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Political Environment

Mongolia provides an interesting Asian example of how to manage a transition from a centrally planned to a free market economy within a democratic political framework. The United States values Mongolia's contribution to stability in a volatile part of the world, as well as its positive example in promoting economic reform and democracy.

Mongolia stands well across several governance indicators. The Economist political stability index suggests that Mongolia fares above average in the world. According to the World Bank, Mongolia is slightly above average in level of voice, accountability and rule of law although government effectiveness, regulatory quality and corruption control are only average. Moreover, the annual Freedom House survey, which ranks political freedom and civil liberties in countries throughout the world, classifies Mongolia as “free.” Mongolians currently enjoy most civil and political freedoms: dissenting views are regularly expressed and tolerated, and government intervention is largely absent from everyday personal life . Although Mongolia’s legal regime is relatively conducive to civil engagement and social accountability, there remain problematic areas within the legal and regulatory codes as well as inefficiencies in implementation, some resulting from Mongolia’s socialist legacy. The indicator on which Mongolia is comparatively weak is the Corruption Perception Index of Transparency International, which currently ranks Mongolia 83rd out of 177 countries, on par with Jamaica and Peru.

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