National Legal Center (NLC)

United States Agency for International Development/Mongolia (USAID)

Economic Policy Reform and Competitiveness Project (EPRC)
The Asia Foundation/Mongolia (TAF)

    The National Center for Legal and Judicial Research, Training and Information was established by the Resolution No.121, 2002 of the Government of Mongolia and its Regulation and organizational structure were approved by the Order No.222, 2002 of the Minister of Justice and Home Affairs.

    Objectives:
    The National Legal Center is a research, training and information organization that:

    Conducts research on legal structures, implementation of laws, their interdependence and impacts

    Supports the preparation and development of government policies and improvement of the legal framework

    Conducts research on crimes and measures of mitigation and prevention

    Conducts in-service professional training for legal professionals, responding to requests from government and non-government organizations

    Supports the systematization of laws and the legal framework

    Activities:

    Develops capacities in the legal field by undertaking research on comparative legal systems, and structures, justifications, formulation, compatibility and impact of laws

    Conducts research on crimes common in Mongolia, issuing suggestions and recommendations, developing programs and projects and publicizing findings through conferences and seminars

    Conducts high level training for legal professionals (judges, prosecutors, advocates and legal advisors) on the changes in Mongolian laws, their concepts, principles, contents, objectives, rules and methods of application

    Conducts training for lawyers to provide them with professional knowledge and improve their qualifications

    Maintains a public database of national laws, decrees, and regulations accessible through the Web

    Collects and disseminates information on international treaties, agreements, and foreign legislation

    Maintains statistical data on crimes and court practices

    Publishes specialized law brochures, research materials, books, newspapers, journals and handbooks for distribution to central and local authorities, legal entities and citizens

    Operates a library open to legal professionals and citizens with relevant legal and training materials

    Provides computer terminals for use by the public to access materials at the Center and conduct legal research

    Maintains a printing press house and a television studio to disseminate legal materials and promote legal education and understanding

    Produces materials to promote legal information and organizes public awareness activities in cooperation with relevant organizations

    Background: The U.S. Agency for International Development (USAID) plays a prominent role in providing bilateral American economic assistance to Mongolia. The program emphasizes two main themes: first, private sector based economic growth; and, second, more effective and accountable governance. Every USAID-funded activity in Mongolia is organized around at least one of these two mutually reinforcing goals.

    A new five year strategy that took effect in October 2003 provides the basic operating framework for USAID programs in Mongolia. Special areas of interest include:

    • judicial reform
    • energy commercialization
    • financial sector expansion
    • small business development in rural and urban Mongolia;
    • improvements in key areas of private sector development in which Mongolia should enjoy a competitive advantage, such as tourism and cashmere

    The current USAID program is based on more than 12 years of prior USAID involvement in Mongolia. The very first grant agreement was signed with the Government of Mongolia in November 1991. It provided a grant of $10 million in emergency supplies and humanitarian relief at a time when the country was in desperate economic straits. In subsequent years, USAID programs provided additional emergency assistance, addressed critical energy concerns and helped lay the foundation for further economic and political reform.

    Total USAID assistance provided during the twelve-year period 1991 through 2003 is now approaching $140 million, all of it in grant form. The program is managed by a small eight-person USAID Mission based at the American Embassy in Ulaanbaatar . Specific projects are implemented through a network of several contractors and grantees in cooperation with both public and private sector Mongolian partners.

    Current program: The current USAID strategy in Mongolia covers the five-year period 2003 through 2008. Among other things, it explicitly links the two main themes of the program, more effective and accountable governance and private sector led economic growth.

    Strategic Objective One ("Accelerate and Broaden Sustainable, Private Sector Led Economic Growth") consists of five main activities:

    1. GOBI INITIATIVE: Implemented by Mercy Corps International (MCI) in partnership with PACT, the Gobi Initiative promotes economic growth in six Gobi provinces outside Ulaanbaatar. Started in January 1999, the range of activities now includes rural finance through XasBank; rangeland management; technical support for herders and small and medium-sized enterprise; and expanded business information services through various media, including radio programs and the monthly magazine Rural Business News (see www.gbn.mn and www.marketwatch.mn.
    2. GER INITIATIVE: Implemented By Cooperative Housing Foundation (CHF), this initiative was launched in late 2002. It focuses primarily on business development in the ger districts and "peri urban" areas of Darkhan, Erdenet and Ulaanbaatar.
    3. COMPETITIVENESS INITIATIVE: Implemented by Nathan Associates in partnership with J.E. Austin Associates, this program commenced in October 1999. The initiative focused on two main areas - cashmere and tourism. The program included direct support to two local associations that are vital for both, the Mongolian Tourism Association (www.travelmongolia.org) and the Mongolian Fiber Mark Society (www.mongoliancashmere.org).
    4. PRIVATIZATION INITIATIVE: Implemented by the Barents Group beginning in April 1998, the USAID-funded privatization program worked closely with the State Property Committee (SPC) responsible for managing and privatizing state-owned assets. The program first assisted in the sale of 47 enterprises through sealed bid-auctions that raised more than $15 million. More recently, Barents worked closely with the SPC to conclude successful tenders for the Trade and Development Bank (TDB), the Agricultural Bank, Mongol Datgal (the national insurance company) and NIC (the national petroleum company).
    5. ECONOMIC POLICY REFORM AND COMPETITIVENESS (EPRC): Implemented by Chemonics in partnership with The Services Group, The Asia Foundation, Crimson Capital, Dexis Consulting Group, and Making Cents this newest USAID program was launched in September 2003. It provides a quick-response mechanism for addressing a wide range of economic policy reform issues. Current activities include economic advisory services to the Prime Minister's office (see www.open-government.mn) and a range of support programs related to energy, the financial sector, and private sector expansion.

    Strategic Objective Two ("More Effective and Accountable Governance") consists of two main activities:

    1. JUDICIAL REFORM: Implemented by the National Center for State Courts (NCSC), this program started in early 2001 and provides technical assistance, training and equipment focused on case management, court assistance, legal education and legal ethics (see www.ncsc.mn).
    2. SUPPORT FOR DEMOCRATIC PROCESSES: Implemented by the International Republican Institute (IRI), this program dates back to 1992. The current activity focuses on promoting political party development and strengthening parliament.

    Other programs:
    USAID also funds a number of smaller programs aimed at promoting economic growth and civil society in Mongolia . These include a limited scholarship training program administered by the Academy for Educational Development (AED); the eastern steppes living landscape project implemented by the Wildlife Conservation Society (WCS); support for XacBank managed by Mercy Corps International; two NGO development programs, one supported by Mercy Corps International and the other by the International Human Rights Law Group; the "bench book" development project managed by the International Law Development Organization; an Energy Partnership between the Energy Regulatory Authority and the Delaware Public Utilities Commission arranged by the US Energy Association (USEA); and short-term training scholarships arranged by Cisco Systems and the US Technology Training Institute (USTTI).

    Prior programs of interest that have been completed include the Lake Hovsgol Park Management Project implemented by the US Department of Interior; the Wind Energy Assessment Program administered by the US Department of Energy that resulted in a detailed wind atlas for Mongolia; and the Vocational Center for Disadvantaged Mongolians project to support the construction and equipping of the Don Bosco vocational training school in Ulaanbaatar.

    Title: Economic Policy Reform and Competitiveness Project
    Activity: 2003-2008 year
    Funded by: USAID
    Implented by: Chemonics International Inc.
    Purpose of the activity: Accelerate and broaden sustainable, private-sector-led economic growth through an improved enabling environment for private sector growth and more competitive industries and sectors.
    Goals:
      1. Accelerate and deepen the policy reform process in Mongolia
      2. Promote increased competitiveness in the Mongolian economy.

    Vision: Support a competitive participation of Mongolia in the world economy.

    Strategy:

    Continuation of the development, maintenance, and implementation of sound, market-oriented macroeconomic, trade and investment, sectoral, and microeconomic policies that promote sustainable and equitable economic growth

    An enabling business environment and regulatory framework that fosters competition and attracts foreign investment and best business practices

    The development of private sector businesses and clusters focused on supplying the demand of target export and domestic market niches capable of turning and maintaining comparative advantages into competitive edges

    Continued national dialogue on building a national consensus to “put Mongolia on the world map” supported by government transparency and good governance business practices

    Tasks:

    Policy analysis, formulation and implementation support.
    This task category includes: (a) policy assessment and analysis; (b) formulation of policy options for improving the competitiveness of the Mongolian economy; (c) assistance in consensus building; and (d) technical and managerial implementation support.

    Consensus building, public education and national dialogue.
    EPRC supports an improved environment for government transparency and corporate governance by working with national decision-makers, the business community, local government and community leaders, academic institutions, and representatives of civil society using a consensus building strategy linked to policy reform and private sector led economic growth.

    Cluster development and support.
    EPRC works with individual firms and inter-related groups (clusters) in key industrial sectors to develop competitive, export-driven businesses. Priority sectors include cashmere, tourism, hides, skins, leather, meat, and textiles.

    Energy sector support:
    EPRC supports Mongolia's efforts to develop and implement a transparent, market-oriented regulatory environment to promote a competitive and efficient delivery of energy services to consumers; commercial practices in energy generation and distribution; and an environment attractive to foreign and domestic private investment.

    Internship Program. To improve the quality of economic, trade, and business decision-making, EPRC runs a small internship program where participants acquire first-hand experience in best practices by working side by side with experts on specific projects focused on improving the competitiveness of the Mongolian economy.

    The Asia Foundation was the first private U.S. organization to support Mongolia 's transition to democracy and a market economy.

    The Asia Foundation is an American nonprofit, nonpartisan organization committed to the development of a peaceful, prosperous, and open Asia-Pacific region. It is funded by contributions from corporations, foundations, individuals, and governmental organizations in the U.S. and Asia ; and an annual appropriation from the U.S. Congress. Through its programs, the Foundation builds leadership, improves policies, strengthens institutions, and identifies and mobilizes constituencies for policy and institutional reform. Working in Mongolia since January, 1990, the Foundation has promoted representative government, market-led economic growth and poverty reduction, judicial and legal reform, and the development of civil society by providing critical technical assistance and direct assistance, and by investing directly in Mongolia 's human resource and leadership potential.

    As Mongolia approaches its 15th year of free-market democracy and The Asia Foundation enters its 15th year of programming in Mongolia , the Foundation has produced a new strategic plan. The strategy focuses on addressing the most critical governance problems that inhibit Mongolia 's sustainable growth and development. Specifically, the Foundation's program aims to improve the effectiveness, efficiency and responsiveness of governance in order to stimulate robust, transformative and self-generating economic growth and social development. The Foundation's core programming is designed to identify and mobilize constituencies to change the way government works, with a triangulated approach on economic reform and development; legislative and governing institution strengthening; and foreign policy reform. In addition, the Foundation will continue to strengthen its Books for Asia program, aiming to transform its educational materials donation work into a sustainable non-profit enterprise by 2006.