Click for Ulaanbaatar, Mongolia Forecast
--Go on a day trip out of Ulaanbaatar driving a tank, shooting different rifles and launching grenades!!! On the   way, enjoy a nice scenery from a beautiful mountain pass!!!
--Go on a tour to nature and nomadic families observing their routine lifestyle!!!...

--Just call to 98206816 or 976 98206816!!!

Available: consulting on route-planning, rent of strong tents, gas stoves, saddles, saddle bags, safety helmets, fishing gears and sleeping bags.
On August 14th, the shamans are to hold a spirit calling ceremony in "The 13th Century" complex found near Tsonjin Boldog Hill. It's at about 75km to east from Ulaanbaatar.
Support Mongolian people by using services provided by the Mongols themselves!!!"-Now, most foreign tourists enter and leave Mongolia with foreign-owned airlines or trains, stay at foreign accommodations, eat at foreign restaurants in Ulaanbaatar and travel in the country with foreign tour companies"/admitted Davaadorj Ts, the Minister of Infrastructure and Trade. 02.10.2007/.
Mongolia travel companions wanted:
30. Looking for people to travel by bike. Ideally following a river, from Ulaanbaatar/let's plan it together/. I'm flexible. A hiking tour would be great too. saraniort@yahoo.fr Tel: 95001082.  28: An Italian lady can go in coming days on a 4 or 5-day Central Eastern Mongolia tour;Read more...

Welcome to Mongolia!

Dear Guest,
Sain bainu?/ "Are you fine?"/. Ta saikhan namarjij bainu?/"Are you having a good autumn?"

It's me, Bolod, a Mongol man who runs a tour operator-the Bolod's Tours and Guesthouse in Mongolia.
Thank you for visiting my live website! It's about Mongolia and the Mongols.
Welcome to the ancestral heartland for more than 12 mln. Mongols who live now in 8 countries/Mongolia/2.7mln/, China/5.8-6.0mln/, Afghanistan/3.0-4.0mln/, Russia/0.8mln/, Iran, Burma, Kyrgyzstan and Pakistan/. ...If we can bring Herat's Moghols, Kyrgyzstan's Sart-Kalmyks, Kuko-nor's Mongols, Russia's Kalmyks and those Hazaras who are clearly of Mongol descent and who want it themselves, back to the central land of their ancestors ?! They wouldn't be coming to Mongolia as refugees, they will be here at home !  ... If Astana is bringing the ethnic Kazaks from different countries to Kazakhstan in order to make their country stronger, why Ulaanbaatar wouldn't consider to do the same?! We have enough land for everybody who wants to settle permanently in Mongolia for the ethnic reason. UN should help us too. When Soviet Union ended up with the splits, Germany has received ethnic Germans from Russia, Kazakhstan, Ukraine and other former republics too. Remember, Turkey received Turks from Bulgaria when Todor Jivkov changed his mind towards them. Ukraine and Russia welcome their ethnic kinsmen from the post-Soviet countries to settle in their countries.

We, the Mongols are even more separated than the ill-fated Kurdish people. Do we know any person, any family or any nation who is happy for being separated ?!

We invite you to visit the country and its people. You will be visiting a people with centuries-old nomadic lifestyle, listening to the absolute silence and breathing  the purest ever air  and seeing the eternal blue sky dominating over this beautiful land on Central Asian plateau:
green taiga forests, the second largest fresh water lake in Siberia, ancient burials, icy streams of crystal clear rivers,  in its north,
two-humped camels, towering sand dunes, green oases with saksaul trees, rocky mountains in scarsely green plains, natural formations of cliffs... in its South,
endless steppes, homeland of best horses, bird gathering at blue lakes, fishing rivers, numerous gazelles, volcanic craters... in its East,
snow capped mountains, great lakes, rock paintings, steep canyons, yak herds and massive sand dunes, mountain and field caves ... in its West!

Discover Mongolia with Bolod's Tours which operates since 1991! Stay comfortably in Bolod's guesthouses operate since 2000! It's a truly experienced native tour operator and guesthouse reccommended by Lonely Planet's "Mongolia" guidebook of 2001/page 139/ and 2005/pages 69, 72/ and its "Trans Siberian Railway" of 2006/p. 263/, "Mongoru"/in Japanese/ by Globe-Trotter/ of 2007-2008/page 56/, "Mongolie" by Petit Fute of 2008-2009/page 86/and on the www.mongoliatourism.gov.mn- the official tourism website of Mongolia.

What's now the situation with Mongolia's tourism like? As Mr. Davaadorj Ts, the Minister of the Manufacturing and Trade admitted on October 2nd, 2007, on TV, "-Now, most foreign tourists enter and leave Mongolia by foreign-owned airlines or trains, stay at foreign-owned accommodations, eat at foreign restaurants and travel with foreign tour companies". It's true, indeed, nowdays.
This country doesn't need foreign investments in fields where the Mongols are capable or must do businesses themselves. What kind of foreign investments does Mongolia indeed need? The country needs foreign investment in manufacturing and technology most!!! Mongolia's rulers must serve in the interests of their own people.

I'm almost one of patriots who want to remain in this  last homeland instead of emigrating abroad as too many Mongols do so. Exodus of its young population and export of Mongol women are the greatest threats to the further existense of  Mongols as a nation...
Nationwide mining boom and gold rush are the greatest threat to Mongolia's nature... The gold may feed the people for 50 years, while preserved Nature-Mother would be able do it for another 5000 years.

Thank you for taking your time visiting my modest website.

I will keep my website live and constantly updated.

Bolod

Some of Mongol-owned restaurants and canteens in Ulaanbaatar:
1. "
Avtai Sain Khaan", a Mongolian meals restaurant with high-quality service in Ulaanbaatar. Located opposite to the USA Embassy. Tel: 99116670.
2. "Ikh Mongol" restaurant\original Mongolian draft beer and food and european food\, Opening hours : 10am to 11pm, located opposite Asa Circus, Tel: 320450
3. "
Ikh Khuraldai" restaurant, located at 400meters to south from Peace Bridge on Chinggis Avenue, tel: 976-11-342511, 976-11-343553

4. "Modern  Nomads" restaurant. www.modernnomads.mn

Web: 
Some of Mongol-owned companies in Mongolia:
1. www.gmobile.mn G-Mobile is the first Mongol-owned cellular operator in Mongolia!!! I'm now with G-Mobile.
2. www.monos.mn - The company's great brand  is "Salimon".

3. "Mill House" LLC, the newest flour making factory: www.millhouse.mn
\continued\

Монголчуудын тухай сэтгэгдлүүд\Impressions of the Mongols\эх үүсвэрийг заалгүй хуулахыг хориглоно!!!
Сэтгэгдэл 1: "Two were Mongolian lamas in shabby robes of saffron and crimson, bound at the waist by twisted sashes of faded purple cloth. One lama had a crushed felt hat on his shaven head, the other was bare-headed, and both wore high, leather Mongol boots. The one with hat was tall and rather gaunt, with a long nose, and sunken cheeks below high cheekbones. The other was shorter and more thickset, with a broader face. Both might have been taken for American Indians. As we camp up, they were in the act of replacing their carved snuff-bottles in their belt-purses, having taken them out to exchange them with third man, who had just joined them.
The newcomer was a layman, with a frank, pleasant expression in contrast to the somewhat furtive looks of the lamas. He too would have resembled an American Indian except for the long, drooping moustache under his small, finely chiseled nose. Unlike the lamas, he was wearing a dark blue summer robe of heavy serge, with a red sash, a brown belt hat, and cloth boots. Though the features and dress of all three were so typically Mongol, and unlike anything we had seen in China, I thought I would try the experiment of greeting them in Chinese. The taller monk answered, with quite a strong accent, explaining that he, like many other lamas of the border regions I had visited, often had occasion to deal with the Chinese merchants in buying things for his temple, and had learned their language in that way.
pages 6, 7. "The Land of the Camel" by Schuiler Cammann. 1950. The Ronald Press Company. NewYork.

Сэтгэгдэл 2: " We found the Mongols to be a hospitable people with full, healthy-looking faces and often with handsome and intelligent intelligent features...
In the morning several Mongol men and women looked in on us and very kind-heartedly sewed the extensions on our sleeves and fixed knapsacks for us. The Chinese have a long way to go to match the Mongols in kindness...".
"The Chinese Agent In Mongolia" by Ma Ho-t'ien. Baltimore, Johns Hopkins Press, 1949.

Сэтгэгдэл 3: " Here, for the first time, we accosted representatives of pure Mongol race; truculent-looking rascals they seemed to us, after the reserved and rather timid Uriankhai/энэ тохиолдолд Тувачуудыг хэлж байна.А.Б/. The natural influence of the wild life and freedom of the open Mongolian plateau could be traced in their careless and reckless manner; they were loud-speaking, rough soldiery, used to a hard life, apt to bully those below them, but respectful to their superiors./page 260/
...Thus we never saw the Khan/of the Durbets/; and much to our regret, for he was a rare type of an hereditary prince of ancient stock, claiming direct descendent from Jenghis Khan himself. One evening two of his sons visited us, giving us thereby an idea of appearance of a Mongol of a good birth. After our dealings with the rift-raft of the herdsmen, with rough soldiers and with primitive hunters, we had grown accustomed to the idea that all Mongols were heavily built, rough, ill-mannered, ugly to look upon, and with leathery faces, but these two Mongol gentlemen astonished us by their indefinable look of breeding and by their charm of manner. Of average height, and lightly built, with clean, sharp-cut features, soft, dark, olive skin and small hands, they showed a marked contrast to their retainers. Their had the refined air, the politeness of manner, courteous style, which belongs only to those Mongols who are accustomed to rule...There is still "spirit" left in the Mongols, judjing by these two men of a good birth; they, at any rate, gave us no impression of decay or deterioration. Turned into the right channels, the Mongol Khans could wield great power to good effect. Even now the tide is turning, and when the nomads have realized their strength and regained their self-reliance, they may also regain their independence..."/pages 269, 270/.
"Unknown Mongolia"/a record of travel and exploration in North-West Mongolia and Dzungaria/ by Douglas Carruthers. 1913. London. Hutchinson & Co

Сэтгэгдэл 4: "Саяын хөдөөний монголчууд огт танихгүй хүнийг зочилсонд би их баярласан, сэтгэл минь их хөдөлсөн. Гэвч надад нэгэн гунигт бодол төрж байна. Тэд одоо мөхөөд байхгүй болсон миний ард түмнийг санагдуулчихлаа. Гайти арлын уугуул- монголжуу төрхтэй хүмүүсийн сүүлийн хэдхэн төлөөлөгчийн нэг нь би\Одоо тэнд чинь гол төлөв африкчууд болон миний ард түмнийг хядсан европчуудын үр садаас цөөн хүн байдаг\. Манайхан үнэндээ, яг саяын монголчууд\малчин 2 айлыг хэлж байна. А.Б\ шиг зочломтгой, цайлган зангаасаа болж мөхсөн юм. Өөрөөр хэлбэл харийнхан тэдний минь зочломтгой занг ашиглан арлыг маань эзлэн авсан юм даа. Бас тэд нар жаргаснаас хойш гадагшаа гардаггүй уламжлалтай байж. Энэ үеээр нь европчууд тэднийг минь жинхэнэ хяддаг байсан. Тэд минь хэт гэнэн, болгоомжгүй байж дээ...". Швейцарын парламентын гишүүн байсан гэх нэгэн авгай 2009 оны намар Төв аймгийн нутагт надад ярьсан билээ.

Сэтгэгдэл 5: "The houseboys, Chinese privates from the Sarachi district of central Suiyuan, tried to crowd into the mess hall, saying that if "that no-account" could come in, they could too. They recognized him as a Mongol by the scarlet vest he wore with his student uniform-no Chinese would wear anything as bright- and Sa-hsien people, as members of the first wave of Chinese migtation into the Mongol grazing lands, are the most open in their scorn of the people they dispossessed.
Their feeling was even more obvious next morning when Fred went to ask the cook for an extra plate of eggs to give Dunguerbo. "Mongol no good!" the Chinese servants said with emphasis. This annoyed us very much, as Dunguerbo had a far finer personality and a much more generous nature than most of the Chinese we had contact with up there"
page127, "The Land of the Camel" by Schuyler Cammann. The Ronald Press Company. New York. 1950.

Сэтгэгдэл 6: "...I call the whole thing a tragedy because it does not give either Chinese or Mongol fair chance. The Mongols at present are, as a race, at a standstill, if they are not dying. Yet with wise treatment they would become again withing 2 generations a proudand self-reliant people. The world needs more and more its pasture lands, to supply civilazation with wool and meat and hides. The Mongols, with Russia on one side of them and China on the other, are powerless. As a nation they are unarmed and incoherent.."
"The Desert Road to Turkestan" by Owen Lattimore. 1929, Boston.

Сэтгэгдэл 7: "Huc and after him, Prjevalsky have described the Tsaidam Mongols as morose and melancolic, speaking little-in fact, hardly better than animals. I was glad to find all those I met quite different from what the accounts of these travelers had caused me expect. Not only they showed themselves ready to do anything for me, but they expected themselves to make my stay agreeable, inviting me, or playing on a rough kind of banjo they manufacture themselves".
page 130, The Land of the Lamas" by Rockhill W.W/a journey into eastern Tibet and Mongolia in 1888-1889/.

Сэтгэгдэл 8: "Away in the distance we had seen some black spots from which faint columns of blue smoke were raising peacefully in the morning air. these were the yurts, or felt tents, of the Mongols, towards which we were making.. .. All round the sides of the tent boxes and cupboards were neatly arranged and at one end were some vases and images og Buddha. In the centre, was fireplace, situated directly beneath the hole of the place. I was charmed with the comfort of the place. The Chinese inns, at which I had so far had to put up, were cold and draughty. Here the sun came streaming in through the hole in the top, and there were no draughts whateever. Nor was there any dust; and this being the tent of a well-to-do Mongol, it was clean and neatly arranged"
-"Among the Celestials" by Captain Younghusband, C.I.E. London. John Murray, Albemarle Street. 1898

Сэтгэгдэл 9: "At Urga, in June, the great meet which the Living God blesses with his presence is an amazing spectacle, reminiscent of the pageants of the ancient emperors. All the elite of Mongolia gather on the banks of the Tola River, dressed in their most splendid robes, and the archery, wrestling, and horse racing are famous throughout the East. This love of sport is one of the most attractive characteristics of the Mongols. It is a common ground on which a foreigner immediately has a point of contact. The Chinese, on the contrary, despise all forms of physical exercise. They consider it "bad form," and they do not understand any sport which calls for violent exertion. They prefer to take a quiet walk, carrying their pet bird in a cage for an airing ; to play a game of cards; or, if they must travel, to loll back in a sedan chair, with the curtains drawn and every breath of air excluded"
page 158, "Across Mongolian Plains" by Roy Chapman Andrews. D. Appleton and Company. New York. 1921.

Сэтгэгдэл 10: "There were several Mongol yurts about, and we had visits from some of the men. They were tall, strong, muscular fellows, but very childish, amused at everything, and very rough in their manners.
Looking on these uncouth, indolent men, it was difficult to imagine that they were the descendants of the wild Tartar ordes, who under Chengiz Khan had conquered China, had penetrated to India, had subdued all Turkestan and Pursia, and swept through Russia even to Central Europe..."-
page 128, "Among the Celestials" by Captain Younghusband, C.I.E. London. John Murray, Albemarle Street. 1898

Сэтгэгдэл 11: "The question naturally arises, Why the Mongols decreasing when they own so good a land? whatever the cause of Mongol decadence, it cannot be through lack of available territory"./page 290/
"Lama-ridden, and fleeced by the Chinese, the Mongols remain in a state of serfdom under their chiefs"./page 293/
"Such questions came to us as the red-coated Mongol horsemen rode near us during the day, sat around the camp-fires with us at night. They could tell us nothing, they were unaware of their ancient greatness. Only the name of Jenghis remained in their memory, and him they treated as a deity and spoke of with reverence"/page 295/
"Let us look at the Mongols of the present day. The traveller in Mongolia, alive to the history and former greatness of the people who dwell there, will recognise much at the present day that corresponds to those old accounts of the Mongols as here quoted. He will note that they are still hardy, still capable of enduring fatigue, cold, and hunger; so far, indeed, as physique goes, the Mongol of to-day is probably equal of the men Jenghis Khan let to battle"./page 306/
"Lamaism in Mongolia has been countenanced, and in every way encouraged, by the Chinese, who were clever enough to realise the influance such an organisation would exercise over nomad people. The Chinese patronized and endowed the monasteries, and granted special privileges to the lamas... Lamaism absorbes a large portion of the male population by inducing a vast majority of men, who under ordinary conditions of life would be the bread-winners and workers, to turn into a species of parasite. The boys, for instance, who in the earlier days devoted their time to martial and physical exercises, camp-work, or herding the flocks, are now entered at early age as students in the lamaseries, and their lives are entirely sacrificed to the forms and services of religion; when grown up, this tends to make them lead idle, useless lives, wholly dependent on others, when they should be independent and self-supporting."
pages 312, 313, "Unknown Mongolia"/a record of travel and exploration in North-West Mongolia and Dzungaria/ by Douglas Carruthers. 1913. London. Hutchinson & Co
/үргэлжлэл бий/

Economy

зохиогчийн эрхээр хамгаалагдана.

1. Economic situation of Mongolia on the eve of 1921 revolution. 2-Economic activities that started in 1920s, 3-Economic reforms that started in 1986, 4-Destructions or  "Economic shock therapy that started in early 1990s 5-The current economic situation:

1. Economic situation in Mongolia on the eve of 1921 revolution which marked the end the 220-year Manchu-Chinese rule and the 2-year Chinese occupation. Mongoalia had predominantly a poor nomadic economy by the beginning of the XX century. Farming and industry were almost nonexistent; transportation and communications were primitive; banking, services and trade were almost exclusively in the hands of foreigners, overwelmingly of the Chinese. Most of the people were very poor and they were either illiterate nomadic herders or monks. Property in the form of livestock was owned primarily by aristocrats and monasteries; ownership of the remaining sectors of the economy was dominated by foreigners. Mongolia's new rulers thus were faced with a daunting task in building a modern, socialist economy.

2. Economic activity in Mongolia during socialism that started 1920s has been based on the breeding of livestock, copper mining, agriculture and light industry. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. Mongolia commenced its planned economy with the Five-Year Plan for 1931-35, which set unrealistically high targets for production and called for the collectivization of agricultural production. This plan was abandoned in 1932 in the face of widespread resistance to collectivization and the failure to meet production goals. Annual planning was introduced in 1941 in an effort to deal with wartime shortages. Five-year plans were reintroduced in 1948 with the First Plan. The Second Five-Year Plan (1953-57) was followed by the Three-Year Plan (1958-60). Regular five-year plans were resumed with the Third Five-Year Plan (1961-65), and they have continued to be used since then.

Mongolia's five-year plans have been coordinated with those of the Soviet Union since 1961 and with Comecon multilateral five-year plans since 1976. Annual plan coordination with the Soviet Union, which is made official in signed protocols, began in 1971. Mongolian planners were trained by Soviet planners and cooperated with them in drafting long-term plans, such as the General Scheme for the Development and Location of the Mongolian People's Republic Productive Forces up to 1990, produced in the late 1970s; and the Longterm Program for the Development of Economic, Scientific, and Technical Cooperation Between the Mongolian People' Republic and the USSR for the Period up to 2000, signed in 1985.

National economic plans included general development goals as well as specific targets and quotas for agriculture, capital construction and investment, domestic and foreign trade, industry, labor resources and wages, retail sales and services, telecommunications, and transportation. The plans also focused on such social development goals and targets as improved living standards, population increase, cultural development, and scientific and technical development.

3. Economic reforms that started in 1986 was influenced by Gorbachev’s perestroika-reform policies in U.S.S.R. Mongolia's socialist government started its own economic reforms aimed to gradual transition to a market economy. Meusures were taken for: acceleration of development; application of science and technology to production; reform of management and planning; greater independence of enterprises; and a balance of individual, collective, and societal interests. More than 100 enterprises began experimenting with financial autonomy (before then, enterprises operating with a deficit had been subsidized by the state). Enterprises were accountable for their own losses, and they were responsible for fulfilling sales contracts and export orders. Beginning in late 1986, state farms and negdels/units of nomads/ were eligible for state payments for output exceeding the annual average growth rate for the previous five-year plan. Individual agricultural cooperative members and workers were allowed increasing numbers of privately held livestock. In 1987 the government began encouraging the formation of voluntary labor associations, auxiliary farms, and sideline production attached to enterprises, schools, and so forth to increase production of foodstuffs and consumer goods, to engage in primary processing of agricultural goods, and to provide services. The authorities permitted the formation of individual and family-based cooperatives; by 1988 there were 480 such cooperatives. The former U.S.S.R. also served as the primary market for Mongolian industry. In the 1980s, 's industrial sector became increasingly important. The draft law on state enterprises, presented to the People's Great Hural in December 1988, was to extend greater independence in economic matters to all state enterprises and to lead to an economy that combined planning and market mechanisms. Under provisions of the draft law, state enterprises were to be authorized to make their own annual and five-year plans and to negotiate with state and local authorities to pay taxes based on long-term quotas. State enterprises also were to sell output exceeding state orders and unused assets; to establish their own, or to cooperate with existing, scientific organizations to solve scientific and technical problems; to be financially responsible for losses, and to pay back bank loans; to set prices independently; to establish wage rates based on enterprise profitability; to purchase materials and goods from individuals, collectives, state distribution organizations, and wholesale trade enterprises; to establish direct ties with foreign economic organizations; to manage their own foreign currency; and to conduct foreign trade.

The draft law stipulated that enterprises were to be divided into two categories. National enterprises were to be the responsibility of ministries, state committees, and departments; local enterprises were to be supervised by executive committees of aymag and city administrations or members of local hurals. State and local bodies were not to interfere in the day-to-day decision making of enterprises, but they were responsible for ensuring that enterprises obeyed the law and that they did not suppress the interests of society. Enterprises were allowed to form three kinds of associations: production associations, scientific production associations, and enterprise associations to coordinate economic affairs. Finally, the draft law said that the state was the owner of state enterprises and that the labor collective was the lawful manager of a state enterprise. The labor collective was to elect a labor collective council, which was to ensure that the enterprise director (who acted on behalf of the collective and the state) met the interests of the collective in managing the enterprise. It was unclear how the relationship between the enterprise director and the labor collective would work out in practice.

By 1989, it accounted for an estimated 34% of material products, compared to 18% from agriculture. However, minerals, animals, and animal-derived products still constitute a large proportion of the country's exports. Principal imports included machinery, petroleum, cloth, and building materials. Prior to 1991, 80% of 's trade was with the former Soviet Union , and 15% was with other Council for Mutual Economic Assistance(CMEA) countries. was heavily dependent upon the former Soviet Union for fuel, medicine, and spare parts for its factories and power plants. In 1985, a reported 18.3 percent of produced national income was derived from agriculture, 32.4 percent from industry, 4.9 percent from construction, 11.2 percent from transportation and communications, 31.6 percent from domestic trade and services, and 1.6 percent from other sectors.In the late 1980s, the government began to improve links with non socialist Asia and the West, and a tourism sector developed. As of January 1, 1991, and the former Soviet Union agreed to conduct bilateral trade in hard currency at world prices.

4. Destructions or Economic shock therapy of 1990s: Mongolia was forced to abandon it’s policy of gradual transition to market economy and take the economic shock therapy which started after large demonstrations of 1989 and 1990. Most foreign experts tried to impose their own model of development and Mongolia's new rulers start blindly following them and in many cases intentionally exaggerating or corrupting them. The economic shock therapy in Mongolia proved to be disastrous. ll-prepared , instant privatization ruined the country’s industry, construction and other vital fields of the economy. Many properties were seized by nomenklatura and new-born "democrats". No jobs were created and as its consequence poverty increased dramatically.

The government privatized the national herd of 24 mln.lifestock abandoning in one swoop the established collective herding system. Vetenirarians lost their jobs, carefully chosen animals for  top-quality breeding dispersed among numerous families.

The Mongols and the foreigners were put at very unfair starting points in their businesses in Mongolia. The newly adopted Foreign Investment Law exluded the foreigners from paying customs and income taxes for first 5 years of operation while newly forming mongol businesses had to pay heavy taxes. Why this discrimination against the Mongols in Mongolia was imposed for ?!

In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products. Mongolia joined the World Trade Organization(WTO) in 1997. The international donor community pledged over $300 million per year at the last Consultative Group Meeting, held in Ulaanbaatar in June 1999.

Between 1990 and 1993, Mongolia suffered triple-digit inflation, rising unemployment, shortages of basic goods, and food rationing. During that period, economic output contracted by one-third. As market reforms and private enterprise took hold, economic growth began again in 1994-95. Unfortunately, since this growth was fueled in part by over-allocation of bank credit, especially to the remaining state-owned enterprises, economic growth was accompanied by a severe weakening of the banking sector. GDP grew by about 6% in 1995, thanks largely to a boom in copper prices. Average real economic growth leveled off to about 3.5% in 1996-99 due to the Asian financial crisis, the collapse of the Russian ruble in mid-1998, and worsening commodity prices, especially copper and gold. In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products. Mongolia joined the World Trade Organization(WTO) in 1997. The international donor community pledged over $300 million per year at the last Consultative Group Meeting, held in Ulaanbaatar in June 1999.

Mongolia's GDP growth fell from 3.2% in 1999 to 1.3% in 2000. The disappointing results can be attributed to the loss of 2.4 million livestock in bad weather and natural disasters in 2000. Prospects for development outside the traditional reliance on nomadic, livestock-based agriculture are constrained by Mongolia's landlocked location and lack of basic infrastructure. Mongolia's best hope for accelerated growth is to attract more foreign investment. Since 1990, more than 1,500 foreign companies from 61 countries have invested a total of $338.3 million in Mongolia. Many believe this number could be dramatically increased if the vague 1993 foreign investment law were rewritten to provide investors with more confidence that their investments would be.

5. The current economic situation: On the whole, the nation's economy is still raw material and mineral based.