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123-400: The economy of Mongolia has traditionally been based on agriculture and livestock. Mongolia also has extensive mineral deposits: copper , coal , molybdenum , tin , tungsten , and gold account for a large part of industrial production. Soviet assistance, at its height one-third of Gross domestic product (GDP), disappeared almost overnight in 1990–91, in the time of the collapse of

246-675: A quadripoint . The geography of Mongolia is varied, with the Gobi Desert to the south and cold, mountainous regions to the north and west. Much of Mongolia consists of the Mongolian-Manchurian grassland , with forested areas accounting for 11.2% of the total land area, a higher percentage than Ireland (10%). The whole of Mongolia is considered to be part of the Mongolian Plateau. The highest point in Mongolia

369-653: A 2019 Forest Landscape Integrity Index mean score of 9.36/10, ranking it sixth globally out of 172 countries. Mongolia's total population as of January 2015 was estimated by the U.S. Census Bureau to be 3,000,251 people, ranking around 121st in the world. But the U.S. Department of State Bureau of East Asian and Pacific Affairs uses the United Nations (UN) estimations instead of the U.S. Census Bureau estimations. United Nations Department of Economic and Social Affairs Population Division estimates Mongolia's total population (mid-2007) as 2,629,000 (11% less than

492-509: A base year. The result would be that the GDP in 2000 equals $ 300 million × 1 ⁄ 2 = $ 150 million , in 1990 monetary terms. We would see that the country's GDP had realistically increased 50 percent over that period, not 200 percent, as it might appear from the raw GDP data. The GDP adjusted for changes in money value in this way is called the real GDP . The factor used to convert GDP from current to constant values in this way

615-517: A category of arid rangeland with insufficient vegetation to support marmots but with enough to support camels. Mongols distinguish Gobi from desert proper, although the distinction is not always apparent to outsiders unfamiliar with the Mongolian landscape. Gobi rangelands are fragile and easily destroyed by overgrazing, which results in expansion of the true desert, a stony waste where not even Bactrian camels can survive. The arid conditions in

738-592: A confederation in 209 BC. Soon they emerged as the greatest threat to the Qin dynasty , forcing the latter to construct the Great Wall of China . It was guarded by up to almost 300,000 soldiers during Marshal Meng Tian 's tenure, as a means of defense against the destructive Xiongnu raids. The vast Xiongnu empire (209 BC–93 AD) was followed by the Mongolic Xianbei empire (93–234 AD), which also ruled more than

861-518: A country becomes increasingly in debt, and spends large amounts of income servicing this debt this will be reflected in a decreased GNI but not a decreased GDP. Similarly, if a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP. This would make the use of GDP more attractive for politicians in countries with increasing national debt and decreasing assets. Gross national income (GNI) equals GDP plus income receipts from

984-521: A country's borders, but by an enterprise owned by somebody outside the country, counts as part of its GDP but not its GNI; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNI but not its GDP. For example, the GNI of the US is the value of output produced by American-owned firms, regardless of where the firms are located. Similarly, if

1107-650: A country's citizens at home and abroad rather than its "resident institutional units" (see OECD definition above). The switch from GNP to GDP in the United States occurred in 1991. The role that measurements of GDP played in World War II was crucial to the subsequent political acceptance of GDP values as indicators of national development and progress. A crucial role was played here by the U.S. Department of Commerce under Milton Gilbert where ideas from Kuznets were embedded into institutions . The history of

1230-406: A country's production has increased (or decreased, if the growth rate is negative) compared to the previous year, typically expressed as percentage change . The economic growth can be expressed as real GDP growth rate or real GDP per capita growth rate . GDP can be adjusted for population growth, also called Per-capita GDP or GDP per person . This measures the average production of a person in

1353-524: A dictatorship and organized Stalinist purges in Mongolia between 1937 and 1939, died suspiciously in the Soviet Union in 1952. Comintern leader Bohumír Šmeral said, "People of Mongolia are not important, the land is important. Mongolian land is larger than England, France and Germany". After the Japanese invasion of neighboring Manchuria in 1931, Mongolia was threatened on this front. During

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1476-488: A large group of Mongolic-speaking tribes united under the rule of Genghis Khan . Since the adoption of the new Constitution of Mongolia on 13 February 1992, the official name of the state is "Mongolia" ( Mongol Uls ). The Khoit Tsenkher Cave in Khovd Province shows lively pink, brown, and red ochre paintings (dated to 20,000 years ago) of mammoths , lynx , bactrian camels , and ostriches , earning it

1599-617: A large proportion of the country's exports. Principal imports included machinery, petroleum , cloth, and building materials. In the late 1980s, the government began to improve links with non- communist Asia and the West , and tourism in Mongolia developed. As of 1 January 1991, Mongolia and the former Soviet Union agreed to conduct bilateral trade in hard currency at world prices. Despite its external trade difficulties, Mongolia has continued to press ahead with reform. Privatization of small shops and enterprises has largely been completed in

1722-507: A market economy was often rocky; during the early 1990s the country had to deal with high inflation and food shortages. The first election victories for non-communist parties came in 1993 (presidential elections) and 1996 (parliamentary elections). China has supported Mongolia's application for membership in the Asia Cooperation Dialogue (ACD), Asia-Pacific Economic Cooperation (APEC) and granting it observer status in

1845-415: A minor revival of the historic Mongolian script , which is still the official script used by Mongols in neighboring Inner Mongolia . Although Mongolian script has officially been declared the national script , and is taught from the sixth grade onward at schools, it remains mostly confined to ceremonial usage in daily life. In March 2020, the Mongolian government announced plans to use both Cyrillic and

1968-462: A promisingly steady increase up until 2008. Because of this, it was projected that between 20,000 and 40,000 fewer Mongolians (0.7% and 1.4% of the population respectively) will be lifted out of poverty , than would have been the case without the global financial crisis. In late 2009 and the beginning of 2010, however, the market has begun to recover once again. Having identified and learnt from its previous economic instabilities, legislative reform and

2091-487: A quarter of Earth's total population at the time). The emergence of Pax Mongolica also significantly eased trade and commerce across Asia during its height. After Genghis Khan's death, the empire was subdivided into four kingdoms or Khanates . These eventually became quasi-independent after the Toluid Civil War (1260–1264), which broke out in a battle for power following Möngke Khan 's death in 1259. One of

2214-761: A result of the Russian Civil War , the White Russian Lieutenant General Baron Ungern led his troops into Mongolia in October 1920, defeating the Chinese forces in Niislel Khüree (now Ulaanbaatar) in early February 1921 with Mongol support. To eliminate the threat posed by Ungern, Bolshevik Russia decided to support the establishment of a communist Mongolian government and army. This Mongolian army took

2337-534: A series of alliances and intermarriages, as well as military and economic measures. Ambans , Manchu "high officials", were installed in Khüree , Uliastai , and Khovd , and the country was divided into numerous feudal and ecclesiastical fiefdoms (which also placed people in power with loyalty to the Qing). Over the course of the 19th century, the feudal lords attached more importance to representation and less importance to

2460-1589: A sharp increase in individual motorization has resulted in severe air pollution . Deforestation , overgrazed pastures , and, less recently, efforts to increase grain and hay production by plowing up more virgin land have increased soil erosion from wind and rain. The following table shows the main economic indicators in 2007–2022. (in bil. US$ PPP) (in US$ PPP) (in bil. US$ nominal) Household income or consumption by percentage share: Distribution of family income - Gini index : 40 (2000) Agriculture - products: wheat , barley , vegetables, forage crops, sheep , goats , cattle , camels , horses Industries: construction and construction materials; mining ( coal , copper , molybdenum , fluorspar , and gold ); food and beverages; processing of animal products, cashmere wool and natural fiber manufacturing Industrial production growth rate: 6% (2010 est.) Electricity: Electricity - production by source: Oil: Exports - commodities: copper, apparel, livestock, animal products, cashmere wool, hides, fluorspar, other nonferrous metals Imports - commodities: machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar , tea Exchange rates: tögrögs/ tugriks per US dollar: 1890 (2014), 1396 (2012), 1,420 (2009), 1,179.6 (2006), 1,205 (2005), 1,187.17 (2004), 1,171 (2003), 1,110.31 (2002), 1,097.7 (2001), 1,076.67 (2000) [REDACTED] World portal Mongolia Mongolia

2583-425: A tightened fiscal policy promises to guide the country onwards and upwards. In February 2010, foreign assets were recorded at USD 1,569,449 million. New trade agreements are being formed and foreign investors are keeping a close eye on the " Asian Wolf ". Mining is the principal industrial activity in Mongolia, making up 30% of all Mongolian industry. Another important industry is the production of cashmere. Mongolia

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2706-487: A very few restrictions on foreign investments during most of Mongolia's post-socialist period. Consequently, mining industry's contribution to FDI increased to almost 25% in 1999 from zero in 1990. Mongolia's reliance on trade with China meant that the worldwide financial crisis hit hard, severely stunting the growth of its economy. With the sharp decrease in metal prices, especially copper (down 65% from July 2008-February 2009), exports of its raw materials withered and by 2009

2829-420: A year, and it is usually at the center of a region of high atmospheric pressure. Precipitation is highest in the north (average of 200 to 350 millimeters (8 to 14 in) per year) and lowest in the south, which receives 100 to 200 millimeters (4 to 8 in) annually. The highest annual precipitation of 622.297 mm (24.500 in) occurred in the forests of Bulgan Province near the border with Russia and

2952-467: Is US$ 5,040,107.75 (in a million). Predictably, as a developed country, Japan has a higher GNI (by 182,779.46, in millions of USD), which is indicative that the production level in the country is higher than that of national production. On the other hand, the case with Armenia is the opposite, with GDP being lower than GNI by US$ 196.12 (in million). This demonstrates that countries receive investments and foreign aid from abroad. The Total income divided by

3075-492: Is a landlocked country in East Asia , bordered by Russia to the north and China to the south. It covers an area of 1,564,116 square kilometres (603,909 square miles), with a population of 3.5 million, making it the world's most sparsely populated sovereign state . Mongolia is the world's largest landlocked country that does not border a closed sea , and much of its area is covered by grassy steppe , with mountains to

3198-648: Is a member of the United Nations , Asia Cooperation Dialogue , G77 , Asian Infrastructure Investment Bank , Non-Aligned Movement and a NATO global partner . Mongolia joined the World Trade Organization in 1997 and seeks to expand its participation in regional economic and trade groups. The name Mongolia means the "Land of the Mongols" in Latin. The Mongolian word "Mongol" ( монгол )

3321-425: Is also sometimes expressed as: The third way to estimate GDP is to calculate the sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices. Market goods that are produced are purchased by someone. In the case where a good is produced and unsold, the standard accounting convention is that the producer has bought the good from themselves. Therefore, measuring

3444-838: Is calculated this way it is sometimes called gross domestic income (GDI), or GDP (I). GDI should provide the same amount as the expenditure method described later. By definition, GDI is equal to GDP. In practice, however, measurement errors will make the two figures slightly off when reported by national statistical agencies. This method measures GDP by adding incomes that firms pay households for factors of production they hire – wages for labour, interest for capital, rent for land and profits for entrepreneurship. The US "National Income and Product Accounts" divide incomes into five categories: These five income components sum to net domestic income at factor cost. Two adjustments must be made to get GDP: Total income can be subdivided according to various schemes, leading to various formulae for GDP measured by

3567-474: Is called the GDP deflator . Unlike consumer price index , which measures inflation or deflation in the price of household consumer goods, the GDP deflator measures changes in the prices of all domestically produced goods and services in an economy including investment goods and government services, as well as household consumption goods. Real GDP can be used to calculate the GDP growth rate, which indicates how much

3690-473: Is contributed at each stage of production. This approach mirrors the OECD (Organisation for Economic Co-operation and Development) definition given above. Gross value added = gross value of output – value of intermediate consumption. Value of output = value of the total sales of goods and services plus the value of changes in the inventory. The sum of the gross value added in the various economic activities

3813-519: Is expected starting from 2023 with new coal rail networks Error in Webarchive template: Empty url. to China coming online and increased copper production from Rio Tinto ’s underground mine Oyu Tolgoi in southern Mongolia. In early 2020s, Mongolia's economy, though experiencing growth spurred by natural resource exports, faces challenges. Over-reliance on mining, rising debt, inflation, and potential fuel supply disruptions from Russia pose risks to

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3936-404: Is known as "GDP at factor cost". GDP at factor cost plus indirect taxes less subsidies on products = "GDP at producer price". For measuring the output of domestic product, economic activities (i.e. industries) are classified into various sectors. After classifying economic activities, the output of each sector is calculated by any of the following two methods: The value of output of all sectors

4059-673: Is of uncertain etymology. Sükhbataar (1992) and de la Vaissière (2021) proposed it being a derivation from Mugulü , the 4th-century founder of the Rouran Khaganate , first attested as the 'Mungu', ( Chinese : 蒙兀 , Modern Chinese Měngwù , Middle Chinese Muwngu ), a branch of the Shiwei in an 8th-century Tang dynasty list of northern tribes, presumably related to the Liao -era Mungku (Chinese: 蒙古 , Modern Chinese Měnggǔ , Middle Chinese MuwngkuX ). After

4182-587: Is that GDP defines its scope according to location, while GNI defines its scope according to ownership. In a global context, world GDP and world GNI are, therefore, equivalent terms. GDP is a product produced within a country's borders; GNI is product produced by enterprises owned by a country's citizens. The two would be the same if all of the productive enterprises in a country were owned by its own citizens and those citizens did not own productive enterprises in any other countries. In practice, however, foreign ownership makes GDP and GNI non-identical. Production within

4305-692: Is the Khüiten Peak in the Tavan bogd massif in the far west at 4,374 m (14,350 ft). The basin of the Uvs Lake , shared with Tuva Republic in Russia, is a natural World Heritage Site . Mongolia is known as the "Land of the Eternal Blue Sky" or "Country of Blue Sky" (Mongolian: "Mönkh khökh tengeriin oron") because it has over 250 sunny days a year. Most of the country is hot in

4428-399: Is the majority religion (51.7%), with the nonreligious being the second-largest group (40.6%). Islam is the third-largest religious identification (3.2%), concentrated among ethnic Kazakhs . The vast majority of citizens are ethnic Mongols, with roughly 5% of the population being Kazakhs , Tuvans , and other ethnic minorities, who are especially concentrated in the western regions. Mongolia

4551-416: Is the world's second largest producer of cashmere, with the main company, Gobi Cashmere, accounting for 21% of world cashmere production as of 2006. Total export in 2019 was US$ 7.6 billion. The 2022 economic growth is expected to be one percent and international institutions anticipate the economy to speed up by at least six percent in 2023 from expanded commodity exports. A significant commodity export boom

4674-453: Is then added to get the gross value of output at factor cost. Subtracting each sector's intermediate consumption from gross output value gives the GVA (=GDP) at factor cost. Adding indirect tax minus subsidies to GVA (GDP) at factor cost gives the "GVA (GDP) at producer prices". The second way of estimating GDP is to use "the sum of primary incomes distributed by resident producer units". If GDP

4797-704: The Dzungars (western Mongols or Oirats) were virtually annihilated during the Qing conquest of Dzungaria in 1757 and 1758. Some scholars estimate that about 80% of the 600,000 or more Dzungar were killed by a combination of disease and warfare. Outer Mongolia was given relative autonomy, being administered by the hereditary Genghisid khanates of Tusheet Khan, Setsen Khan, Zasagt Khan and Sain Noyon Khan. The Jebtsundamba Khutuktu of Mongolia had immense de facto authority. The Manchu forbade mass Chinese immigration into

4920-617: The Human Development Index or Better Life Index , as better approaches to measuring the effect of the economy on human development and well being . William Petty came up with a concept of GDP, to calculate the tax burden , and argue landlords were unfairly taxed during warfare between the Dutch and the English between 1652 and 1674. Charles Davenant developed the method further in 1695. The modern concept of GDP

5043-532: The Manchu -founded Qing dynasty , which absorbed the country in the 17th century. By the early 20th century, almost one-third of the adult male population were Buddhist monks. After the collapse of the Qing dynasty in 1911, Mongolia declared independence , and achieved actual independence from the Republic of China in 1921. Shortly thereafter, the country became a satellite state of the Soviet Union . In 1924,

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5166-534: The Mongol Empire , the largest contiguous land empire in world history. Under his successors it stretched from present-day Poland in the west to Korea in the east, and from parts of Siberia in the north to the Gulf of Oman and Vietnam in the south, covering some 33,000,000 square kilometres (13,000,000 sq mi), (22% of Earth's total land area) and had a population of over 100 million people (about

5289-596: The Mongol Empire , which became the largest contiguous land empire in history. His grandson Kublai Khan conquered China proper and established the Yuan dynasty . After the collapse of the Yuan, the Mongols retreated to Mongolia and resumed their earlier pattern of factional conflict, except during the era of Dayan Khan and Tumen Zasagt Khan . In the 16th century, Tibetan Buddhism spread to Mongolia, being further led by

5412-594: The Mongolian People's Republic to prevent Mongolian reunification. All leaders of Mongolia who did not fulfill Stalin's demands to perform Red Terror against Mongolians were executed, including Peljidiin Genden and Anandyn Amar . The Stalinist purges in Mongolia , which began in 1937, killed more than 30,000 people. Under Stalinist influence in the Mongolian People's Republic , an estimated 17,000 monks were killed, official figures show. Choibalsan , who led

5535-409: The Mongolian People's Republic was founded as a socialist state . After the anti-communist revolutions of 1989 , Mongolia conducted its own peaceful democratic revolution in early 1990. This led to a multi-party system , a new constitution of 1992 , and transition to a market economy . Approximately 30% of the population is nomadic or semi-nomadic; horse culture remains integral. Buddhism

5658-634: The Mongolian part of Kyakhta from Chinese forces on 18 March 1921, and on 6 July, Russian and Mongolian troops arrived in Khüree. Mongolia declared its independence again on 11 July 1921. As a result, Mongolia was closely aligned with the Soviet Union over the next seven decades. In 1924, after the Bogd Khaan died of laryngeal cancer or, as some sources claim, at the hands of Russian spies,

5781-563: The Republic of China used its Security Council veto in 1955, to stop the admission of the Mongolian People's Republic to the United Nations on the grounds it recognized all of Mongolia —including Outer Mongolia— as part of China. This was the only time the Republic of China ever used its veto. Hence, and because of the repeated threats to veto by the ROC, Mongolia did not join the UN until 1961 when

5904-549: The Shanghai Cooperation Organisation . At 1,564,116 km (603,909 sq mi), Mongolia is the world's 18th-largest country. It is significantly larger than the next-largest country, Peru. It mostly lies between latitudes 41° and 52°N (a small area is north of 52°), and longitudes 87° and 120°E . As a point of reference the northernmost part of Mongolia is on roughly the same latitude as Berlin (Germany) and Saskatoon (Canada), while

6027-772: The Soviet-Japanese Border War of 1939, the Soviet Union successfully defended Mongolia against Japanese expansionism. Mongolia fought against Japan during the Battles of Khalkhin Gol in 1939 and during the Soviet–Japanese War in August 1945 to liberate Inner Mongolia from Japan and Mengjiang . The February 1945 Yalta Conference provided for the Soviet Union's participation in the Pacific War . One of

6150-527: The Wayback Machine , Eurasia Capital , Monet Investment Bank , BDSec , MICC Archived 18 August 2020 at the Wayback Machine , and Frontier Securities . As a result of rapid urbanization and industrial growth policies under the communist regime, Mongolia's deteriorating environment has become a major concern. The burning of soft coal coupled with thousands of factories in Ulaanbaatar and

6273-526: The World Trade Organization (WTO) in 1997. The international donor community pledged over $ 300 million per year in the last Consultative Group Meeting, held in Ulaanbaatar in June 1999. Recently, the Mongolian economy has grown at a fast pace due to an increase in mining and Mongolia attained a GDP growth rate of 11.7% in 2013. However, because much of this growth is export-based, Mongolia is suffering from

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6396-579: The stock market MSE Top-20 registered an all-time low since its dramatic spike in mid-2007. Just as the economy started to recover, Mongolia was hit by a Zud over the winter period of 2009–2010, causing many livestock to perish and thus severely affecting cashmere production which accounts for a further 7% of the country's export revenues. According to the World Bank and International Monetary Fund estimates, real GDP growth reduced from 8% to 2.7% in 2009, and exports shrunk 26% from $ 2.5Bn to $ 1.9Bn before

6519-520: The 1990s, and most prices have been freed. Privatization of large state enterprises has begun. Tax reforms also have begun, and the barter and official exchange rates were unified in late 1991. 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

6642-744: The Genghisids. In the mid-16th century, Altan Khan of the Tümed, a grandson of Dayan Khan – but not a hereditary or legitimate Khan – became powerful. He founded Hohhot in 1557. After he met with the Dalai Lama in 1578, he ordered the introduction of Tibetan Buddhism to Mongolia. (It was the second time this had occurred.) Abtai Khan of the Khalkha converted to Buddhism and founded the Erdene Zuu monastery in 1585. His grandson Zanabazar became

6765-696: The Gobi are attributed to the rain shadow effect caused by the Himalayas. Before the Himalayas were formed by the collision of the Indo-Australian plate with the Eurasian plate 10 million years ago, Mongolia was a flourishing habitat for major fauna but still somewhat arid and cold due to distance from sources of evaporation. Sea turtle and mollusk fossils have been found in the Gobi, apart from well-known dinosaur fossils. Tadpole shrimps are still found in

6888-764: The Gobi today. The eastern part of Mongolia including the Onon and Kherlen rivers and Lake Buir form part of the Amur river basin draining to the Pacific Ocean. It hosts some unique species like the Eastern brook lamprey, Daurian crayfish ( cambaroides dauricus ) and Daurian pearl oyster ( dahurinaia dahurica ) in the Onon/Kherlen rivers as well as Siberian prawn ( exopalaemon modestus ) in Lake Buir. Mongolia had

7011-754: The Kyrgyz. The Mongolic Khitans , descendants of the Xianbei, ruled Mongolia during the Liao dynasty (907–1125), after which the Khamag Mongol (1125–1206) rose to prominence. Lines 3–5 of the memorial inscription of Bilge Khagan (684–737) in central Mongolia summarizes the time of the Khagans : In battles they subdued the nations of all four sides of the world and suppressed them. They made those who had heads bow their heads, and who had knees genuflect them. In

7134-579: The Ming armies pursued the Mongols into their homeland, they successfully sacked and destroyed the Mongol capital Karakorum and other cities. Some of these attacks were repelled by the Mongols under Ayushridar and his general Köke Temür . After the expulsion of the Yuan rulers from China proper , the Mongols continued to rule their homeland, known in historiography as the Northern Yuan dynasty. With

7257-404: The Qing, and after the fall of the Qing dynasty in 1911, the contract of Mongolian submission to the Manchu had become invalid. The area controlled by the Bogd Khaan was approximately that of the former Outer Mongolia during the Qing period. In 1919, after the October Revolution in Russia, Chinese troops led by warlord Xu Shuzheng occupied Mongolia. Warfare erupted on the northern border. As

7380-465: The Soviet Union . Mongolia was driven into deep recession . Economic growth picked up in 1997–99 after stalling in 1996 due to a series of natural disasters and increases in world prices of copper and cashmere. Public revenues and exports collapsed in 1998 and 1999 due to the repercussions of the Asian financial crisis . In August and September 1999, the economy suffered from a temporary Russian ban on exports of oil and oil products. Mongolia joined

7503-447: The Soviet Union agreed to lift its veto on the admission of Mauritania (and any other newly independent African state), in return for the admission of Mongolia. Faced with pressure from nearly all the other African countries, the ROC relented under protest. Mongolia and Mauritania were both admitted to the UN on 27 October 1961. (see China and the United Nations ) On 26 January 1952, Yumjaagiin Tsedenbal took power in Mongolia after

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7626-420: The Soviet Union to the West, and English has become the dominant foreign language, aided by liberalized media, international aid agencies, the rise of private education and tutoring, as well as official government policy. In the 2014–2015 academic year, 59% of the overall student population studied English at public secondary schools. In 2023, English was declared the "first foreign language", and to be taught from

7749-410: The Soviet conditions for its participation, put forward at Yalta, was that after the war Outer Mongolia would retain its independence. The referendum took place on 20 October 1945, with (according to official numbers) 100% of the electorate voting for independence. After the establishment of the People's Republic of China , both countries confirmed their mutual recognition on 6 October 1949. However,

7872-413: The U.S. Census Bureau figure). UN estimates resemble those made by the Mongolian National Statistical Office (2,612,900, end of June 2007). Mongolia's population growth rate is estimated at 1.2% (2007 est.). About 59% of the total population is under age 30, 27% of whom are under 14. This relatively young and growing population has placed strains on Mongolia's economy. The first census in the 20th century

7995-427: The accounting year. ) So for example if a car manufacturer buys auto parts , assembles the car and sells it, only the final car sold is counted towards the GDP. Meanwhile, if a person buys replacement auto parts to install them on their car, those are counted towards the GDP. According to the U.S. Bureau of Economic Analysis, which is responsible for calculating the national accounts in the United States, "In general,

8118-418: The area, which allowed the Mongols to keep their culture. The Oirats who migrated to the Volga steppes in Russia became known as Kalmyks . The main trade route during this period was the Tea Road through Siberia; it had permanent stations located every 25 to 30 kilometres (16 to 19 mi), each of which was staffed by 5–30 chosen families. Until 1911, the Qing dynasty maintained control of Mongolia with

8241-540: The concept of GDP should be distinguished from the history of changes in many ways of estimating it. The value added by firms is relatively easy to calculate from their accounts, but the value added by the public sector , by financial industries, and by intangible asset creation is more complex. These activities are increasingly important in developed economies, and the international conventions governing their estimation and their inclusion or exclusion in GDP regularly change in an attempt to keep up with industrial advances. In

8364-462: The country's political system was changed. The Mongolian People's Republic was established. In 1928, Khorloogiin Choibalsan rose to power. The early leaders of the Mongolian People's Republic (1921–1952) included many with Pan-Mongolist ideals. However, changing global politics and increased Soviet pressure led to the decline of Pan-Mongol aspirations in the following period. Khorloogiin Choibalsan instituted collectivization of livestock, began

8487-414: The country's economic stability despite government efforts in infrastructure and social programs. The term was coined by Ganhuyag Chuluun Hutagt and subsequently popularized by Renaissance Capital in their report "Mongolia: "Blue-sky opportunity". They state that Mongolia is set to become the new Asian tiger , or "Mongolian wolf" as they prefer to call it, and predict "unstoppable" economic growth. With

8610-480: The country's livestock dying from starvation or freezing temperatures or both, resulting in economic upheaval for the largely pastoral population. The annual average temperature in Ulaanbaatar is −1.3 °C (29.7 °F), making it the world's coldest capital city. Mongolia is high, cold and windy. It has an extreme continental climate with long, cold winters and short summers, during which most of its annual precipitation falls. The country averages 257 cloudless days

8733-401: The country. GDP per capita is often used as an indicator of living standards. The major advantage of GDP per capita as an indicator of the standard of living is that it is measured frequently, widely, and consistently. It is measured frequently in that most countries provide information on GDP every quarter, allowing trends to be seen quickly. It is measured widely in that some measure of GDP

8856-500: The death of Choibalsan. Tsedenbal was the leading political figure in Mongolia for more than 30 years. While Tsedenbal was visiting Moscow in August 1984, his severe illness prompted the parliament to announce his retirement and replace him with Jambyn Batmönkh . The dissolution of the Soviet Union in 1991 strongly influenced Mongolian politics and youth . Its people undertook the peaceful Democratic Revolution in January 1990 and

8979-499: The destruction of the Buddhist monasteries, and carried out Stalinist purges , which resulted in the murders of numerous monks and other leaders. In Mongolia during the 1920s, approximately one-third of the male population were monks. By the beginning of the 20th century, 750 monasteries were functioning in Mongolia and by the end of the 1930s almost all had been looted or razed. In 1930, the Soviet Union stopped Buryat migration to

9102-574: The division of the Mongol tribes, it was subsequently also known as "The Forty and the Four" (Döčin dörben) among them. The next centuries were marked by violent power struggles among various factions, notably the Genghisids and the non-Genghisid Oirats , as well as by several Ming invasions (such as the five expeditions led by the Yongle Emperor ). In the early 16th century, Dayan Khan and his khatun Mandukhai reunited all Mongol groups under

9225-665: The dominant culture. Horse-riding nomadism has been documented by archeological evidence in Mongolia during the Copper and Bronze Age Afanasevo culture (3500–2500 BC); this Indo-European culture was active to the Khangai Mountains in Central Mongolia. The wheeled vehicles found in the burials of the Afanasevans have been dated to before 2200 BC. Pastoral nomadism and metalworking became more developed with

9348-634: The east up to the Kadyrkhan common people, in the west up to the Iron Gate they conquered... These Khagans were wise. These Khagans were great. Their servants were wise and great too. Officials were honest and direct with people. They ruled the nation this way. This way they held sway over them. When they died ambassadors from Bokuli Cholug (Baekje Korea), Tabgach (Tang China), Tibet (Tibetan Empire), Avar (Avar Khaganate), Rome (Byzantine Empire), Kirgiz , Uch-Kurykan, Otuz-Tatars, Khitans , Tatabis came to

9471-526: The entirety of present-day Mongolia. The Mongolic Rouran Khaganate (330–555), of Xianbei provenance was the first to use "Khagan" as an imperial title. It ruled a massive empire before being defeated by the Göktürks (555–745), an even larger empire. The Göktürks laid siege to Panticapaeum , present-day Kerch , in 576. They were succeeded by the Uyghur Khaganate (745–840) who were defeated by

9594-730: The fall of the Liao dynasty in 1125, the Khamag Mongols became a leading tribe on the Mongolian Plateau . However, their wars with the Jurchen -ruled Jin dynasty and the Tatar confederation had weakened them. The last head of the tribe was Yesügei , whose son Temüjin eventually united all the Shiwei tribes as the Mongol Empire ( Yekhe Monggol Ulus ). In the thirteenth century, the word Mongol grew into an umbrella term for

9717-519: The fall of the Qing dynasty in 1911, Mongolia under the Bogd Khaan declared its independence. However, the newly established Republic of China considered Mongolia to be part of its own territory. Yuan Shikai , the President of the Republic of China , considered the new republic to be the successor of the Qing. Bogd Khaan said that both Mongolia and China had been administered by the Manchu during

9840-538: The fertility value increased to 2.8 in 2013 and stabilised afterwards at a rate of about 2.5-2.6 children per woman around 2020. The Mongols are moderately homogeneous; ethnic Mongols account for about 95% of the population and consist of Khalkha and other groups, all distinguished primarily by dialects of the Mongol language. The Khalkha make up 86% of the ethnic Mongol population. The remaining 14% include Oirats, Buryats and others. Turkic peoples ( Kazakhs and Tuvans ) constitute 4.5% of Mongolia's population, and

9963-479: The first Jebtsundamba Khutughtu in 1640. Following the leaders, the entire Mongolian population embraced Buddhism. Each family kept scriptures and Buddha statues on an altar at the north side of their yurt . Mongolian nobles donated land, money and herders to the monasteries. As was typical in states with established religions, the top religious institutions, the monasteries, wielded significant temporal power in addition to spiritual power. The last Khagan of Mongols

10086-490: The funerals. So many people came to mourn over the great Khagans. They were famous Khagans. In the chaos of the late 12th century, a chieftain named Temüjin finally succeeded in uniting the Mongol tribes between Manchuria and the Altai Mountains . In 1206, he took the title Genghis Khan , and waged a series of military campaigns – renowned for their brutality and ferocity – sweeping through much of Asia, and forming

10209-463: The global slowdown in mining caused by decreased growth in China. The rapid political changes of 1990–91 marked the beginning of Mongolia's efforts to develop a market economy , but these efforts have been complicated and disrupted by the dissolution and continuing deterioration of the economy of the former Soviet Union . Prior to 1991, 80% of Mongolia's trade was with the former Soviet Union , and 15%

10332-553: The income approach. A common one is: The sum of COE , GOS and GMI is called total factor income; it is the income of all of the factors of production in society. It measures the value of GDP at factor (basic) prices. The difference between basic prices and final prices (those used in the expenditure calculation) is the total taxes and subsidies that the government has levied or paid on that production. So adding taxes less subsidies on production and imports converts GDP(I) at factor cost to GDP(I) at final prices. Total factor income

10455-443: The information required (especially information on expenditure and production by governments). The raw GDP figure as given by the equations above is called the nominal, historical, or current GDP. When one compares GDP figures from one year to another, it is desirable to compensate for changes in the value of money—for the effects of inflation or deflation. To make it more meaningful for year-to-year comparisons, it may be multiplied by

10578-684: The international market. Total GDP can also be broken down into the contribution of each industry or sector of the economy. GDP is often used as a metric for international comparisons as well as a broad measure of economic progress . It is often considered to be the world's most powerful statistical indicator of national development and progress. However, critics of the growth imperative often argue that GDP measures were never intended to measure progress, and leave out key other externalities , such as resource extraction , environmental impact and unpaid domestic work . Alternative economic indicators such as doughnut economics use other measures, such as

10701-415: The introduction of a multi-party system and a market economy. At the same time, the transformation of the former Marxist-Leninist Mongolian People's Revolutionary Party to the current social democratic Mongolian People's Party reshaped the country's political landscape. A new constitution was introduced in 1992, and the term "People's Republic" was dropped from the country's name. The transition to

10824-472: The khanates, the "Great Khaanate", consisting of the Mongol homeland and most of modern-day China, became known as the Yuan dynasty under Kublai Khan , the grandson of Genghis Khan. He set up his capital in present-day Beijing. After more than a century of power, the Yuan dynasty was overthrown by the Ming dynasty in 1368, and the Yuan court fled to the north, thus becoming the Northern Yuan dynasty . As

10947-627: The later Okunev culture (2nd millennium BC), Andronovo culture (2300–1000 BC) and Karasuk culture (1500–300 BC), culminating with the Iron Age Xiongnu Empire in 209 BC. Monuments of the pre-Xiongnu Bronze Age include deer stones , keregsur kurgans , square slab tombs , and rock paintings. Although cultivation of crops has continued since the Neolithic, agriculture has always remained small in scale compared to pastoral nomadism. Agriculture may have first been introduced from

11070-491: 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 . Since 1990, more than 1,500 foreign companies from 61 countries have invested a total of $ 338.3 million in Mongolia. By 2003 private companies made up 70% of Mongolian GDP and 80% of exports. Until recently, there have been

11193-473: The lowest of 41.735 mm (1.643 in) occurred in the Gobi Desert (period 1961–1990). The sparsely populated far north of Bulgan Province averages 600 mm (24 in) in annual precipitation which means it receives more precipitation than Beijing (571.8 mm or 22.51 in) or Berlin (571 mm or 22.5 in). The name "Gobi" is a Mongol term for a desert steppe, which usually refers to

11316-474: The nickname "the Lascaux of Mongolia". The Venus figurines of Mal'ta (21,000 years ago) testify to the level of Upper Paleolithic art in northern Mongolia; Mal'ta is now part of Russia. Neolithic agricultural settlements (c. 5500–3500 BC), such as those at Norovlin, Tamsagbulag, Bayanzag, and Rashaan Khad, predated the introduction of horse-riding nomadism, a pivotal event in the history of Mongolia which became

11439-729: The north and west and the Gobi Desert to the south. Ulaanbaatar , the capital and largest city , is home to roughly half of the country's population. The territory of modern-day Mongolia has been ruled by various nomadic empires , including the Xiongnu , the Xianbei , the Rouran , the First Turkic Khaganate , the Second Turkic Khaganate , the Uyghur Khaganate and others. In 1206, Genghis Khan founded

11562-543: The population is the Per capita income . The international standard for measuring GDP is contained in the book System of National Accounts (2008), which was prepared by representatives of the International Monetary Fund , European Union , Organisation for Economic Co-operation and Development , United Nations and World Bank . The publication is normally referred to as SNA2008 to distinguish it from

11685-533: The prehistoric times, Mongolia has been inhabited by nomads who, from time to time, formed great confederations that rose to power and prominence. Common institutions were the office of the Khan , the Kurultai (Supreme Council), left and right wings, imperial army ( Keshig ) and the decimal military system. The first of these empires, the Xiongnu of undetermined ethnicity, were brought together by Modu Shanyu to form

11808-430: The previous edition published in 1993 (SNA93) or 1968 (called SNA68) SNA2008 provides a set of rules and procedures for the measurement of national accounts. The standards are designed to be flexible, to allow for differences in local statistical needs and conditions. Within each country GDP is normally measured by a national government statistical agency, as private sector organizations normally do not have access to

11931-512: The products must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures in buying things. The income approach works on the principle that the incomes of the productive factors ("producers", colloquially) must be equal to the value of their product, and determines GDP by finding the sum of all producers' incomes. Also known as the Value Added Approach, it calculates how much value

12054-600: The public for the first time on the soon-to-be partially privatized Mongolian Stock Exchange . In terms of access to credit, Mongolia ranked 61st out of 189 economies in accordance with 2015 Ease of Doing Business survey. However, Mongolia had one of the highest banking branch penetration rates in the world at 1 bank branch per 15,257 residents as of May 2015. With a strengthening capital market environment, many foreign and local investment institutions have begun to establish themselves in Mongolia. The most prominent local agencies include: TDB Capital Archived 31 December 2019 at

12177-445: The ratio between the value of money in the year the GDP was measured and the value of money in a base year. For example, suppose a country's GDP in 1990 was $ 100 million and its GDP in 2000 was $ 300 million . Suppose also that inflation had halved the value of its currency over that period. To meaningfully compare its GDP in 2000 to its GDP in 1990, we could multiply the GDP in 2000 by one-half, to make it relative to 1990 as

12300-554: The recent developments in the mining industry and foreign interest increasing at an astonishing rate, it is claimed that the 'Wolf Economy' looks ready to pounce. The term's aggressive title mirrors the country's attitude in the capital markets, and with newfound mineral prospects it has the chance to retain its title as one of the world's fastest growing economies. The banking sector is highly concentrated, with five banks controlling about 80% of financial assets as of 2015: Shares of Mongolia's five largest domestic banks are to be offered to

12423-671: The responsibilities towards their subjects. The behavior of Mongolia's nobility, together with usurious practices by Chinese traders and the collection of imperial taxes in silver instead of animals, resulted in widespread poverty among the nomads. By 1911 there were 700 large and small monasteries in Outer Mongolia; their 115,000 monks made up 21% of the population. Apart from the Jebtsundamba Khutuktu, there were 13 other reincarnating high lamas, called 'seal-holding saints' ( tamgatai khutuktu ), in Outer Mongolia. With

12546-546: The rest are Russian, Chinese, Korean and American nationalities. Mongolia's official and national language is Mongolian . A member of the Mongolic language family, the standard dialect is Khalkha Mongol . It coexists with various other, largely mutually intelligible varieties of Mongolic such as Oirat , Buryat , and Khamnigan . Several dialects have been morphing to become more like the central Khalkha dialect in recent years. Most speakers of these dialects are located in

12669-587: The rest of the world minus income payments to the rest of the world. In 1991, the United States switched from using GNP to using GDP as its primary measure of production. The relationship between United States GDP and GNP is shown in table 1.7.5 of the National Income and Product Accounts . Another example that amplifies the difference between GDP and GNI is the comparison of developed and developing country indicators. The GDP of Japan for 2020

12792-408: The same result. They are the production (or output or value added) approach, the income approach, and the speculated expenditure approach. It is representative of the total output and income within an economy. The most direct of the three is the production approach, which sums up the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of

12915-401: The source data for the expenditures components are considered more reliable than those for the income components [see income method, above]." Encyclopedia Britannica records an alternate way of measuring exports minus imports: notating it as the single variable NX. GDP can be contrasted with gross national product (GNP) or, as it is now known, gross national income (GNI). The difference

13038-461: The south in addition to being more stable. The Khangai Mountains play a certain role in forming this microclimate. In Tsetserleg, the warmest town in this microclimate, nighttime January temperatures rarely go under −30 °C (−22 °F) while daytime January temperatures often reach 0 °C (32 °F) to 5 °C (41 °F). The country is subject to occasional harsh climatic conditions known as zud . It results in large proportions of

13161-509: The southernmost part is on roughly the same latitude as Rome (Italy) and Chicago (USA). The westernmost part of Mongolia is on roughly the same longitude as Kolkata in India, while the easternmost part is on the same longitude as Qinhuangdao and Hangzhou in China, as well as the western edge of Taiwan. Although Mongolia does not share a border with Kazakhstan, its westernmost point is only 36.76 kilometres (22.84 mi) from Kazakhstan, nearly making

13284-401: The summer and extremely cold in the winter, with January averages dropping as low as −30 °C (−22 °F). A vast front of cold, heavy, shallow air comes in from Siberia in winter and collects in river valleys and low basins causing very cold temperatures while slopes of mountains are much warmer due to the effects of temperature inversion (temperature increases with altitude). In winter

13407-471: The third grade. As of the 2014–2015 academic year, the most popular foreign language in specialized language courses were (ordered by popularity), English, Chinese , Russian, Japanese , and Korean . Korean in particular has gained popularity as tens of thousands of Mongolians work in South Korea , forming the largest group of Mongolians abroad . Gross domestic product The ratio of GDP to

13530-536: The total expenditure used to buy things is a way of measuring production. This is known as the expenditure method of calculating GDP. GDP (Y) is the sum of consumption (C) , investment (I) , government expenditures (G) and net exports (X − M) . Here is a description of each GDP component: C , I , and G are expenditures on final goods and services; expenditures on intermediate goods and services do not count. (Intermediate goods and services are those used by businesses to produce other goods and services within

13653-439: The total population of the region is the GDP per capita and can approximate a concept of a standard of living . Nominal GDP does not reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on

13776-495: The traditional Mongolian script in official documents by 2025. Since 1990, English has quickly supplanted Russian as the most popular foreign language in Mongolia. In the communist era , Russian was a vital language for mobility and professional communication, with a large number of students studying in the Soviet Union as well as a large number of Soviet professionals and soldiers located within Mongolia. Since then, however, Mongolia's education system has reoriented away from

13899-526: The warmest January temperatures in Omnogovi Province ( Dalanzadgad , Khanbogd ) and the region of the Altai mountains bordering China. A unique microclimate is the fertile grassland-forest region of central and eastern Arkhangai Province ( Tsetserleg ) and northern Ovorkhangai Province ( Arvaikheer ) where January temperatures are on average the same and often higher than the warmest desert regions to

14022-518: The west or arose independently in the region. The population during the Copper Age has been described as mongoloid in the east of what is now Mongolia, and as europoid in the west. Tocharians ( Yuezhi ) and Scythians inhabited western Mongolia during the Bronze Age. The mummy of a Scythian warrior, which is believed to be about 2,500 years old, was a 30- to 40-year-old man with blond hair; it

14145-594: The western part of the country, namely Bayan-Ölgii , Uvs , and Khovd . Kazakh , a Turkic language , is the majority language in Bayan-Ölgii, while Tuvan is another Turkic language spoken in Khövsgöl . Mongolian Sign Language is the principal language of the deaf community. Today, Mongolian is mainly written using the Cyrillic alphabet , introduced during the 1940s. Since the 1990 revolution there has been

14268-535: The whole of Mongolia comes under the influence of the Siberian Anticyclone . The localities most severely affected by this cold weather are Uvs province ( Ulaangom ), western Khovsgol ( Rinchinlhumbe ), eastern Zavkhan ( Tosontsengel ), northern Bulgan (Hutag) and eastern Dornod province (Khalkhiin Gol). Ulaanbaatar is strongly, but less severely, affected. The cold gets less severe as one goes south, reaching

14391-473: The words of one academic economist, "The actual number for GDP is, therefore, the product of a vast patchwork of statistics and a complicated set of processes carried out on the raw data to fit them to the conceptual framework." China officially adopted GDP in 1993 as its indicator of economic performance. Previously, China had relied on a Marxist-inspired national accounting system. GDP can be determined in three ways, all of which should, theoretically, give

14514-656: Was Ligden Khan in the early 17th century. He came into conflicts with the Manchus over the looting of Chinese cities, and also alienated most Mongol tribes. He died in 1634. By 1636, most of the Inner Mongolian tribes had submitted to the Manchus, who founded the Qing dynasty . The Khalkha eventually submitted to Qing rule in 1691, thus bringing all of today's Mongolia under Manchu rule. After several Dzungar–Qing Wars ,

14637-407: Was carried out in 1918 and recorded a population of 647,500. Since the end of socialism, Mongolia has experienced a decline of total fertility rate (children per woman) that is steeper than in any other country in the world, according to recent UN estimations: in 1970–1975, fertility was estimated to be 7.33 children per woman, dropping to about 2.1 in 2000–2005. The decline ended and in 2005–2010,

14760-493: Was first developed by Simon Kuznets for a 1934 U.S. Congress report, where he warned against its use as a measure of welfare (see below under limitations and criticisms ). After the Bretton Woods Conference in 1944, GDP became the main tool for measuring a country's economy. At that time gross national product (GNP) was the preferred estimate, which differed from GDP in that it measured production by

14883-588: Was found in the Altai , Mongolia. As equine nomadism was introduced into Mongolia, the political center of the Eurasian Steppe also shifted to Mongolia, where it remained until the 18th century CE. The intrusions of northern pastoralists (e.g. the Guifang, Shanrong, and Donghu ) into China during the Shang dynasty (1600–1046 BC) and Zhou dynasty (1046–256 BC) presaged the age of nomadic empires . Since

15006-634: 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 to 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 1998 Russian financial crisis , and worsening commodity prices, especially copper and gold. Mongolia's gross domestic product (GDP) growth fell from 3.2% in 1999 to 1.3% in 2000. The decline can be attributed to

15129-532: Was with other Council for Mutual Economic Assistance (CMEA) countries. Mongolia was heavily dependent upon the former Soviet Union for fuel, medicine, and spare parts for its factories and power plants. The former Soviet Union served as the primary market for Mongolian industry. In the 1980s, Mongolia's industrial sector became increasingly important. 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

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