Mongolia or the Republic of Mongolia is a state of Central Asia. It shares borders with Russia in the north and with China in the south, and has no access to the sea. The area is 1 564 116 km2. The population is 2.832 million people (as of July, 2006). The population density is 1.8/sq.km. Mongolia is divided into its capital, Ulan Bator, and 21 aymaks.

Mongolia is a parliamentary republic. The current Constitution of Mongolia was adopted on January 13, 1992, and became effective on February 12, 1992. The independence of Mongolia was proclaimed in July 1921 in the city of Ugra (today Ulan Bator).

The head of state is the president (Nambaryn Enhbayar - the President of the Republic of Mongolia), elected on an alternative basis by the national direct ballot vote for four years. The President can be re-elected for one extra term. In the absence of the President the functions of the head of state are performed by the Chairman of Great Sate Hural. The President is also the Commander-in-Chief of Armed Forces of the country.

The legislative power is vested in the parliament that is the Great State Hural, consisting of 76 members elected by the national ballot vote for four years. The Great State Hural is chaired by the Chairman, Vice-Chairman and General Secretary elected by the ballot vote from among the members of the Parliament.

The executive power is vested in the government formed by the Great State Hural as proposed by the Prime Minister and agreed by the President. The President submits a candidate for the Prime Minister for approval by the Great State Hural. The government is accountable to the Great State Hural.

The municipal power is vested in local self-governance bodies including hurals of aymaks, municipal hurals and hurals of somons. The members of these hurals are elected by the local population for four years.

From July 1996 till July 2000 the country was governed by the coalition of new parties that won at the parliamentary election of June 1996. The largest party of the coalition was the National - Democratic Party (NDP) formed in 1992 by merge of several liberal and conservative parties and groups. In 2001, the NDP was renamed to become the Democratic Party. The coalition also included the Mongolian Social-Democratic Party (МSDP, founded in 1990), Green Party (ecological) and Religious Democratic Party (a clerical-liberal party founded in 1990).

The results of election-2000 returned the earlier ruling Mongolian National - Revolutionary Party (МNRP) to power. The MNRP was founded as a Mongolian people’s party by merge of two underground revolutionary groups in 1920.

On January 11, 2006, Mongolia experienced a political crisis that started with a split of the Cabinet of Ministers – the People’s Revolutionary Party (PRP), a former communist party, claimed its withdrawal from the coalition government. On January 13, the Parliament of Mongolia voted for resignation of the coalition government. On January 29, 2006, a new government was formed practically under full control of the National-Revolutionary Party.

There are 4 deposits of lignite in Mongolia (Nalayha, Sharyngol, Darhan and Baganur). A deposit of coal was discovered in massif Taban-Tolgoy in the southern part of the country. The estimated coal reserves here are billions of tons. The deposits of tungsten ore and fluorspar average in amount are well-known and developed progressively. Discovery of a copper-molybdenum ore deposit in the Mount of Treasures (Erdenetiyn ovoo) resulted in construction of a mining and processing factory and appearance of factory township Erdenet.

In 2006 PPP GDP totaled 5.781 billion Dollars. The GDP increased by 7.5 %. 1. Agriculture – 20.6 %. 2. Industry – 21.4 %. 3. Services - 58 %. 4. Inflation rate – 9.5 % (2005).

In the early XII century, isolated Mongolian tribes made the first effort to unite and establish a state that was rather a union of tribes and is known in the history as Hamag Mongol. Its first ruler was Haidu-Khan.

The Mongolian state was established in 1206 when the Mongolian tribes were united by Genghis Khan. Genghis Khan remained a ruler of Mongolia from 1206 until 1227. The Mongolian state has considerably expanded, having incorporated territories of China (Ulus of Great Khan), Central Asia (Chigatay Ulus), Iran (Ilhan Empire) and Russia (Ulus Juchi or Golden Horde). However, due to significant differences in culture in the seized lands, the state was non-uniform, and soon started disintegrating.

Mongolia became independent again in 1911 after the Xinghai Revolution in China with its capital in Urga. Then the dictatorship was established in Mongolia by Russian Baron Ungern. In 1921, Mongolia got its own national government.