Mongolia at a GlanceCapital: Ulaanbaatar Mongolia, an emerging democracy, is a landlocked region strategically located between Russia and China. With help from the former Soviet Union, Mongolia won its independence from China in 1921. Under the ruling communist party, Mongolia is making a transition to a sovereign republic. Soviet assistance contributed to one-third of Mongolia's GDP until 1990-91. When this disappeared with the collapse of USSR, the Mongolian economy was thrown into recession. The recession was further exacerbated by the reluctance of the communist party to undertake economic reform. The government is now encouraging privatization and foreign investment, and embracing free-market economies in an effort to boost the economy. The price paid for these economic reforms is pollution, deforestation, overgrazing, increased soil erosion, and desertification.
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