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US-Mongol Construct 2000 Business Prospectus: Building A New Democracy | 2000

Researcher and Writer: David South

Consultancy: David South Consulting

Publisher and Client: USAID

Published: 2000

Results Review and FY 2002 Resources Request (USAID/Mongolia March 17, 2000): Improving Productivity and Exports: A key to Mongolia’s growth is increasing non-traditional exports. However, with less than ten years of free-market experience, Mongolia has little experience on how to accomplish this objective. In response, USAID began a six-month program in January2000 to: 1) instruct Mongolians on the principles of competitive analysis; 2) establish benchmark data that will help Mongolians to rank their country against others vis-a-vis key competitiveness indicators; 3) create Mongolian-specific case studies to illustrate successful competitive behavior or pinpoint obstacles and constraints; 4) work with business leaders from garment, cashmere, meat, information technology and tourism industries to apply competitiveness tools and focus attention on key priorities for government and private sector action. Over six hundred influential Mongolians from government, private sector and academia are participating in the process. USAID hopes to assist in developing a national action plan for competitiveness in the fall, once a new government is in place.

The Global Bureau’s Global Technology Network (GTN) which develops business linkages between U.S. and Mongolian firms has been active for two years. GTN efforts have fallen short of expectations with only three relatively modest linkages established in 1999. In January 2000, through its relationship with the International Executive Service Corps (IESC), GTN sponsored Mongol Construct 2000, a trade mission to the United States for construction firms. The purpose of the mission was to learn about advanced construction techniques and develop linkages with U.S. firms. In 2000 IESC will expand its assistance to a select group of garment manufacturers, who are attempting to establish non-traditional markets.

Background: This excerpted text is from a business prospectus prepared in 1999 for USAID to promote construction opportunities in Mongolia to the US construction industry. At the time, Mongolia was in the grip of a severe crisis, called one of “the biggest peacetime economic collapses ever”. By 2012, Mongolia was called the “fastest growing economy in the world”. It is proof the foundations for Mongolia’s recovery from crisis were laid in the late 1990s.

“No other Asian country enjoys more political freedom today than Mongolia. And no other Asian country has shown greater commitment to open markets. But Mongolia has received little reward for its efforts.” Fortune Magazine, December 1998

Discover a New Democracy

Mongolians are some of the highest per capita donor recipients in the world: On average US $50 per person. The vast majority of this aid is targeted at infrastructure projects. Mongolia in 2000 is an opportunity waiting for American business. Democratic, with a free market economy, the country offers regulatory freedom, a belief in the private sector setting standards and a pro-Western attitude friendly to American companies. 

Mongolia’s history is marked by the rise and fall of cities, the ebb and flow of political and economic systems. The country has experienced being the largest empire for its time in the 13th century, to being occupied by foreign powers. Economically and socially the country has lived through feudalism, communism and now, capitalism. The one thing that has remained stable throughout this rich history has been the nomadic way of life. Livestock remains to this day a major pillar of the economy and contributes to one of the country’s major foreign currency earners, cashmere wool. 

After over 70 years of communist rule, Mongolians finally turned their backs on communism and robustly embraced free markets and democracy in 1996 with the election of the Democratic Coalition. A gradual opening up of the country had begun under the ruling Mongolian People’s Revolutionary Party after the collapse of the Soviet Union and under pressure from peaceful public demonstrations.  

After the fall of the Soviet Union, the country suffered what many economists have called the largest peacetime economic collapse in the 20th century. 

While it is a fact that Mongolia’s economy is severely underdeveloped, both in terms of infrastructure and diversity, it is also true the country is the freest in Asia. As Fortune Magazine noted in a December, 1998 issue, “No other Asian country enjoys more political freedom today than Mongolia. And no other Asian country has shown greater commitment to open markets. But Mongolia has received little reward for its efforts.” Mongolia, for American business, offers a win-win situation, an opportunity to join in the building of a strong democracy in Asia while tapping the rich resources, both natural and in human capital. American businesses can enjoy a regulatory environment that is more flexible than in the United States, and a government that lets businesses do what they do best: serve the needs of customers and make money. 

Youthful

A Bright Young Future

Demographically, Mongolia is a very young country. A by-product of high birth rate policies during the communist period, 60 per cent of Mongolia’s population are aged between 1 and 24, with 37.6 per cent between the locally accepted definition of youth of 15 to 34. In 1998 the New York Times Magazine called Mongolia “The youngest place on earth”. Even a cursory glance at the streets of the capital, Ulaanbaatar (population 600,000), will reveal a young population taking their fashion and cultural cues from the West, and who hold correspondingly Western aspirations to own homes and start businesses. Mongolia enjoys exceptionally high rates of literacy ( 96 per cent), post-secondary enrolment (65,089 students in 1998) and the urban population quickly embraced Western consumer products as they became available. 

Growing

The Construction and Environmental Services Industry in Mongolia

Today, Mongolia officially has 100 architectural and engineering design companies and over 500 construction companies. Of these, 40 are considered large operations with their own in-house design and engineering outfits, or who have a close relationship with one or more companies that either manufacture or import construction materials. The country is a rich resource for raw materials for the construction industry, but this vast wealth remains under-utilised. According to geological surveys spanning the decades from 1930 to the 1990s, over 200 deposits were discovered that could be tapped for construction materials. 

At the beginning of the 20th Century, there were few permanent standing structures in Mongolia, apart from Buddhist monasteries and royal palaces. At the beginning of the 20th Century most Mongolians lived in the round ger felt tent. It wasn’t until the communist revolution that construction of sedentary dwellings and buildings in the country picked up pace. In 1924, three years after the 1921 revolution, the State Committee for Construction was established (by 1926 it became the Construction Department of the Ministry of Industry), and undertook the large-scale construction of buildings based on European designs. 

From the 1960s the construction industry in Mongolia emerged as the country industrialised. Mongolia received aid from both China and Russia up to the Sino-Soviet dispute, and both countries were the main funders for construction projects. Many buildings in the downtown of the capital were built by the Chinese government.

Up until the election of the Democratic Coalition in 1996, all construction activities were conducted under the direction of the state. Building booms took place in the 1970s and 1980s as the communist government tried to meet the demand for apartments and other facilities. At its peak in 1989, the construction sector made up 10 per cent of the gross national product. With the collapse of the Soviet Union at the end of the 1980s, many building projects in Mongolia ground to a halt as Soviet subsidies were withdrawn.  Across the country it is possible to see the empty shells of apartment buildings, holiday resorts and half-built sports stadiums.

The Mongolian People’s Revolutionary Party, under popular pressure for a change, began to gradually make the shift to free markets and democracy. The first state privatization programme began in 1993 under the direction of international experts. It wasn’t until the election of the Democratic Coalition in 1996 that significant reforms were taken to fully introduce a free market economy. And it wasn’t until 1997 and 1998 that the fruits of these measures started to appear.

The construction industry was fully privatised in 1998, with companies becoming limited or wholly owned entities. There now exists a mix of private and public companies in this sector. All of the companies are in the early stages of learning how to work and prosper in the free market.

The legacy of working under a command economy has left many companies ill-equipped and under-funded, many not operating at full capacity or not at all.

The private sector has shown itself to be capable of initiating real estate development projects, most commonly the building of private apartments, shopping complexes and small hotels.

Weaknesses in management and financing do lead to long delays, poor quality and in some cases, the abandonment of a construction project mid-way.  According to the State Statistical Office, the construction sector shrank from 1991 to 1994. In 1994, activity increased 26 per cent from 1993. Since then the gross national product has averaged growth of 3.3 per cent, but still has not caught up with the rate at the end of the 1980s. 

The environmental services sector has received a significant boost from international donors working in Mongolia. Various donor funded projects are building and renovating facilities using energy-efficient technology. These donors have also conducted training workshops and education campaigns for local construction companies. Being a very cold country, awareness is high over the financial and environmental benefits of energy-efficient techniques. Construction techniques, however, are weak and Mongolia has a long way to go in utilizing these technologies efficiently.  

It is a misnomer to think most Mongolians are wandering nomads. In fact the majority of the population of 2.4 million now live a sedentary lifestyle in small towns or in the big cities of Ulaanbaatar, Erdenet and Darkhan. Under communism these urban centres were economically dependent on state enterprises, many of  which now have either gone bankrupt, idle or have been privatized. There is currently a significant migration to the capital from these economically devastated communities. Officially the government was able to track 6,518 people, mostly between the ages of 18 and 39, moving to the capital in the first half of 1998 – a 60 per cent increase on 1997. Unofficial migration to the capital is believed to be far higher. 

At present a majority of the population still live in ger tents or sub-standard makeshift wooden housing. The construction industry cannot meet the high demand for modern housing, with amenities like running water, toilets and electricity.

“The business atmosphere in Mongolia is inviting and [our] partnership has faced very few obstacles while entering the market. Based on our positive experience here, we plan to continue and expand our presence in the Mongolian marketplace.” Mrs. Bolormaa Reiner, Representative Johnson and Johnson-Mongolia

Foreign Aid

Economic Prospects for the Country

Large donor community

Along with the collapse of the Soviet Union, Mongolia also lost significant economic subsidies, which contributed to the severe crisis of the early 1990s. The World Bank has estimated these subsidies reached a third of Mongolia’s GDP in the late 1980s. Since then international donors have played a key role in helping to restructure the Mongolian economy to adapt to the demands of a market economy.  

Infrastructure has always been a weak point for Mongolia, and it was considered the most isolated and underdeveloped of the former Soviet bloc countries. International donors have placed infrastructure development at the top of their agendas. Since 1997 foreign aid in the form of grants and loans has hovered around US $250 million, with the vast majority of this aid going towards infrastructure development. Priority areas are highways and transportation, power stations and communications. By sector the aid breaks down as follows: 30 per cent to mining, 27 per cent to energy, 19 per cent to transport, eight per cent to communications, five per cent to social security and three per cent to other areas. The donor community and the Mongolian government want to dig the country out of decades of underdevelopment, which currently hampers the budding private sector from becoming more sophisticated. 

These large-scale infrastructure projects offer enormous opportunities for US firms experienced in working in cold-weather conditions. There are also opportunities to develop world class office space for these international donors, something that is currently lacking in Ulaanbaatar.  

Foreign investment to date

Actual large-scale foreign investment to the country has been slow coming and still doesn’t represent a major economic opportunity. The major players in direct foreign investment outside of development aid have been Mongolia’s old neighbours, Russia (20 per cent) and China (33 per cent). This decade the country has attracted US $200 million in foreign investment and registered 840 jointly owned or wholly owned ventures.

New-found affluence

It is estimated that around five per cent of the capital’s population fit into a middle or upper income category. The late 1990s have seen the emergence of a new breed of affluent Mongolians. Many of these affluent Mongolians struck it rich trading in once-unobtainable consumer products or servicing the expanding foreign community. This class of traders have developed a sophisticated taste for all things Western – Mercedes Benz cars, four-by-four jeeps and western fashions. Vehicle registrations have steadily risen since the introduction of a market economy. In 1996 the number of vehicles was 65,020; by 1997 it was 70,088. 

New home owners

In 1998 50,000 families became homeowners as a result of privatization of apartments. All the apartments are of Soviet era and do not meet the aspirations of the growing middle class. Many of these new homeowners immediately set about renovating these apartments, installing modern appliances and furniture. A significant minority is renovating apartments with the intention of selling them on to wealthier Mongolians or foreigners. The high number of renovations and additions to buildings in the capital is also indicative of other things: the economy has changed and existing buildings do not meet the new demands, and that people have money to pay for the renovations. 

Business Opportunities

USAID has identified the following opportunities in the Mongolian construction sector:

– Donor-funded projects: Large-scale infrastructure projects that are funded by loans or grants from international donors, are a safe bet. These projects require management and technical expertise that is often difficult to find locally. This includes projects that require an international tender.  

– Fully funded foreign projects: Any project requiring a building that meets international standards. International companies have little choice when it comes to finding adequate office or retail space.

– Low-cost labor: The Mongolian workforce is highly literate and often speak a second language, usually Russian amongst older workers, and English amongst the young. Unemployment levels are high in Mongolia and workers are keen to get a job. Generally salaries are as follows:

– Manager: US $250

– Accountant: US $200

– Engineer: US $150

– Secretary: US 100

– Driver: US $100

– Qualified worker: US $100

Source: FIFTA

– Donors: Many large-scale projects are directly funded by donor grants or loans and therefore are a low-risk, reliable source of income. At the June, 1999 donors meeting in Ulaanbaatar, US $320 million was pledged, the largest amount in eight years of donor funding. Most of these pledges are targeted at “hard” infrastructure and private sector development. 

– Imports rule: Imported construction materials dominate the marketplace and will continue to do so for the foreseeable future. Many of the materials are poor quality and from China. American companies can attract customers with their obvious advantages in both quality and innovation.

– Large resource base: Mongolia’s large wealth of mineral resources is inefficiently utilized, with many mines and factories working under capacity or not at all. These resources could be tapped to produce construction materials locally for the domestic market, or more lucratively, for the booming Chinese market hungry for resources. 

– Very cold country: Mongolia’s capital, Ulaanbaatar, is the coldest capital in the world. Mongolia’s winters dip below minus 40 Celsius, and for those who live in apartment buildings, this can be a difficult time. Many apartments are inadequately insulated, and dip below zero when the central heating system is disrupted due to poor maintenance. There is an urgent need for high-quality aluminium and plastic windows and doors. Budgets are tight in Mongolia yet many organizations spend vast sums to heat buildings. It has been proven that during the course of the winter heating costs can be reduced from Tg 4,200 (US $4.20) per square metre, to Tg 280 (US $0.28) in an energy efficient dwelling. 

–  Windows are expensive: Mongolia must import all windows and glass products. When the cost of freight is added, windows become an unnecessarily expensive portion of any construction bill. This is a business opportunity for any company who can domestically produce glass products and windows at a cheaper price than imports. A National Code for Insulation of Buildings is being revised and none of the existing windows and doors meet this requirement.

– No chemical industry: While Mongolia exports oil to China for refining, the country does not have a domestic chemical industry, and consequently plastic and rubber is imported for construction purposes. Stone tiles like marble are currently also imported from outside, despite this resource being available in Mongolia.  

– Central heating and water unreliable:  For those who live in apartment buildings, the regular disruptions to both the water and heating supply are not only inconvenient, but also bad for business.  Technology that can by-pass relying on the central system (common to many Soviet-era cities, this system is wasteful and subject to regular breakdowns), is urgently needed. Alternative energy sources like solar power and wind can bring electricity to those who are not on the grid.  

 Free trade zones: The towns of Sukhbaatar (Russian border) and Zamyn-Uud (Chinese border), both served by rail, are the focus of Mongolian government attempts at increasing cross-border trade. At Zamyn-Uud Japan has upgraded the customs house facilities and trans-shipment facility. On the Chinese side, a major trading market has been constructed and a boom is taking place based on trade with Mongolia.  

“Arthur Andersen has had representation in Mongolia since 1993. We have been very active in the development of the accounting and auditing profession in Mongolia. January 1999, Arthur Andersen opened Arthur Andersen Mongolia Audit LLC.” Mr. C. L. Ruddell, Representative Arthur Andersen-Mongolia

What Do Mongolians Say They Need?

In interviews conducted by USAID, Mongolian government officials and construction companies detailed what they felt were the most urgent priorities: 

– Education and training: The vast majority of engineers and managers in the Mongolian construction industry received their training under communism. They were trained to work under a centrally planned economy, and will need to learn how to thrive in a free market situation where there are no guarantees. The Construction Training Institute currently only offers courses to managers and engineers. Its curricula is out-of-date and awareness of modern construction techniques and standards is weak. Exposure to computer-assisted construction methods is urgently required as well as training in foreign languages. 

– Awareness of International Standards: No Mongolian companies can offer state-of-the-art consulting on construction projects. 

– Licensure, apprenticeships and guilds: Standards are very weak in the construction sector and there is not a highly developed mechanism to ensure construction managers, engineers and workers meet a minimum qualification.     

– Being Earthquake-proof: While the National Design Codes and Regulations do stipulate that buildings must meet minimum requirements against earthquakes (Mongolia is located in a seismically active region, and severe earthquakes have happened), most buildings post-1989 fail to meet these requirements. 

– Weak infrastructure: Developing the transportation infrastructure of Mongolia will be key to future improvements in the economy. The rapidly developing Chinese economy offers many opportunities to Mongolia if roads and highways can be upgraded.  

– Better coordination and promotion: Working with FIFTA or the Foreign Investment and Foreign Trade Agency, Mongolian companies seeking foreign investment for projects need to improve their networking and presentation skills.  

Obstacles and Market Risks

Corruption: While Mongolians will tell you corruption has reached all levels of government, it is important to keep in mind it does not come close to the levels of corruption found in other former Communist countries. Foreign businesses do not suffer from harassment or intimidation by criminal gangs. 

Inexperience with the free market: Foreign businesses and travellers to Mongolia do experience difficulties communicating Western business concepts like consumer rights and service. It has to be said that over the past three years this has changed considerably for the better, and continues to improve as Mongolian businesses learn the importance of the axiom “the customer is always right”. 

Differences between Mongolian and US standards: While Mongolia’s regulations and laws are different from those in the US, it is important to keep in mind that the regulatory environment in Mongolia can be much freer in some areas. Also, many of the new laws have been drafted based on US laws and Mongolia’s constitution was written upon the advice of US legal experts. 

Harsh climate: The long cold winters do present problems for some foreign businesses not used to working in cold-weather climates. This is also an area where American companies are at a specific advantage. 

Financial instability: Mongolia has had a number of serious banking crises since the early 1990s. Many private and public banks are insolvent due to bad loans. This can lead to long delays to construction projects and/or non-payment of salaries.   

Contract bidding: Only those contracts that are directly commissioned by the government will be subject to an open bidding. Private sector work is usually not subject to open bidding or design competitions. 

Downtime: Since Mongolia does no international corporate presence in the capital, any technical problems to equipment or software can involve downtime and delays as parts or repairs are sought in China. It is important to take this into consideration when establishing an operation in Mongolia. 

Advantages of Working in Mongolia

– Regulatory freedom

– Private-sector driven

– Market economy taking off

– Democratic

 Privatization of Land: Can I Own Land in Mongolia?

The dual legacies of communism and nomadism have made the issue of private ownership of land in Mongolia a thorny one. The government has passed the necessary legislation to make owning land in urban areas possible. However, inexperience with the concept of owning property and the laws that govern this make buying land risky. It is advisable to get a reliable local partner and to use the services of a law firm that knows the Mongolian situation. Long-term leases are available and might be a good option. 

Mongolian Government 

Financial commitment to date: 

The Ministry of Infrastructure Development has developed projects to encourage the production of construction materials locally. Due to financial constraints these projects have not been implemented. They include projects on cement, glass and paint production, rock processing, lime extraction and road development.

Government plans:

At this time the Mongolian government has not been able to develop a long-term strategy for the development of the construction sector. There are no specific policy incentives directly supporting real estate and housing development. The Ministry of Infrastructure is looking to the private sector to offer direction and guidance. 

Future Opportunities

The Tumen River Project: The eastern portion of Mongolia is included in a major trade zone development project initiated by the United Nations Development Programme. The Tumen River Area Development Programme (TRADP) is focusing foreign investment and infrastructure upgrading on eastern Mongolian, North-East China, the Democratic People’s Republic of Korea and eastern Russia. This region has cumulatively attracted US $961 million from 1991 to 1997, with Mongolia’s second biggest trading partner, China, making significant development gains.  While the Democratic People’s Republic of Korea has been a thorn in the Project’s side, both Mongolia and China are keen to push ahead with improving infrastructure and trade links. It is impossible to ignore the fact that China has made significant gains and that trade links with Mongolia continue to tighten. 

A feasibility study is currently underway on a railway link from Arxan, China to Choibalsan, Mongolia, and possibly on to Ulaanbaatar. As donors begin to fund these projects it would be prudent for American businesses to start building a relationship in the region to take advantage of future contracts. 

Commercial Street 2005: The City of Ulaanbaatar, Mongolia’s capital and commercial centre, has drafted the blue prints for the construction of a modern commercial and business centre for the next millennium. Commercial Street 2005 will offer infrastructure and services that match global standards. The current Soviet-era infrastructure of Ulaanbaatar is an impediment to future growth and is unsuitable for Mongolia’s new market economy. 

The project covers 20 hectares of 1 km length in a historically vibrant part of the city. The city will pay for the engineering and infrastructure works for the complex and local businesses will pay for the construction of secondary buildings. Commercial Street 2005 is looking for foreign investment to participate in the building of a food supermarket, trade and service complex, a twin-towered international trade and service complex, a banking centre, a business centre and renovations to nearby apartment buildings. It is estimated the project will create 10,000 jobs and would cost an estimated US $100 million. 

Darkhan: With a population around 55,000, Darkhan is as-yet an untapped opportunity. Located north of  Ulaanbaatar and close to the border with Russia, Darkhan is linked by a good road and rail. Along with the mining town of Erdenet, Darkhan has a modern infrastructure. Having been trained to work in the former state industries that once dominated the city, the population is well-educated and skilled. Today, coal mining and agriculture are key to the economy. The city is potentially a good stable base for accessing the Russian market.

Getting started

Registering prior to undertaking construction work is relatively simple. The Government Agency for Construction issues three degrees of licenses. The first license is for small projects, the second is for small to medium-sized projects, and the third is for large-scale projects anywhere in Mongolia. As the project develops the company is obligated to notify and allow local building inspectors to enter the site. 

Residency Permits

All foreigners wishing to remain in Mongolia for more than 30 days must apply to the State Centre for Civil Registration and Information for a temporary residency permit or a short-term residency permit. 

Temporary Residency Permit

The applicant must present to the State Centre for Civil Registration a request issued by FIFTA. FIFTA will issue such a request to any agreed foreign investor immediately. Permits are generally issued within a couple of days and are valid for a period of time from three months to one year. A temporary residency permit can be renewed an unlimited number of times. Each renewal will re-validate the permit for a period from three months up to one year, as requested by the investor. 

Short Term Residency Permit

This non-renewable permit is issued to foreigners who plan to spend no more than 90 days in Mongolia. Applicants are required to present a written request from a Mongolian or foreign organization stating the activity in which the person will be engaged and the reason the permit is needed. In case of an exploratory visit by a potential investor, a letter from the home company will suffice. 

Entry Visas

Investors may apply for single-entry and multiple-entry visas at the Foreign Ministry’s Chancellery Building in Ulaanbaatar or at Mongolian diplomatic missions in other countries. 

Single-Entry Visas

A single-entry visa is valid for three months from its date of issuance and entitles the bearer to enter and stay in Mongolia for 30 days. A letter of invitation or applicable work papers are required. This type of visa is issued at the Ulaanbaatar airport or land border-crossing point. 

Multiple-Entry Visa

A multiple-entry visa entitles the bearer to enter and exit Mongolia an unlimited number of times and is valid for a period of six months to one year. For the issuance of this type of visa, an official letter stating the reason for travel and a copy of the certificate of the organization must be submitted by the investor. 

(Source: FIFTA)

Infrastructure facts

Airports – Mongolia has 81 airports, of which 31 can be used year-round. Only eight are paved. 

Roads and highways – Mongolia has 1,531.7 km paved roads.

Railway – Mongolia has 1,750 km of rail track, mostly a north-south line reaching from Russia to China, with spur lines to the copper mining city of Erdenet and the coal mining city of Baganuur. A short line goes from the eastern city of Choibalsan to Russia. 

Registered trucks – 25,473 (1998)

Major infrastructure projects (1997-1999)

USA 

Mongolia energy sector project – US $45,500,000

World Bank

Mongolia coal project – US $35,000,000

Transport rehabilitation project – US $32,313,000 

Asian Development Bank

Telecommunications – US $24,381,000

Power station rehabilitation – US $38,277,000

Ulaanbaatar heat efficiency project – US $29,487,000

Provincial towns basic urban services project – US $7,695,000

Road development – US $22,499,000

Ulaanbaatar airport project – US $37,524,000

Japan

Road construction (1996)  – (Yen) 11,590,000

Rehabilitation of power plant IV (1995) – US $46,000,000

France 

Rehabilitation and extension of UB telephone network – (F Franc) 25,000,000

Germany

Telecommunications – (DM) 10,000,000

South Korea

Thermoelectric power plant in the Gobi desert – US $8,000,000

Upcoming major infrastructure projects

Asian Development Bank 

Improving Ulaanbaatar heat efficiency (until 2002) – US $39,785,000 

Japan

Building of rural schools – US $20,000,000

In 1998 Tg, 208 billion was invested in Mongolia, of which Tg 57.2 billion was on construction/major improvements

Source: State Statistical Bulletin

Construction trends in Mongolia show that in-country production of materials has suffered greatly. 

Building doors and window

Tg 417.8 million in 1989

Tg 2.9 million in 1998 

Bricks (million pieces)

172.8 (1989)

18.9 (1998) 

Cement (in thousand tons)

512.6 (1989)

109 (1998)

On a positive note, sales of furniture went up

Tg 34.7 million in 1989

Tg 185.2 million in 1998

US-Mongol Construct 2000: Building a New Democracy was published by USAID. It helped lay the foundations for a construction boom in the mid-2000s.

Media Coverage:

Construction Business Review: Creating Overseas Market Opportunities for U.S. Companies

“Support for incoming and outgoing trade missions are among the business outreach and support services offered by the U.S. Agency for International Development’s (USAID) Global Technology Network (GTN) program. USAID, in turn, draws heavily on expertise from the International executive Service Corps (IESC) in organizing and implementing these trade missions.

In January 2000, a USAID supported, IESC-assisted, incoming trade mission from Mongolia was instrumental in introducing Mongolian businesses to the American construction industry. Dubbed “U.S.-Mongolian Construct 2000,” the “reverse” trade mission brought representatives from 15 Mongolian construction firms to meet one-on-one with American companies in Dallas, Seattle and Anchorage and Fairbanks, Alaska. The Mongolian trade mission began in Dallas, where the group attended the National Association of Home Builders’ Show (NAHB) – the largest event of its kind in the country. Next, they traveled to Seattle for the Evergreen Gateway Building Products program. In Alaska, the group learned how U.S. construction companies handle building on permafrost and deal with extreme cold weather conditions. According to the U.S. Ambassador to Mongolia, Alphonse F. LaPorta, ‘Mongolia is at the center of a region undergoing substantial infrastructure upgrading, as the market economy takes hold.'”

Update:

A resources “boomtown” throughout the 2000s. Source: Bloomberg. When I left in 1999, Mongolia’s PPP was US $8.8 bn; today (2021) it is US $42.4 bn.
A dramatic decline in inflation paired with political and economic stabilisation allowed Mongolia to enjoy the fruits of the fast-growing economies of the 2000s. Source: Statista.
It doesn’t hurt when your neighbour (China) is experiencing an economic boom as it drives down poverty rates.

https://davidsouthconsulting.org/2021/09/16/case-study-6-international-consulting-1999-2014/

https://davidsouthconsulting.org/2022/02/01/citing-wild-east-the-new-mongolia/

https://davidsouthconsulting.org/2023/02/03/environmental-public-awareness-handbook-case-studies-and-lessons-learned-in-mongolia/

https://davidsouthconsulting.org/2022/05/16/high-impact-communications-in-a-major-crisis-undp-mongolia-1997-1999-18-february-2016/

https://davidsouthconsulting.org/2022/04/04/human-development-report-mongolia-1997/

https://davidsouthconsulting.org/2023/01/09/mongolia-update-1998/

https://davidsouthconsulting.org/2023/02/07/mongolian-rock-and-pop-book-mongolia-sings-its-own-song/

https://davidsouthconsulting.org/2022/11/23/papers/

https://davidsouthconsulting.org/2021/05/14/un-ukraine-web-development-experience-2000/

https://davidsouthconsulting.org/2021/11/16/undp-in-mongolia-the-guide-1997-1999/

https://davidsouthconsulting.org/2020/11/05/wild-east-17-years-later-2000-2017/

“I highly recommend Mr. David South as a communications consultant who gets results.” Brian DaRin, Representative/Director, USAID Investment & Business Development Project, Global Technology Network/ International Executive Service Corps-Mongolia, 23 September 1999

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Categories
Archive UNDP Mongolia 1997-1999 United Nations Development Programme

In Their Own Words: Selected Writings By Journalists On Mongolia, 1997-1999 | 6 January 2010

Editor-in-Chief: David South

Research Editor: Julie Schneiderman

ISBN 99929-5-043-9

Launched in 1999 towards the end of my two-year assignment in Mongolia, this book is a unique resource for a developing country: a one-stop compilation of journalism chronicling the ups and downs of life in a country where the political and economic system has been turned on its head. You can download an edited selection of the book from Google Books here: In their own words: Selected writings by journalists on Mongolia, 1997-1999

Now also available at the University of Toronto: https://search.library.utoronto.ca/details?3403065

The UNDP Mongolia Communications Office aided many journalists to cover Mongolia from 1997-1999. Three examples are below:

“Herding instinct” by Jill Lawless, The Guardian, 9 June 1999.
“A Mongolian Shopping Spree Fizzles” by Thomas Crampton, The New York Times, June 25, 1998.
“The Milk of Kindness Flows in a Peculiar Land A Steppe From Nowhere” by Leslie Chang, The Asian Wall Street Journal, 15 August 1998.
Top journalists covering Asia in the late 1990s contributed to the book.

Citations

The Dinosaur Artist: Obsession, Betrayal, and the Quest for Earth’s Ultimate Trophy by Paige Williams, Hachette Books, 2018, ISBN 9780316382502

https://davidsouthconsulting.org/2021/06/14/case-study-1-investigative-journalism-1991-1997-2/

https://davidsouthconsulting.org/2020/12/19/case-study-4-un-undp-mongolia-1997-1999/

https://davidsouthconsulting.org/2021/07/14/freedom-of-expression-introducing-investigative-journalism-to-local-media-in-mongolia-1999-25-january-2016/

https://davidsouthconsulting.org/2021/05/25/ger-mongolias-first-web-magazine-and-a-pioneering-web-project-for-the-united-nations-12-january-2016/

https://davidsouthconsulting.org/2022/05/16/high-impact-communications-in-a-major-crisis-undp-mongolia-1997-1999-18-february-2016/

https://davidsouthconsulting.org/2021/03/12/mongolia-prepares-for-a-magazine-explosion-1998/

https://davidsouthconsulting.org/2020/05/01/a-partnership-for-progress-undp-in-mongolia-1997-19-january-2016/

https://davidsouthconsulting.org/2021/07/15/undp-mongolia-handbooks-and-books-1997-1999/

https://davidsouthconsulting.org/2022/05/27/undp-travelling-seminar-environment-and-development-mongolia-1998/

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Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2024

Categories
Archive United Nations Development Programme

UNDP Mongolia Handbooks And Books | 1997 – 1999

Publisher: UNDP Mongolia Communications Office

UNDP Mongolia Communications Coordinator: David South

Environmental Public Awareness Handbook: Case Studies and Lessons Learned in Mongolia

Environmental Public Awareness Handbook: Case Studies and Lessons Learned in Mongolia by Robert Ferguson.
Environmental Public Awareness Handbook: Case Studies and Lessons Learned in Mongolia by Robert Ferguson.

The Asian Development Bank (ADB) (2002) said: ENVIRONMENTAL PUBLIC AWARENESS AND THE ROLE OF NGOS The Dutch / UNDP – funded Environmental Public Awareness Project ( EPAP ) has been among the most interesting and possibly effective to be implemented in Mongolia.”

Mongolian Green Book

Mongolian Green Book by Robert Ferguson et al.
Mongolian Green Book by Robert Ferguson et al.

More books by Rob Ferguson:

The Devil And The Disappearing Sea: Or, How I Tried To Stop The World’s Worst Ecological Catastrophe (Raincoast Books).

Mongolian Rock and Pop Book

Mongolian Rock and Pop Book: Mongolia Sings its Own Song by Peter Marsh.
Mongolian Rock and Pop Book: Mongolia Sings its Own Song by Peter Marsh.
Pop music helps fuel Mongolia’s market economy by Oyuntungalag.
As cited in the book Collaborative Nationalism: The Politics of Friendship on China’s Mongolian Frontier by Uradyn E. Bulag (Rowman & Littlefield Publishers, 2010).

Mongolia Update 1998

Mongolia Update 1998 by David South and G. Enkhtungalug.

Other

Wild East: Travels in the New Mongolia

Wild East: Travels in the New Mongolia by Jill Lawless (ECW Press, 2000) is one of many books featuring content and resources resulting from the two-year publishing programme of the UNDP Mongolia Communications Office (1997-1999). 

Wild East: Travels in the New Mongolia by Jill Lawless.
Wild East: Travels in the New Mongolia by Jill Lawless.
A review of Wild East: Travels in the New Mongolia in the journal Mongolian Studies (2002) by Alicia J. Campi.
“Yet Ulaanbaatar is often ignored or downplayed in Western accounts (see, for example, Croner (1999) and Severin (1991); but see Lawless (2000) for a partial exception). Most Westerners who visit Mongolia seem anxious to get out to the countryside, to see the “real” Mongolia of nomads …” from Truth, History and Politics in Mongolia by Christopher Kaplonski (2004).

In Their Own Words: Selected Writings by Journalists on Mongolia, 1997-1999

In their own words: Selected writings by journalists on Mongolia, 1997-1999 by David South and Julie Schneiderman.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2024

Categories
Archive Blogroll Ger Magazine UNDP Mongolia 1997-1999 United Nations Development Programme

Ger: Mongolia’s First Web Magazine (And A Pioneering Web Project For The United Nations) | 12 January 2016

Ger Magazine was hosted on the http://www.un-mongolia.mn website from 1998.
  • Editor-in-chief: David South (1998-1999)
  • Logo design: P. Davaa-Ochir

“The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies.” Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. – Feb., 2000). pp. 130-139 (Publisher: University of California)

Ger Magazine was launched on September 9, 1998 (Ger is the Mongolian word for both the traditional tent dwelling and home). The theme of youth in the transition was explored by a combined team of Mongolian and foreign journalists. The Ger Magazine project had basically three goals: first, raise the quality of journalism in the country, secondly, introduce the country to a wider global audience and, thirdly, by being the country’s first online magazine, prove the internet was an effective way to communicate.

Issue 1

Issue 1 of the magazine investigated what life was like for youth during the transition years (post-1989). Stories tackled the struggle to find work in the free market, the booming pop music scene and how it is leading the way in business entrepreneurship, reproductive health, the basics on Mongolian culture, and vox pop views from Mongolian youth.

Issue 2

Issue 2 of the magazine investigated modern life in Mongolia during transition. The team of journalists were hitting their stride by this issue. Stories probed the proliferation of bars and the problem of alcoholism, corrupt banking practices and the loss of savings, how the young were the country’s leading entrepreneurs, Mongolia’s meat and milk diet, “girl power” and the strong role played by women, the burgeoning new media, the rise and rise of Buddhism, and Mongolia’s dynamic fashion designers (this article inspired foreign fashion designers to embrace the Mongolian ‘look’ in the next season’s designs).

Editor-in-Chief: David South, UNDP Communications Coordinator
EditorA. Delgermaa, UB Post newspaper
TranslationA. Delgermaa
Photography: N. Baigalmaa, David South
Design and layout: B. Bayasgalan, UN Homepage Webmaster

“This is the second issue of Ger. We have chosen the theme “Modern Life” to introduce people outside of Mongolia to the complexities of life in today’s Mongolia – the good, the bad and the ugly as a cowboy film once said. Ger is a project that draws upon the best journalists of this country. Under democracy Mongolia enjoys a flourishing free press, with over 800 officially registered newspapers for a population of 2.4 million! Ger has chosen A. Delgermaa of the UB Post newspaper to edit this issue. The UB Post is one of two English language newspapers in Mongolia and is owned by the Mongol News Company, a publisher of five newspapers, including the daily Today newspaper. Ger is a project to improve the quality of journalism in Mongolia, while introducing the people of the world to Mongolian journalists and this wonderful country. We hope you enjoy this issue of Ger. Please send us your comments. 

Ger is not an official UNDP publication but a project to improve the quality of journalism. Opinions expressed in the magazine do not necessarily reflect the official views or policies of the United Nations Development Programme. Articles may be freely reproduced so long as credit is given and the editors are notified. Ger is published in English and Mongolian. 

Contributors

Ms. A Delgermaa: A reporter with the UB Post English weekly newspaper, which enjoys a good reputation among readers. Delgermaa is a young journalist and started her career in 1997, after graduating from the English Department of the Foreign Service School, Mongolian National University. She is a regular contributor to UN publications and has been published by Inter Press Service. She thinks Mongolia needs more psychologists to give courage to those many who are yearning for a better life. Like many young Mongolians she also wants to study abroad, to learn how journalism is practised in other countries.

Ms. N. Oyunbayar: Also a reporter with the UB Post newspaper, Oyunbayar, is a graduate of Ekaterinburg University in Russia, where she qualified as a Russian language teacher. She left her pupils in Sukhbaatar aimag, where she was born, some years ago and decided to undertake a personal crusade against wrongdoing by becoming a journalist for the UB Post. She is an award-winning journalist and a member of the Mongolian Free Democratic Journalists Association. She loves to cook and enjoys learning about new cuisines. 

Ms. T. Mandala: A historian and journalist, she is a reporter with the “Weekend” weekly newspaper. She has been a journalist for two years, has written several interesting interviews with politicians, including the Mongolian parliamentary speaker R. Gonchigdorj and MPs Da. Ganbold and E. Bat-Uul. She explores issues like life after death and she wants to be a public defender in a court one day. 

She is a successor of her grandfather Khodoogiin Perlee, who is a famous historian in Mongolia. And studies religion, especially Buddhism and Shamanism. 

Mr. D. Dorjjav: A psychologist and a lecturer at the Administrative Management Department of Mongolian National University, he is married and has two girls and a boy. He is currently working on his doctoral thesis. His wish is to help people to open themselves up and discover their abilities. His plan for the future is to contribute to the psychological understanding of life in Mongolia. Dorjjav’s hobby is to talk to people and exchange opinions.

G. Enkhtuya: Born in the year of the pig (there are twelve years in the lunar calendar), a professional in marketing, trading, journalism, she is currently studying law in the Institute of Legal Studies, Mongolian National University. She is also a reporter for Odriin Sonin independent daily newspaper, once the largest state-owned newspaper until the start of 1999. She likes to cook when she is liberated from her official duties.

Jill Lawless: An Honourary Foreign Member of the Mongolian Free Democratic Journalists Association, Jill has been the editor of the UB Post newspaper since 1997. Jill regularly contributes to Agence France-Presse, Far Eastern Economic Review, Deutsche Welle and the Canadian Broadcasting Corporation. She is happiest riding camels in the Gobi desert. 

Michael Kohn: Michael is the editor of the Mongol Messenger and contributed to the first edition of Ger. He is a regular contributor to Associated Press and the Far Eastern Economic Review. Michael is an avid traveler and is an expert on hitchhiking across Mongolia.  

Ms. N. Baigalmaa: Photo journalist for Onoodor (Today) newspaper, the number one independent newspaper for three years. “Photo journalism is always interesting. I really enjoy taking action photos.” She is fed up of taking photos of static photos of people standing or sitting and has devoted her life to photo journalism. One never boring thing for her is her two sons and a girl. Sometimes she loses her sports jacket to her oldest son, now taller than her.”

Stories

Depositors’ blues: Banks fail to reform and become solvent.In the absence of a trustworthy formal banking system, Mongolians are sticking to an elaborate informal banking system driven by pawn shops

by G. Enkhtuya

“Mongolia is currently in the clutches of a full-blown banking crisis. On the surface life appears normal on the streets of the capital. Workers busily renovate apartments to open as shops and restaurants, while other workers march to the many building sites throughout Ulaanbaatar. But there is no doubting the situation is serious.”

Young Mongolian entrepreneurs lead the business revolution

By Michael Kohn

“Under communism, L. Bayasgalan studied fungus. Under capitalism, she’s used her scientific knowledge to build her own organic vegetable business. The 35-year-old is in the vanguard of a budding army of Mongolian entrepreneurs cashing in on the impoverished landlocked country’s nine year transformation from the world’s second oldest communist state to a free-market democracy.”

Meat, milk and Mongolia: 
Misunderstood and often maligned, the Mongolian diet does make sense

By N. Oyunbayar

“A stroll down any Mongolian residential street is usually the first introduction to a visitor of the savoury odours of the traditional meals of this country. If you are invited into somebody’s ger (or traditional tent dwelling) or apartment, you will probably have an opportunity of tasting buuz, khuushuur and bansh.

“These Mongolian national meals are made with minced meat seasoned with garlic or onion (it can be anything from mutton to beef to camel to horse to gazelle) covered with flour and steamed in boiling water, fried in oil and boiled in water. For many visitors to the country the vast quantities of meat consumed can at first be surprising. But it is not long before a visitor finds their favourite Mongolian food, be it buuz, khuushur or a number of other treats. A Canadian living in Ulaanbaatar once told me, “the Mongolian national food contains a lot of meat, but I like the buuz.

“The meat-dependent diet arises from the need for hearty food to stave off the cold and long winters. Traditionally nomadic herders, Mongolians have for centuries been dependent on mostly animal products for their dietary staples. Now after over nine years of transition, the traditional diet has been used as a shield against hunger and for the wealthy, subject to the influence of imported foreign foods and cuisine. When the Russians pulled the plug on Mongolia’s aid in 1991, the economy went into a severe crisis. For many Mongolians it was their first experience of serious hunger. The staple traditional diet of meat, milk and flour saw many people through this crisis, when food imports from the former Soviet Union dropped off.

“Mongolians traditionally have turned to foods that are high in protein and minerals, relying less on more seasonable foods like vegetables and fruits. This means a diet heavy on meat and dairy products, the latter when sour in the summer time thought to clean the stomach. It isn’t just about meat though. Mongolians do also eat cereal, barley and natural fruits and plants native to the country.

“Out of necessity Mongolians have found creative and ingenious ways to use the milk of all five of the domestic animals in the country: sheep, cattle, goats, camels and horses. Orom is the cream that forms on top of boiled milk; aaruul are dried curds and can be seen baking in the sun on top of gers in the summer; eetsgii is the dried cheese; airag is fermented milk of mares (female horses); nermel, is the home-brewed vodka that packs a punch; tarag, is the sour yogurt; shar tos, melted butter from curds and orom, and tsagaan tos, boiled orom mixed with sometimes flour, natural fruits or eesgii. The method of drying the dairy products is common in preparing them. The Mongolians prepare enough dairy products for the long winter and spring.

“The traditions of using, producing and preparing these foods are stronger outside the main cities, where the population is more reliant on the vast herds for food. B. Baljmaa (Mongolians generally use their first names), a dietitian and nutritionist at the National Nutrition Research Centre, says there is a genetic compatability for the food.

‘Before 1992 there wasn’t much research in this area. But now we know from our research that Mongolians are better able to absorb foods with more acid. So, traditional food should be kept in the country.’

“Since 1997 Mongolians have seen a substantial increase in the variety and quantity of imported foods, many of which were only thought of as exotic 10 years ago. Since the start of 1999 the Soviet-style market stalls now compete against western-style supermarkets, with trolleys and shelves proudly saying “Made in Mongolia.” In markets like Dalai Eej, Dorvon Uul, Food Land and Mercury it is possible to buy delicious prepared and canned foods, candies, biscuits, and unknown and unused before by Mongolians, products like oranges, bananas, plums and American chickens.

“On top of the canteens and cafes serving Mongolian food, there are now many restaurants, canteens, bakeries and tea shops which serve meals from Russia, Italy, India, China, Japan, Korea, England, France, Senegal and Turkey. Most of these restaurants are located in the capital, Ulaanbaatar. Mongolians have taken to the new tastes. “I think Mongolians like roasted chicken and fish when they go to the foreign sit-down restaurants, and hot dogs and pizzas in the fast foods shops,” says I. Narantsetseg and her husband J.Battulga. Both were dining in the Seoul restaurant, and are happy they can go out for food: “it is a very good thing that there are opening a lot of restaurants where friends and family can go and enjoy food in comfort.”

“Isobe Hiroshi, manager of Seketei, a high-end Japanese restaurant, told me “only 20 per cent of our customers are Mongolians. The vast majority of our clients are foreign, especially Japanese people who are working and traveling here. I think Mongolians have still not grown used to sushi and sashimi, the raw fish prepared in our restaurant. But I hope we will welcome more and more Mongolians in the future.”

“The traditional diet in the cities is more changed, more european. And with comes its own dangers for Mongolians says the Nutrition Centre’s Baljmaa:

‘There is a big problem of importing poisonous foods and food which probably will cause the nutrition-related diseases common in more developed countries,” she continues.”While the trend around the world amongst health-conscious people is towards natural products for their food, some Mongolians use some food which can cause troubles for their health. For example, fast food made with more oil, salt and sugar are considered the biggest dangers for human health. On the plus side prices for these imported foods are higher and only the wealthiest people can afford them; the poor people can’t buy and eat it no matter how much they desire. This means their poverty is protecting their health. We should boost our efforts to raise awareness on what foods protect your health.’

“Help in improving nutrition awareness a poster portraying a ger details the food habits of Mongolians and the nutritional value of common foods.

“Now I want to present to you recipes of processing and preparing some Mongolian national products and meals:

“From ancient times, Mongolians use abundant and peculiar methods of processing meat and preparing food.. One of the more popular methods of processing the meat is to prepare borts (dried meat) for use in winter. Borts is made from the meat of cows, goats and camels. Here is a recipe for camel borts presented by Dr. Sh. Tserenpuntsag who engages in the research of the meat.

1. Separate the meat from its layer of fat, as fat will spoil in drying.
2. Cut meat into strips about 20-30 centimeters long and two to five centimeters thick.
3. Hang to dry in a well-ventilated room.
4. Leave for four to five months.
5. Cut into small strips for use in any dish you like.

“If soaked in water, the meat will expand up to two and half times in size. It should then be cooked for 18 minutes.

“The main method of cooking the meals of the Mongolians is boiling and steaming, considered the most healthy method in cooking by researchers the world over. Here is a recipe for buuz from the Nutrition Centre. It is considered one of the national meals of the Mongolians and is cooked by steaming and is a good fast food.”

Girl power in Mongolia: What is the status of gender after nine years of transition?

By D. Dorjjav

“As American author Arthur Schlesinger once said, the main breaker of peace in our time is social differentiation. It is unfortunate that, despite developments in human civilisation, modern times have brought only new manifestations of this phenomenon, based on people’s mind, feeling, life style, goals and dreams.”

Money may be tight, but Mongolians are still going online, booting up and sending emails

By Jill Lawless

“Inside Mongolia’s former Construction College, a slab of brightly painted concrete overlooking Ulaanbaatar, murals on the peeling walls still depict beefy workers engaged in heroic labour. The stern visages of Marx, Engels and Lenin loom above the central staircase.

But students these days have neither communism nor construction on their minds. The building is now the School of Computer Science and Management of the Mongolian Technical University.”

The real Mongolian gets the nod from Western fashion designers. Mongolia’s top fashion designer, Solyolmaa, gives Ger a quick lesson on Mongolian clothing

By A. Delgermaa

“Last year’s fashion runways were dominated by one influence: Mongolian traditional design. If a designer wanted to show they were boldly embracing natural fibers and furs, then the refrain ” my show is all Mongolian” would be proudly boasted to the media. The country has become a synonym for sartorial flare and rugged beauty. It also doesn’t hurt that one of Mongolia’s top exports, cashmere wool, is in vogue, from Japan to Europe to the United States. After years of being isolated from the west under the umbrella of the Soviet Union, Mongolian fashion is proudly strutting the catwalks of the world.”

Cashmere is king but Mongolia still struggles to reap the benefit

By A. Delgermaa

A Mongolian cashmere designer once opined that Mongolians are lucky that most goats in the country are capable of producing fine cashmere. And while Chinese cashmere dominates the marketplace, Mongolian cashmere is by far the purest and finest.

About 30 cashmere companies contributes tens of millions of dollars a year to the country’s wealth (though nobody is quite sure how much because most cashmere sales go unreported to the government). But the revenue isn’t what it used to be due to problems in the domestic industry and a drop in the world price. Z. Ayur, chief secretariat of the Gobi company, thinks it doesn’t have to be that way. “Unfortunately we lose half of our raw cashmere to China,” he says.” The Chinese buy cashmere at a high price, not depending on the quality. This means national manufacturers lack raw cashmere to process into garments.” He thinks raw cashmere exports should be banned or subject to a duty of 100 to 150 per cent. Mongolia’s weak infrastructure plays a part as well. It is cheaper for herders to travel to the Chinese border with cashmere than to bring it to the capital, Ulaanbaatar. Often when they are at the border with China, they are subjected to some hard bargaining by Chinese brokers, who exploit the fact herders can’t afford to walk away empty handed. 

Cashmere has always been considered a luxury and expensive. But in the past two years it has lost its fusty image as only for old people. Trendy designs have attracted a vast market of younger cashmere consumers. “I guess in the past it was dear and expensive and designs weren’t very appealing to the younger set,” thinks Gerelmaa, the chief designer of Gobi company. 

The Gobi company is one of the few state enterprises left over from the socialist period that still makes money (and is due for privatization this year – a prime pick for foreign investors). 

In 1972 the United Nations funded projects to experiment with starting a cashmere garment industry in Mongolia. This innovative thinking led to a joint Japanese-Mongolian venture in 1981 to start the first cashmere manufacturer, Gobi. These days it still produces one third of the country’s cashmere products. 

Mongolian Wool and Cashmere Federation head Tsendmaa is optimistic about the drop in the world market price.” It will soon go back up again,” she says with confidence. “The reserve of cashmere in the world will run out soon. What happened with the drop in prices is typical of any industry when it overproduces.” What worries her most is the flood of Mongolian cashmere going to China, where Chinese workers process and knit the garments and reap the job benefits.

While cashmere is still known for its use in classic turtle, crew and v-neck jumpers, things have changed. “Before we mostly exported classic styles in off-white, brown, grey, black, bark, blue or dark red to Japan or Germany,” continues Tsendmaa. “Now Americans order more fashionable cashmere for the young. The designs of short jumpers that expose bare chests and waists are cheap to produce (less material) and suitable for young fashions.” 

Italian, French or Belgian customers are fussier and demand greater variety in designs. These countries determine the vogue for cashmere wear and use the most high tech knitting technology.

Contemporary cashmere fashion in France or Italy can combine fur or silk. Colours have also been revamped, with the young going for light blue, light pink, snow white, off-white and light green. Italians and Americans like metal grey with rose or pink. Mixing up the colours in sporty stripes and lines is also popular.

Cashmere is very practical, warm and light. “It is not suitable for the office,” says Gerelmaa.” Cashmere wear is more suitable to wear for a night out or just for hanging out. But of course it is not for sport!” 

Fashionable Mongolian cashmere is becoming a strong competitor to Chinese, Italian, Scottish or American cashmere. “The raw material is pure and the design is more fashionable.” And a happy Gerelmaa likes the sound the cash register makes in Japan: “In Japan classic Mongolian style is sold for more than US $1,200 in the Takashimaya Store, in GINZA.” Now if more of that kind of hard cash found its way back to Mongolia, the country would definitely be better off. 

Mongolians call them mannequins, but this model has something to say and a good head on her shoulders

Interview by A. Delgermaa

It could be said that there is no girl who does not dream of becoming a model. Many Mongolian girls, particularly Ulaanbaatar city girls, are flocking to attend courses in modeling in the last few years. Some say models are mushrooming in Mongolia, a country known for its fresh-faced people and robust physiques. 

Ger interviewed S. Ikhertsetseg, one of the twin top models of Mongolia.

When did you first appear on the fashion stage?

“When we were 15 we played piano for the state concert on International Women’s Day on March 8. The ( Best Fashion) company was in trouble and they did not have anyone to wear some leather fashions for the show in the concert. It was fortuitous that we were asked to be the models. We kept it secret from our parents until we received a prize from Mongolia’s top fashion show, Goyol (or beauty) , in 1988. That was a year after the state concert. Being a fashion model was not considered so desirable as it is now. We were busy studying at music school and our parents did not know what we were doing.”

What do you think of today’s models?

“In the early days of fashion shows in Mongolia in the 1980s, we did not have many competitors. These days there are many beautiful Mongolian models we have to compete with, but only a few are very good. If someone is lucky, they have the potential to compete at the world level. Personally, I don’t like models who are too trained by courses.”

Do you think becoming famous is pure luck?

“Of course it is luck. But that doesn’t mean it isn’t a lot of hard work. You must send photos to agencies, and then only then, will someone see your photo – that is luck.”

What about design and fashion in Mongolia? Are Mongolians fashion sensitive?

“I can not say Mongolians are sensitive to fashion. I think our designers should work harder. Design is not a dress or a suit. It is everything, the whole cornucopia of details. I do not think we are going to compete with Europe, which has a long history of making clothing, rich in colors or designs. There is a big difference between fashion in the West and in Mongolia.”

Mongolia has a lively free press who sometimes step over the line when it comes to gossip and scandal reporting. These so-called “yellow” newspapers have damaged many people’s reputations. This had also happened to you. Some newspapers called the two of you the Barbie girls in Beijing, earning a lot of money.

“Yes, they did say those bad things. We replied to them.”

Was it before the court?

“No, that is a personal question.”

What was the result?

“The newspapers didn’t do that again.”

What do you do now?

“Both of us keep up the fashion work and also teach piano. Music is our profession and love. We founded the Association of Models of Mongolia to protect their rights and strengthen their position in the society.”

Impact

The stories have been featured in many books on the country, and the magazine was recommended as a good resource by the Lonely Planet guidebook. 

This was not only the first publication of its kind in the UN, it was also a pioneering online venture and remarkable for a country lacking the advantages of wealthier countries.

An online survey of the state of Mongolia’s media and its history (www.pressreference.com/Ma-No/Mongolia.html), had this to say: “An interesting variation from some of the other publications available is Ger Magazine (published online with guidance from the United Nations Development Program, UNDP), which is concerned with Mongolian youth in cultural transition. The name of the magazine is meant to be ironic because a ger is the Mongolian word for yurt—a yurt being traditional nomadic housing—but the magazine is about urbanization and globalization of Mongolian youth.”

Citations

A Complete Guide on Celebrations, Festivals and Holidays around the World by Sarah Whelan, Asteroid Content, 2015

Gale Directory of Publications and Broadcast Media by Jeff Summer, Gale Group, 2001

In Search of Mongolian Barbecue by Debra McCown, Abingdon, Virginia, 2017

Mongol Survey, Issue 8, The Society, 2001

Mongolian Culture and Society in the Age of Globalization by Henry G. Schwarz (editor), Center for East Asian Studies, Western Washington University, 2006

Nations in Transition: Mongolia by Jennifer L. Hanson, Infobase Publishing, 2003

Teen Life in Asia by Judith J. Slater, Greenwood Publishing Group, 2004

World Press Encyclopedia: A Survey of Press Systems Worldwide, Volume 1 by Amanda C. Quick, Gale Group, 2003

Some of the team behind Ger:

Editor-in-Chief: David South

Logo Design: P. Davaa-Ochir

Layout and Online: B. Bayasgalan

Contributors: A. DelgermaaMichael KohnJill LawlessPeter Marsh, and N. Oyuntungalag.

Read the Wikipedia entry here: en.wikipedia.org/wiki/Ger_magazine

Read the full content by searching the www.archive.org wayback machine via the http://www.un-mongolia.mn website: https://web.archive.org/web/19990420090143/http://www.un-mongolia.mn/

Ger Magazine contributor Jill Lawless’ book Wild East: Travels in the New Mongolia here: https://wildeasttravelsinthenewmongolia.wordpress.com

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021