Since Mongolia’s democratization in the 1990s, USAID has been a major supporter of the country’s development. With USAID’s future in doubt, Ulaanbaatar is watching closely.

President Donald Trump began his second term in the Oval Office by making abrupt shifts in U.S. foreign policy, including halting all foreign aid for 90 days. In addition, Trump’s decision to gut the United States Agency for International Development (USAID) and the realignment of U.S. priorities in international development will directly impact Mongolia-U.S. cooperative programs, although it ultimately will not strain the Mongolia-U.S. strategic partnership.

On January 26, 2025, Trump signed an Executive Order on Reevaluating and Realigning United States Foreign Aid. The U.S. State Department press statement on implementing the order emphasized, “The United States is no longer going to blindly dole out money with no return for the American people.” The 90-day review will likely be a multistage process that will trim down specific programs and projects that are not aligning with the Trump administration’s international goals. What this means for Mongolia is that many of the U.S.-funded projects that support gender equity, environmental and wildlife protection, as well as academic and research funding are likely to be on the chopping block.

Since the dawn of Mongolia’s democratization in the 1990s, USAID has been a major supporter of Mongolia’s development. The agency supported Mongolia in strengthening democratic governance, civil society and financial institutions, as well as bolstering its economy and private sector competitiveness. According to U.S. government data, over $20.4 million in foreign assistance has been provided to Mongolia since 2001, with $6.6 million of that coming from USAID.

According to a summary from the U.S. embassy in Mongolia:

USAID assistance has spanned a variety of priority areas, including developing the energy sector, helping to establish and strengthen major banking institutions, providing humanitarian assistance, promoting small businesses and diversifying income in rural areas, and spurring inclusive participation in the democratic process.

Moreover, USAID funds academic and scholarly communities both in the United States and Mongolia. These activities ultimately strengthen cultural and people-to-people relations between Americans and Mongolians. Cutting USAID funds will have direct impact on anthropology, archaeology, and other research-based programs and projects.

U.S.-funded projects not only help with Mongolia’s overall development, but directly impact ordinary’s people’s lives.

Jonathan Addleton, who served as the U.S. ambassador to Mongolia from 2009 to 2012, pointed to the outsized impact of USAID in Mongolia particularly. “I would maintain that both USAID and Mongolia have ‘punched well above their weight’ during the last two decades,” he told The Diplomat, pointing to Mongolia’s success “in applying foreign assistance from all sources to move a better place with respect to GDP, per capita income, and the amount of revenue generated internally to finance a ‘real’ budget as compared to the tiny national budgets of the 1990s.”

Commenting on the recent development, Michael Klecheski, who served as the U.S. ambassador to Mongolia during the first Trump administration, stated, “Curtailing U.S. assistance work throughout the world will have an impact on our international image, but I believe the U.S.-Mongolia relationship will remain strong, as we continue to have important shared interests.”

Klecheski added, “Given Mongolia’s geostrategic position, good ties with the U.S. and other ‘third neighbors’ are vital to it. And after all, when Trump was president last time, he had a terrific visit from Mongolia’s then-President Battulga Khaltmaa. I trust that remains significant to this White House.”

Mongolia and the United States became strategic partners in 2019, during Trump’s first term as president. While the strategic partnership implied economic cooperation, U.S. aid to Mongolia dropped significantly during the Trump administration, from $46 million in 2018 to $12 million in 2020. At the same time, it is important to highlight that the United States did provide approximately 24.8 billion Mongolian tugrik ($8 million) to Mongolia to support its effort to combat COVID-19.

During the Biden administration, U.S. aid continued to flow to Mongolia’s developmental projects. In 2023, USAID announced a five-year strategy for Mongolia, particularly targeting the energy sector, banking institutions, and strengthening democratic values within the framework of sustainable development. As the Trump administration reviews the USAID five-year strategic framework for Mongolia (2023-2028), Ulaanbaatar should expect projects in gender equality, environmental issues, as well as public health sectors will likely be impacted.

Moreover, with recent actions, there is a worry that the Millennium Challenge Corporation (MCC) Mongolia Water Compact may be impacted, despite the fact that the project is almost complete. The MCC project is a joint program between Mongolia and the United States, with both committing large sums to address Mongolia’s critical water supply challenges in Ulaanbaatar. The MCC’s $462 million pledge – $350 million from the MCC, and $112 million from Mongolia – will go toward the improvement of water infrastructure in Ulaanbaatar, including new wells, a water purification plant, and a wastewater treatment plant. As of September 2024, $305.5 million or 87.3 percent of the U.S. grant has been committed to projects; of that $214.8 million (61.4 percent) has already been disbursed.

The latest allocation of USAID to Mongolia was $13 million, just before Biden left office.

In the face of increasing uncertainty over Trump’s foreign policy and international outreach, policymakers in Ulaanbaatar are paying attention. The United States’ relationship with Mongolia has focused on what is known as the the “3D” approach: defense, diplomacy, and development. To some degree, if the development element gets dropped, Mongolia would still have defense and diplomacy to pursue cooperation with the United States. Of the U.S. assistance to Mongolia since 2001, 37 percent was aimed at military goals.

On February 7, Mongolian Defense Minister Byambatsogt Sandag visited the U.S. Indo-Pacific Command in Hawaii. During a meeting between Byambatsogt and the U.S. Army Lt. Gen. Joshua M. Rudd, deputy commander of U.S. Indo-Pacific Command, Mongolia focused on welcoming the new Trump administration. The two sides discussed defense ties and how the Mongolia-U.S. cooperation mechanism should continue and uphold its strategic significance.

According to the Mongolia’s embassy in the United States during the meeting, Mongolia highlighted its commitment and goal to triple the number of peacekeepers, with an eye toward the technical assistance and human resources needed to achieve this goal.

As the Mongolia-U.S. strategic partnership comes to a new starting point, Ulaanbaatar does have an opportunity to push Washington to pass the long-anticipated Third-Neighbor Trade Act, while accelerating U.S. investment in Mongolia’s critical minerals, tourism, technology, and science sectors.

Trump’s decision to either abolish USAID or drastically reduce funding will impact projects and programs in Mongolia. His actions are also a wakeup call for the Mongolian government not to solely depend on foreign aid for its development.

That said, it is also important note that one of the strengths of Mongolia’s multi-pillared foreign policy is that it has a number of different partners helping to support the country’s democracy, civil society, gender equity, public health, and business environment. Multilateral mechanisms and organizations such as the United Nations Development Program, UNICEF, and to some degree, the American Chamber of Commerce could serve as alternative funding sources within this multi-donor system.

By Bolor Lkhaajav

Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.

As part of the “Years to Visit Mongolia 2024-2028” Initiative, the Ministry of Culture, Sports, Tourism, and Youth of Mongolia, in collaboration with the Mongolia Tourism Organization, is organizing the “Tourism Week-2025” on February 10-15, 2025.

The “Tourism Week-2025” brings together representatives from 30 public organizations, 1,200 private sector companies, 85 NGOs, research institutions, and professional associations, as well as 30 international organizations, serving as a dynamic platform for discussing the achievements, challenges, and future development strategies of the tourism industry of Mongolia.

Notable figures, including Minister of Culture, Sports, Tourism, and Youth of Mongolia Nomin Chinbat, President of the Mongolia Tourism Organization T. Battulga, Chair of the Board of Directors of the Mongolia Tourism Organization B. Zolbadrakh, and officials from the Tourism Policy Implementation Department of Ulaanbaatar City, delivered speeches. Esteemed international guests, such as Regional Director of Adventure Travel Trade Association (ATTA) Hannah Pearson, and Professor at Sejong University Dr. Seul Kee Li, also shared their invaluable perspectives on the global tourism landscape.

At the Opening Ceremony, Minister Nomin Chinbat highlighted several major achievements in the tourism sector from the previous year. A notable milestone was Mongolia’s formal partnership with Trip.com, a platform with 500 million users, enabling travelers to easily book flights to Mongolia and purchase tourism products and services. Moreover, the Minister emphasized, “Mongolia has been named an official partner at the “China International Travel Mart” and has earned accolades from globally renowned travel publications such as “Lonely Planet” and “Wanderlust,” which have ranked Mongolia among the top destinations to visit in 2024. These efforts have contributed to a remarkable 126 percent increase in positive perceptions of Mongolia internationally.

In an effort to boost air travel accessibility, aviation agreements have been signed with key countries, facilitating direct flights to 155 destinations as of 2024. Mongolia also achieved a historical milestone by surpassing 2 million air travelers. As part of this, United Airlines, a major airline company in the United States, is to commence direct flights to Mongolia in May 2025.

In line with visa policy simplifications, citizens from 32 countries can now visit Mongolia without a visa, while citizens from 36 countries are eligible for e-visa applications. Collaborative efforts with international media organizations such as CNN, BCC, and influential global content creators have notably enhanced Mongolia’s international profile.

Mongolia is seeking to welcome two million tourists annually by 2030 and double the average expenditure per tourist from USD 2,000 to USD 4,000. This ambitious target could generate up to USD 8 billion in tourism revenue, contributing 10 percent to the country’s GDP. To reach this target, Mongolia's tourism sector must maintain an annual growth rate exceeding 15 percent, supported by cohesive strategies, sustainable investments, and inter-sectoral coordination.”

Furthermore, Chair of the Board of Directors of the Mongolia Tourism Organization B. Zolbadrakh noted, “Since the launch of the “Years to Visit Mongolia” initiative in 2023, the tourism sector of Mongolia has seen a remarkable 23-percent growth, which is an impressive achievement by any standard. The upcoming discussions during the event will focus on how to build on this success, with particular attention to promoting year-round tourism and integrating it with regional development strategies to reach one million tourists annually.”

President of the the Mongolia Tourism Organization T. Battulga highlighted, “While growth metrics remain essential, the quality of the tourist experience is equally crucial. Enhancing the length of stay and enriching the travel experience are top priorities. Developing region-specific tourism strategies and fostering collaboration between the public and private sectors will be vital to realizing these goals.”

Regional Director of Adventure Travel Trade Association Hannah Pearson shared, “This is my second time in Mongolia. For me, my purpose for participating in the “Tourism Week-2025” event is to share how the "Adventure Travel Trade Association" sees adventure travel, the trends, and how that can support Mongolia and its aims to develop tourism.

The strengths of Mongolia's tourism sector are the amazing landscapes, the culture, and the spiritual side as well. There is a lot that Mongolia has to offer. On the other hand, Mongolia seems to have challenges in the private sector. Connectivity seems to be one of the big challenges. Moreover, another issue is seasonality. The fact that a lot of travelers come in the summer and not in the winter might be a challenge. However, I believe adventure travel can help address the seasonality because adventure travelers love to travel in the shoulder season. They don’t mind the extreme temperatures. So it is definitely an opportunity. Adventure Travel Trade Association brings vast expertise in helping destinations position themselves as globally attractive travel hubs.

Although my experience in Mongolia is still relatively limited, I went out to the steppes, where we rode horses. This might be the typical experience for tourists visiting Mongolia, but this experience was quite unique. I think experiences like that, perhaps even more off the beaten track, even more engagement in local cultures and nomadic life, should really attract tourists to visit Mongolia.”

The "Tourism Week-2025" commenced on February 10, 2025, with the "Regional Development and Tourism" Forum.

The Ministry of Culture, Sports, Tourism, and Youth of Mongolia and the Mongolia Tourism Organization are jointly organizing this Forum for the second year to strengthen coordination within Mongolia's tourism sector and enhance collaboration between the public and private sectors. Participants are discussing the sector's pressing challenges, potential solutions, and pathways forward. They emphasized that tourism plays a vital role in economic growth and development, highlighting the importance of continuous innovation and reform, as well as the need for timely and efficient cross-sector information sharing to foster sustainable tourism.

The tourism industry in Mongolia came to a standstill during the pandemic, incurring losses of MNT 1.6 trillion. However, it has since rebounded, with revenue increasing by 65 percent. In 2023, Mongolia generated USD 1.2 billion in tourism revenue, and in 2024, the country welcomed 808,956 tourists, earning USD 1.6 billion.

Minister of Culture, Sports, Tourism, and Youth of Mongolia Nomin Chinbat noted, "Tourism revenue has increased 2.8 times compared to 2022. Last year, we launched a partnership with Trip.com, enabling international travelers to book flights to Mongolia and purchase travel services directly. Additionally, to expand transportation capacity for tourists, we signed agreements on aviation relations with several countries and actively worked on securing flight permits. As a result, direct flights are now available to a total of 155 destinations. For the first time in history, Mongolia’s air transport sector has served over 2 million passengers. Of the tourists visiting Mongolia, 47 percent are interested in eco and adventure tourism. Solo travel is becoming a global trend, making it essential for us to develop such experiences in line with international standards. Additionally, as artificial intelligence continues to advance in a big way, integrating technologies such as chatbots into our operations is crucial.”

CEO of the Mongolia Tourism Organization M. Narangerel highlighted, "Mongolia has an extreme climate, but travel and outdoor activities are possible year-round, not just in summer. In January alone, we welcomed 33,462 tourists, the highest number ever recorded in the winter season, demonstrating the growing interest in Mongolia’s winter tourism. To develop four-season tourism, we need to systematically improve infrastructure, attract investment, and train a skilled workforce. One of the key challenges in this industry is domestic air travel, particularly the capacity of national flag carriers. Given Mongolia’s vast territory, flying is the only viable option to reach certain destinations. However, high flight costs make it difficult to design competitive tourism packages."

Mongolia is seeking to welcome 2 million tourists annually by 2030 and increase tourism revenue to USD 8 billion. To achieve this, the country plans to develop tourism in regional clusters. For example, the central region will be developed as a sub-region focused on diversified agriculture and industry, while the eastern region will be developed as a specialized area for historical tourism and intensive agriculture.

Over 1,000 representatives from more than 600 businesses in the tourism sector are participating in the "Tourism Week 2025" event. Throughout this week, they will engage in discussions on topics such as tourism strategy, infrastructure, destination services, and product development.

As of the end of 2024, Mongolia’s foreign currency reserves reached an all-time high of USD 5.5 billion. However, the current reserves stand at approximately USD 4.9 billion.

On average, exchange rate fluctuations tend to occur at certain times of the year, particularly in September and October when business activities increase, and during the Lunar New Year when demand rises. Recently, factors such as increased outbound tourism and automobile imports have also contributed to these fluctuations. Additionally, the seasonal slowdown of certain mining operations has led to a reduced inflow of foreign currency.

The Bank of Mongolia reported that it has fulfilled all foreign currency purchase orders from commercial banks in full and that operations remain stable.

As of February 10, 2025, the official exchange rate of USD announced by the Bank of Mongolia was MNT 3,455.89.

Breastfeeding rates in Mongolia have been declining, according to survey results released by the country's health ministry on Tuesday.

The Ministry of Health and the National Center for Public Health, with support from UNICEF, conducted the VI National Survey on the Nutritional Status of the Population in 2023-2024 to assess and improve the nation's nutritional status.

The survey included more than 16,000 people from all 21 provinces of Mongolia, including about 2,800 children under the age of 5.

It revealed that the percentage of newborns receiving colostrum immediately after birth has decreased from 96.7 percent in 1999 to 87.4 percent in 2024.

Additionally, the proportion of children exclusively breastfed for up to six months has dropped significantly, from 93.4 percent in 1999 to 59.6 percent in 2024.

The survey also found that seven out of 10 children aged six to 23 months in Mongolia are not eating properly. Half of these children are not consuming the right variety of foods at the right frequency for their age, and 31.8 percent do not eat fruits and vegetables at all.

The NNS V “Nutritional Status of the Population of Mongolia” was conducted six years ago, in 2016-2017, by the Department of Nutrition (currently known as Department of Nutrition and Food Safety) in cooperation with relevant organizations and departments. Based on the results and conclusions of this survey, improvements were made to the legal framework for enhancing the nutritional status of the population, fostering interdisciplinary cooperation, increasing the supply and consumption of healthy and nutritious food, and implementing multifaceted measures to intensify information dissemination, monitoring, and evaluation. These measures were carried out with the financial and technical support of the state and local budgets as well as international donor organizations. For instance, to support and protect breastfeeding, promote healthy eating, and prevent and control nutrition-related disorders, including micronutrient deficiencies specifically among young children and women, several laws were enacted: the “Law on Iodizing Salt and Preventing Iodine Deficiency” in 2013, the “Law on Fortified Food” in 2018, the “Law on Food for Infants and Young Children” in 2017, and the “Law on Food Production and Services of Secondary Schools” in 2019. Programs, procedures, instructions, and recommendations related to these laws have been implemented to achieve their objectives. Therefore, to evaluate the results and effectiveness of policies, programs, procedures, and instructions implemented since 2016 in the field of improving the nutritional status of children and women; to study the effects of poverty and economic crises on the nutritional status of the population; and to analyze the correlation between household socio-economic status and food insecurity, we conducted the VI National Nutrition Survey, “Nutritional Status of the Population of Mongolia”.

See the full version at https://www.unicef.org/.../nutrition-status-population...

Author(s)

Ministry of Health, National Center for Public Health, UNICEF Mongolia

Publication date

February 2025

Languages

English

Mongolia has been ranked 114th out of 180 countries in the 2024 Corruption Perceptions Index (CPI), Transparency International (TI) Mongolia announced on Tuesday.

Despite maintaining a CPI score of 33 points in both 2023 and 2024, Mongolia moved up seven places in the global ranking compared to the previous year.

The CPI evaluates 180 countries and territories based on perceived levels of public sector corruption, using a scale from 0 (highly corrupt) to 100 (very clean).

Published annually by the non-governmental organization TI, the index assesses corruption based on factors such as bribery, misuse of public funds, abuse of public office for personal gain, and nepotism in civil service.

Denmark topped the 2024 index with a score of 90, maintaining its position as the least corrupt country, while South Sudan ranked last with a score of 8, reflecting severe corruption challenges.

Mongolia hired banks for potentially its first dollar bond sale since being upgraded by rating firms last year as it seeks to tap robust global demand for riskier debt early in 2025.

The junk-rated sovereign is planning a deal with a five- and possible 10-year tenor, according to people with knowledge of the matter. If the government proceeds to price the debt, it would be its first in the US-dollar bond market in about 14 months, according to data compiled by Bloomberg.

Mongolia has become a rare speculative-grade rated sovereign issuer in emerging Asia in recent years as other past borrowers such as Pakistan have had to seek financial assistance from the International Monetary Fund. All the three major international credit rating firms have raised Mongolia’s credit scores since September, with Moody’s Ratings the latest to do so in November.

Moody’s cited an uptick in mineral revenues and a track record of effective debt management when it upgraded Mongolia’s credit assessment one notch to B2, five levels below investment grade.

The nation also plans to repurchase a $566 million bond due in April of next year and a $650 million note maturing in January 2028, according to the people familiar, who asked not to be identified because the information is private. Both bonds are trading above their issue prices.

Average spreads on Asian high-yield dollar bonds are near their tightest in more than six years at 411 basis points, according to a Bloomberg index.

Still, the guage, which has returned 0.5% so far this year, is underperforming global peers as concerns about Chinese property developers flare up again and US President Donald Trump’s tariffs plans unsettle markets. The region’s notes returned 15% last year, in their best annual performance in 12 years, the data show.

Of 20 major Bloomberg fixed-income indexes emerging-market dollar bonds and global high-yield debt are the two best performing so far this year, returning 1.5% and 1.4% respectively, the data show. The bigger spread cushions on the notes give them greater room to absorb volatile moves in Treasuries.