Mongolia experiences a unique disaster locally known as "dzud" (harsh winter conditions). During these events, large numbers of livestock perish due to starvation or direct cold exposure. This poses a significant threat to the livelihoods of nomadic herder communities, constituting 25 to 30 percent of the Mongolian population according to the National Statistics Office.

Since the 1990s, Mongolia has witnessed an increase in dzud occurrences, attributed to climate change, poor pasture management, and policy issues (Disaster White Book, 2021). The Mongolian government has taken substantial steps to mitigate the impacts of dzud, including the implementation of livestock laws and the production of dzud risk maps. The Dzud risk map, published by the National Agency for Monitoring and Environmental Monitoring (NAMEM) annually between October and December, categorizes dzud risk into five levels based on parameters like snow cover, density, air temperature, and vegetation.

In the first half of 2023, high temperatures and low precipitation led to severe drought in Mongolia during the

summer, resulting in insufficient grass for livestock to accumulate fat reserves for winter survival. Humanitarian Response: The Dzud risk map released in December 2022 revealed concerning risk levels across Mongolia. it indicated that 16 per cent of the Mongolian territory was at the highest level of dzud risk, 43 per cent at a high level of risk, 33 per cent at a moderate risk, and 10 per cent at a low and the least level of risk. The meteorology office had reported anomalous low temperatures in late December. According to the MRCS National Disaster Response Team (NDRT) deployment mission report (26 November-3 December 2022), due to the drought and economic inflation, meat prices had significantly reduced, consequently decreasing the income of herders. The combination of drought, economic inflation, and severe winter conditions posed a threat to herder households' basic needs.

In response to the escalating crisis, MRCS initiated an Imminent IFRC-DREF operation (CHF 136,038) with IFRC support in December 2022, providing financial assistance and psychosocial support to 1,000 herder households in high-risk locations as early actions.

Intensification of the Crisis and Expanding Relief Efforts:

A severe cold wave struck in January, with temperatures plummeting to -50 degrees Celsius in Zavkhan province and Uvs province. In other provinces, the air temperature was 3-4 degrees Celsius lower than the multi-year average. Snow coverage height was 37 cm in the central region and an average of 27 cm in the western region, preventing livestock from grazing. According to the task force staff at the Ministry of Food, Agriculture, and Light Industries (MoFALI), the crisis affected 29,346 herder households, or 115,956 individuals.

Considering the worsening situation, MRCS requested additional funding (CHF 467,834) and approval to scale up and extend (three months) the Imminent IFRC-DREF operation. The request was granted in March 2023, enabling MRCS to support herder households severely impacted by the dzud.

Beneficiary Targeting and Geographic Reach:

MRCS employed a two-stage criteria approach for beneficiary selection, prioritizing households with 200 to 400 livestock in the first stage and those meeting specific vulnerability criteria, such as households with disabled members or pregnant women, in the second stage. This approach identified 11,660 people from 2,934 herder households as vulnerable by the soum authorities based on their social status and subsistence level threshold.

These households had not received assistance from any international or local organizations and were located in Arkhangai, Bayan-Ulgii, Bayankhongor, Dornogovi, Dundgovi, Govi-Altai, Govisumber, Khovd, Umnugovi, Uvurkhangai, Sukhbaatar, Tuv, Uvs, Zavkhan, Dornod, Khentii provinces, and Baganuur, Bagakhangai districts in Ulaanbaatar. In this top-up phase, MRCS provided assistance to an additional 2,000 herder households severely affected by the dzud crisis. This assistance included unconditional and unrestricted cash assistance, the distribution of animal care kits, and the provision of psychosocial support.

In this expanded phase of relief efforts, MRCS provided assistance to affected herder households in 20 provinces and 2 districts within the capital city, Ulaanbaatar, extending its reach beyond the initial 13 provinces.

The U.S. Army Corps of Engineers, Alaska District, will construct a new Emergency Operations Center for the National Emergency Management Agency (NEMA) through a design-build contract awarded to Mongolian Properties, LLC. The three-story, 1,250 square meter building will be at the National Rescue Brigade’s Ulaanbaatar location, and construction is expected to begin April 2024 and finish by February 2025.

This new operations center is a continuation of the expanding relationship between the U.S. Department of Defense and NEMA, who have worked together closely in recent years on joint training events including “Gobi Wolf” and “Teak Magic.” Through these events, military service members and first responders from the United States, Mongolia, and countries around the world have improved their skills in disaster relief, humanitarian assistance, and rescue operations.

The project is one of a series in Mongolia funded by the U.S. Indo-Pacific Command under the U.S. Department of Defense’s Overseas Humanitarian, Disaster, and Civic Aid efforts. The U.S. Army Corps of Engineers is also currently building a kindergarten in Tosontsengel, which will serve 150 students and is expected to be completed in late February 2024.

Prime Minister L. Oyun-Erdene and the cabinet members participated in the Government of Mongolia and the Development Partners Consultative Meeting "New Recovery - New Partnership" on September 26, 2023.

At the onset of the meeting, the Prime Minister thanked the development partners for their consistent support for the sustainable development of Mongolia. He noted that it is important to reflect the opinions of development partners when the 2024 budget is being prepared, and said that the 2023 budget is aimed at stabilizing the economy, while the 2024 budget aims to ensure the balance of urban and rural development. “We will change in the future the situation when the state does everything. For example, the state should not be building cultural centers and sports complexes. We will cooperate with the private sector. The state will cooperate with infrastructure, land allocation and tax incentives. We are changing in stages the mode of the state itself competing with the private sector, the state is working to further liberalize mining, state-owned banks, international flights, etc., and to organize the management by national and international professional teams up to the world advanced level within this year.” Further he said that in order to develop an efficient capital market with the participation of citizens, investors, and the private sector under public supervision, the work of turning major state-owned enterprises into open joint-stock companies will be implemented stage by stage.

The Minister of Economy and Development Ch. Khurelbaatar and the Minister of Finance B. Javkhlan presented the economic performance of Mongolia and the 2024 draft budget to the development partners. As of the first quarter of 2023, the balance of payments turned positive for the first time, and the economic growth reached 6.4 percent. The gross domestic product per capita reached USD 5,000 for the first time, and it is expected to reach USD 6,000 in 2024.

The development partners who participated in the meeting expressed their opinions.

Ambassador of France Sebastien Surun: I congratulate Mongolia on its effective debt management. We would like to cooperate in using renewable energy opportunities in Mongolia. Investors of our country are interested in this sector.

Ambassador of the Federal Republic of Germany Helmut Kulitz: I would like to thank the Government of Mongolia for working well during the pandemic and difficult geopolitical conditions, and creating economic growth. Our country proposes to cooperate in the development of renewable energy, environmental and ecological impact, and vocational education training. Coal consumption tends to decrease from 2030. Hence, there is an opportunity to work together on projects such as solar and wind power plants.

Resident Representative of the United Nations Development Program Matilda Dimovska: I am glad that Mongolia presented its sustainable development report in New York. The United Nations will support the development of renewable energy, foster good governance, and attract international investment to ensure urban-rural balance. Mongolia has abundant renewable energy resources. We will cooperate in support of green energy.

Representative of the United Nations Children's Fund Eva Kouassi-Komlan: I support the Prime Minister L. Oyun-Erdene's proposal that 50 and 50 percent of funding will be provided for the partnership. Our organization is ready to work together to make Ulaanbaatar a child-friendly city. I am happy that Mongolia has made progress in enrolling children in kindergarten.

Resident Representative of the Asian Development Bank Shannon Coughlin: Our plan goes in line with your Government's priorities. This year, a loan of USD 180 million was approved for the construction of regional roads. We will work together to improve the infrastructure of the ports focusing on completing projects on time. Private sector investment is important for the implementation of renewable energy projects.

At the end of the meeting, the ministers answered the questions raised by the development partners and expressed their position.

The Minister of Justice and Internal Affairs Kh. Nyambaatar said that the draft laws on the reform of the private law sector will be submitted for approval at this autumn session of the Parliament. The Bankruptcy Law, the State-Owned Enterprises Law, the Law on the Establishment of Courts, the Law on Commerce, and the Company Law will be submitted and approved too.

The Finance Minister B. Javkhlan noted that the 2024 budget is pursuing the policy of economic expansion. In this context, investment measures aimed at increasing exports, urban and rural revitalization, protection of citizens' incomes, and development will be implemented. Out of total 140 projects and programs funded by foreign loans and aid in 2023, 96 projects are being implemented in line with the New Revival Policy. A total of MNT 1.6 trillion financing will be provided for these projects within this year. He said that new foreign loan and aid projects to start in the future will be implemented within the framework of the New Revival Policy and the Food Supply and Security Policy.

Representatives of the Asian Development Bank, World Bank, International Monetary Fund, European Bank for Reconstruction and Development, International Finance Corporation, European Union, German Association for International Cooperation, Swiss Development Agency, Japan International Cooperation Agency, United Nations Development Program and the relevant Embassies took part in the meeting.

In August 2023, Mongolia's Prime Minister embarked on a highly successful visit to the United States, brimming with the promise of reaping substantial, diverse economic rewards across multiple state sectors.

The recent visit of Mongolian Prime Minister L. Oyun-Erdene to the United States from August 2-6th, 2023, bolstered bilateral relations and opened new economic, tourism, and technology opportunities with specific US states. Five new US-Mongolia agreements were enacted, including a technology partnership with Google, a transparency agreement for commercial relations, an open skies agreement for tourism, an economic cooperation roadmap, and a bilateral assistance agreement for clean energy and economic diversity.

Technology Businesses in California

Prime Minister Oyun-Erdene's partnership with Google stipulates that Mongolia will provide 20,000 Chromebooks and 10,000 Level 1 and Level 2 educator certifications for Mongolian students to foster future digital leaders. These leaders will be crucial for California in the next few years, considering Silicon Valley and San Francisco’s mismatch in tech-intensive jobs.

According to McKinsey & Company, more than 44% of tech companies expect to experience skill gaps within a few years, while demands for tech-savvy jobs rose around 139.5%. If Google and Mongolia cooperate in fostering future digital human capital, they can fill the mismatch and stimulate IT innovation in California.

This initiative will lessen the skill gap in California and open doors for reciprocal knowledge exchange between both regions. An additional Transparency Agreement – designed to foster healthier bilateral commercial relations – was also ratified in support of inter-state business, opening opportunities for tech businesses to cooperate between the United States and Mongolia.

Tourism in Florida and Hawaiʻi

The signing of the Open Skies Agreement between Mongolia and the United States heralds a new era for tourism. States like Florida and Hawaiʻi, renowned for their popular tourism industries, can expect a surge in international visitors in the “post-pandemic era.” During the COVID-19 pandemic, states experienced a significant decline in tourists, especially in Hawaiʻi and Florida, where the number of tourists in October 2020 declined more than 90% from the year prior.

Fortunately, new direct flights from Mongolia will streamline travel, restoring state revenue and creating hospitality jobs because of this enhanced accessibility.

EV Battery Ecosystem in Michigan

The Economic Cooperation Roadmap and the newfound Bilateral Assistance Agreement further substantial cooperation within the critical mineral sectors (copper), clean energy, and economic diversity. A recent trilateral dialogue and enacted US-Mongolia MoU each discuss a strengthened cooperation to secure critical minerals supply chains, via both government and private sector efforts. This alliance is poised to have a transformative impact on Michigan’s electric vehicle (EV) battery ecosystem and Mongolia’s mining industry’s export of copper and cobalt in return since it accounts for 21.6% of the country’s GDP and 26% of the national revenue.

The roadmap can grow supply chain resiliency for critical minerals like copper, nickel, and cobalt, which are crucial to EV battery production by fostering partnerships and resource sharing. This not only enhances Michigan’s position as a critical player in the EV industry but also reinforces its commitment to sustainability, aligning with the Biden Administration’s clean energy goals.

At the same time, Mongolia’s participation in President Biden’s Global Methane Pledge, in conjunction with the European Union, stands to reduce global methane emissions through improved clean energy sources – including EV battery production. As a result, Michigan and Mongolia stand to solidify their status as vanguards of an EV battery ecosystem, contributing to their economic growth and advancement of sustainability.

Conclusion

Mongolia has pursued a “third neighbor foreign policy” with the United States – growing Mongolia’s foreign relations outside the influence of its two important neighbors: China and Russia. Mongolia’s commitment to building international partnerships continues to uphold Ulaanbaatar’s values looking forward and build networks of resilience outside Mongolia’s immediate neighbors. Further economic and trade developments at the state and local levels resulting from the agreements also hope to achieve lasting benefits for both countries.

We would like to extend our gratitude to AmCham Mongolia for their generous provision of data and insights that have enriched our research and analysis. The information graciously provided by AmCham Mongolia has been instrumental in shaping the essence of this article.

SeungHwan (Shane) Kim is a participant in the Young Professionals Program at the East-West Center in Washington, DC. He is a graduate student at the School of Advanced International Studies (SAIS), Johns Hopkins University, where he is focusing on security and statecraft in the Indo-Pacific region.

Declan Mazur is a participant in the Young Professionals Program at the East-West Center in Washington, DC. He holds a bachelors in Global China Studies from New York University Shanghai with a concentration in Political Science.

The East-West Center promotes better relations and understanding among the people and nations of the United States, Asia, and the Pacific through cooperative study, research, and dialogue. Established by the US Congress in 1960, the Center serves as a resource for information and analysis on critical issues of common concern, bringing people together to exchange views, build expertise, and develop policy options. The Center's Washington D.C. office focuses on preparing the United States for an era of growing Indo-Pacific prominence.

The trial of an international road transport route connecting China, Mongolia, and Russia on the Asia Highway 4 has finished, the Ministry of Transport (MOT) said on Wednesday.

A fleet of nine trucks dispatched by China, Mongolia, and Russia departed from Urumqi, northwest China's Xinjiang Uygur Autonomous Region, on Sept. 22, proceeding through Mongolia and Russia, and ultimately arrived in Novosibirsk, Russia's third-largest city.

At 2 p.m. local time Wednesday, a reception ceremony for the convoy was held in Novosibirsk.

The new route is the second international road transport channel connecting China, Mongolia, and Russia, following the Asia Highway 3.

The three countries should make joint efforts to facilitate customs clearance and transportation and contribute more to promoting the construction of the China-Mongolia-Russia economic corridor, Xuan Dengdian, an official with the MOT, said at the reception ceremony.

The United States Agency for International Development (USAID) and Development Solutions NGO, through the Business Excellence for Sustainability and Transparency (BEST) project, organized a forum to enhance Mongolia’s food security. Focused on “Exploring New Financing Avenues for Agriculture,” the forum gathered diverse perspectives as representatives from the government, private sector and donor organizations discussed challenges and opportunities to apply innovative solutions and financing approaches.

U.S. Ambassador to Mongolia Richard Buangan delivered opening remarks along with Minister of Agriculture, Food and Light Industry Kh. Bolorchuluun and Executive Director of the Mongolian Bankers Association L. Amar. They underscored the crucial role of partnerships to advance growth in the agricultural sector.

“Mongolia’s agricultural sector faces unprecedented challenges, including disruptions in the supply of essential inputs, such as fertilizer, and market uncertainties,” Ambassador Buangan said. “The U.S. government has been working with our Mongolian counterparts through a myriad of activities to promote sustainable and resilient economic growth and food security.”

The forum highlighted the results of a survey on the need to expand access to finance for farmers, conducted by USAID’s BEST program, the Mongolian Bankers Association, and the Banking and Finance Academy Panel. Discussions centered on innovative financing strategies based on agricultural production contracts, adaptation of financial models that suit the unique needs of the sector, and the potential establishment of dedicated agricultural financing units within commercial banks.

Since 2019, with USAID’s BEST assistance, over 4,000 small- and medium-sized enterprises have secured loans worth more than MNT 200 billion (approximately $62 million), which has helped them grow and expand their business, especially during the COVID-19 pandemic.

Mongolia - Taiwan economic meeting was held yesterday at the Mongolian National Chamber of Commerce and Industry. The meeting was jointly organized by the Mongolian National Chamber of Commerce and Industry, and the Taiwan International Economic Cooperation Association, Montsame reports.

Fourteen representatives of Taiwanese businesses led by Member of the Board of Directors of the Taiwan International Economic Cooperation Association Cheng Xin participated in this meeting. Head of Taipei Trade and Economic Representative Office in Ulaanbaatar Grace J.R.Luo was invited to take part in the event.

Over 30 representatives, who participated in the meeting from both sides, delivered presentations on communications, tourism, medicine, medical equipment, and financing services, and exchanged information on the latest developments in respective areas.

Head of Taipei Trade and Economic Representative Office in Mongolia Grace J.R.Luo emphasized that the Taiwan International Economic Cooperation Association has organized a team to come to Mongolia for the first time after the global pandemic. She noted that the total trade turnover between Taiwan and Mongolia reached $42 million, equal to the highest pre-pandemic figure, and expressed her confidence that this indicator would continue to grow rapidly, and that Taiwan-Mongolia cooperation would expand due to business exchanges.

The Financial Action Task Force (FATF) announced that Mongolia has fully complied with a total of 40 recommendations issued by the organization. As per this result, Mongolia is the first country in Asia.

In 2017 FATF reviewed the activities related to money laundering, combating terrorism, and illegal financing in our country. As a result, 15 of the 40 recommendations were insufficiently implemented, and Mongolia was included in the gray list of countries with strategic deficiencies.

In 2020, the country was removed from the above list by fulfilling six tasks that were underperformed. Now, Mongolia annually submits its report to FATF's branch organization in Asia and the Pacific Region. The last report was defended at the regional meeting in Canada in July this year. As a result, our report has been approved and published internationally. Now, Mongolia has improved the assessment of all 40 FATF recommendations and has become a country that has fully implemented them, says the Head of the Financial Information Service of the Bank of Mongolia B. Batbaatar.

Mongolia needed to improve the 8th rating of 40 recommendations, i.e., Mongolia had fulfilled 39 out of 40 recommendations of FATF. Monitoring the activities of non-profit organizations (NGOs) in relation to combating money laundering and terrorist financing was missing. In this regard, a working group headed by the Minister of Justice and Internal Affairs was established to improve the above activities.

Now, Mongolia pledges to establish an integrated risk database, a Compliance Council, a fintech association, and a digital platform within the framework of improving operations related to money laundering and combating terrorism.

Our country has also approved and implemented the Law on Virtual Asset Service Provider. Thus, we have become the first country in Asia to implement virtual regulation. It is officially announced that the rating of Mongolia has improved by doing these works. Constructive changes are expected in the monetary and financial sector of our country, which will positively impact the reputation of Mongolia.

Activities to combat money laundering and terrorist financing are based on cooperation. Mongolia has established two councils in this area, National and Cooperation Councils, to support FATF's activities in combating money laundering and terrorism. About 20 government organizations are engaged in this work.

The Deer Stone Monuments and Related Bronze Age Sites in Mongolia have been added to the UNESCO World Heritage List at the extended 45th session of the World Heritage Committee.

Located in central Mongolia, on the slopes of the Khangai Ridge, there are deer stones dating from approximately 1200 to 600 BCE. These stones, which can reach heights of up to four meters, were utilized for ceremonial and funerary purposes. They are found both individually and in groups, often within complexes that include large burial mounds known as khirgisüürs and sacrificial altars. These deer stones are adorned with intricate engravings depicting stags and are of great significance as they are the most significant surviving structures associated with the culture of Eurasian Bronze Age nomads, a culture that evolved and gradually disappeared during the transition from the 2nd to the 1st millennium BCE.

Mongolia joined the World Heritage Convention in 1990. In addition to the Deer Stone, Mongolia has inscribed five World Heritage Sites, namely Uvs Nuur Basin (2003), Orkhon Valley Cultural Landscape (2004), Petroglyphic Complexes of the Mongolian Altai (2011), Great Burkhan Khaldun Mountain and its surrounding sacred landscape (2015), and Landscapes of Dauria (2017).

32 wrestlers from the Naadam of 2232th Anniversary of establishment of the First Statehood in Mongolia, 817th Anniversary of the Great Mongol Empire and 102nd Anniversary of People’s Revolution of Mongolia had doping tests.

A substance included in the prohibited list issued by the World Anti-Doping Agency was revealed from M.Badarch, the State Lion, and decision to send proposals of invalidating all his rounds of the wrestling during Naadam and withdrawing the title of the State lion to the President of Mongolia has been made.

Also, M.Badarch's permission to wrestle at the Naadam Festival will be suspended for a period of four years until July 12, 2027. In relevance:

Bayanmunkh Burnee, the Province Lion, will be considered five round wins and have title of State Nachin;

Dash Erdenebat, the State Nachin /with highlight of usukh ider/, will be considered six round wins and have title of State Hawk;

Sukhbaatar Sukhbat, will be considered seven round wins and have title of State Elephant;

Byamba-Otgon Tserensodnom, will be considered nine round wins and have title of State Lion;

Khangai Orgikh, the State Champion, will be awarded “ulemj badrakh” /make great strides/ highlights.