In 1990 Mongolia abandoned its 70-year-old Soviet-style one-party state and embraced political and economic reforms.
Democracy and privatisation were enshrined in a new constitution, but the collapse of the economy after the withdrawal of Soviet support triggered widespread poverty and unemployment.
However, Mongolia sits on vast quantities of untapped mineral wealth, and foreign investment in a number of massive mining projects is expected to transform its tiny economy in coming years.
Mongolia is one of the world's fastest growing economies, driven by this foreign direct investment. It reported a 17% growth rate in 2011, and 16.7% in the first quarter of 2012.
Corruption is a major worry for investors, however, as is a mooted law requiring government approval for any further foreign direct investment in strategic sectors like mining.
Once the heartland of an empire stretching to Europe under Genghis Khan, Mongolia is a landlocked country dominated by sparsely populated steppe and semi-desert.
Nomadic tribes that periodically plundered agriculturally based China from the west are recorded in Chinese history dating back more than 2,000 years. It was to protect China from these marauding peoples that the Great Wall was constructed around 200 B.C. The name Mongol comes from a small tribe whose leader, Ghengis Khan, began a conquest that would eventually encompass an enormous empire stretching from Asia to Europe, as far west as the Black Sea and as far south as India and the Himalayas. But by the 14th century, the kingdom was in serious decline, with invasions from a resurgent China and internecine warfare.
The State of Mongolia was formerly known as Outer Mongolia. It contains the original homeland of the historic Mongols, whose power reached its zenith during the 13th century under Kublai Khan. The area accepted Manchu rule in 1689, but after the Chinese Revolution of 1911 and the fall of the Manchus in 1912, the northern Mongol princes expelled the Chinese officials and declared independence under the Khutukhtu, or “Living Buddha.”
Mongolia lies in central Asia between Siberia on the north and China on the south. It is slightly larger than Alaska.
The productive regions of Mongolia—a tableland ranging from 3,000 to 5,000 ft (914 to 1,524 m) in elevation—are in the north, which is well drained by numerous rivers, including the Hovd, Onon, Selenga, and Tula. Much of the Gobi Desert falls within Mongolia.
- Terelj National Park
- Tumen Ekh Ensemble
- Mongolian Gobi Desert