other equally small, socially intertwined societies – such as Cape Verde, another Millennium Challenge Account country, with a population of only 415,000 or Estonia, with a population of 1.3 million -- have succeeded.
U.S. Economic Assistance
The United States – in the form of USAID and US Department of Agriculture (USDA) commodity programs -- has been engaged since 1991 in assisting Mongolia, first to overcome its energy crisis and now to catalyze development. Over the past 13 years, the USG has provided some $150 million in grants and agricultural commodity funds. Since 1997, our program funding has held relatively steady at $10-12 million per year. About one-third of our assistance goes to “democracy and good governance” while two-thirds goes to economic reform and to small and medium-size rural and peri-urban business development.
From our perspective, good governance and a strong private sector are key ingredients to Mongolia’s quest for sustainable development and prosperity. Research shows that where good governance and sound economic policies are in place, each dollar of foreign aid attracts two dollars of private investment.
Proceeding from the premise that “foreign aid that succeeds is foreign aid that makes itself obsolete,” our AID program – with the blessing of successive Mongolian governments and in coordination of the efforts of other bilateral and multilateral donors -- has focused on areas that will contribute to Mongolia’s capacity to achieve sustainable growth and to “graduate” from dependence on foreign assistance. Specifically, USAID/Mongolia works through its implementing partners:
- (Mercy Corps Gobi Initiative, www.mercycorps.org/items/316/) to improve rural incomes in the Gobi provinces by improving livestock management and marketing;
- (Cooperative Housing Foundation (CHF) Growing Entrepreneurship Rapidly “GER” Initiative, www.chfhq.org/section/mongolia/)) to improve incomes of the urban poor in the “ger districts” or peri-urban areas of the four major cities through entrepreneurship and small business development;
- (Chemonics Economic Policy Reform and Competitiveness Project,www.eprc-chemonics.biz/) to provide technical advice and expertise on macroeconomic and fiscal policy, good governance and anti-corruption measures, privatization of state-owned enterprises, tax reform, restructuring the energy sector and improving the competitiveness of key Mongolian industries (e.g., tourism, meat, leather, cashmere);
- (National Center for State Courts Judicial Reform Project, www.ncsconline.org) to implement judicial reform by strengthening the professionalism and ethical standards of judicial personnel and making the administration of justice more transparent and responsive to the public; and
- (International Republican Institute, www.iri.org) to improve the efficiency, ethical standards, and effectiveness of democratic institutions, in particular the national parliament (State Great Hural).
In addition, beginning in 2004, through the US Department of Agriculture's Food for Progress assistance (www.fas.usda.gov), we have been able to initiate new rural business development programs in non-Gobi areas to include development of a dairy industry. In 2004, USDA "donated" 50,000 tons of American wheat which was monetized in Mongolia and the receipts used to implement rural business development programs. USDA's implementing partners in this program are Mercy Corps and World Vision.
Another project funded by USDA is the Agriculture Sector Promotion Project, or AgPromo (www.agpromo.mn). AgPromo’s mission is to work with Mongolia’s agricultural sector to identify needs and then to match these to U.S. companies that sell agricultural equipment and technology, to promote sales as well as to stimulate investment and development of Mongolia’s agricultural sector.
Millennium Challenge Account: Mongolia has been presented with a unique and new opportunity to actually “take its future into its own hands” and to put itself on the path to poverty reduction, sustainable growth – and eventual “graduation” from dependence on foreign assistance. Mongolia is one of the first 16 – now 17 – countries “eligible” to receive funding from the Millennium Challenge Account. MCA is a new initiative (2004) designed to reward past performance and provide incentives for continued commitment to “ruling justly, investing in people, and encouraging economic freedom.” See www.mca.gov
As an “eligible” country, Mongolia was invited to submit a proposal to the Millennium Challenge Corporation for consideration and funding (www.mca.mn). Mongolia submitted its initial proposal to the MCC in November, 2004 and MCC began a dialogue in February (2005) with Mongolia that may eventually lead to a Compact agreement and disbursement of funding for agreed-upon projects.
There are no deadlines; the process of discussion and refinement will take as long as necessary to ensure that the final Compact will address the major obstacles to poverty in Mongolia and will represent the best use of the American taxpayer’s money. I would hope that a large part of the ground-laying work and momentum generated by USAID’s good governance and private sector/business development programs would be “sustained” by the Mongolian Government itself as part of its proposal for Millennium Challenge Account funding.
Investment and Trade
Foreign aid can be a catalyst for development, but the real engines of growth are entrepreneurship, investment, and trade. They are what produce jobs. I have described how our foreign assistance program in Mongolia prioritizes entrepreneurship and business development. It also advises the Mongolian Government on the policy reforms it needs to take to improve its investment climate and to maximize its exports. Many of these necessary reforms have been identified by the American business community in Mongolia, in particular by the North America-Mongolia Business Council which is working closely with the Mongolian Government and with the US Embassy.
Mongolia’s domestic market is small (population of 2.7 million – roughly that of Denver city), landlocked, and surrounded by “giant” economies (Russia and China). Mongolia’s challenge is to identify those “niche” products and services in which it has a comparative advantage and the external markets for these products. To compete for international investment capital, Mongolia will need to demonstrate that it is committed to a “business-friendly” policy. It will need to take measures to improve the overall business and investment climate by eradicating corruption; improving its protection of intellectual property rights, undertaking tax reforms that would improve incentives for work and investment; creating a strong financial system that allows capital to be put to its most efficient use; and ensuring pro-growth legal and regulatory policies to encourage investment.
Investment: While Mongolia is taking necessary steps to improve its business and investment environment, the U.S. Government is encouraging American investment in and sales to Mongolia. American investment in Mongolia today represents about 10.5 percent of total investment, a decrease from 15% in 2003. American companies – many represented by the North American-Mongolian Business Council -- are primarily in the financial, mining, educational, and garment sectors. In the past year, the Overseas Private Investment Corporation has extended a $50 million line of credit (to majority-American-owned companies) and the Trade and Development Agency has identified key sectors for investment feasibility studies. Mongolians like American products and a growing urban middle-class has the disposable income that should make Ulaanbaatar increasingly attractive to franchise operations. In short, there is a growing market for American goods and services in Mongolia. For more information and investment leads, I would refer you to the 2005 Mongolia Investment Climate Statement on the State Department website (www.state.gov/e/eb/ifd/2005/) and to the 2005 Mongolia Country Commercial Guide on the Department of Commerce’s website (www.export.gov/marketresearch.html).
Trade: The United States greatly values the trade and economic relationship it has with Mongolia. Mongolia's exports to the United States are given preferential access through the Generalized System of Preferences. In 2003, two-way trade with Mongolia totaled $204 million – with Mongolia running a trade surplus. U.S. exports to Mongolia consisted of heavy machinery, vehicles, consumer goods, and information technology equipment and services. While the total volume is relatively small, it is significant that the US market remains open to Mongolia.
Key Mongolian exports to the U.S. were apparel and minerals ( gold and fluorspar concentrate). In 2004, Mongolia maintained a trade surplus with the U.S., and its exports to the U.S. grew by nearly 31% up to $267 million, including exports of $227 million of apparel products. However, as noted, the bulk of Mongolia’s exports to the US consisted of textiles and garments. With the expiration of the WTO Multifiber Agreement at the end of 2004 and the elimination of textile quotas, Mongolia’s textile and garment exports now face serious competition from China and other more efficient producers. The indications in the first months of 2005 foreshadow a downturn in Mongolian exports to the U.S.
Trade and Investment Framework Agreement (TIFA): Mongolia has also requested a bilateral Free Trade Agreement (FTA). Given the current low volume of bilateral trade, the economic justification for a FTA is lacking at this time. But we expressly hope that the TIFA process could lead in due course to a closer bilateral economic and trade relationship.
While a FTA is premature, given the current low volume of bilateral trade, representatives of the Office of the U.S. Trade Representative and the Mongolian Ministry of Trade and Industry negotiated and signed, on July 16, 2004 a Trade and Investment Framework Agreement (TIFA).
A TIFA is a consultative mechanism for the United States to discuss issues affecting trade and investment in another country. TIFA’s have been negotiated predominantly with countries that are in the beginning stages of opening up their economies to international trade and investment. Although TIFA’s are non-binding, they can yield direct benefits by addressing specific trade problems and by helping our trade partners develop the experience, institutions, and rules that advance integration into the global economy.
The first session of the bilateral consultative, working-level Joint TIFA Council met in Ulaanbaatar in January 2005. The two sides identified areas and issues for further work with the objective of holding the second JC meeting in Washington in the first quarter of 2006. From the U.S, perspective, we are eager to work with Mongolia to promote global trade liberalization as well as to identify and remove those obstacles to Mongolia’s competitiveness in the world market.
Regional Economic Integration: Mongolia has requested U.S. support for its bid to join the Asia Pacific Economic Cooperation (APEC) body when the moratorium on membership expires in 2007. The U.S. strongly supports Mongolia's interest in becoming more involved in regional economic and financial issues.
Military Modernization, International Peacekeeping, Regional Stability
The United States, through its military assistance programs, has since 1999, supported Mongolia’s declared goal of 1) downsizing and transforming its military into a professional, mobile, and modern self-defense force and 2) developing and deploying an internationally qualified peacekeeping capability. Through various military assistance programs we are helping the Mongolian Armed Forces to transform and modernize its military, for example, by developing a Non-Commissioned Officer (NCO) corps to function on the backbone of a modern military.
We intend to continue to help train and equip Mongolia’s peacekeepers and to support Mongolia’s efforts to qualify for UN Peacekeeping missions in troubled areas of the world. We, too, benefit from Mongolia's interest in playing a responsible role in the international community and are proud to have helped them develop this capability through our assistance.
In this regard, the United States welcomes Mongolia’s commitment to combat terrorism and applauds Mongolia’s participation in the stabilization and reconstruction of Afghanistan and Iraq. Mongolia has sent 62 trainers to Afghanistan for six-month stints and currently has 21 trainers working with the Afghan National Army in three different Mobile Training Teams. Mongolia was one of the first countries to join the Coalition in Iraq and has sent over 550 peacekeepers in four rotations to Iraq; today, it has 130 peacekeepers in Iraq. Based in southern Iraq (in Al-Hillah “Charlie” Base) and under Polish Command, the 130 soldiers are the fourth rotation of a long-term commitment. The first three groups (rotations) of soldiers returned to a hero’s welcome.
It is worth mentioning that this is the first instance in modern times that Mongolian soldiers have deployed abroad. There was, understandably, some anxiety on the part of soldiers and their families. Despite these initial reservations, the Mongolian people have indicated strong support for – indeed, pride – in the accomplishments and contributions of their husbands and sons in Iraq and Afghanistan. Beginning this year, the Mongolian Government has declared March 12 as the “Day of the Peacekeepers.”
The U.S. will continue to strengthen Mongolia’s ability to contribute to East Asia/Pacific security, not only through direct military assistance and cooperation but also by encouraging and supporting Mongolia’s efforts to pay a larger, active role in such regional security organizations as the ASEAN Regional Forum (ARF) and the (track two) Council on Security Cooperation in the Asia Pacific (CSCAP). We also supported Mongolia’s successful application (December, 2004) to become a Partner of the Organization for Security and Cooperation in Europe (OSCE) and look forward to working with Mongolia in that context as well.
Promoting International Understanding
The U.S. Embassy conducts the full range of US Government professional, cultural and academic exchange programs (e.g., International Visitors, Fulbright, Humphrey, Eisenhower, American speakers and performers). We cooperate closely with the newly opened office in Ulaanbaatar of the American Center for Mongolian Studies, a “hub” for American and Mongolian research scholars, financed by the U.S. Department of Education.
In October 2004 we opened the U.S. Embassy American Cultural and Information Center, located in the Ulaanbaatar City Central Library. The American Center features the only free high-speed Internet access in Mongolia, Digital Video Conferencing capability, subscriptions to dozens of American periodicals, and over 2000 books on American issues. The Center also hosts a weekly lecture series on American topics and a weekly video night.
Through our resident English Language Fellow, we advise the Mongolian Government and educational institutions about teaching English as a Second Language – all the more relevant in light of Mongolia’s recent decision to make English the national “second” language and to begin teaching English in elementary school. We also support the Educational Advising and Resource Center, a Mongolian NGO that provides counseling to prospective Mongolian students about application procedures for admission – as well as for scholarships – to American institutions of higher learning.
Peace Corps in Mongolia
I would be remiss if I did not mention the significant role and contribution of the Peace Corps both to Mongolia as well as to cross-cultural understanding. In 1990, the Mongolian government requested the presence of Peace Corps Volunteers (PCVs) and Peace Corps opened a program in January 1991, in Ulaanbaatar (following the signing of a formal intergovernmental agreement by Minister of Foreign Affairs, Mr. Gombosuren, and State Secretary James Baker on August 2, 1990).
Peace Corps-Mongolia provides community-based development assistance that addresses needs identified in cooperation with Mongolian partners, as well as to promote cross-cultural understanding between Americans and Mongolians. Today our program has 87 Volunteers working in English education, health promotion, small business development and environmental conservation. They are serving in 20 of the 21 aimags/provinces. Since the establishment of the PC/Mongolia, approximately 500 Volunteers have served and represented the United States in Mongolia, each taking their experiences and understanding of Mongolian culture home to share with the U.S. population.
Embassy Ulaanbaatar
Let me conclude with a sales pitch. Our Mission in Mongolia is a small but professional group that includes representatives of the Departments of State and Defense, USAID and the Peace Corps. We have a Public Affairs/Education and Exchanges Officer and a Commercial Officer, both of whom work closely with and on behalf of American organizations and companies. The Mission “family” as I like to call it is composed not only of Americans but also, equally important, of a large number of dedicated Mongolian staff. If you need assistance and/or information of any sort, please contact us. Our website is www.us-mongolia.com
Thank you.
Appendix: USG Websites and Reports of Relevance to Mongolia
U.S. Embassy Ulaanbaatar: http://mongolia.usembassy.gov or www.us-mongolia.com
U.S. Department of State: www.state.gov
2004 Country Reports on Human Rights Practices http://www.state.gov/g/drl/rls/hrrpt/2004/index.htm
2004 Victims of Trafficking and Violence Protection Act of 2000: Trafficking in Persons Report
http://www.state.gov/g/tip/rls/tiprpt/2004/
2004 International Religious Freedom Report
http://www.state.gov/g/drl/rls/irf/
2005 Investment Climate Statement – Mongolia http://www.state.gov/e/eb/ifd/2005/42091.htm
2005 International Narcotics Control Strategy Report http://www.state.gov/g/inl/rls/nrcrpt/2005/
2005 Mongolia Country Commercial Guide
http://buyusainfo.net/info.cfm?loadnav=&isprev=yes&id='131116'&keyx='BAD6FEFA6FAB627AC90EFAAD5BF34D01
Millennium Challenge Corporation/Mongolia
http://www.mca.gov and www.mca.mn
