Mongolia: Problems of Sustainable Development

Mongolia began the transition to democracy and a liberal market system in the 1990s. Since then, the country has changed dramatically from an agrarian to a mining economy and from a nomadic nation to an urbanized society. Mongolia experienced a deep crisis during the transition period before its economy began to recover rapidly in the early 2000s. However, the mining-based growth was unstable and did not bring about widespread prosperity. Repeated recessions highlighted the fragility of the country’s development model based on commodity exports. In addition to unstable economic growth and high poverty, environmental problems have also become a serious threat to Mongolia’s sustainable development. Until the turn of the millennium, Mongolia was among the few countries with the least altered natural environment. However, since the 2000s, Ulaanbaatar has regularly been ranked among the cities with the worst air quality in the world. Excessive grazing due to a multiple increase in livestock numbers has led to the rapid degradation of the world’s largest steppe ecosystem. The development of giant mineral deposits in the Gobi Desert has led to the rapid depletion of existing groundwater sources. The solution to Mongolia’s interrelated economic, social and environmental problems is expected to be achieved through large-scale infrastructure projects. It is expected that the development of transport, energy and water infrastructure will become the basis for the formation of a diversified economy, improving living conditions for the population and preserving the natural environment. At the same time, the planned implementation of some of these megaprojects requires increased attention from Russia. The paper reveals the current specifics and key problems of Mongolia’s development, analyzes the national strategy “Vision‑2050” and the medium-term program “New Recovery Policy”, characterizes the current state and substantiates the main directions of Russian–Mongolian economic cooperation.