Mongolica 2016 summer vol 14 (22) by iRMUUN Publishing

Ministry of Foreign Affairs of Mongolia Society FOR THE PROMOTION OF MONGOLIA ABROAD

SUMMER 2016

Welcome Honorary guests, I am delighted to welcome you to Mongolia: “Аян замдаа сайн явж ирэв үү?” – “Have you had a pleasant trip?” as Mongols greet. Ulaanbaatar, Mongolia’s capital city, is now turned into a vibrant meeting point where Asia and Europe get together. These few days, it is a capital city of democracy, peace, mutual understanding and respect, and cooperation between Asia and Europe. Eight centuries ago, the Mongol Empire’s ancient capital, Kharkhorum, served as the gateway city of politics, economy, culture, arts, and trade between Europe and Asia. It was a bridge for the co-existence and tolerance of multiple religions. In this regard, we have a great legacy of our ancestors. In the modern times, we remain loyal to this tradition and maintain the most esteemed values of mutual respect and understanding. Today, the Asian and European nations account for 63 percent of the global economy and more than 60 percent of the world’s population. Obviously, there is much to discuss and share among ourselves. ASEM is the most vital mechanism to encourage dialogue and discussions between Asia and Europe. Mongolia is attaching the utmost importance to the Ulaanbaatar Declaration, which will be the product of the ASEM Summit. At this summit, we will set our shared goals for the future. Hence Mongolia proposes the following initiatives: Sincerely yours,

The first initiative is to strengthen the rule of law and fight corruption. Together we should act against weak governance and corruption.

Tsakhiagiin Elbegdorj President of Mongolia

The second initiative is to uphold women's rights. We must promote our women, who have the power to soften the earth. They must be fully supported everywhere at all levels of society. The third initiative is to nurture start-up initiatives. It has become a major global trend and let us brainstorm for bright ideas and take creative actions. Our nation has rich history and culture and we take pride in both our present and future. Mongolia is an open country like its wide open steppe. Mongolians are hospitable and open-hearted. I hope you will get to know our history, our culture, our present and our people, during your short sojourn with us. Enjoy your stay in the cradle of the first nation-state of nomads. Welcome to Ulaanbaatar, a capital city blessed with peace!

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SUMMER 2016 Vol. 14 (22)

Contents Peaceful Cooperation

14.

Integration of the Interests of East and West

16.

Asia-Europe Economic Cooperation

18.

Mongolia in the ASEM

20.

The Past and Future of ASEM

22.

An interview of Mr. L. Purevsuren, The Minister of Foreign Affairs of Mongolia

28.

Nomadic Culture Given to and eceived Back from the World

Dynamic Economy

34.

Ch. Saikhanbileg, Prime Minister of Mongolia Successful Hosting of the Asem Summit Will Raise Mongolia’s Profile Higher in the International Arena

40.

We Have a Goal: Communications and Information Technology Development in Mongolia

42.

ITZONE: Confidence That Builds the Future

44.

The Kingdom of Fantasy

48.

Mik: Pillar of the Secondary Mortgage Market

52.

Asterisk Technologies: Alternative Smart Solutions

54.

Green Economy: Responsible Financing

58.

The Taiga Forest of Mongolia

60.

The Key to Sustainable Forest Management is Skilled Workers

62.

Stories from the Field: Mongolia’s Great Local Forests: Valuable Local, National and International Assets Being Protected by Herders

64.

Mongolian Husbandry and Farming: History and Prospects

68.

The Hopes of Nomads: Gobi Takes Mongolian Cashmere Global

72.

30. 8

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Mongolia Connects Asia and Europe—And Connects With Itself

74.

Six Decades of Leadership, Perseverance and Innovation

Together for Financial Development

www.mik.mn

Contents PUBLISHER, PROJECT DIRECTOR Delgerjargal Anbat ART DIRECTOR Khurelbaatar Togoontumur

82.

The Philosophy of Mongolian calligraphy

86.

116

90.

Mongolian Traditions Living in Harmony with Nature New era of unknown “Mongols”

100.

Jack Weatherford: Chinggis Khaan was one of the greatest law givers in the history of the world

104.

EDITORIAL COORDINATOR Udval Dagva Shurentsetseg Otgonsuren

Mongolia’s New Declaration of Independence

108.

129

We would like to express our sincere thanks and appreciation to M. Badamlyankhua, Ts. Batkhuu, E. Unurjargal, E. Biligjargal, Ts. Suvdantsetseg, E. Jargal, B. Oyun-Erdene, T. Otgon-Erdene, B. Byamba-Ochir, G. Baljinnyam and E. Bulgan for their effort and support.

The Scholar who Showed the true Mongolia to the World

Welcome to Mongolia

114.

Twelve ways to experience Mongolia like a Mongolian

120.

Dragon Bones of the Gobi

126. Focus

Tel/Fax: 976-11-319300 E-mail: info@irmuun.mn

N. Jantsannorov: For Asians, Dialectical Materialism is hard to grasp, their concept of Yin and Yang is a horse of a different colour

94.

DESIGNER Dorjmanlai Davaakhuu

78.

peaceful heritage

PHOTOGRAPHERS Zazaa Biligsaikhan Onolbaatar Maralgua Badarch Bat-Orgil Battulga

MANAGERS Mungunchimeg Lkhanaasuren Narangua Batchuluun Bolortungalag Boldbaatar Bayarmaa Altankhuyag

The Mongolian Mining Sector: Endless Possibilities Erdenes – Tavan Tolgoi: Right managent and the future of Mongolia

EDITORIAL CONSULTANT Orgilbold Narandorj Esunmunkh Myagmar Orgil Luvsantseren Adam Cornford Karl Rudolf Bittigau CONTRIBUTING EDITORS Enkhtsolmon Erdenebaatar Egshiglen Bayarsaikhan Byambanyam Urtnasan Amarmend Amarsanaa Batkhuyag Sangidorj Yurii Nikolaevich Kruchkin Bum-Ochir Dulam Bat-Erdene Purevnyamjid Tegshjargal Jamiyan-Ochir

76.

Welcome to ulaanbaatar

136

132.

Ulaanbaatar: Then and Now

136.

That Beautiful Shape Reflected in the Mirror is an Eternal Mystery

140.

Education Without Borders: Changing Perspectives

142.

Signature People of Mongolia

150.

Travel Guide 10

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Peaceful Cooperation The vast rolling steppes of Mongolia are the cradle of the first statehood of a nomadic people. This land supported the Hunnu Empire 2,200 years ago, and later the Great Mongol Empire. Whether the fortunes of the Mongols rise or fall, though, they have remained committed to their traditional policy principles: open international dealing, peace-oriented foreign relations, and religious and cultural tolerance, which were fundamentals of their harmony-centric policy. These pioneering principles were codified in Chinggis Khaan’s code of laws Ikh Zasag or Great Yasa. The Great Yasa enshrined and enforced such innovative principles in medieval diplomacy, trade, and religion as these: ‘An envoy must not be treated in offensive or defaming manner,’ ‘International trade must be protected,’ ‘All religions must be respected; however, no religion can be provided special privileges.’ The Mongols have steadfastly kept to this moral and legal codex since its early days. On top of this heritage, the Mongols have earned esteem for enabling and connecting Eurasia’s religion, culture, and science under the rule of the Great Khans. Almost on the eve of the new millennium, a forum was established to foster cooperation between Asia and Europe and to create a platform for advocating common interests in the region – the ASEM Summit, which is turning 20 this year. During the last eight of of these 20 years, the Forum saw an enlargement in 12

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its membership including Mongolia, and stands today with 21 partners in Asia, 30 partners in Europe and partnerships with two regional organizations. Now Mongolia, located at the heart of Asia, has become a bridge of goodwill and is organizing the ASEM’s 20th Summit. It is already welcoming the first Summit guests. President of Mongolia Ts. Elbegdorj once invited ASEM Summit participants during the Forum in Milan, saying genially, ‘ ASEM-ers, let’s meet in Ulaanbaatar.’ Today, His Excellency is greeting you from the heart of Ulaanbaatar with a warm ‘Welcome!’ In the first part of our magazine, we present articles on Mongolia’s participation in the ASEM, on its resolutions and on decisions made at ASEM Summits, and on Eurasia’s future prospects in regional relations and development options. Mongols are fond of the saying ‘We are strong when united.’ Today, more and more national governments are enlarging the ASEM family. By discussing the challenging issues, the Asian and European states will be able to give impetus to creating a peacefully co-existing world and ensuring stability in the region. So here at the birthplace of Asian-European cooperation, we invite you to get to know our unique nomadic culture and wish you success in creating a better future by uniting your efforts and ours!

14.

Integration of the Interests of East and West ASEM is one of the main platforms where interests of East and West meet and blend and where common political understandings can be worked out.

16.

Asia-Europe Economic Cooperation An example of the economic integration between these two continents is the Silk Road that opened under the Han dynasty in the second century BCE.

18.

Mongolia in the ASEM Throughout its participation, Mongolia has assigned ASEM high importance and has been actively and regularly participating not only in ASEM high-level meetings, but in meetings at all levels.

20.

The Past and Future of ASEM There is widespread hope and expectation that when the Asia-Europe Meeting celebrates its 20th anniversary in Ulaanbaatar, the Asia-Europe partnership will transition into the next stage of cooperation.

22.

L.Purevsuren, The Minister of Foreign Affairs of Mongolia The main objective of Mongolia’s foreign policy is to ensure the country’s independence and national security through politics and diplomacy

15 18

16 20

22 28

Nomadic Culture Given to and eceived Back from the World Including Mongolia’s 80 years under socialism and 26 years on the path of democracy, this nation has maintained its nomadic lifestyle over the centuries since its inception.

SUMMER | 2016

Peaceful Cooperation

Integration of the Interests of East and West In the twenty-first century, most countries in the world have agreed that it is not possible to solve any major problems independently—that is, without multipolar and inclusive regional and international systems of cooperation. Global development has been accelerating, and as additional diverse cultures and civilizations advance on the path of development and step onto the world stage as actors, new powers and new alliances have

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formed. (Consider the rapid emergence over the last three decades of Brazil, India, and China, three completely different societies, as global economic forces.) Thus, countries must think farther ahead and are under increasing pressure to look beyond merely national solutions and seek multilateral political and economic relations. This leads to increased cooperation and mutually beneficial relations between neighboring countries. The

same can be said of continents—take the example of North and South America, for instance—whose constituent states are seeking to unite their common interests. In recent years, developing Asia-Europe partnership has attracted worldwide attention. Geographically, the two continents are adjacent, so there is ample opportunity for mutually beneficial economic relations. Also, both continents’ regional interests intersect in multiple

Image: www.asem11.mn

politics

areas, such as transport and communications, energy, environment, and security. Maybe it’s easy for Asia, bordering Europe and forming Eurasian region with it, to get the attention of the West. Asia as a whole, including the Middle East, is the most densely populated and ethnically diverse continent, and includes the birthplaces of most of the world’s mainstream religions. Asia as a continent retains its multiple and varied cultures, and it has extensive oil resources, but it’s also facing terrorism and other complications, including resource issues and uneven development both within and between nations. Given both rapid growth and these pressing problems, not only neighboring nations but all countries on both continents are focusing on complicated regional security questions and are eager to solve pressing problems quickly and rationally through political and diplomatic negotiations. ASEM is one of the main platforms where interests of East and West meet and blend and where common political understandings can be worked out. Moreover, in the last twenty years, countries of the Eurasian region have been continually seeking new ways to integrate their interests through negotiations via international conferences and workshops. On August 28, 2014, there was an international conference held on the topic of “Prospects of European Union–Central Asia Relations” in Almaty,

Prof. Dr. Gerhard Sabathil

Image: Drop of Light/ shutterstock/ ASEM Summit

ASEM Summit. MILAN, ITALY - Oct 17, 2014

Kazakhstan. In his keynote speech at the conference, Prof. Dr. Gerhard Sabathil, Director in the European External Service, Brussels, said, in part: "The peoples of Europe and Central Asia have millenary ties as they had travelled and settled along the paths connecting East and West in the vast Euro-Asian space. Beyond wars and conquests, these ties contributed to the mutual enrichment of our knowledge and culture. In 2007, the European Union

adopted a Strategy for a new partnership with Central Asia. This Strategy builds on the progress in bilateral cooperation and reflects the growing interdependence between Central Asia and the EU. It focuses on strengthening cooperation with the Central Asian region as a whole, notably in the areas of economic development, energy, transport, water resources, environment as well as youth and education. The Strategy also identifies common interests in the areas of security, stability, rule of law, human rights and governance. This strategy reflects that the region is, despite overall positive economic growth rates, characterized by unequal development and significant diversity in terms of political, economic and social systems.” The same could be said of all the member countries of ASEM. The President of Mongolia, Ts. Elbegdorj, who has led the organization of the 11th ASEM Summit in Ulaanbaatar, considers that if our two continents reach a common understanding on political, economic and population issues, we will make great contributions to the global stability, socioeconomic advancement and peace. SUMMER | 2016

Peaceful Cooperation

Asia-Europe Economic Cooperation An example of the economic integration between these two continents is the Silk Road that opened under the Han dynasty in the second century BCE.

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Since the first civilizations formed across Eurasia, archeological findings testify that there was an active economic and cultural relationship between the two continents. This relationship has had a great impact on civilizations in both directions. An example of the economic integration between these two continents is the Silk Road that opened under the Han dynasty in the second century BCE. Eurasia is where 5 out of every 7 people on the planet reside and generate 57% of global GDP. Hence trade routes and economic corridors that connect these two continents are undoubtedly some of the

most important in our world. Asia-Europe trade was estimated at â&#x201A;Ź1371 billion in 2015, of which â&#x201A;Ź809 billion was from trade flowing east to west. Of the total market, almost half (48%) is due to the automobile industry, with China being the strongest player. Chinese exports to Europe made up 27.1% of total exports from Asia to Europe, while imports accounted for 37.9%. The acceleration of technological development and globalization and the cultural differences and geographic gaps between countries quickly becoming less significant are catalysts for progress. Thatâ&#x20AC;&#x2122;s why, in order to support economic Image: mm.gettyimages.com

Economy

growth, countries have created ASEAN, the EU, and other regional associations that help build economic corridors and free trade zones. This process is sure to keep growing and will be increasingly integral to the world’s economy. Moreover, it eliminates obstacles of space and time for investors by freeing the flow of information through a unified network. The EU has free trade agreements with Singapore and Vietnam, and with the Everything but Arms initiative, several poor countries in Asia are able to pass their goods through to the market tax-free. The Asia-Europe People’s Forums Working Group stated that in order to develop the economies of the Asian Pacific countries via the Trans-Pacific partnership, established last year, there were intensive negotiations aimed at liberating regional economies. This led to the EU having great interest in strengthening its economic relationship with Asian countries. China has established the Asian Infrastructure Investment Bank (AIIB), which is expected to play an important role in the Asia- European economic partnership in the near future. This megabank’s goal is to collaborate in deciding on Asia’s infrastructure needs, and 16 European countries are interested. Another major goal of the AIIB is to finance the infrastructure project “One Region, One Way” developed by China. The main part of this gigantic project is new road transport infrastructure linking Europe and

A closeup of the Mallorquín Atlas depicting Marco Polo traveling to the East during the Pax Mongolica

Asia, which is being called the "New Silk Road." Although the New Silk Road is an initiative by one country, however, it cannot be accomplished without the capacity of all the Asian-European countries, especially with the ones directly involved. Ultimately, it is both a Eurasia-wide and global project. In recent years Russia, which is at the regional heart of Eurasia, has taken ambitious steps taken to integrate regional economies. Previously there was the Commonwealth of Independent States that emerged from the collapse of the Soviet Union, but in 2014 the Eurasian Economic Union was formed with Belarus and Kazakhstan, thereby creating a new common regional market. Armenia and Kyrgyzstan joined the EEU last year. Researchers have argued that despite simmering conflict between Armenia and Azerbaijan, which has close ties to fellow EEU member state Kazakhstan, the new Union can continue to unite the former Soviet republics. As the host country of the 2016 ASEM meeting, Mongolia has a history of building an empire that dominated Eurasia. The economic and cultural exchanges established during the stable rule of the Mongol Empire, which has been dubbed the Pax Mongolica, were unprecedented in the history of humankind. So it is fitting that today, as part of the ongoing economic integration between the two continents, Mongolia has initiated the “Steppe Road” project consisting of ambitious highways, gas and oil pipelines, and power lines. The Trans-Siberian railway connecting Europe and Asia that passes through Mongolia is one basis for this project. Mongolia is also coordinating with the Silk Road Economic Zone China has initiated in order to develop an economic corridor between Mongolia and Russia. This corridor would be one of six economic corridors comprising the SREZ. Last year, during meetings between the Mongolian and Chinese Foreign Ministers, China’s Foreign Minister Wang Yi said of the SREZ , “This is not just a transportation infrastructure. This is a platform designed to further the economic development of the three countries.” SUMMER | 2016

Peaceful Cooperation

Mongolia in the ASEM Created at the threshold of the new century for the purposes of developing cooperation between Asia and Europe and establishing a platform for common regional interests, the ASEM Summit is marking its twentieth anniversary today. During these two decades ASEM has expanded its membership to 21 Asian, 30 European, and 2 international organizations, among which Mongolia has been an active member for the past eight years. During the 7th ASEM Summit held in Beijing, China, countries such as Bulgaria, India, Pakistan, Romania, and Mongolia, together with the SecretaryGeneral of ASEAN, became members

of ASEM. Currently, Mongolia has been the sub-coordinator of the Northeast and South Asia branch. The Netherlands is working as the coordinator for the European External Action Service, while Malaysia serves as the ASEAN subcoordinator. ASEM member countries, either individually or partnering with other members, implement projects and initiatives. The ASEM principal initiatives include 14 political, 51 economic, and 41 socio-cultural initiatives that are being implemented at the moment, such as the Asia-Europe Young Leaders Forum, Seminars on Anti-Terrorism, the Trade

Facilitation Action Plan, the Investment Promotion Action Plan, the SmallMedium Enterprise (SMEs) Forum, the Forum on Strengthening Cooperation in Information and Communication Technology (ICT), Seminars on Renewable Energy, the Symposium on Educational Exchange, Workshops on HIV/AIDS, and the ASEM Youth Festival. Mongolia gained the rights to host the 11th ASEM Summit during the 10th Summit held on October of 2014, in Milan, Italy. So within the framework of ASEM, what types of work has Mongolia accomplished and initiated in these past eight years? Letâ&#x20AC;&#x2122;s take a look.

Purevsuren Lundeg, Mongolian Minister for Foreign Affairs, attending the 12th ASEM Foreign Ministersâ&#x20AC;&#x2122; Meeting

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Image: www.eu2015lu.eu

ASEM

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ASEP9, held on April 21-22, 2016 in Ulaanbaatar, Mongolia.

•

Since Mongolia’s initial participation at the 10th ASEM Summit held in Beijing, delegations led by the President of Mongolia have attended the meetings held in Brussels, Belgium in 2010 and those held in Vientiane, Laos in 2012. In 2014, Mongolia gained the right to host the 11th ASEM Summit from Milan, Italy. Throughout its participation, Mongolia has assigned ASEM high importance and has been actively and regularly participating not only in ASEM high-level meetings, but in meetings at all levels, including: • ASEM Foreign Ministers’ Meeting • ASEM Finance Ministers’ Meeting • ASEM Environment Ministers’ Meeting • ASEM Labor and Employment Ministers’ Meeting • ASEM Senior Officials’ Meeting • Asia-Europe Young Parliamentarians’ Meeting • ASEM Counter-Terrorism Conference • ASEM High-Level Conference on Intercultural and Inter-Religious Dialogue Image: MPA PHOTO

• ASEM Seminar on Human Rights In the last three high-level meetings, Mongolia’s President Ts. Elbegdorj has participated in many different panels to express Mongolia’s position on issues under discussion and has determined the direction of Mongolia’s cooperation with other partner countries, which are: • Economic and finance issues • Global issues • Socio-cultural cooperation • Regional issues • ASEM’s future perspectives • Climate change

•

• For instance, during the 9th Summit held in Vientiane, Laos, President Ts. Elbegdorj participated in the discussion panels on Economic and Finance Issues, Global Issues, Socio-cultural Cooperation, Regional Issues, and ASEM’s Future Perspectives, manifesting Mongolia’s main areas of interest within the ASEM. Since the 10th Summit held in Milan, delegates from Mongolia have participated in many focal meetings initiated by ASEM, including: • The ASEM High-Level Conference

•

on Intercultural and Inter-religious Dialogue held in St. Petersburg, Russia, 3–4 July, 2014. The ASEM Think-Tank Symposium on Connectivity: Opportunity to Boost ASEM Cooperation, co-sponsored by China, the European Union, Poland, Mongolia, and Singapore held in Shanghai, China, 22–23 July, 2014. The ASEM Workshop on Public Health Emergency Management held in Beijing, China, 10–13 September, 2014. The 11th ASEM Finance Ministers’ Meeting held in Milan, Italy, 11–12 September, 2014. The ASEM Senior Officials’ Meeting held in Bangkok, Thailand, 31 March–1 April, 2015. The 5th ASEM Education Ministers’ Meeting and Transportation Ministers Meeting held in Riga, Latvia in April, 2015. The 12th ASEM Foreign Ministers’ Meeting held in Luxembourg on 5 November, 2015. 5th ASEM Labour and Employment Ministers’ Conference held in Sofia, Bulgaria, 3– 4 December, 2015. The ASEM Seminar on Renewable Energy held in Ulaanbaatar, Mongolia, 22 - 23 May, 2015.

In addition, Mongolia successfully organized the 9th Asia-Europe Parliamentary Partnership Meeting held 21–22 April, 2016. Mongolia is proud to host the 11th Summit and looks forward to many productive discussions among member nations. SUMMER | 2016

Peaceful Cooperation

The Past and Future of ASEM The Asia-Europe Meeting (ASEM) laid its foundations in November of 1994 through the joint initiative and efforts of Singapore and France. Twenty years have passed since ASEM organized its very first meeting in Bangkok, Thailand in March, 1996. Since then it has gone on to become one of the largest and most important platforms for dialogue and cooperation between Asia and Europe, bringing together 53 partners who represent 60% of the world’s population and 57% of the world’s GDP.

During this period ASEM has managed to launch many dialogues and proposed over 100 initiatives between the countries of the twin continents in many different areas based on mutual interest. These initiatives and dialogues are divided into three fundamental areas: political, economic and social-cultural. For instance, issues concerning transnational terrorism, organized crime, weapons of mass destruction, international migration, human rights, globalism and its consequences, dialogue on culture and civilization, and the environment are considered to be the top-priority political issues. The top priorities in the economic area are to promote multilateral economic cooperation between partners, to support trade and investment, to strengthen the international financial system, and to developing financial and monetary cooperation between Asia and Europe. Finally, the socio-cultural cooperation area focuses on promoting friendship and deeper understanding between the peoples of Asia and Europe and on promoting cultural exchange between peoples as well as public issues. Currently there are 14 political, 51 economic, and 41 cultural initiatives being implemented. In the Helsinki Declaration on the Future of ASEM developed during the 2006 ASEM Summit held in Helsinki, Finland, the partners agreed to strengthen multilateral cooperation, and work together on matters such as globalization, structural changes in the world economy, 20

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The 1st ASEM Summit (ASEM1), Bangkok Thailand, 1996.

health, science and technology, sustainable development, environment, energy, climate change, dialogue on culture and religion; these were the main priorities of the coming decade for ASEM. Let’s take a look at the main issues that were discussed during the ten Summits that have been organized in these past twenty years. The theme of the very first Summit organized in Bangkok, Thailand was “New Comprehensive Asia-Europe Partnership for Greater Growth.” Hence, on the threshold of the new century, Asia and Europe were discussing how to define their future together. The Summit held in London, United Kingdom in 1998 maintained the earlier summit’s theme. However, the next summit, held in Seoul, South Korea in 2000, had the slightly different theme of “Partnership for Prosper-

ity and Stability in the New Millennium.” One of the main topics discussed during the ASEM Summit held in Copenhagen, Denmark in 2002 was recognizing new security threats in the aftermath of the events of September 11th, 2001. Thereafter, at the Summit held in Hanoi, Vietnam in 2004, the focus shifted back again to partnership issues and therefore was given the task of redefining the multilateral regional developments and partnerships between Asia and Europe. During the next Summit, held in Helsinki, Finland, ASEM celebrated its ten-year anniversary and the overarching theme was “10 Years of ASEM: Global Challenges—Joint Responses,” reflecting a broader scope that looked beyond Asia and Europe. This broader scope made way for the theme of the 2008 Summit held in Beijing, Image: aseminfoboard.org

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The 6th ASEM Summit (ASEM6) was a historically significant event as it marked the 10th anniversary of the ASEM cooperation forum.

China that shaped ASEM’s activities in the upcoming years: “Vision and Action: Towards a Win-Win Solution.” This Summit was held against a backdrop of global financial crisis, which was addressed along with other pressing concerns such as energy and food shortages and natural disasters. During the 8th Summit held in Brussels, Belgium the emphasis was on achieving greater well-being and more dignity for all citizens and it was themed “Quality of Life.” Two years later, at the 9th Summit in Vientiane, Laos, the theme selected was “Friends for Peace, Partners for Prosperity”. At 10th and most recent summit in Milan, Italy in 2014, the theme was similar: “Responsible Partnership for Growth and Security.” The most commonly expressed question or concern prior the 11th ASEM Summit, which is being held in Ulaanbaatar, Mongolia has been about the benefits to the countries that have hosted an ASEM Summit within the past twenty years. In this regard, during his visit to Mongolia, correspondent Richard Werly of Le Temps, a Swiss daily, has addressed the issue as follows: “Countries that have hosted an ASEM Summit have each achieved different results. For example, Finland during their hosting of the summit in 2006 established an Asia Studies Center at one of their largest universities and by conducting policy research there Image: asem6.fi

have managed to strengthen their voice and involvement in Asia-Europe relations. During the last summit held in Milan, the Italians scheduled the Summit just before the launch of the World’s Fair/Italy Expo 2015 so that business discussions were highlighted during the Summit, giving the exhibition more leverage and exposure. It clearly shows the benefits of organizing a summit by interlinking it with other events.” Nevertheless, the question of the future of the ASEM remains open. Analysts and researchers are paying close attention to the upcoming Ulaanbaatar Summit since it is very likely that the future direction of the ASEM will be determined there. Specifically, whether ASEM will continue on a path similar to that of the past twenty years or try to propose a new direction remains to be seen. In this regard Federal Councilor Didier Burkhalter, Head of Switzerland’s Federal Department of Foreign Affairs posed these questions: “Where should ASEM go from here? Should ASEM remain a non-binding forum or could it one day become a huge economic area stretching from Lisbon to Tokyo and from Dublin to Wellington? Discussions about new processes to enable ASEM to produce more tangible results, to have more positive effects on everyday life, will be at the top of the agenda of the forthcoming 11th

ASEM Summit to be held in Ulaanbaatar on 15-16 July, 2016”. Moreover, Burkhalter stated that it was important to forge better partnership, communication and cooperation through the mutual development of partner countries and to increase the effectiveness of ASEM activities in the coming decade. These goals have become more urgent because of some recent negative trends. During his participation in a “Preparing for ASEM” seminar, Prof. Dr. Sebastian Bersick, Chair of International Political Economy of East Asia at the University of Ruhr-Bochum pointed out: “Economic cooperation between Asia and Europe has declined significantly in recent years due to some trade issues. Hence, using this opportunity when leaders of the partner countries gather in Mongolia, they should communicate and discuss directly on working together to resolve the above mentioned issue, which in return will help further cooperation between countries. In other words, countries are able to communicate with each other directly through different ASEM venues.” Accordingly, both because of and despite these concerns, there is widespread hope and expectation that when the Asia-Europe Meeting celebrates its 20th anniversary in Ulaanbaatar, the AsiaEurope partnership will transition into the next stage of cooperation. SUMMER | 2016

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interview

L.Purevsuren, The Minister of Foreign Affairs of Mongolia

The main objective of Mongolia’s foreign policy is to ensure the country’s independence and national security through politics and diplomacy Q | Can we conclude that one of the pinnacles of Mongolia’s foreign policy efforts of this year is the ASEM Summit? What are Mongolia’s expectations for ASEM? Mongolia has experience in organizing significant international forums and meetings. The ASEM Summit will be another one. In the past, Mongolia hosted the 5th International Conference on New and Restored Democracies in 2003 and the 7th Conference of Ministers of Communities of Democratic Countries in Ulaanbaatar. Mongolia also organized the Parliamentary Assembly for the Organization for Security and Cooperation in Europe (OSCE) in Ulaanbaatar in 2015. That being said, the 11th ASEM Summit, where Heads of states and governments of more than 50 countries from Asia and Europe will convene to discuss global issues, is indeed a historic event for Mongolia. Its significance gets even greater as it coincides with the 20th anniversary of ASEM. Mongolia became a member of ASEM in its 8th year and now is honored to host the Summit in our country. This year, we organized the 9th Asia-Europe Parliamentary Partnership (ASEP9) Meeting, 12th ASEM Finance Ministers’ Meeting (FinMM12), and most recently, ASEM Consultative Meeting on Food Security in Ulaanbaatar. Our guests commended our excellent hosting of these events. This praise meant a lot to us and gave us further confidence to move forward with preparations for the 11th Summit. Hosting and organizing a high-level Summit has many benefits. It gives us an opportunity to prove to the international community that Mongolia is a responsible country. If the member countries can trust us to host them, this faith can pave the way for further cooperation, investment and development opportunities for us. Mongolia has

been given a rare opportunity to present our country, history, culture and aspirations to the world. Because of Mongolia’s extreme climate, summer is the main tourist season. I truly believe that ASEM will help us promote tourism and open doors for economic opportunities in this sector. Q | Mongolia’s hosting of the ASEM Summit is a testament to the quality of Mongolia’s foreign relations. The Mongolia-Russia-China trilateral cooperation draws a lot of interest and attention from both Mongolians and foreigners. What would you say about it? One of the very important dimensions of Mongolia’s foreign policy is this trilateral mechanism. The Leaders of the three States meet regular to discuss the issues of common concern. This precedent was not set until Ts. Elbegdorj , the President of Mongolia. Many readers remember that the Presidents of China and the Russian Federation visited Mongolia at the invitation of our President in Summer of 2014. Prior to this official visit, the President of Mongolia proposed an initiative to set up a state-level mechanism to address joint problems and issues between the three countries. Accordingly, the Heads of State of Mongolia, Russia, and China held trilateral meeting in the margins of the Shanghai Cooperation Organization Summit held in Dushanbe, Tajikstan in September of 2014. They agreed to work together in the areas of trade, economy, infrastructure, and investment between the three countries. In July 2015, the leaders convened for the second time in Ufa, Russia to discuss Mongolia’s Steppe Road project, Mongolia’s Connectivity in Eurasia, China’s Silk Road Economic Belt initiative, and Russia’s Eurasian Transport Network. The Leaders agreed to establish an economic corridor between SUMMER | 2016

Peaceful Cooperation

Mr. L. Purevsuren with Myanmar President U Thein Sein

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the three countries and signed a Memorandum of Understanding. The undertaking to develop the program for establishing the Economic Corridor was led by the Mongolian Ministry of Foreign Affairs, the Russian Ministry of Economic Development, and China’s Development and Reform Committee. They set up joint working groups that convened five times and exchanged multiple draft proposals for the Economic Corridor program. During the consultative meeting of Deputy Ministers of Foreign Affairs recently held in Beijing, this issue was discussed and finalized. It was agreed that three documents would be signed during the Council of Heads of State of the Shanghai Cooperation Organization to be held in late June of this year. This is a brief summary of some achievements between the three parties within less than two years. There was a criticism that Mongolia was inactive and played only an observer’s role in the Shanghai Cooperation Organization (SCO). Yet

Mongolia proved that the SCO could be a useful mechanism to foster cooperation between three countries in a creative and intelligent way. A few years back, our neighboring countries might not have expected Mongolia to propose such an important initiative that would receive their full support and ratification. In this sense, Mongolia may have initiated a completely new cooperative mechanism under the SCO framework. I am positive that Mongolia can serve as a role model for many multilateral and regional cooperation mechanisms beyond the SCO. Q | This year Mongolia has welcomed some very important visits that should be highlighted in the history of Mongolia’s foreign policy. What would you say about the visits of the Russian Minister of Foreign Affairs and the US Secretary of State? Within a short period of time—two months or so—Mongolia received official visits from the Russian Foreign Affairs Minister and the US Secretary of State, almost consecutively. Definitely these visits were highlights. In addition to Mongolia’s emphasis on trilateral relations with its neighboring countries, we have taken significant steps towards maintaining a balanced relationship with developed countries from the West and East through Mongolia’s “Third Neighbor” policy. This manifested in the official of the US Secretary of State. Further, we facilitated the first meeting of the Joint Committee of the Mongolia-Japan Economic Partnership Agreement (EPA) in Ulaanbaatar. Going back to the “Third Neighbors,” Iran’s Deputy Minister of Foreign Affairs also paid an official visit to Mongolia. I would describe the closely consecutive visits to Mongolia by S. Lavrov, the Russian Minister of Foreign Affairs, and J. Kerry, the US Secretary of State, as a testament to Mongolia’s advancement of foreign policy. Mongolia has succeeded in maintaining friendly relationships with both countries and became their trusted partner and a friend. Mongolia’s foreign policy states that Mongolia shall maintain friendly relationship with all nations. As for relations between Mongolia and Japan, the economic partnership agreement has just come into this effect. The World Trade Organization has 162 members. Mongolia is one of its plenipotentiary members and was not part of the region’s economic integration. From this year onwards, we have taken a step forward with the implementation of the Mongolia-Japan Economic Partnership Agreement and facilitated the joint committee meeting in Ulaanbaatar. The proceedings of the meeting were jointly signed by truly yours as Mongolia’s Minister of Foreign Affairs and by Mr. S. Kihara, the

Mr. L. Purevsuren with U.S. Secretary of State John Kerry

Deputy Minister of Foreign Affairs of Japan. The Government considers the day, on which the Agreement was executed, very special in the history of economic, trade, and business relations between the two countries. Citizens, economic entities, and businesses and entrepreneurs now have the opportunity to benefit from this Agreement. Under this Agreement, the public institutions of both countries are required to expound the terms and conditions, advantages, discounts, and opportunities to all their respective business owners. During the process of executing the Economic Partnership Agreement, Mongolia was able to build domestic capacity and accumulated a lot of experience to this effect. This is a huge achievement that is beyond any monetary terms. Q | In what ways have Mongolia’s foreign policy goals have been reflected in multilateral cooperation? We can see that we can maintain balance not only in relations between countries but also for multilateral cooperation. For many years, Mongolia focused its multilateral foreign policy on a few areas such as development programs, poverty reduction, and disarmament. The main objective of Mongolia’s foreign policy is to ensure the country’s independence and national security through politics and diplomacy.

Mongolia’s foreign policies have been developed as multilateral and diverse in order to maintain balance between both East and West and North and South

In order to share experience and maintain cooperation with countries that have newly embraced and restored democracy, the International Cooperation Fund was established. We have and continue to share our experiences with countries such as Kyrgyzstan, Myanmar, Afghanistan, North Korea, Laos, Cambodia, Nepal, Bhutan, Sri Lanka, and East Timor on the subjects of good governance and democracy. Mongolia has successfully chaired the Joint Community of Democratic Countries and the Online Freedom Coalition. For the first time, Mongolia was appointed as a member of the UN Human Rights Committee winning the majority of the votes from the region. Mongolia joined the UN peacekeeping mission recently and became one of the top 20 members of the UN for its outstanding contribution to peacekeeping operations. Mongolia is also the only Asian country that is a member SUMMER | 2016

Peaceful Cooperation

of the Organization for Security and Cooperation in Europe (OSCE). Clearly, Mongolia’s foreign policies have been developed as multilateral and diverse in order to maintain balance between East and West and worldwide. To provide a current example, the Ministry of Foreign Affairs of Mongolia recently organized a successful seminar on “Mongolia’s Experience of Transition to Democracy” for senior officials of Myanmar’ s public institutions for the purpose of developing and strengthening democracy within its Cooperation Fund. Q | I know that since you became the Minister of Foreign Affairs of Mongolia, you have prior26

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itized and focused on cultural relations. What is the Ministry doing to promote cultural relations, which are keys to “soft power” policy? In this era of globalization, Mongolia has deployed public diplomacy mediums as important aspects of achieving its foreign policy objectives. The principle of soft power is based on promoting the country and its cultural relations abroad. As far back as 1954, Government of Mongolia issued a resolution to use Mongolia’s culture and arts in this way. Up until the 1990s, the Mongolian Ministry of Foreign Affairs operated with a special agency in charge of culture. When I was appointed Minister of Foreign Affairs in 2014, I restored this

interview agency and developed a policy to promote Mongolia its culture, arts, history, traditions, customs, development trends, and national brands abroad. This policy is currently being implemented successfully by my staff. I had some prior experience in implementing a “soft power” policy. About a decade ago, I took part in organizing a mobile exhibition of Mongolia’s history under the theme of “Genghis Khan and His Legacy” in Europe. In this light, I understand the importance of “soft power” policy very well. In early 2016, the Ministry of Foreign Affairs developed a program of Promoting Mongolia Abroad, which was approved by the Resolution # 2 of the Government of Mongolia. Its purpose was to define promotional directions for the country as the way to implement Mongolia’s foreign policy objectives, to establish a comprehensive promotion mechanism under integrated and coherent management, and to support bilateral and multilateral collaboration through promotional activities abroad and cultural exchange between countries. We approved the Action plan for this Program to be implemented during 2016-2020. Accordingly, we launched many activities such as creating cultural events and exhibitions, establishing Mongolian cultural centers abroad, and facilitating integrated promotional activities via foreign media institutions. Recently, for example, we hosted journalists from the National TV and Radio Company of the Russian Federation and provided comprehensive and up-to-date information on Mongolia’s socioeconomic development, economic operation and key achievements of the main sectors. We will continue pursuing activities to this effect. Q | Do you agree that every Mongolian person represents the identity of the country? What measures are you taking to support Mongolians living abroad and to develop and promote Mongolia studies abroad? Mongolians abroad are promoters of the country wherever they are. Foreigners who have never been to Mongolia get their initial impressions of Mongolia from the Mongolians they meet. Thus, Mongolian citizens are the bridges of communication between citizens and countries. In that sense I agree that Mongolians are the “identity cards” of Mongolia. It is already time for us to develop and adopt an integrated policy document directed to supporting Mongolian citizens abroad. We developed the “Global Mongolians” program, submitted it to the first meeting of this year’s Government session and had it approved by the Resolution #1. This program, designed to provide a comprehensive and integrated policy for Mongolians living abroad

is now in full effect. It provides an opportunity for Mongolian citizens abroad to contribute to the country’s development, aims to improve citizen registration, and to develop cooperation between citizens, associations, and unions. Also it will support cultural exchanges, relationships and cooperation between nations that share common language, culture, arts, traditions, and customs. Internationally, Mongolian studies constitute an essential component of “soft power” policy. At the end of the nineteenth century, in countries such as Russia, France, Finland and Hungary, Mongolian studies were developed, covering Mongolian language, melody, ancient scripts, and history. Currently, Mongolian studies have become a branch of liberal arts that involves many countries around the world. Today various Mongolian Studies centers with stable operation have been implemented at 40 universities and research centers in 20 countries. The Government of Mongolia has paid special attention to developing Mongolian studies around the world. In 2013, a national program for development of Mongolian studies was adopted and a Mongolian Studies Support Fund was established with the goal of supporting activities under the program. We have started to see benefits from these important initiatives. Last year, the University of California in Berkeley revived its Mongolian studies program as an important step in developing Mongolian studies in North America. Mongolia is preparing for the 11th international forum of Mongolian studies to be held on August 15-18 of this year in Ulaanbaatar. This event is held once every five years. About 200-300 scholars and researchers specializing in Mongolian studies will convene for this meeting to define future trends in Mongolian studies. The plan of the Ministry of Foreign Affairs, and myself as the Minister, is to task embassies and consulates of Mongolia to develop Mongolian studies abroad as one of their main functions. We will provide specific directions to newly appointed heads of diplomatic missions on this subject and track the implementation of the plan as a benchmark for evaluating their performance. We will require diplomatic missions in places where Mongolian studies were never developed, were not recognized, or were simply forgotten to take proactive steps and initiatives to this effect. I think a lot of work is required, for example, to bring historical items such as artifacts taken out of Mongolia back to our country whenever possible—and if not, to keep them where they are a part of the historical legacy of Mongolia – perhaps, on display to the local public and Mongolians that reside there. SUMMER | 2016

Peaceful Cooperation

Nomadic Culture Given to and Received Back from the World Including Mongolia’s 80 years under socialism and 26 years on the path of democracy, this nation has maintained its nomadic lifestyle over the centuries since its inception. In the early 20th century, many countries strictly forbade anyone to exalt Chinggis Khaan or write anything positive on Mongolians from the 13th century. Thus, the world began to see Mongolians merely as invaders of nations who burned towns and cities to ashes and collectively slaughtered entire populations. The world community therefore has little knowledge about the actual influence the Mongolians had on world culture. Researchers highlight a few contributions of 13th century Mongolians to world history, as presented below.

International Relations Policy of Chinggis Khaan The Mongols played an important role in advancing the connectedness of peoples and civilizations across Eurasia. They linked East and West through thousands of cultural ties and laid a common foundation of shared culture that has helped bring the modern world into being. In this regard Morris Rossabi, a Mongolian studies specialist from the US, commented: “In the thirteenth and fourteenth centuries the Mongolians connected Asia and Europe, which were totally separate universes. Many European explorers and scholars came to explore Asia and Mongolia. Mongolia was a promoter of free trade, and trade is a great bridge for uniting different countries and cultures. In that way, Mongolia played an influential role in Chinese and Persian cultures.” Connecting Asia and Europe laid the foundation for modern globalization and played an essential role in development of international relations, 28

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especially of relations between the two continents. Under this policy the Silk road was established, which extended Tea Road culture into Europe. Via the Silk Road, Mongolians gave the printing press, the compass, the abacus, and gunpowder to the West and brought steel, iron, eyeglasses, porcelain, and zinc glass from the East. They laid the foundation for modern diplomacy The Mongol Empire paid special attention to diplomatic relations. Chinggis Khaan once said “Diplomatic relations are the golden tie of a State”. Thus, he gave a golden gerege, a tablet signifying certain privileges and authority to each of the envoys representing him and the Great Empire; these served them as visas to foreign peoples. Speaking of this innovation, L.N. Gumilyov, the historian and ethnographer, wrote: “Diplomats of modern era owe Chinggis Khaan a golden statue.”

They allowed the co -existence of multiple religions There are still collisions between different religions in the world today. According to historians, Mongolians from early Hunnu period to the Mongol Empire practiced various religions such as Christianity, Pantheism, Buddhism, Confucianism, Nestorianism, and Islam. Although Mongolians were mostly shamanists, including Chinggis Khaan himself, the Empire granted religious freedom to its subject peoples. This policy that honored human rights contributed much to the long-term existence of the Mongol Empire. There are many other things that Mongolians contributed to the world development that are worth to mention. An example is the creation of the first messenger and postal station system named “Urtuu” that set foundation of today’s communication and transportation system. Another example is initiation of

A herder family on camel-back in Mongolia.

Ikh Khuraldai (Great Congress or Parliament) and Ikh Zasag Law (Constitution). Mongolians are admired for its nomadic culture that has been maintained until the 21st century without much change. Jack Weatherford, author of the book “Genghis Khan and the Making of the Modern World”, best seller of “New York Times” and best audio book of AMAZON.COM mentioned “I think that if Chinggis arrived anywhere in the countryside of Mongolia and he walked into any ger, he would know exactly where he was. He would know what the food was. The Mongolian culture has survived in Mongolia stronger than in most places of the world”. If Chinggis Khaan indeed visited a Mongolian herder family, as Jack imagined, he could be curious about the sattelite dish, solar panel, vehicle, motocycle and mobile hand phones. Otherwise, everything else would be exactly the same. Nomadic households chores begin early at dawn and end late at night.

Perhaps Mongolian saying “A herder is a holder of thousands of professions” is derived out of this situation. Mongolians from generation to generation have been closely attached to the nature, the heaven and earth, and livestock. Mongolians valued steppes but they had even higher regards for their concept of heaven. They for example, do not build houses or dig grounds, they allow rainwater to feed and nurture land, plants and livestock. They do not cut trees but use animal dungs for making fire. The secret of upturned toes of traditional boots of Mongolians lies in preventing the rider’s feet from hurting the soil. As one may see, the main philosophy of nomadic culture is to worship the sky and protect nature. Mongolian language is considered as one of the most difficult language to learn. Yet Mongolians learn foreign languages very quickly. Foreign citizens residing in Mongolia admire Mongolians’ ability to learn foreign languages. In this

regard, Mark Tasse, Director of the Mongolian Studies Center in the USA said “Mongolian language contains phonems and sounds of all languages in the world. That’s why Mongolians learn foreign languages easily. As for foreigners, it is very hard for them to grasp phonems and sounds unknown to them”. Takuo Kidokoro, former Ambassador Extraordinary and Plenipotentiary of Japan to Mongolia said “Peace and tranquility, vast steppe, gobi desert are what make me adore Mongolia. It seems that Mongols are gifted at language. Mongols learn language very quickly and use them effectively. I do not know any other people who are so skilled in learning foreign languages. I am also proud of patience of the Mongols”. The main characteristic of a nomadic mentality is ability to adopt foreign cultures and accustomize to suit their convenience. Tachibana Makoto, a Mongolian studies specialist from Japan said “Mongolians made substantial efforts to SUMMER | 2016

Peaceful Cooperation adopt foreign cultures and civilization... I think their ability to learn new things quickly allowed them to maintain its independence this far”. Chinggis Khaan said “It is easy to ride on a horse and envade nations but it is hard to get off the horse and govern them”. Chinggis Khaan paid much respect for scientists, inventors and craftsman of his invaded nations and used their experience and skills in key sectors such as politics, army, trade, language and culture. One evidence is his “Nine Orlog or greatest field commanders”. Some of them were once Chinggis Khaan’s hostile enemies but they chose to serve him because of his wisdom, generiosity and leadership capability. Perhaps famious Mongolian sayings such as “Today’s enemy is tomorrow’s friend”, “Not everybody who smiles is a friend and who is angry is an enemy” were formed to express this meaning. Mongolian Emperors identified capable people such as Yelü Chucai (whose Mongolian name is Chu the wise) scientist from Kidan tribe, Tata-Tungaa, a scientist of Naiman tribe, and Marco Polo, famious traveller of Italy during Khubilai Khaan and kept close relations with them. They used their knowledge and expertise in all areas such as politics, trades, foreign relations, language and culture. Mongolian studies has been intensely developed in about 20 countries of the world. As of today, 13 intangible heritages of nomads have been registered in the UNESCO. All of them have been deeply embedded in nomadic cultures. One of them is “Urtiin duu” or “the long drawn/ melody song” of Mongolians registered in the World Culture Heritage in 2008. The long drawn song of Mongolians is particulary unique in that it has broad and splendid melody, beautiful notes modulated in lower pitch and vocal modulated pulsation. It has diverse vocal fine movement techniques, elaborate singing tone leaps or sudden transmission to higher and lower tones and thus, requires much skills, capability from a singer. These extraordinary features give the long song profound philosophical, meditational character and they often depict the comprehensive nature of Mongolia’s endless open-wide steppe, cloudless blue sky, tranquil traditional nomadic life style of herders. There is not a single nation other than Mongolians that can 30

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Mongolian dance originated in the nomadic way of life

sing long drawn songs in the world. Felix Fellman, Resident Coordinator of the Swiss Development and Cooperation Agency noted “When I listen to a Mongolian long-melody song, I lose account the time. My wife tells the same. Imagine, powerful music rains onto your soul. This is exactly how I feel when I listen to a long-melody song”. In brief, I have no doubt that while listening to a Mongolian long drawn song you will catch the essence of Mongolian culture, nomadic life-style, philosophy and the mystery. I recommend the song named “Under the Sun of Placid” (“Uykhan zamba tiviin naran” sung by N.Norovbanzad, a famious Mongolian long melody singer, when you travel in Mongolia. I am sure you will see the song’s video clip in your eyes. Bernhart Wolf, the President of Inter-

national Music Festival, said the following comment about this singer, “N. Norovbanzad is an extraordinary singer not only in Mongolia but in the world. Mongolia’s long melody song is inherently attached to Mongolia’s open steppe. It is an extraordinary art existing nowhere else in the world. It’s completely different from European chorus. They do not separate voices but everybody has got a unique voice. International music researchers have not been able to unlock its mystery”. Mongolia’s traditional nomadic art does not end here. The Khubilai Khaanof Yuan Dynasty had “State Great Melody” which composed of 1000 artists, which is phenomena similar to modern day orchestra. Encyclopedias on international cultures, arts and music rarely mention about Mongolia’s heritage of musical

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Swan Lake, The National Academy Theatre of Opera and Ballet of Mongolia

instruments but this tradition of Yuan Dynasty has been kept in traditional royal music performance schools in countries such as China, Korea and Japan. Another traditional musical instrument of Mongolia is “horse headed fiddle” and “throat singing”, both registered in the world intangible cultural heritage. If you ever come to Mongolia you will listen to a melody from a horse-headed fiddle instrument and throat singing and I am sure you will say “wow”. Throat singing is the art introduced by nomadic Mongolians in music art of the world. The exraordinary feature of this overtone singing is that its resonant tuning allows the singer to create more than one pitch at the same time. Today Mongolia’s throat singing has reached peak of its development. It has been performed in all major theatres Images: zazaa/irmuun photo (Dancers, musicians)

of the world. I recommend that you search Mongolian bands “Altan Urag”, “Khusugtun” in Youtube channel and watch their performance. Mongolians have traditionally cherished books. They kept books wrapped in silk and honored them more than anything else (as idols). Mongolians most admirably adopted classical arts and books during 80 years under Socialism as commented earlier in this article. They successfully staged world’s classical art pieces such as the Opera Carmen, SwanLake Ballet of P.I Chaikovski, and Hamlet by William Shakespeare in the theatres. They staged the world’s classic masterpiece, the 140-year-old Opera “Aida” by J. Verdy in its theatre for the time first in Asia. One may claim that there is not a

single classic book of the world that is not translated into Mongolian language nor a single bestseller book that is not translated in Mongolia. You may talk about world classics with any Mongolian that you may encounter. In other words Mongolians have kept classical arts advanced and up to date. Obviously as seen from these facts, Mongolians maintained its traditions and adopted favorable foreign cultures at the same time most successfully. In Mongolian language there is a word “mongolchlokh” (accustomizing or converting into Mongolian culture”) which can be translated as embedding foreign cultures into nomadic lifestyle and converting them to suit their convenience. Mark Tasse, Director of Mongolian studies in the USA said “Among all other nations that I lived I find Mongolia the most interesting: They have a unique culture and mentality. As for mentality Mongolians are neither Asian not European: they have a mixed, unique culture and mentality. I find it fascinating that sandwitched between two giant countries, China and Russia Mongolians have been able to maintain its unique nature as Mongolians, which has been a mystery for centuries. As compared with Asian nations such as China, Japan and Korea, Mongolians are not as rigid and closed as them. That’s why Americans say they find it easier to communicate with Mongolians. As compared with Europeans Mongolians are much more family oriented. The conclusion is that Mongolia is a nation that holds best features of Europe and Asian people; the best appearance, mentality and character”. There is not a word “if” in the history but some researchers claim that if Mongolians in the 13 century did not invade the world and did not end the internal wars in Russia and China and did not bring them together, if the East and West, Asia and Europe were not connected at that time, the world may have lagged behind development over many centuries. Thus, let me end my article with what Jack Weatherford said “I think that Chinggis Khaan moved history forward very quickly by uniting items of all different civilizations of Europe, the Middle East and China. Without Chinggis Khaan, I think things still would have happened, but it’d probably would have happened several centuries later”.  SUMMER | 2016

Dynamic Economy From ancient times, the Mongols relied on silk and tea trade routes and helped support international trade and cultural ties by paying special attention to protecting traders and securing their travels. Today, Mongolia is still located between the two continents and views itself specifically as a communications infrastructural hub between Russia and China, allowing Russia short and reliable access routes to Asia and China the same quality of access routes to Europe. With this understanding, an active dialogue has been taking place between the leaders of the three nations with major focus on infrastructure. The first pages of this section are devoted to an interesting interview with Mongolia’s Prime Minister Ch. Saikhanbileg regarding the country’s current economic situation, the economic opportunities it offers to the world, the ASEM Summit in Mongolia as well as the decisions he expects will be made during this Summit. Meanwhile, the world views Mongolia itself as having potential for rapid economic growth and as at the threshold of that swift development by means of its enormous mineral wealth. However, some time has passed since this expectation was developed. The expectation was and is realistic: there has indeed been a mining boom in Mongolia in recent years. But on the other hand, the remaining sectors of our national economy can32

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not be left out of this development. Mongolia is rich not only in mineral resources but also in traditional and environmentally friendly goods and materials. And that wealth is in the agricultural and animal husbandry sector. The world today is about to face a food crisis and shortages as food demand has soared while climate change has diminished crop yields. Moreover, food safety has already become an acute issue. For that reason we decided to emphasize Mongolian farming and herding in this section. We have the opportunity to become a player on the global market using raw materials from our animal husbandry sector. The most brightly shining example of this opportunity is Gobi LLC, which has become known worldwide for its entirely natural but very chic cashmere fashion clothing. Another hot topic that has been widely discussed in Mongolia in recent years is nature and the natural environment, and how our people’s traditional relationships to the environment are changing with modernization and development. This topic, moreover, is critical not only in Mongolia but also worldwide. So we are showcasing Mongolia’s pioneers in green policy and social responsibility alongside key economic players, including wealth creators and leading banking and ICT representatives, on our pages.

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Ch. Saikhanbileg, Prime Minister of Mongolia SUCCESSFUL HOSTING OF THE ASEM SUMMIT WILL RAISE MONGOLIA’S PROFILE HIGHER IN THE INTERNATIONAL ARENA

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We Have a Goal: Communications and Information Technology Development in Mongolia

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ITZONE: Confidence That Builds the Future

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The Kingdom of Fantasy

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MIK: PILLAR OF THE SECONDARY MORTGAGE MARKET

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Asterisk Technologies: Alternative Smart Solutions

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Green Economy: Responsible Financing

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The Taiga Forest of Mongolia

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The Key to Sustainable Forest Management is Skilled Workers

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Stories from the Field: Mongolia’s great local forests: valuable local, national and international assets being protected by herders

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Mongolian Husbandry and Farming: History and Prospects

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The Hopes Of Nomads: Gobi Takes Mongolian Cashmere Global

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Mongolia Connects Asia and Europe—And Connects With Itself

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Six Decades of Leadership, Perseverance and Innovation

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The Mongolian Mining Sector: Endless Possibilities

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Erdenes – Tavan Tolgoi: Right managent and the future of Mongolia

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Dynamic Economy

Ch. Saikhanbileg, Prime Minister of Mongolia

SUCCESSFUL HOSTING OF THE ASEM SUMMIT WILL RAISE MONGOLIA’S PROFILE HIGHER IN THE INTERNATIONAL ARENA

Q | The scope of partnership between Asia and Europe has been expanding every year. Many intergovernmental meetings, projects, and programs have been launched in recent years. What partnership opportunities do you foresee from Asia-Europe relationships? I see a lot of opportunities for relationship and cooperation between the two continents. Currently, the membership of the Asia-Europe Meeting, ASEM, represents 57% of the world’s GDP and more than 60% of the world’s population in its vast territory. Trade between ASEM countries amounts to 1.4 trillion euros per year. Therefore, it is very important to expand and develop relevant infrastructures such as transportation and communication that directly connect Asia and Europe. Mongolia’s advantage lies in its geographical location that connects Asia and Europe. In that sense I see a great potential in strengthening political relations that ensure cooperation, security, human rights, and equality, as well as partnership relations that promote cultural exchange and proactive collaborative mechanisms between the two continents. Mongolia is a country sandwiched between two great powers: Russia and China. We see that as a huge advantage for our country. We have very strong and solid partnerships with our immediate neighbors, which presents us with opportunities to use their infrastructure such as seaports and other means of transit for our import and export. We are also strongly promoting a 34

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“third neighbor” policy to enrich our partnerships and business opportunities with other countries such as Japan, South Korea, the USA, the UK, Germany, France and many more. That said, I want to reiterate the message that I have been conveying to our friends: Mongolia welcomes business owners and investors, and we are ready to cooperate with our friends and partners on mutually beneficial terms to keep the megaprojects going. Essentially, Mongolia has high potential to become a business hub that connects Europe and Asia. The Government of Mongolia is conducting an expansionary economic policy. As you know, Mongolia possesses abundant mineral resources, which require the implementation of mega-infrastructure projects and huge investments along with a comprehensive toolkit of financial instruments in order to realize such massive projects. I am talking about transnational, global-scale projects such as Oyutolgoi, Tavantolgoi, Gatsuurt and many more. Q | You just mentioned that ASEM countries produce 57% of the world’s GDP. The 15th AsiaEurope Business Forum is upcoming within the framework of ASEM. What are Mongolia’s expectations for this forum? The Government of Mongolia is working to diversify the economy, which creates necessity to closely collabrate with our partner countries to produce value added, customer-ready,

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Prime Minister Ch. Saikhanbileg and Prime Minister Shinzo Abe are concluding â&#x20AC;&#x153;Economic Partnership Agreement between Japan and Mongoliaâ&#x20AC;?. Tokyo, February 2015

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high-end products. For instance, Mongolia provides two-thirds of the worldâ&#x20AC;&#x2122;s fine cashmere, so we can collaborate with global brands to promote Mongolian business and produce high-end luxury products for their customers. With a human population of 3 million, we have over 55 million livestock that provide us with plenty of hides, leather, dairy, and meat products. The Government is supporting SMEs and encouraging them to improve their business and the quality of their products for export. I am certain that the 15th Asia-Europe Business Forum will present opportunities for businesses to connect. Our country has made drastic legislative changes to promote busi-

ness, offering equal treatment to foreign and domestic investors alike. In general, Mongolia is giving a lot of significance to the supplementary undertakings of the ASEM Summit. I believe that the 15th Asia-Europe Business Forum will play an important role in expanding business partnership and cooperation between Asia and Europe in that representatives from public and private sectors and civil society will get together to discuss global issues such as economic inclusion, infrastructure hubs, linkage of SME production to global value chains, and green development and investment. I believe that this business forum will be a significant

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event that will contribute a lot to developing opportunities, outputs and solutions to expand economic and business ties between Asia and Europe. Q | In your opinion, how can Mongolia contribute to the economic connectivity between Asia and Europe? As I mentioned earlier, Mongolia has a great potential to become a business hub that connects Europe and Asia. To mention a few of those ways, we have renewable energy projects and IT projects that can make Mongolia a huge business hub. Our researchers and specialists confirm that we have high potential for wind and solar energy, not to mention our huge deposits of shale, coal, uranium, and so forth. Q | Mongolia has ensured that its preparation for the upcoming ASEM Summit will meet expectations of countries of Asia and Europe. Why is Mongolia attaching the utmost importance to this event? During the 10th ASEM Summit held in November 2014 in Milan, Italy, Mongolia was granted the privilege of hosting and organizing the 11th Summit. We took this as an indication of trust, respect and responsibility granted to us by countries of Asia and Europe. One specific feature of this Summit is its coincidence with the 20th anniversary of ASEM. As soon as the President of Mongolia came back from the last ASEM Summit he issued a decree to appoint a National Committee responsible for preparing for the next ASEM Summit.

Mongolia welcomes business owners and investors, we are ready to cooperate with our friends and partners on mutually beneficial terms to keep the mega-projects going

I was appointed as the Head of ASEM National Committee. Since then we have worked very hard, and today we are well prepared. The Government of Mongolia was not alone in this matter. We would not have succeeded by ourselves anyway. We acknowledge that Mongolia’s private sector partners, NGOs, students and youth, and volunteers all worked very hard and wholeheartedly. Many ASEM countries have provided assistance and support for us to organize this prestigious event. This generous international support further confirms what an honor and privilege it is for us to host such a world-scale event. Now you can hear the word “ASEM” from any Mongolian kid on the corner. Vast numbers of volunteers, support from partner countries, non-governmental organizations and international institutions, massive mobilization of government agencies made the hosting of this event not only possible but also successful. Using this opportunity, as Prime Minister of Mongolia and Head of ASEM National Committee for Preparation working group, I would like to extend my gratitude and appreciation to the Mongolian people and all parties that supported and worked hard to make it happen. Organizing and hosting the ASEM Summit is important for us in many ways. This is the first time Mongolia is hosting the heads of states and governments of many countries and nations. This is a clear indication of Mongolia’s ever-growing reputation since its transition to democracy and a free-market system. Successful hosting and organization of the ASEM Summit will definitely raise Mongolia’s profile higher in the international arena. On the occasion of the 20th Anniversary of ASEM’s founding, a historic document, The Ulaanbaatar Declaration, named after Mongolia’s capital city, will be adopted. Through this Summit Mongolia will also gain much experience in organizing international meetings and forums and will be fully equipped to host and organize major international events of ASEM-like scale and others on a regular basis. I further hope that as a result of this highlevel Summit, much trust and confidence for Mongolia will be generated that will promote cooperation between and within business sectors and direct even more substantial foreign investment flow to Mongolia. SUMMER | 2016

Dynamic Economy

Prime Minister Ch.Saikhanbileg paid working visit to United Kingdom meeting with Prime Minister David Cameron. London, July 2015

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Q | What are the main reasons that Mongolia should attract and accommodate foreign investment, in your opinion? What can we promise to investors in Asia and Europe? Mongoliaâ&#x20AC;&#x2122;s new Law on Investment was adopted in 2013. It provides for tax and nontax relief to both foreign and domestic investors. It has reduced the number of special permits and licenses and has liberated markets. Costs associated with setting up and running a business and the amount of bureaucratic processes have both been reduced. According to the World Bank study on business environment, Mongolia now ranks 56th out of 189 countries. According to the new Law on Investment, an investor who invests 500 billion Tugrugs in our country, an amount equivalent to 250 million USD, may enter into an investment agreement with the Government of Mongolia. Upon signing the agreement, the investor may be granted several financial and non-financial benefits within the project framework. We can consider the option of freezing the business income tax, the value added tax, the customs

tax and the mineral resource utilization fee for a term of 5 to 24 years. Last year we established three investment agreements and granted seven tax-freeze certificates to investors. Under public-private sector partnerships, the Government of Mongolia has been implementing socioeconomically important projects in Mongolia in cooperation with the private sector. As of today the Government has approved a list of 80 concession projects and established 20 concession project contracts with private companies. As I mentioned earlier, the Government is also placing strong emphasis on diversifying the national economy. We offer a wide range of opportunities to invest into Mongolia, not only in mining but also in agriculture and organic food production and sectors such as renewable energy, banking and financial, health, education, and tourism. Geographically, the investors of Asia and Europe are the closest partners for Mongolia. All stakeholders will benefit from long-term investment in infrastructure projects such as highways and railroads that connect Asia and Europe.

interview Mongolia actively participated in the Transport Ministers’ Summit held in Riga, Latvia in April 2015 as well as in the meeting on industrial connectivity held in Chongqing, China in May 2015 and expressed our views and strategies. The legal principles that coordinate international railway transport today and railway-track issues in general are relevant not only to Mongolia but to many other countries of Asia and Europe. On the initiative of the Parliament of Mongolia, a conference was held in Ulaanbaatar in 2013 on the topic “Euro-Asia Transport: Participation and Role of the Region” to discuss infrastructure-related issues. There are discussions underway to launch a dialogue aimed at establishing a free trade zone between the two continents. I expect that this issue will be discussed during the Finance and Economic Ministers’ Meeting of ASEM. We are supportive of and are working to contribute to this meeting to be held in 2017. Oyutolgoi is one of the top copper and gold mines in the world. Underground mine project financing raised 4,4 billion USD with twenty of the leading international banks and financial institutions. 2016

This interview was taken on June 25, 2016

Q | Mongolia has been the coordinator for the ASEM regional subzone of Northeastern and Southern Asia. It’s likely that cooperative successes and achievements in this region will yield a strong positive impact on Mongolia’s economy. Could you please share your opinion regarding Mongolia’s participation and role in this area? According to geographical principle, ASEM is basically divided into the Europe Zone and the Asia Zone. The Asia Zone is further divided into following subzones: The Association of Southeast Asian nations (ASEAN) and Northeastern and South Asian nations (NESA). Issues are initially discussed at the sub-zone level and later discussed at the Summit. Mongolia chaired the latter sub-zone for several years and transferred its role to New Zealand in autumn 2015. In this subzone, our two neighboring countries China and Russia, as well as Australia, New Zealand, Japan, South Korea, India, Pakistan and other countries with which Mongolia has extended relationships are included. Connectivity is a very important subject in the ASEM framework. The ‘hard’ links such as railroads, highways, and airways that connect Russia, Mongolia, and China serve as the bridge between the two continents beyond the three countries. We put much effort into improving these infrastructures and increasing related capacities. We will continue these efforts in the future.

Q | The capital city of Mongolia is about to welcome many thousands of visitors. I understand they have plenty of work and things to accomplish here. However, if they manage to take even a little time out for themselves, what would you recommend they do during their stay in Mongolia? For the first time Mongolia is hosting the ASEM Summit and is about to receive thousands of visitors from nearly 50 countries. We have prepared a special cultural entertainment program for our guests, including a scaled-down national Naadam festival, to present Mongolia’s lifestyle, our unique cultural heritage and vibrant traditions. Personally, I would recommend our honored guests to experience as much as possible of the unique cultural heritage of Mongolia during their short stay with us. Geographically, Mongolia is located in the high plateau of Central Asia. It is definitely an Asian country with nomadic cultural origins. However, the majority of Mongolians, especially those in urban areas, are now influenced by Western cultures. They have adopted much from Europe: language, culture, mindset, and lifestyles. In other words, the lifestyles of Asia and Europe coexist in Mongolia and complement each other. In this sense, I find a deeper meaning in Mongolia’s hosting of the ASEM Summit. Thank you for your time for this interview.  SUMMER | 2016

Dynamic Economy

We Have a Goal: Communications and Information Technology Development in Mongolia

The first speaker, 1934

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Many scholars agree that the achievement that most qualified Chinggis Khaan as the Man of the Millennium was the postal system that the Khaan created. In 1224, a Mongol emissary with the simple mission of passing news left Karakorum, the capital city of the Great Mongol Empire, and reached the westernmost fringe of the Empire, the Caspian Sea, traveling 6,800 km in just two weeks. This was only possible thanks to the system of horse relay stations created and employed by Chinggis Khaan. Later, in 1228-1241, the Khaan’s third son and heir, Uguudei Khaan, extensively expanded and developed the system, so that it not only connected the continents but also served as the basis for the modern postal service. In fact, historians tell us, the Mongolian people employed this system to provide postal services until 1949—for more than seven centuries. The first ever technology-based communication system in Mongolia was introduced in October 1898. At the time, a link between the capital city Ikh Khuree and the town of Khiagt was installed that transmitted the first electrical telegraph messages in this country. The next stage of development came in 1914, after Mongolia gained independence from the Manchu Qing Dynasty as a result of the national revolution. At that time, a hand-operated telephone station with 24 users in Ikh Khuree was established,

followed by establishment of the first radiotelegraphy system by 1919. This is how postal and communications technology first entered the Mongol land. In July 1924, Mongolia issued its first postage stamp. Since then Mongolia has been catching up with the world’s development in postal and communications services at an accelerating rate. Major milestones include the introduction of airmail services by 1956 and completion of the central postal and communication services building by 1960. Development further advanced with membership in the Universal Postal Union in 1963 and in the International Telecommunication Union in 1964. Soon after this came another major achievement for the Mongolians—Mongolian National Radio and Television was inaugurated in September, 1967. Its televised broadcasts introduced the Mongolian audience to TV for the first time and enabled the viewers to receive visual news and entertainment at home. By 1986, all Mongolia’s administrative centers, from Aimags down to Soums and Bags, were interconnected by a telecommunication networks, which later served as the major basis and infrastructure platform for mobile communications in the country. For this reason, the years between 1966 and 1990 are regarded as the most progressive period of the sector’s development history. Today, Mongolia is ranked 61 out of 143 countries in the listing of states that make the best use of their information and communication technologies for development. In 2006, it had ranked 93 but was able to move up 32 ranks in just 10 years. Internet services were first introduced in Mongolia in 1994, and the following year, in 1995, the first mobile phone operator was incorporated. During this same period, the ‘Tsakhim Mongol’ project has provided numerous households and individuals with personal computers and has led to Mongolia’s 3 million population using, by cumulative number, 5.6 million mobile phone numbers and including 2.4 million internet users. The crucial impetus that enabled these developments was the establishment of the Information Technology, Post,

Communications & IT

Position statement Ts. Jadambaa

Chairman, Information Technology, Post and Telecommunications Authority

and Telecommunications Authority in August, 2012, by the Order of the Government of Mongolia, which by the same token liquidated its predecessor, the Information Communications Technology Authority (ICTA), established in 2004. With this new and more inclusive organizational structure, the Authority identified and launched seven strategic objectives in reforming the information technology, postal, and communications sector, which are now being implemented. The first results included the completion of the national switchover of radio and television broadcasting from analogue to digital technology, launched in July 2014. Another achievement is the successful continuation of the Seamless Government Services program. Once fully implemented, this program will allow our citizens to access more than 300 government services using web-based and mobile application technologies. Recently, public service machines and e-kiosks have been installed at a range of locations and are now providing a number of reference services to our citizens. These installations have significantly decreased waiting time, and citizens can now use their national IDs to get reference documents in expedited way. Just a few years ago, internet speed was slow and costly, especially for household users, which was a major impediment. However, as a result of a stage by stage implementation of the third Strategic Objective of the ICTA, defined as ‘Cheap and Fast Internet,’ major towns and settlements in Mongolia were provided with access to cheap internet access, land-line telephone services, and IPTV and triple-play

services. The fourth strategic objective, Postalbased Development,’ is in progress now, with Smart Post Boxes being prepared for installation across the country. The key role in successfully implementing information technology is played by highly skilled engineers. India is an example of this as a developing country that has made itself into a leader in information technology. Accordingly, the fifth objective targets Mongolia’s human resources in information technology, aiming to train engineers with high intellectual-creative output and the capacity to compete at international level. There is no doubt that world-class engineers will bring world-class information technology goods and products into the country. This accounts for the sixth objective, which is to set up an ICT Research and Development Center with government support to enable the production of world-class content. The last objective is our nation’s most ambitious one, the National Satellite Program, whereby two satellites for remote sensing and communications will be launched. The program is is a top priority for the Government of Mongolia. The twenty-first century is the information age. Consequently, a crucial measure of a country’s overall development and capacity is its development in information technology. As the Mongol Empire was a leader in the postal communication of the thirteenth century, so modern Mongolia striving to work its way to the leaders’ bench in the international information technology sector. This path is is strewn with numerous challenges. We have perhaps a one-in-a-hundred chance of success. But we have a goal, at least.

Today, information technology is rapidly developing, not by months and years as previously was, but by days, hours and minutes now. Therefore, we must keep up with this pace. Planning that covers too many years is prone to risks. Therefore we are preparing our policy papers to cover the period until 2020.

B. Buyan-Ulzii

Director-General, National Information Technology Park This sector is open and with numerous opportunities. As for Mongolia, the communications infrastructure, which is the basis for information technology, has been installed relatively well. Now, it is important to invest into and utilize this infrastructure.

G. Bold

Senior Vice President, Unitel Group In Mongolia, the number of cellular phone users is rapidly increasing, so is the customer outreach. Mobile communication has become a major societal utility irrespective of the income level of the users. It can also be observed that the number of internet or data users, as well as smart phone users have rapidly been increasing – a strong trend of recent years, which is going beyond the regular use of calling and messaging services. SUMMER | 2016

ITZONE:

Confidence That Builds the Future The elevator swiftly brings us to the fourteenth floor of the Central Tower, the highest glass skyscraper in Ulaanbaatar. We have an appointment with the senior managers of Mongolia’s largest information and technology firm, ITZone. A Mogul TV screen on the wall in the waiting room is running a presentation of Mogul BOX, the first-ever full private cloud service. 42

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s. Ganchimeg E., marketing director, warmly receives us here. She explains: “Mogul BOX is a pre-engineered Private Cloud solution that was developed based on the needs of small and medium enterprises. It offers them an opportunity to resolve all information technology needs at once in a comprehensive way and saves time and costs of getting separate systems and services and doing integration of them and ultimately maintaining too many parties.” Mogul BOX is one of the most ambitious projects developed by the ITZone company, which aims to compete on the international market. In her presentation, Ms. Ganchimeg emphasizes that this product is designed on the premise that one or another business activity of a company that deploys it must see progress such as an increase in revenue as well as saving time and cost. Mogul BOX Private Cloud is just part of the platform for SME customers provided as part of ITZone’s “IT as a Service” suite. Mogul BOX is comprised of a complete suite of IT components, including hardware, software, Internet capability, and IT security as well as managed service. The business portfolio of the company that initially started with computers and accessories sales has expanded over the last 20 years to include rapidly developing ICT markets such as software development, systems integration, information technology services,

professional outsourcing, and more. “The future development of information and communication technology will not be limited by computers themselves but rather by the degree of ability to improve systems and increase business production and competitiveness. Therefore, we will not focus only on hardware and software development but will concentrate strongly on information technology strategy as such,” says N. Battulga, Director General of ITZone. Accordingly, ITZone has created innovative solutions for the new IT era, developed them into products, and brought them to market. They include Mogul BOX Private Cloud Solution, the Net EMS Environment Monitoring system, the Green ERP enterprise resource management system, and the Compass Mate GPS vehicle tracking system. These projects not only increase the productivity and success of individual companies and organizations but also align with ITZone’s philosophy to increase competitiveness and accelerate the success of the Government of Mongolia and of the entire private sector through the better use of information technology. Ms. Ganchimeg also tells us that in the next five years ITZone will be working hard to enter the international market. By 2020 the company will have at least one or two products competing internationally. “We’re looking at the possibilities of exporting countries with the same levels of economic development to Mongolia. Our professional skills and comprehensive information technology services will be the cutting-edge capabilities that will allow this move,” she adds. I have been wondering about what advantages of ITZone – a company that has actively and successfully been competing on the information technology sector – might give it an edge in other markets. I want to hear the answer from Director Battulga. He responds: “We don’t do business in any other sectors. We focus only on one market, the information technology market. The fact that we are the only company that specifically competes in the four main business spaces of one sector, information technology, is probably our greatest

advantage. On top of that, we annually earmark funds to support research and employee development.” While doing preliminary research on ITZone, a 250-employee company, I realized that its professionally skilled engineers and developers are the firm’s main capital asset. In other words, ITZone’s slogan “Accelerate Your Success” means not only accelerating the client’s success through the company’s team of top IT professionals, but accelerating the company’s ownsuccess through the continual development of that team. To validate this observation, I invite ITZone engineer Kh. Bayarjargal for an interview. “Let me tell you how well the company cares about its human resources based on my own experience. My expert CCIE certificate, when I first joined the company, was given proper attention and appreciation,” he proudly says. For the last three years of employment he has been able to upgrade his credentials and receive three certificates. “There is a system in place that provides an incentive to an employee who receives a new certificate. This is a huge impetus to develop our own skills and knowledge,” he adds. Director Battulga underlines the point: “To become a world-class business, we must enter the global market. To achieve this, we must have a good project team consisting of internationally certified engineers with good command of a foreign language. That’s what we budget for and invest to help our staff develop professionally.” To local customers, the company offers an opportunity to acquire a comprehensive suite of hardware and software and the system integration required to run them in one spot. On top of that, a post-sales professional service is guaranteed to all customers. This ensures information security and flawless operation, as one of the company’s experts explained. Then I wondered what would why foreign customers should be talking to ITZone. Director Battulga gave me a clear answer during his interview. “We have been cooperating with most of the world’s leading information technology companies. We have successfully completed a number of joint projects without any failure. The key principle is to complete what you start. We are also implementing a number of internationally accepted standards in our operations.” The world’s IT leaders – Dell, Canon, HP, Cisco, Oracle, Microsoft, and Fortinet – have granted ITZone special rights to sell their high-tech solutions and software licenses. “Mongolia’s information technology industry is a bit behind the world average. But we must catch up,” says Director Battulga decisively at the end of the interview. The weighty hope of catching up with the global information technology development rests on the shoulders of ITZone, one of Mongolia’s TOP100 business entities. But what Battulga expresses is not a mere hope but determination and confidence in his company’s ability to move forward and serve as an accelerator for the entire sector. SUMMER | 2016

Dynamic Economy

The Kingdom of Fantasy

Т 44

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o meet her, I had the challenge of getting up at dawn, and walked through the tranquil, sleepy streets and squares of Ulaanbaatar as if threading the paths of a crossword puzzle. After an hour or so I entered a cafe in the lobby area of a luxurious apartment block in the southern part of the city as the first customer of the day. The young lady who sauntered in just after me did not look like a hectically preoccupied person overwhelmed by the busy schedule in her notebook.

Someone who has not met Ms. A. Delgerjargal, the Director of Irmuun Media Group, famious for the Mongolian editions of Cosmopolitan and National Geographic, a bestselling comic-book series, and animated films would not believe that this 37-year-old lady sitting next to me in a straw hat and jeans coat could be her. To me, she simply looked like a well-to-do university student who had dropped by the cafe for a coffee. “Recently I’ve acquired the habit of riding a bicycle. Today I planned to go to the National Park on my bike, so I decided to

arrange a meeting with you near my home,” she said. She did not sound like a serious professional. “If you want to be a winner in the creative arts field, first and foremost, you need to be running between all the tests and the competition like Mario,” she tells me—yet she doesn’t look as if she’s in a hurry for anything. As she talked, she would frequently mention children’s favorate comic –book or storybook heroes. She would say something like “We were inspired by Heidi to produce the Tsondooloi comic book

when others had simple desktops, we had Apples,” she said jokingly. Indeed until recently, only the State had the publishing rights for all books, newspapers, and magazines. Following the collapse of the socialist regime in 1990, opportunities to compete, explore online, and learn from examples were opened up in publishing. “Compared with the 1990s, when they required that titles must be printed in either red or blue, and printing presses were out of date, publishing technology has developed rapidly and intensively in Mon-

If you want to be a winner in the creative arts field, first and foremost, you need to be running between all the tests and the competition like Mario series, which is about a city girl who gets to know the nomadic lifestyle in the countryside.” At times she would recall her childhood: “I was eight years old when I first saw a thick magazine that looked like Vogue in Japanese, and I was really impressed”. I often found her giving me seemingly childlike advice, like “You should go to the Ghibli Studio Museum”. Then I got the key to these reflections about her when she told me: “The second most important thing (to be the winner in the field) is staying a child in your mind.” Seventeen years ago, when Delgerjargal was a student, barely more than a child herself, she founded the Irmuun company. When I heard her early business stories I was as amazed and impressed as someone who has just heard about a teenage student girl in the USA who met Bill Gates and Warren Baffe and established business contracts with them. Delgerjargal attributed Irmuun’s continual progress, from producing introductory leaflets for organizations, discount books, and in-flight magazines into publishing Mongolian versions of global-brand magazines and original bestselling comics to the firm’s quick learning abilities. “When others were using Pagemakers we were using InDesign, and

golia. As to forms and appearence, we are still imitating and copying foreign models. While it is totally normal to imitate, to follow the examples of others and learn from them, it is essential that we embed our national characteristics in the content of our products,” she explained. This reminded me of the Dinza comic-book series, an exciting adventure story about a young dinosaur called Dinza and his friend, a small boy, who are as popular with Mongolian children as Superman. I have the entire series in my library, and I read them together with a 10-yearold relative of mine. The story line is built around the history of Mongolia: Dinza and the boy travel together in the Mongolian past. They meet Chinggis Khaan, the founder of the Mongol Empire, D.Natsagdorj, the famous writer and founder of modern Mongolian literature, brave leaders of the Democratic Revolution of Mongolia in the 1990s, and other historic figures. We found the comics much more interesting and funnier than boring textbooks. The afternoon of the day I met Delgerjargal I visited the Irmuun studio, which is located on the third floor of a tall apartment block just a five-minute walk from the central square of Ulaanbaatar. I saw a scarlet sofa, bookshelves

SPECIAL FEATURES /PRODUCTS OF iRMUUN

iRMUUN LIFE This magazine has become Mongolia’s Vogue for its featured interviews, unique photographs, and sharply written articles.

Dinza Comic About 1 million copies of this comic series about Mongolia’s history have been sold in Mongolian markets.

Tsondooloi and Tsundeelei This best-seller—21 issues so far— is a story about friendship blossoming between a cute girl from the city and a playful and curious goatling from the countryside. SUMMER | 2016

National Geographic Mongolia In 2012 Irmuun started publishing the Mongolian edition of National Geographic magazine.

National Geographic Kids Mongolia In 2012 Irmuun began publishing the Mongolian edition of National Geographic Kids magazine

National Geographic Traveler Mongolia In 2013 Irmuun also started publishing the Mongolian edition of National Geographic Traveler magazine. National Geographic launch ceremony in Mongolia, 2012. (above) The medalist for Mongolian Wunderkind 2013 in the National Olympiad for Geography hosted by National Geographic Mongolia. (below)

Cosmopolitan Since 2010, 64 series/issues of Cosmopolitan maganize have been published. 46

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mostly full of thick Taschen books, framed photos of naked women taken by awardwinning photographers. Other than this, the studio looked like an ordinary household. But when I saw the stacks of Cosmopolitan magazines, the covers of newly produced journals hanging on the wall, and editorial staff running here I half-wondered if I was watching the documentary The September Issue in real life. “Initially we learned a lot from studios of similar types in Holland and Korea. Since then, many youth have learned a lot with Irmuun.

Sometimes Irmuun seems like a school that provides salaries to students,” Delgerjargal said, smiling. “Someday I hope to establish an Irmuun campus in a beautiful natural environment away from the city center. We plan to have a school at Irmuun.” Her words about young people were evidently true, as I could see clearly very capable designers, photographers, and journalists in their twenties doing excellent work. “I have always been the the oldest person at Irmuun, even when I was 20 years old,” she comments. Once I watched an animated short film from

Vanishing Voices Under the expedition of Vanishing Voices , iRMUUN documented the cultures and folk arts of nomads that are becoming extinct.

Animation A few years ago Irmuun launched a series of animated movies based on Tsondooloi and Tsundeelei comic books, a story about a city girl who is exposed to rural nomadic life.

Animal Farm Mongolia’s first motion comic was produced in 2016. The story line was built around the “Animal farm” book by George Orwell. Irmuun animation studio.

iMac of artists at Irmuun. The story was built around the Tsondooloi comic, and it reminded me of the famous Spirited Away by Miyazaki. This short was a fragment of the first fulllength Mongolian animated feature, which was produced by a large team and to which much time was devoted. At this moment the project has stopped, and I asked Delgerjargal why. She replied: “Some large companies that got extremely rich within a short because of mining are trying to enter and compete in our field. Of course they offer the best computers and good

salaries for artists. But they fail to evoke the Spirit. As long as artists can provide for their immediate needs as they define them, they can live within their own fantasy. That kind of creative Spirit keeps Irmuun alive. We have done many seemingly unprofitable projects, but they feed our fantasy.” After meeting with Delgerjargal, while I was walking to the city center and not rushing off anywhere else, I seriously pondered her comment: “It’s important to always remain a child in your mind .” 

Chinggis Khaan Entertainment comprehensive project Chinggis Khaan Entertainment comprehensive project was launched 2009 and is made ready for public dissemination. SUMMER | 2016

MIK: PILLAR OF THE SECONDARY MORTGAGE MARKET MIK has recently gained a secure and prosperous foothold in its climb to the sky-tall peaks of Mongolia’s future development. The company’s current confidence is built on the actual facts and figures. Some foreigners may still conceive of all Mongolians as bonded to their traditional nomadic livelihood, sheltering in round white yurts in the wide grassland steppes. However, Mongolians’ real inclinations and aspirations are distinctly different from this image. Today’s visitors to Ulaanbaatar will see steel construction frames and commissionready buildings. This is Ulaanbaatar City, future of Mongolia’s capital development, a showcase of metropolitan expansion with high growth potential. With the city becoming a densely populated area by the rapid growth of urbanization, the construction sector is indispensable to the city’s real estate development. New homes are needed, and families must be able to borrow so as to to buy them. To achieve an effective, reliable, and systematic implementation of citizen housing programs using procedures proven worldwide, Mongolia must have a resourceful mortgage company. After years of patient groundwork and intensive nurture of

2006

Bank of Mongolia and 9 commercial banks jointly organized a meeting to establish Mongolian Mortgage Company (MIK) to support the development of primary and secondary mortgage markets. 48

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2008

MIK became a member of the International Union of Housing Finance.

MIK in Figures as of December 31, 2015

banks Trade and Development Bank, Golomt bank, Khaan Bank, Khas Bank, The State Bank, Ulaanbaatar City Bank, Capital Bank, Capitron Bank, Chinggis Khaan Bank, National Investment Bank and Arig Bank involved in the transaction of RMBS

2009

The Financial Regulatory Commission registered and approved MIK’s request to issue its first bonds.

human capital, Mongolia now has such a company in place—MIK. Within the past two years, MIK has pooled 47,500 household mortgages and bundled them into residential-mortgage–backed securities with a total value of MNT 2.1 trillion. For a sovereign state with 3.0 million inhabitants and a GDP of MNT 17.0 trillion, this is a sizeable figure. Even more significant than these quantitative indices is the carrying asset value. Mr. N.Zoljargal, Governor of the Bank of Mongolia, summarizes: “MIK is developing a new financial instrument in Mongolia”. The emphasis here is on “a new financial instrument”. Exactly 10 years ago, the Bank of Mongolia and 10 commercial banks founded MIK with the goal of developing the mortgage market in Mongolia. Back then, when even the term “mortgage” was relatively new to most Mongolians, a broad public awareness of the need to leverage housing and homeownership for the country’s development had not yet materialized. The reason was shortcomings in accurate planning, sequential coordination, and regulation. That period was marked both by developers’ supply shortage in delivering ready-

2013

MIK’s Board of Directors appoints D. Gantugs as CEO of “MIK HFC” LLC. “MIK Asset One SPC” LLC issued an initial residential mortgage backed securities of 322.9 billion MNT on December 23, 2013.

for-sale housing property and by high demand for robust, sustainable long-term mortgage financing to mitigate market risks. It was at this time that MIK was instituted. While Mongolia’s market size was limited and every undertaking required careful compliance, conditions and timing were conducive to MIK’s purposes. Our company’s leading operations advanced swiftly to overcome the lag in following international best practice. With the right regulations in place and effective management, MIK settled its first asset-backed security issuance within two years of its founding. About five years later the Government of Mongolia and the Central bank began the 8-percent mortgage program for low- and middle-income households, which was both a turning point and a starting point for MIK’s intensive growth. The company’s most important achievement is widened mortgage accessibility. Mortgages, previously available only to households with a monthly income of 4.0 million MNT, opened up to to households with 1.0 million MNT proven monthly income—75% lower. When asked, “What was the biggest achievement that you’ve accomplished so far?” Mrs. D. Gantugs, CEO of MIK Holding and MIK HFC, simply replied: “Successfully carrying out our work.” Beyond this commonplace reply, however, one will find a definitive influence on the economy, starting with increased affordable homeownership by ordinary citizens in combination with tangible and reliable accumulated wealth, improved financial literacy, and adherence to financial-obligation discipline. Mr. B.Garamgaibaatar, in until recently Chair of the Parliament’s Economic Standing Committee, commented in an interview: “The mortgage program is not only about subsidizing citizens’ welfare, but is more importantly a form of public wealth accumulation.” For instance, four years ago the share of mortgages in the country’s GDP constituted 5.06 percent. Since the start of the program this ratio has been growing steadily, reaching 14.82 percent as of the end of last year. Over the past three years, 7 RMBS’s were issued and settled with a total value of 2.1 trillion MNT, forming a pool of future funding. Clearly, a single company’s operational per-

2014

In a stockholders meeting, “MIK HFC” LLC decided to establish “MIK Asset Two SPC” LLC, “MIK Asset Three SPC” LLC, and “MIK Asset Four SPC” LLC. The CFI.co Awards, headquartered in London, named “MIK HFC” LLC Asia’s best issuer of mortgage backed bonds in that year.

The number of SPC’s established

2.1

trillion MNT Total amount of issued RMBS

47,498 The number of borrowers for issued RMBS

9.3

Equity increase of the company

3.1

million shares The volume of shares traded on the primary market of Mongolian Stock Exchange on December 24, 2015 raising 37.2 billion MNT

14.82% Residential mortgagedebt-to-GDP ratio of Mongolia in 2015. This is up from 5.06% in 2012

formance, however excellent, makes a limited contribution to the revival of the country’s overall economy . Nevertheless, early in the recovery and the resurgence of demand in public housing policy directed to the citizens’ needs, MIK’s responsible, reliable and profitable performance has unarguably made a considerable contribution to the Mongolian economy. Presently about 68,000 households are willing to take advantage of the affordable mortgage program and have started saving their cash, accumulating mortgage down payments. A further 31,000 households were observed to have already made partial down payments. Given such an outlook of increasing demand, a strong financial backing is essential. In addition to its financial sustainability and development of assured profitability, MIK’s decision to become an publicly traded company was a significant way to strengthen its corporate governance. Last December, the company was reorganized into an open joint-stock company whose shares began trading on the Mongolian Stock Exchange. MIK also became the first company ever to be ranked in the Tier 1 classification of all listed companies. Since its first activity ten years ago, with its inception of a new financial instrument in the housing market, MIK has now gained a firm financial foothold in the Mongolian economy. The company’s long-term vision for the coming 20 years is focused on maintaining its leading status, honoring the trust of shareholders and bond investors, adding sustainably competitive return growth to shareholder value, and sustaining its leadership position as the nation’s first and most experienced security issuer. In fact, every frontier market like Mongolia requires such ambitious goals to be implemented so as to cope with the rapid developmental pace of modern societies. MIK has succeeded on the financial market within a comparatively short period of time. Its ambitious goals, supported by secure and swift operational performance, sustainable activities, and regulatory compliance are of exemplary importance. MIK’s operations have demonstrated all these qualities and therefore undoubtedly has earned the true status of major player in the Mongolian economy.

2015

In a stockholders meeting “MIK HFC” LLC decides to establish “MIK Asset Five SPC” LLC, “MIK Asset Six SPC” LLC, and “MIK Asset Seven SPC” LLC. Mongolian Mortgage Company expanded and became a group company called “MIK Holdings” JSC.

The European Business Assembly named “MIK HFC” LLC “Best Enterprise” and CEO D. Gantugs “Manager of the Year.” “MIK Holding” JSC listed on the Mongolian Stock Exchange and raised 37.2 billion MNT by launching an IPO on December 24, 2015. SUMMER | 2016

Dynamic economy

The Mortgage Market in Mongolia: Establishing a Medium- and Long-Term Positive Outlook for Affordable Housing and Homeownership An interview with D. Gantugs, CEO of "MIK Holding" JSC and "MIK HFC" LLC.

Q | There are positive and negative aspects to being the only market player. Nevertheless, many other powerful factors must have been behind MIK’s swift operational adjustment to become a benchmark performer. MIK was established in 2006 by an initiative of the Central Bank of Mongolia and ten commercial banks. The intended aim was to provide housing to Mongolian citizens by developing a mortgage market and to introduce financial instruments common on international markets into our local market. Accordingly, in 2008 we issued the first asset-backed security. But 2013 became a milestone on our institutional development path. In June 2013, we started the implementation of the 8 percent mortgage program of the Central Bank and the Government of Mongolia targeted to middle income households. In December 2013 we received from the Financial Regulatory Committee the first permit for a Special Purpose Company to issue the inaugural residential-mortgage–backed security, and by December 31, 2015 we had established 7 SPCs, pooling 47,500 household mortgages securitized into RMBS’s worth a total of MNT 2.1 trillion. Q | The market demand was there. However, even given that high demand and supply were equally balanced, without thorough regulation yours would not have become a complex business. What would you name as the most significant achieve50

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ment derived from your operations? From the program’s past performance we think the social benefits have been perhaps the most valuable. For instance, in the mortgage market with its elevated interest rate, mortgage accessibility was limited to households with a monthly income of MNT 4.0 million, whereas now this accessibility threshold has been lowered to households with an average monthly income of MNT 1,000,000, which has greatly expanded affordable homeownership. Household consumption patterns have been challenged to achieve homeownership by savings support. Rural and urban home mortgage borrowers’ disposable income has been subsidized, and most notably, the prospect of affordable homeownership has incentivized medium- and longterm savings for first-time homebuyers. By the same token, the program has provided support to active employment. The long-term structured financial instruments have helped real-estate developers prevent financial severities. Q | A new growth trend has impacted MIK’s activities in 2013. You have handled it by means of incremental decisions and timely demand, but what other managerial solutions were employed? The Government of Mongolia in cooperation with the Bank of Mongolia paved the way to develop the securities market, began to introduce finance structured according to international common prac-

The long-term structured financial instruments have helped realestate developers prevent financial severities

tices in order to expanding the mortgage credit market. Commercial banks were contracted. Our company, selected as the securitization part of the program, was assigned to issue long-term securities compliant with international best practice. In other words, MIK’s activities are wholly focused on laying the foundation in the long-term securities market for secondary-mortgage market development, enhancing the accessibility and affordability of mortgages with lower interest rates while ensuring sustainable services for bondholders. One remarkable innovative step in particular was the implemetation of new managerial duties regulated under MIK’s trustee agreements with the Special Purpose Companies as Securities Issuer.

Impact On mortgage Market

Ratio Indices

Total amount of issued residential mortgage backed securities: 2.1 trillion MNT

Total amount of securitized mortgages: 2.1 trillion MNT

Newly issued mortgages: 1.6 trillion MNT

Refinanced mortgages: 0.5 billion MNT

Number of borrowers in rural areas: 11,942

Number of borrowers in Ulaanbaatar: 35,556

Total liabilities/ Total assets

Net profit margin

Return on assets

Return on equity

- 2014

94.82% 94.77% 28.93% 24.20% 1.35% 1.40% 26.16% 26.78%

Net earnings per share

Book value of Equity per share

Leverage Ratio

- 2015

746₮

1744₮

2854₮ 6514₮

18.32

18.11

Prominent quotes ABOUT Mongolia’s Mortgage Market

Prime Minister of Mongolia

Ch. Saikhanbileg

In any country, mortgages have high repayment ratios. CEO, Golomt Bank

Former President, Mongolian Bank-

U. Ganzorig

Mortgage loans are a distinct financial mechanism in a free economy. In this sense, lowering mortgage rates is a goal for any government, central bank, or commercial bank. We started to produce mortgage products in 2004, 2005, which was quite late. But because the banks’ costs of funds were high, interest rates were high as well. Since the start of the 8 percent interest rate program, people have been able to apply for mortgage loans that were previously at 15 percent. The fact that thousands of people are able to buy housing is a big advantage. And currently there are 76,000 households with mortgage loans.

er’s Association

M. Boldoo

Governor of the Bank of Mongolia

N. Zoljargal

During the past three years, we built and commissioned 40 thousand condominium apartments. This housing property park has been mortgaged to citizens, and the mortgages were packaged and securitized and transferred to mortgage securities, forming the initial funding source for subsequent mortgage lending and security issuances. To summarize, a full cycle has been completed.

There are mortgage corporations mandated to buy mortgage loans. They can be privately or state owned but are essentially intermediary companies. Such companies should be established. The Mongolian Mortgage Company is this exact type of intermediary. This company type should be strengthened so that MIK can buy existing mortgage portfolios from banks, thereby providing liquidity to those banks for new mortgage underwritings. This is international common practice. SUMMER | 2016

Dynamic economy

Asterisk Technologies:

Alternative Smart Solutions Everywhere we look, people around us are submerged in their smartphones and cloud devices. Everyone goes along with new technology trends, yet in the media these advances are criticized almost as often as they are applauded. Decreased human productivity, negative health impacts, addiction, and time consumption are the most common negatives raised by critics.

A “We are very pleased to have introduced this system that is consistent with international standards to our company, and in a very short amount of time no less. Simply put, Od ERP feels like driving a new Mercedes Benz after having driven an old Russian car for a long time.”

— Director T. Dashdemberel of Bayasakh Khunt LLC

. Otgonbayar, Executive Director of Asterisk Technologies, on the other hand, argues: “It all depends on how we use current technological advances.” While waiting for him in his office in downtown Ulaanbaatar, I search for information on the ERP service system using my smartphone. ERP (Enterprise Resource Planning) is a type of business management software system supported by integrated modules and designed for collecting, storing, managing and interpreting data from business activities such as manufacturing, procurement, inventory, order, finance, human resources, delivery, services, marketing, and sales. Eleven years ago, a young Belgian programmer developed a business management application he called Tiny ERP. Soon, not so tiny any more, it was renamed Open ERP before its first distribution. By 2014, due to popular demand, Open ERP has rapidly evolved into a large company with a research and development team of 300 people and has

A.Otgonbayar previously worked as an ERP system engineer. Now he manages his own team while implementing projects. 52

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rebranded itself as Odoo ERP. Today Odoo S.A., headquartered in Belgium, is a global company with millions of users, partnering with 650 companies and over 300 employees. Around 6,000 software engineers develop 312 new modules each month and they are translated into 23 different languages, including Mongolian. And here I am, waiting for the people who have rapidly and successfully introduced the ERP system in Mongolia and tracking their story. Not long ago, companies used to fill their archive rooms with file cabinets full of paperwork. It has not even been 10 years since the ERP system was introduced into our lives in Mongolia. The company whose director I’m waiting for started as USI, using Open ERP version 5.5 and employing around 1,500 people a month with over 100 developers. Three years ago, USI’s direct successor, Asterisk Technologies, was established. Asterisk uses Odoo ERP 8.0. More recently, Asterisk introduced OdERP, which is specifically designed to accommodate Mongolian users. Now with 25 employees, the company started with only two. Today Asterisk mostly consists of young people who embody the company’s values: to fulfill their promises, to possess strong engineering discipline, and to work with utmost precision and speed. The people I was waiting for arrive. They are A. Otgonbayar and Ts. Unurjargal, founders and senior executives of Asterisk Technologies. They are also the first people from Mongolia to earn the Open ERP functional certificate. “In Mongolia, most source codes are based on Microsoft technology. We, on the other hand, use open source technology, which supports cloud and mobile technologies as well. In addition, our software does not have any license fees,” says the Executive Director Otgonbayar. He continues: “We are the first company to introduce the ERP software system in Mongolia.

Asterisk Technologies' development teams consist entirely of young people. Company leaders say this is the foundation of Asterisk's values.

Also, the product is globally recognized. With 612 partner companies worldwide, our company is the only one making Od ERP available in Mongolia. Moreover, the development of the product will never stand idle due to its global recognition and demand. And as you know, innovations have a tendency to come to a standstill in Mongolia." Microsoft-based systems are also known to be stiff with respect to innovation, creating obstacles to further development. However, because Od ERP is open-source, it readily allows fixes, changes, and development. Moreover, unlike with proprietary software and applications, clients can pay for the services of the product without having to pay a license fee. Since it isn’t always easy to adapt to new software, my next question was on the operational process and usage of Od ERP. Ts. Unurjargal, who is responsible for the Sales management of the company, responds. “We ourselves encounter much the same obstacles when implementing a project. It depends on people. There are people who are set in their old ways. As we make changes to the organizational management of a company, we try to prepare ourselves for every possible outcome. Administrative support, employee mentality, and foundations for change need to be well prepared in advance. Otherwise, people tend to

cling to their old habits. Also for that reason, we try to provide very good follow-up service once the system is introduced to an organization.” Because Asterisk is a company that offers business management solutions for other companies, it was interesting for me to get a glimpse into their aspirations. Looking out of his tenthstory window, Otgonbayar says: “We have to be ready to conquer 20 percent of the market.” They have already started preparing themselves for the inevitable near future, when mobile and web applications move to cloud computing while accounting software switches to ERP systems. “Though we are still a conventional company, we would like to build ourselves into a company that creates technological startups,” A. Otgonbayar says confidently. For Mongolian business owners, Od ERP could be the most relatable option as an internationally recognized and compatible software system that is widely used in many countries. Starting this year, Od ERP will be introduced into the curriculum of the Institute of Finance and Economics of Mongolia. Moreover, I was told that Asterisk plans to enter the East Asia market very soon. As we head down in the elevator from the tenth floor, Asterisk Technologies is heading in the exact opposite direction – rapidly upwards.

“Od ERP enables companies to use a step-by-step approach to development by coordinating business-specific modules and utilizing open sources while incorporating the company’s potential and future directions.” —L. Magsarjav, Chief Operating Officer, MCS International LLC

“Although the system was conceived around 1990, recently its coding, development, and implementation have been attracting significant worldwide attention. It’s amazing that such young Mongolians have successfully used their intellects and skills to develop such a high-level, complex system tailored to an organization’s requirements and needs. We are fully satisfied with Asterisk Technologies’ service.” —Ts.Bayanmunkh, CEO, Gobi Khangai Mebel LLC

SUMMER | 2016

Green Economy:

Responsible Financing Countries around the world including Mongolia, while creating wealth in this rapidly changing world have started to prioritize the natural environment, notably the problems of global warming, water shortages, and desertification. For nomadic Mongolians who have traditionally treated nature as their Mother and the sky as their Father, conservation is one of dearest and most important concerns, as can be seen in their arts, culture, and lifestyle. The Trade and Development Bank of Mongolia (TDB) has pioneered the critical work of implementing this traditional, nature - entered approach of development into the entire financial sector of Mongolia. All the commercial banks of Mongolia got together in November 2013 to sign the Joint Declaration for Implementation of the Mongolia Sustainable Financing Program (SFP), which constitutes a major advance for Mongoliaâ&#x20AC;&#x2122;s development. By joining this program, the commercial banks demonstrated their commitment to stand firm against environmental 54

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threats like water, soil and air pollution, climate change, and human rights violations and to create sustainable development by reducing potential risks to nature and society. The SFP requires that all banks, when making decisions about investing, granting loans, or other financial outlays to businesses, must consider any negative impacts the business might have on the environment or the people, require actions to eliminate them, and in case of a serious negative impact, refuse financing to the business. The banks approved the Principles of Sustainable Financing and launched program implementation in the first quarter of 2015. Mongolia became the first country in the region to adopt this new type of policy, which is emerging as the new standard in global banking. O. Orkhon, President of the Banking Association of Mongolia, said: â&#x20AC;&#x153;During a recent meeting held in Washington on sustainable financing, Mongolia was cited as the best example. Other Asian countries that aim to Image: mm.gettyimages.com

adopt this policy decided to study Mongolia’s case. We were able to serve as the role model for implementation of the policy throughout the country within a short period of time.”

No Risk To the Environment or Society

The Government and Parliament of Mongolia worked together to support environmentally friendly economy and sustainable financing. They approved the Green Development Policy of Mongolia, which set national goals such as to increase energy efficiency by 20% by 2030; to bring renewables up to 20% of energy production by 2020 and to 30% by 2030; and to create rational financing, tax, and loan provision incentives in support of a green economy and the adoption of innovations in green development. The TDB in cooperation with the Netherlands Development Finance Company (NDFC) adopted a comprehensive environmental and social risk management system for Mongolia in 2012. This system requires banks to identify environment and social risks of a business that requests any loan other than household loans and to prevent any potential risks. Accordingly, the TDB has organized a forum on sustainable financing for the last three years in cooperation with the Mongolian Banking Association and the NFDC. During the forum held last November, many stakeholders got together to discuss implementation of the SFP principles, the experiences of major bank clients, financing, the establishment of a Green Credit Fund, and future actions. As a result, a working group was formed with the aim of advancing the SFP to the next level and establishing the Green Credit Fund that would implement the Green Development Policy and Sustainable Development concepts.

Good model, right start

Not long after the program was launched, banks appointed officials responsible for sustainable financing policy and regulation and conducted a wide range of training and awareness programs for their clients and partners. They prioritized application of the principle of Supporting Access to Finance, which is one of the main principles of the SFP. As a result, Image: Photo by zazaa (iRMUUN photo)

citizens with visual disabilities have been enabled to use bank ATMs and websites, and disabled citizens are served at banks without having to wait in line. Under the principle of Protecting Nature, the SFP member banks set special requirements for their clients operating in high-risk sectors such as mining, construction, agriculture, and manufacturing to consider risks to the environment and society. One result of this principle is that cooperation is being maintained between banks and their client companies in these sectors to search for ways to support the business, provide recommendations, and reduce negative impacts. Banks, in addition to calculating risks of their clients, have also implemented various water, and energy efficiency projects and initiatives in order to set real examples to the society. For example they organize tree plantation campaigns and the “SFP month” campaigns regularly. These examples show that the TDB is the pioneer institution in implementing environmentally friendly and socially responsible policies. TDB-initiated programs have served as good models and set a strong foundation. The TDB continues to cooperate with other banks and the government in policy development and improved access to opportunities. It is now up the TDB’s clients to create something to contribute to a better world.

The abbreviation of the Mongolian words for ‘Sustainable Financing Program’ is ToC. In the Mongolian language this reads like the word ‘oil,’ which symbolizes ‘rich and nourishing’.

SUMMER | 2016

Dynamic economy Bonds issued in international markets

75,000,000$

8.625 % Senior Notes, due in 2010 USD 150,000,000 EMTN Programme Fully repaid in 2010 January 2007

150,000,000$ 8.500% Senior Notes, due in 2013 USD 300,000,000 EMTN Programme Fully repaid in 2013 October 2010

25,000,000$

12.500% Subordinated Notes, due in 2015 USD 300,000,000 EMTN Programme October 2010

300,000,000$ 8.500% Senior Notes, due in 2015 USD 700,000,000 EMTN Programme September 2012

82,000,000$ Syndicated A/B Term Loan Facility September 2013

700,000,000¥ 10.000% Senior Notes, due in 2017 USD 700,000,000 EMTN Programme January 2014

500,000,000$ 9.375% Senior Notes, due in 2020 Guaranteed by the Government of Mongolia USD 500,000,000 GMTN Programme January 2015 56

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Gateway to the World An Interview with O. Orkhon, CEO of Trade and Development Bank of Mongolia Q | The TDB is one of the major investors and institutional supporters of hosting the 11th ASEM Summit in Mongolia. Also, it is the largest banking and financing firm supporting the Government of Mongolia in content delivery to ASEM guests. Why have you assigned so much importance to ASEM ? The ASEM Summit is one of the highestlevel meetings of global leaders. It is of the utmost significance because the heads of state, finance ministers, business leaders, and private-sector representatives of about 50 countries of Asia and Europe convene on this platform. Mongolia joined the ASEM Summit in 2008 and is currently hosting the Summit for the first time. This year marks the 20th anniversary of the ASEM Summit. Therefore, as the major financial institution of Mongolia, we decided to support this important event. The TDB is the primary funder of Mongolia’s foreign trade. It received the Global Growth Award from the Global Economic Forum from among 500 companies in the world. So, we consider it our prime duty to support the ASEM Summit in both financial and managerial ways. During the ASEM Summit, members discuss not only politics and

economics but also social and cultural issues. By introducing its own history, culture, socioeconomic trends, and opportunities to national and and business leaders, Mongolia opens its doors to the world. The TDB prides itself on its leading position as Mongolia’s financial gateway to the world. So we are doing what we should be doing. Q | The TDB started when Mongolia’s (political) system changed. Now the TDB is a leading institution in Mongolia’s banking sector. In your opinion, what has Mongolia achieved so far during this period of democracy? During these last 25 years, Mongolia has managed to create and maintain a stable liberal market system. We have an open economy and living and enforced laws and legislation. This will never change. We do not experience major threats such as social confrontations, religious tensions, or terrorism. I think these are some essential achievements of Mongolia on its path of democracy. The political, social, and economic stability of a country is vital to its ability to fulfill strategically and geopolitically important projects. Mongolia has met this demand. We can also offer low prices and stable policies.

Mongolia is the safest and most liberal and open country in the region. I’m confident that we can construct all necessary infrastructure and establish financial centers. Q | The TDB has sponsored the Davos Forum for years in a row. What results have you achieved? What are some projects and programs whose influence you aim to advance there? In each of the past three years, the TDB has sponsored a “Mongolia night” event at the Davos World Economic Forum. We do it because first of all, we aim to promote Mongolia as an open country. Second, we can exchange experiences with other countries. Third, Davos is an important networking event for TDB. It provides the venue for us to meet major partners around the world. We have participated in Davos for the past five years. Through our networking at Davos, many businessmen, companies, and newly emerging global leaders have come to visit Mongolia. Q | The TDB media group announced the official launch of “Bloomberg TV Mongolia” in October 2012. Why has the TDB invested so much in financial education? It is the responsibility of a leading institution to contribute to the country’s social development, and to the development of the sector they operate in. We realized that just being efficient and large is not enough and decided to fulfill our social responsibilities. We donate a lot within the country, but it does not have a large-scale effect. We cannot reach everybody that way. We decided that education was the key to reaching people most effectively and determined that it was even more important for us (than contributing to the education of children and youth) to deliver the most accurate global-level information in our native language to those who run businesses and make decisions in the political and economical arenas. So we went and negotiated with Bloomberg for a long time and finally established Bloomberg TV in Mongolia. This network now broadcasts both global and national news and information in our native language. We are very proud of what we’ve done. We became the role model within the Bloomberg community. Following our experience, more native-language TV networks such as Bloomberg Malaysia and Bloomberg Turkey were established. This also will spread our innovative know-how in the Asia pacific region. Through Bloomberg Mongolia, developments in Mongolia began to influence global stock markets, and

Mongolia’s markets and businesses became aware of that. Moreover, the media standards of Mongolia were upgraded because of the Bloomberg Mongolia example. We also publish Forbes Mongolia magazine and officially issue the New York Times and the Financial Times through the Mongolian-language newspaper Government News. Q | What are the nature and vision of Mongolia’s banking sector governance, especially TDB governance? How in line are they with international standards? Our vision looks beyond being an internationally recognized and leading bank in Mongolia. This was our goal for the first 20 years, and we have achieved it. Currently, as I said, we act as Mongolia’s gateway to global financial centers. We operate in international financial centers through our branches. We plan to introduce international standards in all aspects of our operation such as risk management, corporate governance, product development. and information technology and to become an international bank in the near future. In other words, we have an ambition to expand our operations across Asia and Europe. The TDB feels very ready in this regard because of the international standards and reforms we have embraced. The TDB’s core culture is constant transformation and development at all levels, and we are very proud of it. We have the motto “Together for development and progress.” We focus not only on banks and the banking sector but also on contributing to the sustainable development of Mongolia’s entire economy. Q | What would you recommend that visitors to Mongolia experience first? I advise them to go into the countryside if they want to experience Mongolia. Coming to the city, staying in a nice hotel, having good meals, attending meetings in tall glass buildings—one can experience these things anywhere in the world. Only by going out of the city and enjoying nature and the open steppes, breathing fresh air, looking up at the blue sky, and visiting a Mongolian family can one truly understand the Mongolian way of thinking. I learned this from many friends and partners who came to visit Mongolia. Just visiting the countryside and experiencing nomadic culture will allow them to understand the Mongolians’ vision, adaptiveness, resiliency, and mysterious ability to conquer the world despite their country’s smallness.

Best high yield 2015 Finance Asia

Global Growth Company 2015 World economic forum

“Best Trade Finance Bank in Mongolia” 2011, 2012, 2013, 2014 and 2015

Best bank in Mongolia 2013, 2015

SUMMER | 2016

Dynamic economy

The Taiga Forest of Mongolia The forests of Mongolia consist primarily of the boreal and coniferous forests in the Northern taiga and the saxaul forests in the southern Gobi desert. The forests cover an area of 18.4 million hectares, which make up 11.8% of Mongolia’s land area. 84.7% of the forest fund belongs to the boreal and coniferous forests or taiga forest of temporal zone.

he Mongolian taiga forest is part of the largest forest ecosystem in the world and is located at the ecosystem’s southeastern distribution edge. The taiga forest has an expansion of about 1.4 billion hectares, so 150 million hectares are deteriorated because of fire and pest, which results in a reduced percentage of actual tree-covered area. Climate change effects have a more profound impact at the edges of a taiga forest. This explains the Mongolian taiga forest’s increased vulnerability. The ratio of taiga forest area to total land area of Mongolia is 6.6% or 10.3 million hectares. According to the the National Forest Inventory (NFI), the net forest land (termed “forest reserve” in Mongolian forest law) of taiga is about 9.1 million hectares. The forest and its buffer zone in Mongolia have at least six different important function groups for the welfare of the Mongolian people: economic value, soil conservation, water conservation, nature (species) conservation, social services and other functions such as buffering roads and rail lines against high winds and other destructive phenomena. Mongolia’s forests are critically important to the implementation of the green development strategy and Mongolia’s targeted contribution to reducing global climate changes in the future.

Key Data of the Mongolian Taiga Forest The Mongolian Ministry of Environment, Green Development and Tourism planned and implemented a National Forest Inventory during 2013–2015. Analysis of the data collected in the NFI and reporting are ongoing. Currently some very important data have been analyzed and made available, and these require political interpretation. The Inventory contains more than 4 million data sets on different forest parameters by region. They include environment, forest area, forest management, growth stock, commercial volume, felling activities, biodiversity, environmental aspects (soil, wildfire, pests, grazing) and so on, and many of these parameters are relevant to multiple aspects of forest management. This fact allows a lot of interpretation concerning forest conditions, forest stand fragility, regeneration possibilities and limits, commercial usability, and other issues. There are three main evidence-based findings about the Mongolian forest that will change the perception of citizens, decision makers, and foresters and will change ideas of the future treatment of the national forest resources: the forest is overaged, understocked with live trees, and underutilized. The Overaged Mongolian Forest Thirty cubic meters per hectare of the total larch growing stock volume 112 cubic meters per hectare) originates from overaged (dead or dying) trees. The total volume of overaged trees in non-protected forest is about 180 million cubic meters (113 million trees). This causes important fire and pest risks and economic loss. Specifically, the huge area occupied cumulatively by overaged trees causes forest land to be understocked with younger, green trees because of these dead or dying trees disproportionately occupy the stand.

During NFI, field measurements being carried out. 58

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The Understocked Mongolian Forest The Mongolian forest has an understocked volume of

Field research being performed as part of the Multipurpose National Forest Inventory.

96 cubic meters per hectare, a total of 576 million cubic meters for nonprotected taiga forest. Given climate change from greenhouse gases, it is worth noting that this missing growing stock constitutes a potential carbon sink of about 121,800,000 tonnes capacity. But in the short term, understocked forest stands mean increased fire risk because of the resultant high density of grass and shrubs. The Underutilized Mongolian Forest Nationwide, official logging totals about 0.8 million cubic meters per year, not including dead-wood collection. A first-round estimate is that at least 10 cubic meters per hectare of green wood should be used in applying sustainable forest management methods, aimed at increasing logging rates by increasing stock density. Careful estimation suggests that about 100 million cubic meters of overaged trees need to be culled over the next ten to twenty years (5–10 million cubic meters per year). Only a general logging rate of 11–16 million cubic meters per year will reduce the risk to production over the same period. A sustainable logging rate of 20 million to 30 million cubic meters per year is the long-term goal, in accordance with the practices of countries with developed forest management systems.

Medium-Term Forest Management Options 1. Elaborate a new forest policy document based on data from the National Forest Inventory. The document should address questions like how to use overaged trees for economic benefit, how to increase the stock density and rotation period, and how to apply sustainable forest management methods. This policy could be summarized as “Protection by Sustainable Use.” 2. Elaborate and implement a new forest planning system. This system will provide the basis for sustainable forest management by local forest user groups , private concessions, and professional forestry institutions. 3. Develop and implement a new seed law. A seed law is a precondition for site-adapted forest management for reforestation, afforestation (creating new forest land) and enrichment plantation (planting new trees in existing forest). 4. Establish a certification system for professional forestry institutions. This will promote professional implementation of sustainable forestry by ensuring that both the institutions and their staff are qualified. Successful implementation of these management initiatives will result in increasing the growing stock of understocked forest from the current baseline of 112 cubic meters per hectare to 208 cubic meters, which will eventually produce highly productive and protected forests in Mongolia. —M.Tungalag, Director of the Forest Policy and Coordination Department of the Mongolian Ministry of Environment, Green Development, and Tourism. SUMMER | 2016

The Key to Sustainable Forest Management is Skilled Workers Trees and forests play important but not always directly visible roles in our daily lives. Whenever we read newspapers or magazines, whenever we use electricity, or even when we’re traveling by train or car, trees are contributing.

Mr. Klaus Schmidt-Corsitto, Programme Director

aking care of trees and forests not only protects the surrounding environment but also has significant positive impacts on society and economy. That’s why the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH prioritizes its work in Mongolia on three main areas to advance sustainable management: mineral resources, biodiversity, and energy. Since Mongolia’s transition to a new democratic society 25 years ago, the German government, based on its development policy cooperation with Mongolia, has implemented projects worth 310 million Euro or over 710 bil-

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lion Mongolian tugriks. Now, the German Government has decided to allocate an additional 31.7 million Euro (70 billion tugriks) for future projects. These projects contribute to the stabilisation of the economy by helping to solve environmental and social problems, and they further develop capacity and strengthen programmes to ensure transparency. However, Germany’s contributions are not limited to the merely financial. The financial support has brought lasting changes and stimulated courage, fresh ideas, and new aspirations to conduct environmentally and socially friendly projects from which they and others can benefit. Mr.Klaus Schmidt-Corsitto, the Programme Director of the GIZ Programme “Biodiversity and Adaptation of Key Forest Ecosystems to Climate Change II” notes: “Initially, GIZ worked with nongovernmental organisations and members of forest user groups, established during the transition period of the 1990s, to build capacity, and advised government agencies on how to work with these organisations. Today, these organisations and forest user groups are well established. Furthermore, new groups have been created that are all considered as legal entities within legislative frameworks. These are important achievements.” The GIZ started working to introduce sustainable forest management and biodiversity protection in Mongolian forestry since the late 1990s. The very first forest user groups were established with the support of the GIZ in 2002. Since then, they have introduced new understandings and solutions for both protecting and benefiting from forest resources. Within five years, over 100 forest user

Before GIZ Programme

After GIZ programme

groups were established and cooperations with similar projects and programmes in other countries were initiated. This work has been successfully continued since then. Among these initiatives, the programme led by Mr. Schmidt-Corsitto stands out, as it has for a long time closely cooperated with both local residents and all levels of professionals and representatives in the Mongolian forestry sector. Mr. Schmidt-Corsitto emphasizes that “the most important thing is training.” He explains: “Although Mongolians have the right to benefit from forest resources whilst protecting them, they are not professionals in the field. Hence, they lack the opportunities, resources, and skills to benefit fully from this right. Therefore, we have been organising forestry professionals trainings at all levels since 2012”. In order to implement the objective of sustainable forest management, 6,000 forestry professionals are needed nationwide. However, very few young people in Mongolia are currently interested in studying forestry. For this reason, the programme focuses on attract-

al workers, techniques, tools, and equipment. Also, the programme focuses on ensuring labour safety standards. These two issues are the key challenges faced by the 600-plus companies that work in the forestry sector. The needs of low-income families, the participation of women, and gender equality are also factored in. The Programme Director explains: “In Germany, students study at least three years in order to obtain a license to fell and cut trees. Also, new trees are planted for every tree that is felled. This maintains a foundation for the sustainability of the forest stocks and for the health and benefits of forests.” Only legislative frameworks and government policies can ensure the longer-term sustainability of the programme results and benefits, no matter how well the professionals and organisations in this sector are prepared and strengthened. Accordingly, a key task of the GIZ is to provide advice on elaborating proven concepts and ensuring that laws reflect proper policies and take public opinion into account. For example, in the forest sector, the GIZ is currently focusing on drafting a law on seeds and a law concerned with equally distributing the benefits from genetic resources and their utilisation. The lack of statistical data to be used in the sectoral development and forest climate change reports has caused challenges in implementing environmental policies in line with the UN REDD+ programme, which aims to reduce greenhouse gas emissions from deforestation and forest degradation. Therefore, the GIZ has recently completed a two-year-long National Forest Inventory. This inventory involved conducting measurements at 4,211 sample points to assess the total quantity of forest fund resources and of life-growth and dried resources, requirements for natural reforestation, the composition of biodiversity, and distribution of pests and insects. A total of 25 teams from nine companies in cooperation with the researchers from the National University of Mongolia conducted the measurements and generated all information and data from it. According to the Forest Atlas that was produced as a result of the project, there is a total of 9.1 million hectares of natural forests in Mongolia, with 18,587 local residents working in 915 forest user groups. Mr. Schmidt-Corsitto says: “The millions of data that have been collected through the inventory work will be integrated into a report and published. It will be possible to get any and all needed information about Mongolian forests from this report. Because we have gathered very specific and detailed information, we expect that the government will reconsider policies in the Mongolian forestry sector and make some core changes to the sector.” Mongolian forestry gratefully acknowledges the vital help provided by the GIZ.

Professional forestry teachers and students

ing their interest and improving the quality of education. It offers trainings taught by German forest industry professionals, organises Open Door Days in cooperation with the Ministry of Environment, Green Development, and Tourism as well as with local Vocational Training and Production Centres, and is introducing the same dual vocational trainings that are offered at German professional institutes. This structure focuses on the market, so it is of particular importance to resolve the issues surrounding the lack of profession-

SUMMER | 2016

Dynamic economy

Stories from the Field: Mongolia’s great local forests: valuable local, national and international assets being protected by herders

Mr. Andrew Inglis, Chief Technical Adviser, “Mainstreaming Biodiversity Conservation, Sustainable Forest Management, and Carbon Sink Enhancement in Mongolia's Productive Forest Landscapes” Project

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orests are one of the planet’s main natural carbon absorbents and oxygen producers. 31 percent, or 4 billion hectares, of the earth’s surface is covered by forest but this number is smaller in Mongolia, where forests comprise only 11.8 percent of the national territory. However Mongolia’s forests, although covering this relatively low percentage of land area, still constitute a great and valuable global, national and local resource, especially for herders who have formed Forest User Groups (FUGs) to look after and manage them. As the UN Food and Agricultural Organisation (FAO) has highlighted for many years, local-community-based forestry is a potent vehicle for promoting sustainable forest management, reducing poverty and generating jobs and income for rural communities. This is why FAO have been assisting the Mongolian government, since 2003, to implement its forest policy to strengthen Forest User Groups. Currently, for this purpose, the Ministry of Environment, Green Development, and Tourism, with technical support from FAO and financial support from the Global Environmental Facility (GEF), is implementing a Project, “Mainstreaming biodiver-

sity conservation, Sustainable Forest Management and carbon sink enhancement into Mongolia's productive forest landscapes.”

Protecting does not necessarily mean preserving The project’s Chief Technical Adviser, Mr. Andrew Inglis, opens his laptop and starts showing pictures taken during his recent field trip to Khentii province. He displays images of small trees marked with red ribbons which ensured that they remained standing during forest enhancement ‘first thinning’ operations. Removing the other trees, which are weaker, whether due to insect pest infestation or losing out on light or moisture to stronger neighbouring trees, allows these remaining healthier trees to grow faster and bigger. To a person with limited knowledge of forestry, these pictures, with a number of the thinner small trees cut down, might seem a bit harsh. However, for Andrew, who has been working in forestry for over thirty years, these forest enhancement activities are part of demonstrating to the government, the media and Mongolian society in general that the local Forest Users Group’s are able to keep Mongolia’s forests healthier and more productive. Mr.Inglis says: “There are huge prospects for further developing ‘community based forestry’ in Mongolia. All the “basics” are there: locally abundant forest resources; in most cases adequate logistical infrastructure; the FUGs’ recent suc-

stopped. The FUG “Delger Onon” work consists of three main activities: forest cleaning and thinning, tree planting, and bee breeding. Ulziibat continues “People who join the community forestry tend to become more considerate of their forest reserve and increase their involvement in various conservation activities”. Not all FUGs can currently do thinning, but despite this constraint, some, such as the “Eleet Undur” FUG, are marshaling their efforts to start wood product businesses using pieces of wood gleaned from fallen trees. The “Eleet Undur” FUG has successfully made laminated panels, furniture, and floors for homes and has managed to secure customers. Mr. Z. Gantumur, a member of the “Urkhtii” Forest User Group in Bulgan province, offers another shining example of how fallen or old trees can be used to generate income, in his case by creating works of art. Gantumur uses tree roots and burls to design uniquely shaped spoons, pots, and animal carvings as souvenirs. The idea first came to him more than ten years ago from observing all kinds of animal shapes in tree roots, and he has been carving wood ever since. cessful track-record, plus their desire, belief and aspirations; individuals with expertise and equipment; and growing markets for wood and biomass products”. Mr. Eldev-Ochir, Leader of the “Eleet Undur” Forest User Group in Darkhan province, one of the 101 FUGs, which the project is collaborating with, concurs with Mr. Inglis. He believes the forests are spiritual and living beings, declares that Forest User Groups fulfill their designated responsibilities by making frequent patrols, fighting illegal logging, preventing fires, and cleaning fallen trees. Data, evidence shown that FUGs play significant role in decreased illegal logging, forest fire occurrences”.

Social and economic benefit for FUGs

Wood products made by FUGs

Ten years ago, Mr.D. Ulziibat was no different from any other ordinary Mongolian herder. Between endless work taking care of his herds and only managing to visit the capital once a year, he had no real reason to meet and network with people. However, since that time he has become an open-minded and highly motivated forest advocate. Now a member of the FUG “Delger Onon”, he says: “Before, anyone could enter the forest to gather firewood for winter, and what’s more, during spring and autumn, the forest would be rife with poachers. Since the local community formed a Forest Users Group in 2008, gaining forest reservation rights under a contract, the forest fires have

Win-win-win With forests, as per other natural resources, wealth and equity can be generated alongside the environmental services they provide by means of supportive governance and proper stewardship. In Mongolia, as in other countries, forests that have been taken care of by FUGs have had virtually no poaching, illegal logging, and forest fires, clearly showing the direct benefits of having such a devolved management arrangement. The Forest User Groups have proved they can handle the protection responsibilities. They are now keen to combine generating income from the forests with preserving them. Inglis’ view is that only a few regulatory tweaks have to be made in order to achieve this, and simultaneously make Mongolia an international role model for this type of ‘community based forestry’. The tweaks required are mainly to do with reducing bureaucracy for FUGs to get permission to harvest and sell forest products: a few small regulatory changes which should improve the livelihoods of these herders, and generate more income for Mongolia and for the planet to benefit environmentally from the enhancements the FUGs can make to these forests. In this way, this Mongolian government collaboration with the international community will result in a win-win-win situation, and be an example for other countries and regions with low density rural populations and globally valuable remote forest resources. SUMMER | 2016

Dynamic economy Mongolians have developed rich and detailed knowledge of milk processing.

Mongolian Husbandry and Farming:

History and Prospects Nomadic pastoralism has played a significant role in keeping the sparsely populated Mongolian land inhabited.

raditional Mongolian livestock herding and horse-breeding have been until very recently the country’s main source of both food and means of transportation. However, throughout the historical developments during the Hunnu and Mongol Empires it was also considered one of the most important subsidiaries of the military. Indeed, 750 years ago, during the Khubilai Khaan’s Yuan Dynasty, the state even established an Equestrian Ministry. The Ministry for Food and Agriculture, overseeing and implementing food and farming policy, was started in 1921, changing its name 13 times along the way. The pinnacle of

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agricultural development began from the early 1960s, while Mongolia was under the state socialist regime. Among herders “Collective Mobilization” and agricultural campaigns such as the Atar I and II were launched, enabling Mongolia to become a successful food exporting country for a time. During that period the number of livestock did not grow very much due to raw material and meat export. On the other hand, although subject to weather conditions, surplus production of wheat often allowed Mongolia to supply it to other countries. When democracy prevailed in 1990, the closed doors of the world economy opened to Mongolia, offering the country an opportunity

to join the world market. Unfortunately, while gaining other opportunities from open-market policies, Mongolia almost abandoned its traditional nomadic pastoralism. During the socialist period, livestock had been considered state property; but now, because of democratically made changes, the livestock was returned to herders as privately owned. Once privatized, livestock in Mongolia grew to an impressive 55.9 million head in comparison to the 25.9 million head before 1990. The agricultural sector, on the other hand, was in decline for some time. Ministry for Food and Agriculture has since launched successive policies such as the â&#x20AC;&#x153;Atar IIIâ&#x20AC;? campaign, and nowadays Mongolia is able to meet its domestic demand. As of last year, the Mongolian government together with the Ministry for Food and Agriculture has started to pay more attention to herders and farmers by providing them with concessional loans and bonuses. For example, farmers areď&#x20AC;´

Mongolian pastoral herders make up one of the world's last remaining nomadic cultures.

Images: zazaa/iRMUUN photo

SUMMER | 2016

Dynamic economy

What Experts Are Saying “Mongolia’s next “Tavan Tolgoi” and “Oyu Tolgoi” will be in agriculture and farming, reserve and potential for Mongolians. It is my goal and dream to see newsfeeds depicting Mongolian meat and dairy produce exports as a significant percentage of world output. I will do everything I can to make this a reality” —L. Chinbat, Director of Gatsuurt LLC

“Mongolia’s agriculture and farming should be one of the cornerstones as we shift Mongolia’s one-pillared economy to a multi-pillared economy. The traditional livestock sector becoming a value-added, competitive, and export-oriented market would have a major impact on the economy and accelerate the development of the country. It would be a symbol and an identified, world-recognized Mongolian product that has value to develop for thousands of years.” — Prof. Dr. A. Bakei, MP, Chairman of the Standing Committee

“Mongolians have a traditional nomadic herding lifestyle. However, rapid population growth in the past years with increasing consumption raises the question of the future management of that lifestyle. One of the solutions on offer is to rapidly develop farming and agriculture.” —Dr. T. Kheruugaa, President of the Mongolian University Consortium, Rector and Professor of the Mongolian University of Life Sciences 66

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Mongolian farmers harvest an average of 518,000 tonnes of grain every year.

able to receive loans of up to 50 billion MNT with low interest rates, to use tax-free fuel for spring cultivation and purchase fertilizers at a 65% discount in addition to letting them own land rights for at least 40 years and receive pledge loans for land or crops. Herders, on the other hand, are able to receive 10% annual fixed-rate loans—terms much more lenient than the previous monthly 2.5% rate—in addition to offering risk insurance coverage, vaccination of livestock, and bonuses for the collection of wool and cashmere. There are 41 legitimate meat producers across the country. Mongolia now exports meat to the Russian Federation and the Socialist Republic of Vietnam and has signed an agreement with the People’s Republic of China to supply US$1 billion worth of meat effective this year. Also, talks have been in progress to acquire a loan for 100 billion MNT from the Development Bank for our domestic meat manufacturers. Registering five of the Western provinces as livestock disease-free zones was another of our significant achievements. At present, the Ministry for Food and

Agriculture is collaborating on 18 domestic and international projects, and last year Parliamentary Resolution 75 was issued to create the “Khalkh Gol” Free Trade Zone in Dornod province in eastern Mongolia. The FTZ covers 500 thousand hectares and promises to establish 2,200 workplaces in addition to farming, agricultural, logistical and tourist activities that will yield approximately 141 billion MNT annually. As part of this project, a complex built to international standards will allow the collection and storage of livestock genomes, movement and migration control, and veterinary surveillance and services. In addition, advanced technologies will be introduced that will lessen soil erosion and enable organic plant- and meat-based food production. Thus Mongolia’s agriculture and farming sector will be able to reinvigorate itself from its dormant state with economic benefits and ability to compete in the world through identifying the development trend. Even though the world perceives Mongolia as the new El Dorado because of our mineral resources, we remain fundamentally an agricultural country.  Image: zazaa/iRMUUN photo

AGRICULTURE IN MONGOLIA (as of 2015) EXPORT REVENUE

GROSS DOMESTIC PRODUCT (GDP)

12.2%

7.2%

food and agricultural sector products

agricultural products

518,000tonnes of grain

270,000 tonnes of potatoes and vegetables

7,000tonnes of cashmere

livestock

= 18.6 livestock

4,000 different species of plants

around

hectares of land 0.76% or 1.7 million available for cultivation

600

2.5$ Retail price survey conducted in the U.S. for 1 kg of beef Intensive Farming - 11$

The organic - 12.5$

Without antibiotics - 14.5$

Pastoral - 16.4 $

Organic pastoral - 17.4$

740,000 irrigated area

840 sq.km

of land

50%

300

nutriments are medicinal herbs

is fertile brown-earth soil

Mongolian mutton and chevon (goat meat)

World average per 1 kg of beef

In 2008

Mongolia has

around

are consumed by the livestock

work in the food and agricultural sector

1,564,116 sq.km

on average

35%

million pieces of leather and raw materials processed

3,000,000 55,900,000 population

out of total work force

Wild argali and ibex meat

Present

11$

Current pastoral organic meat in Mongolia

1 kg - 3.5$

A comparative study showed similar results. Hence, Mongolian meat is one of the most organic products in the world Mongoliaâ&#x20AC;&#x2122;s meat production capacity Capacity to export

128,000

tonnes of meat

368,000 tonnes per year

239,000 tonnes for domestic use

SUMMER | 2016

Dynamic economy

The Hopes Of Nomads:

Gobi Takes Mongolian Cashmere Global In recent years, Mongolia has been in the spotlight of international investors for its mineral resources. However, in keeping with their ancient nomadic pastoral traditions, Mongolians believe that livestock products such as wool and cashmere goods can represent Mongolia in the international market. With a longstanding sustainable relationship to nature, Mongolians can best identify with cashmere products that are renewable, ecologically friendly and ethical towards both humans and animals. G. Yondonsambuu, head of the Mongolian Wool and Cashmere Union and an experienced cashmere professional says: “I see agriculture and husbandry as the heart of Mongolia’s economy. Of course mining is important. But as shown by the examples of other countries, mining is not a longterm solution, even though it can provide assets that can be used to develop other economic sectors.” After World War II as companies like the former Soviet Vostokintorg, England’s Dawson Ltd., and the USA’s Forte Cashmere began to purchase Mongolian cashmere, the doors opened for Mongolia to introduce its cashmere to the world market. As there were no processing facilities in the country at that time, the cashmere sector was limited and only a small amount of export was possible. But in 1981, with visionary management from the Ministry of Light industry and Food and the help of the Japanese government, Mongolia’s first cashmere factory, Gobi JSC, was established. So began the development of the cashmere industry. 68

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Because the world’s goat herds are mainly in Central and Southern Asia, cashmere production and supply are concentrated in this region as well. Mongolia is the second largest supplier of raw cashmere at 40%, coming in after China, which supplies 48% of the world’s raw cashmere. Mongolian Capra Hircus goat grows an extra fine under down with 4 natural colors nowhere else to be found. Unfortunately, Mongolian manufactures are less well known on the international market for their cashmere products due to weaknesses inherited from the socialist economic system and market capacity. But in recent years by using the revenues from raw materials and the opportunities provided by globalization, Mongolian cashmere manufacturers are quickly becoming a major player in the market with their products. Especially now when raw materials prices are falling and Mongolia’s economy has taken a hit, Mongolian policymakers have understood that they cannot get far riding only one horse and are searching for alternative developmental opportunities, one of which is the cashmere industry. D. Erdenebat, Mongolia’s Minister of Industry, has stressed during a recent press conference: “We are confident that the free trade agreement with Japan will be significant to this industry’s future. In addition, our manufacturers should seek opportunities to enter into the international market rather than rely solely on the domestic market. Ideas like these will always have support from the government.”

The Future of Mongolia’s Cashmere Industry On the one hand, cashmere is a renewable resource. But on the other hand, it is also a limited one. All the cashmere procured in one year yields 40 million sweaters, making it a luxury product, as it’s not available to everyone in the world. That’s why, unlike coal and other major exports from Mongolia, its price won’t fall. In other countries, the procurement of livestock products tends to seriously violate animal rights, but because of our pastoral traditions, which require herders to treat their flocks with care and respect, Mongolia’s cashmere production strictly accords with the standards of modern ethical production. The high quality, super-fine micron cashmere combed from Mongolian goats is known as the king of all natural fibers. Geoclimatically, Mongolia has a unique combination of of steppes, deserts, and mountains that experience four distinct seasons, with winters reaching as low as minus 40 degrees C and summers reaching as high as 40 degrees C. Because of this wide annual temperature range, Mongolian goats produce cashmere in four colors that are found nowhere else. Only our country has blue-gray cashmere, considered the rarest in the world. On the other hand, the goats of Mongolia’s biggest competitor, China, are spread throughout the Inner Mongolian desert, and 98% of them produce only white cashmere. COO of Gobi JSC explains that to compensate for this weakness, China’s manufacturers compete heavily for differentcolored cashmere on Mongolia’s raw materials market. By utilizing this and other advantages, Gobi JSC has introduced Gobi organic cashmere products that use the main four hues of cashmere as well as 10 other colors that are mixtures of the four to create a range of naturally colored organic product using no dyes. What’s more, Mongolia’s cashmere industry is an income source for Mongolia’s herders and an engine for sustaining the world’s last classic nomads and their culture. Mongolian herders earn an average of 240 million dollars annually from sales to cashmere manufacturers. The cashmere product you purchase from Mongolia helps sustain our nomadic culture that has lasted thousands of years. SUMMER | 2016

Dynamic economy

Gobi to be the world’s largest manufacturer of 100% cashmere coats D. Naranbaatar, COO of Gobi JSC, says: “The Gobi company’s goal is to be the world’s №1 producer of pure cashmere overcoats by 2021.” Formerly one of the largest state-owned companies along with the Erdenet Mining Corporation, Gobi JSC has made a capital investment of over 38 billion MNT since being privatized in 2007. Now working with the best fashion designers in Italy, Gobi is moving to become a global manufacturer. Before and during the privatization of Gobi JSC, its annual overcoat production was only 30 overcoats a year, whereas it has now reached 10 thousand. Given a company that has been able to increase production by a factor of 300 in just eight years, the goal of increasing production tenfold over the next five years isn’t just a dream to Gobi’s young Director. When asked “Why overcoats?” he replied: “Mongolia has a fairly small population and with it a limited market. We can’t be leaders in all areas but we can focus

on a particular field and be number one.” Led by technological development, Gobi JSC sees opportunities in the trends of the ever-flattening world. By using a franchise business model the company has been able to expand its branches rapidly and cost-effectively, with over 51 stores worldwide carrying the Gobi label and the goal of taking that number to 100 in the near future. The next focus for Gobi JSC is online commerce. Deemed the cashmere country, Mongolia is the go-to place to purchase high-quality cashmere at a low price. Using this price advantage, Gobi JSC is using e-commerce technology to send their products without shipping fees to their customers. “People around the world have rarely seen a Made in Mongolia label. So why can’t that label equate to organic, natural quality just as Made in Italy equates to high fashion?” D. Naranbaatar argues.

Cashmere Growth as of 2015

6,650 tonnes were cleaned and exported; earning $197 million

World

21,500 tonnes

40%

Mongolia

8,500 tonnes

$314 million total export

If Mongolia were able to convert

100%

of its yearly cashmere harvest into finished products and sell them on the international market, 70

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1,000 tonnes were combed and exported; earning $40 million

750 tonnes were made into finished 10% products; earning $79.4 million

sales would be up to

This equals

eventually reaching

14%

$1.3 billion, fourfold increase.

90%

of Mongolia’s GDP (versus 2015).

Expectations for ASEM 2016 During the twentieth century, the main goal of Mongolia’s foreign policy was to attain and strengthen independence. As a result we’ve revived our independence, became an official member of the UN, and today have organized the ASEM summit. But in the new century Mongolia‘s foreign policy is directed towards creating mutually beneficial economic cooperation and support. As spokesman for Mongolia’s cashmere industry, G. Yondonsambuu hopes that ASEM 2016 will be a first step to providing favorable conditions for trading with guest countries. As he notes: “Mongolia is landlocked between China, which has the most middle-class people in the world, 100 million of them, and Russia’s cold climate. But because of our neighbors’ customs duties it’s difficult to enter their markets.” He also emphasized that in a time when countries are building more economic cooperation, it would be smart for cashmere goods-producing countries like China and Italy to

work together with Mongolia via joint corporations rather than competing with one another. “Firstly, we have the raw material. Secondly, Mongolia is able to export products to the European Union duty-free. We have a free-trade agreement with Japan. China doesn’t have manufacturers with benefits like these. If we built a joint venture in Mongolia, we would be able to reach all markets.” In recent years the Mongolian government has been striving to make the tourism sector a main engine of the economy. Gobi JSC hopes that the upcoming ASEM summit will connect our citizens and government with Asian and European countries and enhance Mongolia’s reputation. Cashmere is always chosen by tourists to take home as a gift. It is estimated that last year 117 million tourists from our southern neighbor, China, traveled here and made purchases worth US$200 billion. For a country with US$10 billion in GDP, this is a big opportunity. SUMMER | 2016

Dynamic economy

Mongolia Connects Asia and Europe —And Connects With Itself

ongolia is landlocked between our two neighboring countries, Russia and China, but for that very reason it has always been a point of passage for Asian-European trade routes. Long ago the Silk Road passed through southwestern Mongolia, and since the eighteenth century Mongolia has played a large role in major trade routes connecting Asia and Europe such as the Siberian Road and the Tea Road. Later on, these historic routes became the world’s longest railway line, the Trans-Siberian, which is still Russia’s most important foreign trade line as well as a tourist favorite. The work of connecting Mongolia to the TransSiberian Railway started after World War II. In 1950 the Trans-Mongolian Railway passed through Ulaanbaatar and was connected with China’s rail network in 1955. The Trans-Mongolian Railway is uniquely significant because it connects two of the largest railway systems in the world, the Russian and Chinese rail networks. Mongolia went on to

establish a comprehensive transport infrastructure when it created highways along the Trans-Mongolian railway network in 2013. Building on this advance, Mongolia is interested in participating in the Asian-European connective infrastructure network. In 2004, Mongolia joined the Asian Highway project, aimed at improving roads linking Asia and Europe. In line with this effort, Mongolia has initiated the Valley Road Project, a comprehensive infrastructure project consisting of 997 km of highways, 1,100 km of power lines, and natural gas and oil pipelines. The Valley Road Project will be developed in concert with China’s New Silk Road Economic Zones and Russia’s Eurasian Economic Union initiatives as part of the economic corridor linking the three countries. Given Russia’s vast raw materials 72

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resources and China’s continual economic expansion, both neighboring nations want to expand their infrastructure communication. And China also wants to connect directly to Europe via highspeed rail to improve cargo circulation and foreign trade. Mongolia is also actively expanding its internal road network and has the goal of connecting its 21 provincial capitals with highways in the near future. Linking the provinces with paved roads will energize the domestic economy and increase regional competitiveness. Mongolia has also given high priority to tourism, and a transportation infrastructure connecting Mongolia internally will obviously have a major impact on the future of this sector. Finally, the new Ulaanbaatar International Airport, built with the help of Japanese loans, will

open in the first quarter of next year. Once the airport is in operation, Mongolia will be able to receive up to five million visitors a year. The build-out of domestic transportation and communications is even more important for the mining industry, Mongolia’s main economic sector. Large-scale mining projects require their own infrastructure of roads, railways, airports, and power stations. For instance, Mongolia’s thirdlargest city, Erdenet, is based on its copper mine and shares communication lines with it. It is not surprising that many Mongolians were delighted when the Oyutolgoi company officially opened its underground mine worth US $4.4 billion last month. By the same token, the further expansion of Mongolia’s mining sector serves as a driver for infrastructure development.

New Ulaanbaatar International Airport is an airport construction project being built to replace Ulaanbaatar’s existing Chinggis Khaan International Airport.

SUMMER | 2016

Dynamic economy

Six Decades of Leadership, Perseverance and Innovation

he national flag carrier, MIAT Mongolian Airlines, is undoubtedly the pioneer, the pillar and the future of civil aviation in Mongolia. On the 25th of May, 1925 the first ever airplane landed in Mongolia, a Y-13 freight aircraft which was gifted from the former Soviet Union. Further along the line, the Ministerial Council of the Mongolian People’s Republic elected to pass legislation regarding the establishment of air mail and its respective signs and symbols during 1946-1947. Afterwards in 1956, five An-2 civil aircrafts were brought to Mongolia in order to begin scheduled flights. These events that occurred 60 years prior to today began a new chapter in the history of Mongolian civil aviation. Mongolia is a landlocked country with a population of only three million people with highly volatile seasonal fluctuations. Adding on the fact that the civil aviation industry in Mongolia is exposed to many external factors and is limited by high costs and small margins, MIAT Mongolian Airlines has put solid a ground stone for the airline industry and has grown to become the national flag carrier it is today. The national carrier has done exceedingly well to establish the healthy and competitive market of today to the benefit of all whilst bearing the hardest burdens

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throughout these six decades on its own. Today, there are more than 10 domestic and international carriers operating to/from Ulaanbaatar connecting Mongolia with the rest of the World. With the deregulation of airline industries carried out by most countries for the last twenty years, the civil aviation market has developed to become the most globalized and competitive of all industries. In order to succeed in this highly competitive environment, most major airlines are prioritizing dual branding strategies while cooperating with other airline and non-airline businesses through partnerships and alliances. As healthy competition entails positive development, MIAT Mongolian Airlines offers high quality air transportation services to its passengers through its own flights as well as that of others’ by partnering with more than 40 international airlines. Over the course of its rapid development and innovative growth, MIAT Mongolian Airlines has defined its vision as “To be the globally recognized Mongolian national carrier”. Always focusing on safety and security as its guidelines, the airline has consistently delivered its passengers to their desired locations as scheduled and continues to do so to this day. CEO T. Tamir has stated “Because Mongolia is a landlocked country, we have to prior-

promote Mongolia while also consistently supporting domestic tourism companies. Under its shortterm policy framework, MIAT Mongolian Airlines has expanded its sales channels in order to make Mongolia more accessible for tourists by operating interline and codeshare flights with its international airline partners. The international airline safety reviewer www. airlineratings.com has ranked MIAT Mongolian Airlines’ safety quality with 7 stars, which indicates that it’s on the same level as leading airlines Cathay Pacific, British Airways, Singapore Airlines among others. In addition, MIAT Mongolian Airlines is the only airline certified by the International Air Transport Association Operational Safety Audit (IOSA) in Mongolia and has successfully passed it five times consecutively without any findings. The company has taken many measures to become leaner during these economic downturns by diversifying its revenue sources through offering multitudes of other services such as aircraft mainitize broadening economic ties with our neighboring nations. As such MIAT Mongolian Airlines will serve as an integral part of the economic corridor under discussion between Mongolia, China and Russia. Furthermore, the development of civil aviation has always been correlated with the strategic policies ensuring national security and independence. On the other hand, Mongolia ranks 19th in the world according to land size and its two neighbors Russia and China are global economical and political powerhouses. As such this gives us the opportunity to become the bridge to connect Asia and Europe.” MIAT Mongolian Airlines’ mission is to be the national flag carrier that connects Mongolia to the world by providing air transportation services of the highest quality, reliability and efficiency. To this purpose, it often participates in major international exhibitions such as the ITB Berlin among others to

tenance, ground handling and in-flight duty-free shops. Besides, to become more competitive and better serve its passengers, MIAT Mongolian Airlines is following the industry’s trend and is implementing many projects based on IT platforms. The airline is poised to restore direct flights to Singapore and introduce destinations in Australia through its partner airlines within the next two years. With 60 years of experience and 600 employees under its banner, MIAT Mongolian Airlines will be the primary customer as well as home carrier of the new Khushigiin Khundii international airport. As the sole founder and developer of the airline industry in Mongolia, MIAT Mongolian Airlines has time and again ushered in innovative technology, enacted constant progress and has created a reputable national brand. With its continued partnerships with domestic as well as international airlines and businesses, MIAT Mongolian Airlines has been opening the airways that connect Mongolia to the World and will continue to do so into the future. SUMMER | 2016

Dynamic economy

The Mongolian Mining Sector:

Endless Possibilities

ongolia, with its vast territory, has large and varied mineral resources. Currently there are around 1,170 deposits and 8,000 findings of 80 types of minerals registered. From among these, Mongolia ranks 12th and 15th in copper and coal resources, respectively. There are also 80 findings of rare-earth elements. The development of Mongolia’s mining industry began in 1978, when Mongolia established the Erdenet copper and molybdenum mine in partnership with the then Soviet Union. With production likely to continue, Erdenet is one of the top 20 manufacturers of copper in Mongolia. When Mongolia became a democratic country in 1990 and passed its Law on Foreign Investment in 1993, it opened its doors to foreign investors in the mining industry. And in 2000 when precious metal prices began to rise on the international market, interest in Mongolia’s mining industry grew, and investments sharply increased. For instance, in 2011 foreign direct investment (FDI) reached 4.7 billion USD, as compared to 2001 when it was 63 million USD. 80% of Mongolia’s FDI is in mining and geological industry, and from 1993 until now a total of around 13 billion USD has been invested in it. The government’s policy is to expand the economy by encouraging foreign investment. With the goals of supporting investors and stabilizing the tax environment, Parliament passed the Law on Foreign Investment in 2013; this law corrected a lot of the risk and uncertainty that investors faced with the former legislation. Under the new law, investors can enjoy favorable tax conditions for up to 27 years. Moreover, Mongolia has contracts with 43 countries to stimulate and secure investments and maintains favorable tax agreements with 30 countries, most recently in the free trade agreement established with Japan. In the 2016 Doing Business Report prepared by the World Bank to assess countries’ business environments, Mongolia was ranked 36th out of 186 76

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countries. The government of Mongolia has successfully implemented several projects including the huge Oyu Tolgoi copper mine in partnership with mining giant Rio Tinto, and also the Boroo gold mine in partnership with Canada’s Centerra Gold. In addition, the Mongolian Mining Corporation, Hunnu Coal, Haranga Resources, and other domestic companies have successfully made IPOs on international stock exchanges. Mongolia shares a border with the world’s largest raw materials consumer, China. This is a major advantage to the mining industry, and China is the principal buyer of Mongolia’s raw materials. Mongolia’s mining sector has taken a hit in the last two years with raw material prices falling due to China’s ongoing economic slowdown. But on the other hand, this slowdown has provided opportunity for Mongolia to carefully analyze the country’s strategy for the mining industry. Results

include the government’s efforts to connect to consumers by expanding infrastructure and utilizing the neighboring countries’ ports to reach the world market. In 2014, during his visit to Mongolia, China’s President Xi Jinping and other parties reached an agreement to open new ports and offer discounts on Mongolia’s cargo transported through China. One of the key problems facing the mining industry in Mongolia—as everywhere—is potential damage to the environment. Mongolia’s mining industry is relatively young and lacks experience. Accordingly, we are striving for environmentally responsible mining by working together with internationally acclaimed and experienced mining companies. Projects such as Boroo Gold and Oyutolgoi are valuable learning opportunities for responsible mining and for environmental restoration in Mongolia’s mining industry. SUMMER | 2016

Dynamic economy

Erdenes – Tavan Tolgoi:

Right managent and the future of Mongolia

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The future of Tavan Tolgoi will have a great influence on the economy of Mongolia. The prosperous life and future of Mongolia are tied directly to Tavan Tolgoi. This success can be seen in Erdenes – Tavan Tolgoi JSC’s annual reports from the past three years. Even though we are still in the midst of a global decline in coal prices, Erdenes – Tavan Tolgoi JSC was the leading company in coal export in Mongolia during 2014-2015. In that year Mongolia exported over 14.5 million tons of coal in of which 30 percent was exported by “Erdenes - Tavan Tolgoi” JSC. However, 2015 statistics showed that the total export of Mongolian coal occupied only about 10 percent of China’s imports.

xploitation of the coal deposit now being further opened up by the Tavan Tolgoi (Tavan Hills) mine began with the establishment of the Tsanhiin zuun mine in 2010 and the Baruun tsanhiin mine in 2013. On December 23 2010, in accordance with the decision of the Parliament and the Government, the Erdenes - Tavan Tolgoi Joint Stock Company was established to responsibly conduct the operation of the Tavan Tolgoi coal mine and began its operation. The Erdenes - Tavan Tolgoi (ETT) JSC aims to bring the strategically important coal mine fully into the economic reinvestment cycle, carry out exploitation of the deposit, and implement infrastructure projects, all in accordance with Mongolia’s Law on Minerals . Extracting coal is of course the heart of the ETT project, but full implementation also involves product development, establishing infrastructure and a processing plant, constructing a water supply system, carrying out additional exploration studies, exporting the products, and trading the company’s shares in domestic and international capital markets. Erdenes – Tavan Tolgoi JSC, in fact, was selected as one of the ten best taxpayer entities in Mongolia by the General Department of Taxation, solidifying its status as a responsible company.

Export amount of entities

2015

In addition, we present the main activities carried out by Erdenes – Tavan Tolgoi JSC in previous years, by the numbers.

ETT’s coal output continues to increase each year.

OUTPUT: 0.9 thousand tonnes in 2011 2.5 thousand tonnes in 2012 5.3 million tonnes in 2013 4.5 million tonnes in 2014 3.8 million tonnes in 2015 And 2.7 million tonnes as of June 12, 2016. In total, 19.7 million tons of coal was extracted.

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2016

5 4 3 2 1 0 Erdenes-Tavantolgoi JSC Energy Resources LLC Southgobi Sands LLC Tavaltolgoi Incorporate Company MAK Corporation

Usukh Zoos LLC Chinhua MAK-Nariin Sukhait LLC MoEnKo LLC Tsagaan Uvuljuu LLC Other

COAL EXPORT: 0.3 thousand tonnes in 2011 2.4 million tonnes in 2012 1.6 thousand tonnes in 2013 5.6 million tonnes in 2014 4.2 million tonnes in 2015 2.7 million tonnes as of June 12th, 2016. In total, 16.8 million tonnes of coal was exported. EXPORT EARNINGS: 19.6 million US dollars in 2011 154.7 million US dollars in 2012 95.5 million US dollars in 2013 219.5 million US dollars in 2014 114.4 million US dollars in 2015, total of 603.7 million US dollars earned from exports. TAX ACCRUING TO THE STATE (in tugrugs): 6.1 billion in 2011 34.4 billion in 2012 35.3 billion in 2013 54.8 billion in 2014 45.4 billion in 2015 7.3 billion in quarter 1 of 2016, totaling 183.4 billion tugrugs in tax. In addition, 60.5 billion tugrugs of tax overpayment was paid, making the total tax payment 243.8 billion tugrugs. Based on this and other indicators, it can be assumed that ETT is operating profitably and with proper management. With ETT’s increase in profit the shares held by every citizen in Mongolia become more valuable. In addition, valued investors are beginning to return to Tavan Tolgoi deposit. The company will continue to focus on profitable and appropriate management. Based on the management they select for the company, the profit they gain from the deposit will increase, resulting in the deposit becoming a revenue enhancer for the entire national economy. SUMMER | 2016

peaceful heritage Mongolian nomads have left a wealth of cultural heritage to humanity and have also made their unique contribution to the world’s culture and to civilizations of various nations. This heritage is especially strong in music and spoken performance. This includes the so-called long-songs, melodies played on a traditional horse-headed fiddle, Bielgee ethnic dance, Mongolian saga telling, Huumii throat-singing, and the ancient flute Tsoor and a special closed-circulation breathing technique that enables the player to produce unbroken flute sound. Also shown are the three masculine sports of traditional wrestling, archery, and horse racing, as well as sheep ankle-bone shooting, and hunting with eagles. Together with the Mongolian traditional home or Ger (yurt) and Mongolian calligraphy, these have been registered with UNESCO as intangible cultural heritage. Registered as world natural heritage sites are the Orkhon Valley, which once supported ancient Mongol states such as the Hunnu, Tureg and Great Mongol Empires; the Uvs Nuur Lake , famous for its unique variety of species including the snow leopard; and the ancient petroglyphs found on rocks in the Altai Mountain range.

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This chapter further features an interview on the distinctive peculiarities of Asian and Western thinking by twice-State Laureate and composer N. Jantsannorov and a feature article on the history and culture of the Mongols by Yuri N. Kruchkin, a renowned Mongolist. The American scholar Jack Weatherford has observed ‘… Chinggis Khan moved history forward very quickly by uniting items of all different civilizations of Europe, the Middle East and China. Without Chinggis Khan, I think things still would have happened, but it’d probably would have happened several centuries later.” His fascinating perspective on the Mongols can be found in our pages, and we recommend the interview as a must-read. During the course of their long history, the Mongols once lost their independence. A history of how they regained it in 1911 appears here, along with an interesting interview on the Mongols who scattered all around the world by D. Bum-Ochir, a field anthropologist, and an article on our national literary culture and calligraphy can all be found in these pages.

85 82.

The philosophy of Mongolian calligraphy

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N. Jantsannorov: For Asians, Dialectical Materialism is hard to grasp, their concept of Yin and Yang is a horse of a different colour

90.

Mongolian Traditions Living in Harmony with Nature

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New era of unknown “Mongols”

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Jack Weatherford: Chinggis Khaan was one of the greatest law givers in the historyof the world

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Mongolia’s New Declaration of Independence

108.

The scholar who showed the true Mongolia to the world

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The philosophy of Mongolian calligraphy Text by M.Saruul-Erdene | Artist Jalair Batbayar

November, 1289. Buscarello de Gisolf, a Genoese serving as diplomatic envoy of Mongolia, has arrived at the palace of Philip the Fair, King of France. He has handed Philip a letter from the Il-Khan Argun. In his letter, Argun agrees to Philip’s suggestion that they attack Mamluk Egypt together, and he determines where and when they should move their troops. Considering the French position, he consents, ‘If we conquer these nations, I shall give you Jerusalem’. He also pronounces warnings like, ‘If we retract from our agreement, how will that suit? If we draw back, what will be the gain?’ By his words, he affirms the power of the Mongolian empire. The translators certainly explained to their master the meaning of that letter elegantly written in the old Mongolian script, but it is extremely doubtful whether the French king’s wise officials could interpret the intricate hidden message behind that ‘elegance’.

“Horse head fiddle”

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Under the force of Eternal Heaven Under the power of the Great Khan Our, Argun’s, words

“Wow-Wow”

These are the first three lines of Argun’s letter. If you look at them closely you will see that the second is written slightly lower than the first, and the third slightly lower than the second. This indicates the hierarchy of the three majestic powers mentioned. The old Mongolian script is written in vertical columns from top to bottom, which are arranged from left to right. In the Mongolian original, ‘Eternal Heaven’, ‘Great Khan’, and ‘Argun’ are the first words in their respective lines. Afterwards, the name of Philip is written properly, but below that of Argun. If you think of the Il-Khan’s name as a man standing upright, the name of the French king is written near his knee. There is a hidden meaning behind this, too. The custom of indenting lines is a tradition

“Sky”

practised in Mongolian official documents. Besides, the last stroke of the last word in each line is drawn out so that they are all of equal length, and the last word of the letter, ‘has written’, is executed in a highly calligraphic abstract style. Argun Khan’s letter evidently is a valuable monument of calligraphy. Looking at the etymology of the word ‘calligraphy’, we find that it comes from Greek ‘kallos’ beauty and ‘graphein’ to write, meaning ‘beautiful writing’. Westerners have apparently understood this art form only as a kind of elegant script. In the Mongolian writing tradition, however, ‘skilful writing’, as we call our calligraphy, has the double meaning of writing beautifully and ‘expressing delicate thoughts’. The Greek word ‘kallos’ only means ‘beauty’, but the MonSUMMER | 2016

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golian word ‘uran’ includes both the meaning of elegance and the sense of ingenuity. In composing official letters, Mongolians wrote the short strokes in a well-balanced manner in order to convey respect to their correspondent, but in petitions of grievances, they extended the long strokes like spears and wrote the little strokes, the so-called teeth, in disharmony with each other, thus intricately conveying their thoughts. The colour of the ink was also important. In his work ‘A summary of Mongolian Culture’, Ulaanbaatar 1992, Ts.Shagdarsuren states that it was customary to write official letters in black and ceremonial letters in vermilion. Letters of condolence were written on paper with blue lines and stamped with a blue seal. Mongolian calligraphy thus differs from European calligraphy by its subtle hidden thoughts and philosophical ideas, not only feasting the eye by its elegant writing but also displaying the writer’s ingenuity. At the time when the Mongolian script was invented, Mongolian calligraphy appeared together with it. From the very beginning, the simple use of the letters coexisted with elegant writing and the expression of thoughts by the form of the letters and the division of the writing space. A proof of this is the oldest known monument of the Mongolian script, the so-called ‘Stone of Chinggis Khaan’. This inscription already boasts an apparently well-established system of calligraphy. Jalair Batbayar, one of the outstanding modern calligraphers of Mongolia, wrote, ‘The Stone of Chinggis Khaan is a classic example of the relations between Heaven and Earth, between Yin and Yang, of the rules of indentation to convey respect, of the relations between words, letters, and lines that are common in Eastern calligraphy. The amazing peculiarities of Mongolia’s art of writing, its classical vertical writing direction, the letter strokes, the combinations of the letters, all this is unique, quite different from the creations of all other nations’. This Mongolian calligraphy, which developed its intricate form from the very beginning, further evolved during its history of near a millennium, and, depending on usage, purpose, and writing conditions, split into many specialized forms and styles, e.g. beautiful writing, writing with the brush pressed on the paper, cursive writing, shorthand writing, and ornamental writing. Ornamental writing alone 84

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“Loving is”

“The butterfly”

If I was to cover the whole subject of Mongolian calligraphy, our great heritage would not fit into this single article, and indeed several cartloads of books would not suffice. Thetrefore, I shall only briefly touch upon the ornamental script and let you, dear reader, taste a drop of water from the ocean of Mongolian writing.

contents. The imagery of Mongolian patterns is very rich. Moreover, the Mongolian script is written vertically from top to bottom with the letters joined into words, which makes it perfectly suitable for design. There is no limit to the calligrapher’s imagination, the possibilities are virtually infinite. Although there is so much creative freedom, there are on the other hand rules for the ornamentation of every single letter. However much you twist and twirl them into patterns, every stroke and loop must be recognizable as such.

Mongolian ornamental writing is inseparably connected to the ancient Mongolian art of ornamental patterns. It is a complex art that unites Yin and Yang and combines beauty and meaning by connecting elegant visible shapes with strings of letters that express specific

And apart from the fact that every letter must be recognizable in all its parts, the space between the words and the lines must be regular, too. All this will become much clearer if illustrated by an example instead of being explained in so many words.

can be subdivided into the rectangular style, the circular style, the patterned style, and the representational style, where the writing of a word imitates the shape of the thing it means.

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N. Jantsannorov:

For Asians, Dialectical Materialism is hard to grasp, their concept of Yin and Yang is a horse of a different colour N.Jantsannorov’s music has been played in the world’s major concert halls. It was brought to life on the two strings of the horse fiddle. Any music lover knows of the Mongolian Horse Fiddle Ensemble. Its members have been touring Japan, the Russian Federation, Korea, the US, Canada, France, Italy, Germany, Switzerland, Austria and China. They have performed at the most famous concert halls of the world, like the Suntory Hall, the ACROS Fukuoka Symphony Hall, and the Orchard Hall in Japan, the Carnegie Hall, the auditorium of the UN in New York, the Berliner Philharmonie, and the National Concert Hall in the National Chiang Kai-shek Cultural Center of Taiwan. Their repertoire comprises many works by N. Jantsannorov, winner of two high state awards, e.g. ‘Bright Steppe’, ‘Selection from the works of Mongolian composers adapted for the horse fiddle’, and ‘Selection from international masterpieces adapted for the horse fiddle’. In his Ph.D. thesis, Jantsannorov proved the Mongolian people’s independent musical mentality. We talked with the famous musicologist and composer.

It is usually said that we Mongolians think loosely, that we pay more attention to music. In that sense, our musical mentality and tradition ought to be on a high level, too. What do you think about that statement? Do you agree that Mongolian music has reached such a level that it should be known all over the world, that it should occupy an important place internationally? Loose thinking is no evidence of sound thinking. Our environment, the severe climate we have been living with for many thousand years, and the practice and experience of animal husbandry have led us to see things more on a spatial than on 86

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a temporal plane, which may be interpreted by others as ‘loose thinking’. Although music exists and is realized in exact measures of time, in the music of Mongolia, measures of space have a wider function. This may have influenced the foreign perception of our mentality. Actually, this is what makes our music different from that of other nations. This is also what gives it its special value, probably. Mongolian music can’t occupy such an important place in the world right now, but not because it’s inferior. It has become internationally accessible only recently. These last years, traditional Mongolian music like the so called ‘long song’, deep throat singing, and epic recitation have become known and honoured all over the world. The works of modern composers, too, have found a very favourable reception. What made this possible are our firmly rooted musical traditions and the incorporation of Western influences. a cultural apparatus art can’t be studied without philosophy

One reason for the failure of Mongolian art to gain world wide importance seems to be that art research doesn’t develop well in Mongolia. Do the researchers live up to their task? Comparing our art research to the development of Mongolian society and the present state of art and culture, one must admit that it doesn’t fulfil its task. As I understand this, there are two or three basic reasons. The first reason is perhaps the most basic. In the socialist era, art research was mingled with criticism. More often than not, this criticism was not founded on fact but dictated by ideology. Things were not criticised because they had gone rotten, but because they ran afoul of the party line. Then thrown suddenly into an open society, art researchers had a big problem. When they had formerly wished to criticise, they had leaned on ideology as a guide. When they now stopped criticising, since their concept of art research was hopelessly intermingled with criticism, they had nothing left to base their research on. They got stuck. On the other hand, the population of Mongolia is small. There are not so many artists about. Artists and critics all know each other. In the old times, criticism, motivated by ideology, tended to be seen by society as something bad, and this wasn’t any different for artists. So, many art researchers just fell silent. Another important reason is constituted by the completely new

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peaceful heritage The art of the Mongolian ‘long song’ displays a mentality different from the Western weltanschauung and understanding of music

During a tour concert

scholarly demands. Before, the Marxist philosophy based on Dialectical Materialism was used as our theoretical framework. We looked upon the innovations in international philosophy after WW II as bourgeois, and we thought that the philosophy of a bourgeois society was cruel. But actually, this philosophy reflected all the innovations the world was going through. Art research is a philosophical science. How can you study art without philosophy? To study how Jantsannorov sees the world, a researcher needs a theoretical framework, otherwise it’s meaningless. So, Mongolian art researchers lost their philosophical orientation. They don’t know how to continue their work. But today, the new works on philosophical theory have all been translated into Mongolian. It is like an unknown script being deciphered. The new theoretical foundations of art research are being laid. And one more fact, there’s no such thing as research without comparison. In other words, a researcher who wants to say that something is good, must also know what is bad. Otherwise, he can’t say so. Any research is based on comparison. In the old days, we used to compare our art with that of the Soviet Union and the other socialist countries. We compared our music with the works of Shostakovich, our theatre with the acting and directing of Constantin Stanislavski, and our paintings with the tableaux of Ilya Yefimovich Repin. It was impossible to do much comparison with the rest of the world. Then we were suddenly confronted with the rest of Asia. Before, our own continent had been nearly closed to us. We had had diplomatic relations with Japan, trade relations with China, no relations at all with South Korea, some relations with India, mainly religious. Tibet had been totally off limits. We had been cut off from the culture of the 19th century, when Mongolia had had relations with Tibet. We Mongolians hadn’t known any more what was going on in Asia. We had been calling ourselves an Asian country, while people knowing anything about Asia had been scarce. Only a handful of people, like Tibetologists or literature researchers, had had any knowledge about Asia. Art researchers had been nearly silent in that field. The Buddhologist Chultem and some others there had been. The rest had been silence. But now the doctrine of complementary opposites – known in the West mostly under the name of Yin and Yang – Heaven worship, and shamanism have come into view. Looking at all this, comparing has completely new avenues open before itself. Things thus standing, one must admit that these last twenty years, art research in Mongolia has not been developing at all, but rather it has been busy with preparing to go back to its roots. So I’d like to conclude that all in all, our art research is still at a preliminary stage. 88

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Apropos understanding the East, many thinks that in the field of art, we Mongolians are today trying to listen to, to understand, and to feel our own inner world and to perfect our own creations. Taking for example the Mongolian ‘long song’, which has found worldwide recognition. The Japanese and the Europeans enjoy it. How would you explain the wonder of the ‘long song’? The art of the Mongolian ‘long song’ displays a mentality different from the Western weltanschauung and understanding of music. This art reflects Heaven worship, in other words, a world view where one looks upon everything as given from above. We Mongolians feel that the things granted from Heaven above are the origin of the things down here on earth. This is the culture of the steppes in contrast to the sedentary cultures. Foreigners always talk about our vast Mongolian steppes. But actually, the vastness is not in our steppes but in our skies. Over the wide steppe spans the world’s largest sky. Viewed against the sky, the steppe nearly shrinks out of sight. So, only the sky is really vast. For many millennia, we have been domesticating and herding animals and taming wild beasts in some kind of relationship with Heaven. We did not take anything from the earth. Nomads normally don’t burn wood, but use dried cattle dung (which they call ‘argal’) for fuel. They don’t build houses, but live in yurts. They don’t dig into the earth. When the rain falls down from the sky, the grass grows. When the grass grows, our animals eat it and grow fat. The nomads watch the stars for signs. They know a lot about nature. For example, they know that the instinct of animals is much more accurate than that of humans. Yaks feel earthquakes in advance. Dogs can hear things many miles away. From the way the sun sets in the evening, the nomads can tell what the weather will be like the next day. This and many other things they know exactly. And this knowledge was transformed into the principles for the ‘long song’. So the art grown out of these principles is unique. No one on earth can recreate it. The ‘long song’ is a purely Mongolian creation. It is a great conception, and humanity must get to the bottom of it. Deep throat singing has been registered by the UNESCO under the names of two countries. One is China. The other is Mongolia. We would like to ask you about the origin of deep throat singing. Is deep throat singing an art? Deep throat singing is an art of the Altai region in Western Mongolia, a purely local art. Naked mountain ridges, steep red rocks, rapid streams running down from the heights… All this contributed to its making. In the steppes of Eastern Mongolia, the topic of deep throat singing is not discussed. It is today recognized as an art and taught as a profession and anyone can learn it, but originally it belongs to the Altai region. The Tuva, the Oirat, and the Olet living in the Altai mountain range have laid the foundation for this art. The recitation of Tibetan sacred texts in Lamaist Buddhism is a form of deep throat singing, too. The typical voice of the cantor, for example. This also originated in a high mountain region. The vocal qualities of the Tibetan monks belong to the Himalayas. Deep throat singing must be understood by considering the geographical conditions under which it originated. There is no need for different nations to quarrel over it. It doesn’t become our property

interview just because we claim it as ours. Deep throat singing is neither a vocal nor an instrumental art. It has both vocal and instrumental features. In deep throat singing, one treats one’s voice in the manner of an instrument. So, it’s something special. But it is an art only by virtue of its peculiar technique, it doesn’t belong into the same class as the great independent arts of horse fiddle music or the ‘long song’. The ‘long songs’ that one can sing or the horse fiddle pieces that one can play are one’s artistic repertoire. But in deep throat singing, one sings also folk songs or just imitates the sound of a flowing river. Young people now sing Italian opera arias in this manner, too. Deep throat singing is a technique, but I wouldn’t call it an art form. A peculiar technique, to be sure. The ‘long song’ and horse fiddle music are independent art forms. There is, however, something intriguing in deep throat singing. There are people who think that the material world is created by the mind and as proof they cite phenomena like the so called ‘sixth sense’. When one studies deep throat singing in depth, one may be drawn in this direction by the mysterious art forms of the world. Were the early deep throat singers calling the wind, or was it a kind of worship, invoking a deity, or was it just the imitation of a peculiar human voice? Studying deep throat singing with all that in mind, one might strike a rich vein. And if my guess is founded on truth, it is a ‘must’ for global music to explain deep throat singing and to integrate it into modern art. This is how I understand the matter. Deep throat singing is really exceptional, a thing of magic. If I summon the spirits, they will guide me

How can one keep one’s own national art and culture in a era of globalization? By mastering the achievements of the others, one will keep one’s own. Otherwise, one completely shuts one’s eyes and stops one’s ears, and then how can one guard one’s own, in an open world? The horse fiddle is an amazing instrument, and you had a considerable part in popularizing it on a global scale. What do you thing about today’s players? The new generation of horse fiddle players has reached a very high level of skill and feeling that we can’t even fully exploit. But they’ll have to reflect about their traditional art doubly well. There have been numerous traditional schools teaching to play this instrument. Could all the old skills be passed on? Probably yes. It is a bit different for each particular region and each individual artist, but in general, everything could be passed on. Maybe we have weakened the tradition by paying to much attention to the training of professional musicians. At present, performers and researchers alike are making considerable effort to revive the traditional schools. But neither is everything done in the old way nor is everything being reformed. And this is how it should be. Have traditional schools for Mongolian music actually been newly established? It was at the end of the 19th century that the schools of traditional Mongolian music reached their zenith. Those schools were really outstanding. The modern professional music academies developed during the last twenty-five years of the 20th century. Their father was S.Gonchigsumlaa.

On what level is art education in our country? Art education in Mongolia is okay. But unfortunately, it is not systematically organized. We need an authority that knows, follows, and takes responsibility for who is doing what in the educational institutions, in printing and information, in art and culture. That wouldn’t be such a difficult job, really. If the Mongolian people were to choose your best work, that would be the music for the film ‘Mandukhai Sechen Khatun’ (Queen Mandukhai the Wise). That music creates a remarkable impression. The listener gets the feeling that there is no other way of giving voice to the history of the 17th century. Was it a strain for you to create this music? It was very hard. I was running a risk, because no other such music existed until then. But it was the risk which saved me in the end. Actually, if someone applies sound thinking to a job, he doesn’t have to fear any risk. A Risk? In the area of film music, there was no work written for a traditional orchestra and a symphonic orchestra playing together. This was the big risk. There were films with symphonic music, and there were films with traditional music. But to create a film music in which horse fiddle, deep throat singing, Mongolian zither, long song singers, European choir singers, and a European classical orchestra were all brought together in one big orchestra, that was very risky. That the singers of ‘long songs’ would face a conductor, and that N.Norovbanzad with her voice as strong as two choirs would sing, posed another risk. When I decided that I would not use any folk song or traditional song, I ran an additional risk, also when I didn’t want take over any features of European symphonic music. When I was working on ‘Mandukhai Sechen Khatun’, I showed the score to Mr. Gonchigsumlaa. ‘Will you back out of this’, he said anxiously,, ‘or will you pull it through? And even if you pull it through, will the result be anything like a film music?’ All those risks were terrible for him. Gonchigsumlaa would not take such risks. When the film had come out then and our man had seen it together with me, he said, ‘You were right.’ Putting something novel into artistic practice and going public without any experimenting stage is a high risk. How many symphonies have you written? Are your symphonies played? I wrote a symphony in 1979. It has been played only once. I have also written a short symphony that is sometimes played now. The symphonic form is a great achievement of Western orchestral music, so when Asian composers talk about their major works, they should exercise great care in using that expression. Symphony is not just some name, there are deep principles and concepts of philosophy and world view behind that art form. In its classical meaning, the symphonic form must actually be seen as Dialectical Materialism made into music. For Asians, Dialectical Materialism is hard to grasp, but, their concept of Yin and Yang is a horse of a different colour.

There are many notions to explain the spirits of the shamans. What do you think the spirits are? If I summon the spirits, they will guide me. One should think of a spirit as the highest skill a human being is capable of, which has descended into a person’s mind and body. It must never be lost.

Have you created your chef d’oeuvre yet? That will be for others to decide when I am no more. SUMMER | 2016

Mongolian Traditions

Living in Harmony with Nature

By Yury Kruchkin Yury Kruchkin, married to a Mongolian woman, graduated from the Moscow Institute of International Relations/ MFA USSR, completed coursework in Japanese at Waikato University, New Zealand and the Diplomatic Academy of the Russian Ministry of Foreign Affairs. He is the author of more than 80 books and dictionaries, a simultaneous interpreter, and the editor of Mongolian translations of Pushkin, Esenin, Visotsky, Pandjikidze, and others. 90

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Mongolians have a tremendous respect for Mother Nature and a traditional orientation towards preserving the earth. In particular, the idea that humans should interact with nature in a sensible way and that they bear a responsibility to preserve land and water for the next generation is sacred for Mongolians. We have long understood that the earth and all living things have very close relationships with each other, like the connection between a mother and a child. Mongoliansâ&#x20AC;&#x2122; desire to conserve the wildness of the earth and nature, reflected

in their rituals such as making offerings of their finest foods at ovoo (sacred cairns). The worship of mountains and rivers is a way of giving them due respect and demonstrating how much they value nature. Uniquely shaped cliffs, hills, springs, and minerals are especially sacred and protected. On one very rare occasion, perhaps the only such event anywhere in the world, the President of Mongolia issued an Ordinance for a State Ceremony of Consecration of Mountains and Rivers for the people to celebrate.

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peaceful heritage Some more examples:

• Traditionally, Mongolians move five to six times a year in order to conserve their pasture land, which shows their care and respect for nature. Even our capital city, now known as Ulaanbaatar, was once mobile, moving from one location to another every few years over nearly a century until it finally settled at its present location in 1739 and permanent structures were built. • The Mongolian ger (yurt) is made of felt and other natural materials and is one of the most economical and efficient homes in the world. • Companies in Mongolia today are often named for places, rivers, mountains, or animals—for example, Dunjingarav, Tavanbogd, Shunkhlai, or Khui Mandal. These names typically have a very intimate meaning for Mongolians. • Most names of Mongolian people are related to nature. For instance, Naraa–Sun (a woman’s name), Saraa–Moon, Orchlon–Universe, Delkhiitsetseg–Flower of the Earth, Sansar– Cosmos, Navchaa–Leaf, and so on. • Natural phenomena such as storms, thunder and lightning, snow and rain, rainbows, solar and lunar eclipses, or shooting stars are revered and worshiped. By the same token, some wild animals and birds are sacred and forbidden to be hunted; these often show up in myths and fairytales.

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Mongolians since the times of Chinggis Khaan have strictly abided by certain taboos about how they treat the natural world around them. For example, unless absolutely necessary, it is forbidden to dig the earth, cut a tree, or to gouge the soil. Furthermore, it is customary for Mongolians to avoid littering the ground or spilling milk (remember they have always been herders) into rivers, lakes, springs or wells. Before moving on from a pasturing location, Mongolians clean up their surroundings. In addition, Mongolians do not cut the roots of flowers and green vegetation, and do not wash clothes in still water. However, they hold birch wood in high regard and use it for their ger’s poles. The uurga or lasso pole for horses is also made of birch wood. Not only do Mongolians care for Mother Earth in practical ways; they also perform certain rituals, such as worshipping the earth by entrusting it with their dreams and aspirations. Each year, mostly during the summer, they build fires where shamans practice their rituals, lamas chant their prayers, and offerings are laid for the mountains, the sacred ovoos, and Mother Nature. Each ovoo is ritually circled three times, and afterwards a small special ovoo is arranged for the Naadam, a traditional festival of riding, wrestling, and archery games. Mongolians are traditionally forbidden to hunt a game animal during its mating season and must refrain from hunting a lone game or an animal with a unique feature. Unfortunately, nowadays some Mongolians of the younger generation disregard tradition and hunt game with fast vehicles and rifles. They wipe out entire packs, take pictures of their deeds, and post them on social media sites to brag.

Honoring the State and Its Symbols For centuries, Mongolian society conducted state affairs through the State Assembly, and the successor to the throne was chosen by the Assembly as well. Since the Hunnu (Xiongnu) period, matters such as warfare, taxation and election of the King (Khaan) have been decided by the Assembly council. Today the Assembly is called the Great State Khural, and instead of picking a Khan, it works with the popularly elected President to select a Prime Minister following each general election. But its functions are essentially similar. Showing up late or drunk for the meeting, initiating arguments, or revealing State secrets were all strictly forbidden. High regard, respect and significance were and are accorded to the Head of State, the Tug Banners, the State Seal, and the State Laws. The Hunnu Empire state banner included symbols for sun, moon, fire and a stag. Mongolia’s traditional state banner is the White Tug Banner (Nine Base White Banners) Each banner is a pole (base) with white horsetail hairs hanging in a circular arrangement from from 81 small holes in the top, which has a golden flame symbol in the center. Also, eight of the nine bases are arranged in a circle, with the ninth at the center. The White Tug Banner was installed at the Khaan’s side to indicate the commencement of a State council meeting and is also honored during the Naadam festival. The top of the White Tug Banner symbolizes Perpetual Peace while the remaining body symbolizes Eternity. However, in the 1900s Mongolians started to use a different banner made of cloth. This new banner was made in accordance with international standards of the state flag, which mandates that the flag’s dimensions should be 70 by 70 cm. Images: zazaa /iRMUUN Photo

The great symbol and pride of Mongolian army is still the Black Tug Banner (the Four Base Black Banners). At the top of each base of the Black Tug Banner are double-edged blades and at the bottom is a steel arrowhead, which symbolizes always emerging victorious from war. The Black Tug Banner is placed on a turtle-shaped rock. Besides the White, Black, and various multicolored banners, Mongolians have had other banners as well. Out of all the banners and flags, the most popular was the Blue Banner of the Blue Mongolians, which had the image of a white falcon at the center of 44 bases. The sovereignty of all states is represented by their coats of arms, banners and flags, and state seal. The symbol of Mongolia, found on the State Seal, is the Soyombo, a special character in the old (pre-Cyrillic) Mongolian script. The name Soyombo is derived from a Sanskrit word meaning “created out of itself.” It is also found on the Flag of Mongolia, the Coat of Arms of Mongolia, and on many other official documents. The elements of the Soyombo have the following significance: the fire represents eternal growth, wealth and success, the three-tongued flames represent the past, present and future, while the sun and moon symbolize eternity as the eternal blue sky under which Mongolians prosper and develop for all eternity. Continuity in Mongolian traditions through a succession of different periods in the country’s history, from the times of Ginggis Khaan to the present, whether it be honoring the interconnectedness of nature or the symbols of social unity, offers the hope and aspiration that Mongolians will indeed prosper for all time to come. SUMMER | 2016

Sart Kalmak Kok Boru Game

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New era of unknown “Mongols”

n winter 2001, I went to Qinghai, in Northwest China, to start anthropological field research among the High Mongols (also known as the Deed Mongols). They moved to their present location in the mid-seventeenth century, invited there by the Fifth Dalai Lama to protect his sect of Buddhism. From that time until the present day they have strongly preserved Mongol culture including language and mobile (nomadic) pastoralism. But they largely unknown to Mongols in Mongolia and in the rest of the world. During my year-long fieldwork, I discovered other Mongol groups in the region, the Tu, many of whom identify themselves as Mongol. More than two decades later, in spring 2015, I had a similar experience in Kyrgyzstan during another field-trip to shoot a documentary about the Sart Kalmaks, another unknown Mongol group in Central Asia. In addition to Sart Kalmaks, there I discovered the Mongoldors, one of the 40 Kyrgyz tribes (Kyrgyz Uru). In Kyrgyz “Mongoldor” means “Mongols,” which is “Mongoldar” in Kazakh. It was surprising to find that some Mongoldors openly identifying themselves as descendants of Mongol rulers remained throughout Central Asia. The end of the Cold War and the collapse of the Soviet Union opened up Mongolia not only to western democracy, liberalism, free market economy, and globalization, but also to other Mongol and Mongolic groups in other countries, beyond the known ones residing in Russia and China. After years of oppression by the Soviet Union, nationalist sentiments and Pan Mongolism were finally set free. Mongolians in Mongolia have started to identify, document, network and set up communication with other Mongols outside the country. So during this time, Mongolia started to have easy access to and relations not only with the Western world but also with many different groups across the globe who claim to be Mongol or Mongolic. Mongols in Mongolia are being urged to share their Mongol identity with dozens of other self-proclaimed Mongol groups across Asia SUMMER | 2016

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and Europe. Some of these groups have nothing that can be identified as Mongol; they have no genetic evidence or historical documentation proving them to be a Mongol or even Mongolic. More and more groups residing in different countries reveal their Mongol or Mongolic identities, while at the same time Mongols in Mongolia increasingly show interest, enthusiasm and passion to learn and talk and write about these unfamiliar Mongols. Filmmakers, journalists, travel writers, researchers, and artists have produced dozens of books, articles, documentaries, and stage performances since the 1990s. The conventional â&#x20AC;&#x153;Mongol identityâ&#x20AC;? that Mongolians developed and possessed in Mongolia throughout the Soviet period is

now being questioned. Some sources say that there are about 10 million Mongols across the world. The population of Mongolia is 3 million, the Mongol population in Inner Mongolia, China is 5.9 million, and in Russia there are about 650,000. Hence the estimate seems to include those in China, Russia and Mongolia who still carry some Mongol culture including language, religion, pastoral way of life, and history etc. Many others remain excluded and unclear because of their weak acculturation, vague history, geographical isolation, background of ethnic conflict, political oppression, and transformation of identity. For example, in China, amongst 56 ethnic nationalities, there are many

A High Mongol woman

Sart Kalmak Horse Men

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more Mongol or Mongolic groups that are classified not as Mongol but something else. These include the above-mentioned Tu (Mongolian Chagan Monguor or Tsagaan Mongol, meaning white Mongol) with a population of 300,000 in Qinghai and Gansu; 131,000 Daur (Dagur) in Inner Mongolia, Heilongjiang and Xinjiang; 14,000 Yugu (Mongolian Yogor or Yugur) in Gansu; 600,000 Dongxiangs in Gansu, Ningxia, Qinghai, and Xinjiang; and so on. That said not all of these groups admit to being Mongolâ&#x20AC;&#x201D;for example, the Tu in Minhe, Qinghai. Maybe because of language barriers, meeting with Monguors in Monguor villages near Guanting, Minhe, was not emotional at

A Monguor village household

all compared to meeting High Mongols in the Qaidam basin. Unlike High Mongols, Monguors, at least the ones I met in Minhe, do not have any emotional attachment to Mongolness and other Mongols. There is little actual relationship between Monguors and High Mongols, Inner Mongols, and other Mongols in China and Mongolia. To be more precise, there is little ethnic bonding or social, cultural, economic, political, emotional and spiritual relationship between them and other Mongols. While some elderly people sometimes reveal their Monguor identity with some level of doubt, many others are hesitant or doubtful about their Monguor and Mongolic origin, and say that other people, especially Mongols, call

them Chagaan Monguor, but that is not what they call themselves. Whether they consider themselves Monguor and Mongolic is not a popular topic of discourse among the Tu in Minhe region. Xiang Cheng, my Tu friend from Minhe, first heard about his peopleâ&#x20AC;&#x2122;s Monguor origin only when he was 18 living in Xining. By the time I met him he had already been living in Xining for ten years, trained first as an accountant then as an artist. Unlike him, many others even find it offensive to be identified as Monguor or as having Mongolic origins. In one experience he told me about, some Europeans he was assisting with work in the region started a conversation with their host family about their Mongolic origin and Monguor

identity, but unfortunately this made the family angry. As a young Monguor, Xiang Cheng also shared with me his feeling about other Monguor young people rejecting Monguor and even Tu identity and preferring to be Zhong guo ren (Chinese) or even Han ren (Han Chinese). In particular, young Tu women want to marry a Han man rather than a Tu man. Besides collective identity, name, and language, another popular element attached to Mongolness is always the historic pastâ&#x20AC;&#x201D;world conquest and Chinggis Khaan. For example, almost all High Mongol households in the Qaidam region keep an image of Chinggis Khaan. But for many Monguors in Minhe, Chinggis Khaan is just an historical figure, while SUMMER | 2016

peaceful heritage only a few people with a strong interest in history and their own origins consider Chinggis Khaan and noble Mongols to be their ancestors. Similarly, the Hungarian anthropologist Mátyás Balogh, who conducted fieldwork in Minhe in 2007, says he never saw an image of Chinggis Khaan while there, and states that Chinggis Khaan for an elderly person he talked to was just a famous ruler he learned about at school. However, the story is a bit different among the Monguors in Huzhu, as Mátyás Balogh also explains. Shi Cun Juan, a Monguor lady I met in Beijing, said that recently some Huzhu Monguor households have started hanging portraits of Chinggis Khaan in their homes, and many people undoubtedly reveal their Monguor origins. In general, Monguor identity and Mongolic origin are more accepted and acknowledged among the Monguors in Huzhu.

Such inconsistency across those different groups identified as Tu and Monguor in Minhe and Huzhu made me consider the likelihood that some portion of the Monguor population has never been Monguor; rather, they are descendants of people of other ethnic origins who joined and mixed with the local Monguors over time. Amongst all other names only Tu unites Monguors in Minhe, Huzhu and elsewhere. Currently the Tu identity is more popular than the Monguor identity, mainly because it is the most definite, broadly applied, and politically formalized identification in active use. Diversity and indefiniteness in their origin and history, and amalgamation and acculturation in their culture and livelihoods, or “enigma” of the Monguors enable these people to flexibly utilize their various identities as Monguor, Mangguer, Mongghul, Kerilang, Tuyuhun, Xianbei,

Unlike Sart Kalmaks, Mongoldors are known as Kyrgyz except that their oral history, memory, and recent historical discovery suggests that they have Mongol origin.

High Mongols in the Khukh Nuur

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Tibetan, or Chinese; they can even choose to be Han, as is happening in the younger generation. Besides those in China, there are many more unknown Mongols in Nepal, India, Central Asia and the Middle East. In Kyrgyzstan, for example, the population of the above-mentioned Sart Kalmaks (Mongolian Sart Halimag) is about 12,000, while the Mongoldors number about 700,000. Many Sart Kalmaks, like High Mongols, have relatively recent, well-preserved history and memory from the late nineteenth century showing their Mongol identity. Some Sart Kalmak elders over the age of 60 still speak their mother tongue. Unlike Sart Kalmaks, Mongoldors are known as Kyrgyz except that their oral history, memory, and recent historical discovery suggests that they have Mongol origin. Still, today many Mongoldors prefer to consider themselves Kyrgyz in order to survive and be recognised and accepted by the Kyrgyz majority. When we visited Kurbu, a Mongoldor village in the Issyk Kul region in Northeast Kyrgyzstan, we were asked not to address Mongoldors as Mongol. At

A boy named Xiang Cheng

the same time, though, some Mongoldors also say that they are descendants of Chinggis Khaan. A local story describes the tribal name “Mongol-dor” as coming from everyday conversation in the past when Mongols were conquering the region; the story dates to the times of Mongol rule in Central Asia. The name “Mongol-dor” came from the answer to question “Who are these people?” Those who knew them used to respond “They are Mongols” or simply “Mongols” which is “Mongol-dor,” the plural of “Mongol” in Kyrgyz. Academician Asein Arakeev, the President of the Mongoldor Association, says that more and more historical documents proving Mongoldors’ Mongol origin are now being found. Therefore, it is now no longer a myth but a fact that Mongoldors are Mongols, which is a recent discovery for most of the Mongoldor population across Kyrgyzstan. Asein’s

father was a secondary school principal and math teacher. Before his death he told Asein that he should never forget that he is a Mongol. According to Asein’s observation, Mongoldors were appointed local rulers across Central Asia. Because of their noble rank, they had a central role in solving disputes and decision making. Their political position and nobility gave them the most respected hierarchical place to be seated above everyone else in the public events and rituals. Unfortunately, since the decline of Mongol rule in Central Asia, dispersed Mongol groups have had to survive local revolts against them by submerging their Mongol identity into Kyrgyz or other Central Asian people. Throughout the nineteenth and much of the twentieth century, the same happened to the Sart Kalmaks, most of whom registered as Kyrgyz not a Kalmak. A wave of unknown Mongols is also

By Bum-Ochir Dulam D. Bumochir is an anthropologist who received his PhD from Cambridge University. Since his graduation he has been lecturing at the National University of Mongolia and is currently a research associate at University College, London. He has conducted extensive field research in Mongolia, China, Russia and Kyrgyzstan and has produced a series of ethnographic documentary films depicting various Mongol groups.

apparent in the Himalayan region in Nepal and India. According to the findings of my colleague P. Chuluunbat, also an anthropologist who visited the Gurungs in Kaski, Tanahun, and Chitwan districts in Central Nepal in 2009, these people preserve their ethnic origin story transmitted for centuries through shamanic practices. Not only the Gurung but also around 50 other groups in Nepal, including Tamang, Magar, Rai, Limbu, Thakali and Sherpa, who together comprise around 80 percent of the Nepalese population (27.8 million) from early 1990s on began asserting that they all belong to the Mongol race. According to Chuluunbat, who worked with the famous Nepalese Gurung shaman Yarjung, those groups confirm their Mongol identity based on their oral literatures reconstructed through shamanic practices. According to their beliefs, ancestral spirits possess shamans and through them repeatedly announce that the ancestors of these groups originally came from where Mongolia is today. The Mongol National Organization in Nepal, established in 1989, plays a key role in promoting, managing, publicizing, and uniting the “Mongol race” in Nepal. They claim that the Mongol race are the indigenous people of Nepal, while the Aryans, who make up only 20% of the population, dominate the state and oppress the Mongols. More examples of unknown “Mongols” include the Bodos (1.5 million) in Assam in the Northeast of India, the Hazaras (3 million) in Afghanistan, Pakistan and Iran, and so on. Most of these “Mongols” are alien to the conventional image of Mongols, who are often depicted as nomadic, pastoral, wild, natural, heroic, historical etc. Many of these unknown Mongol groups do not share the same or even similar cultural, religious, environmental, historical, and biological features. It will be interesting to see how this will further evolve, what kind of relationships will develop between different Mongol groups, how far fellow Mongols and Mongolia will accept them, and whether Mongolia can be central to so many different groups of unknown Mongols. groups, how far fellow Mongols and Mongolia will accept them, and whether Mongolia can be central to so many different groups of unknown Mongols. SUMMER | 2016

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Image: B. Bat-Orgil/iRMUUN Photo

Jack Weatherford:

Chinggis Khaan was one of the greatest law givers in the history of the world Interview with Jack Weatherford, best selling author for his 2004 book, “Chinggis Khaan and the Making of the Modern World”, and winner of the Amazon.com tournament. - I would like to start our interview by recalling the Amazon.com tournament. Those were great day for Mongolians, weren’t they? The spirit of the tournament filled Mongolians with excitement. Could you share your feelings about the event? - To be honest, I’d never heard of the tournament, so when they called me and told me that I was in the tournament I was almost embarrassed because I thought I would lose right away. So I didn’t want to tell to any of my friends that I was in the tournament because I’d have been very embarrassed if I lost. But then I started hearing from the Mongolians who knew about the tournament. Right away they said to me, “Oh, you will win. The spirit of Chinggis Khaan will lead us to victory.” Then I thought, “Oh, my Mongolian friends! They don’t understand that in Mongolia there are so few people to vote for it. Everyone in the world can vote for it, and so they don’t understand I don’t have any chance to win. But then suddenly they won the first round. Then I looked at it and I thought, well, ok, maybe we’d win one round, but I don’t think we’d win. But then we won the second. Then the third, then fourth and fifth. They took us all the way to the end. It was the Mongolian people who won that contest, not me. First week of the contest I only looked at the voting one time, but the second week of the contest I was a little more excited and checked it every day. Then the third week, I think I checked it every hour. Then I just left the computer on all night the last week (of the contest), then I woke up at night and checked the results. I enjoyed it very much.

- Mongolian young people reported an error in the internet voting process and within a second the problem had been resolved. Can you discuss this? - Yes, I was surprised that when Mongolians told me that there were problems with the voting and they noticed it. But the Mongolians understand the computer much better than I do. Then we reported the problems, and then they were fixed. - I was reading the comments on the contest rounds and one of them said: “People love Chinggis Khaan. What else can explain the unexpected victory of Weatherford who has a team with very few “soldiers?” Can you comment about this? - Well, if you look back, 800 hundred years ago, nobody in the world would have thought that the small country with one million people could conquer hundreds of millions of people. So, in a certain way, it is no surprise that today a few dedicated Mongolians can win a simple tournament. - I would like to ask what your thoughts are on what today’s world would have looked like if Chinggis Khaan were never born. - I think that Chinggis Khaan moved history forward very quickly by uniting items of all different civilizations of Europe, the Middle East and China. Without Chinggis Khaan, I think things still would have happened, but it’d probably would have happened several centuries later. - You have spent four years in places where Chinggis Khaan was born and spent his life, and in the fields where the battles SUMMER | 2016

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took place. I imagine that you probably have discovered things in a new way through your own experience, and explored them in a new light while traveling in the harsh climate, riding a horse in winter time or whatever you were doing at these places. - Yes, the information comes from very small details. For example, when I was in Khentii aimag and in the area where Esukhei Baatar first took mother Oulun as a wife, you begin to have a feeling of the area. And one thing, you know, that this could not happen in winter time, because he could not have been traveling through. So you begin to have some sense of how things could have happened. And I thought then, ok, if Esukhei Baatar had a bird with him, and he was hunting, it could not have been a harsh winter. It must have been in the fall of the year. So I began to think of small details to help me understand how the Mongolians were dealing at that time. And even more important example was that when I was walking along the Onon river. And I remembered that after the death of Esukhei Baatar, mother Oulen said she pulled her head down and she put her skirt up and she took a black stick and she went up and down the river and to find roots to fill the stomaches of her children. I looked around and I didn’t see anything to eat. There were no fruits. I could not see any kind of food that I would be able to feed my children, and I thought how far was she was supposed to go to find food for all of her children? Plus possibly other children she took care of. One time when I was on the Onon river in winter time, I saw a boy fishing out in the ice hole, and I thought that is just how Chinggis Khaan did it. Because the boy was about fourteen years old, Chinggis Khaan was 15 years old. He was fishing and he caught a very nice fish and I thought I was very inspired. I told one professor that the Onon River was full of the fish, because the 14 year old boy was fishing. And I said, “Let’s go fishing”. The professors were fishing for a whole afternoon and we never got one fish. But these little things began…. or little facts that began to teach you something new about Chinggis Khaan, or about Mongolia, or about Mongolian people. - Chinggis Khaan is the greatest known military leader in world history. What do you think is different or unique about Chinggis Khaan compared to other great military leaders? Who is as famous as Chinggis Khaan in the world? 102 mongolica

- Chinggis Khaan was the greatest conqueror in the history of the world. But to me, what is even more important is that he was one of the greatest law givers in the history of the world. He had an army of only about a hundred thousand soldiers. And a hundred thousand soldiers cannot conquer and rule the countries of hundreds of millions unless the people want to be ruled by the ruler. The Mongolian army defeated the other armies, but it was Chinggis Khaan’s law that won the people. It was the law of Chinggis Khaan that kept the Empire going for a hundred and fifty years after he died, not the army. - There are many people of Mongol origin remaining in the conquered parts of the world, scattered all over the world. It seems that they have kept more of the heritage of Chinggis Khaan’s time than we have. It is highly probable that you may have found more facts/ evidence for your research on Chinggis Khaan if you visited these places where there are Mongols who have lived there since the Mongolian Empire conquered these areas. Have you ever traveled to these places and talked to those people of Mongolian origin? - Sometimes, even in other countries such as in Afghanistan, they preserve some of the pronunciation of the older Mongolian words. Sometimes, it is very interesting that the real Mongolian way of life is found in the nomadic way of life. With that regard, this way of life is found only in Mongolia today, just as it was at the time of Chinggis Khaan. I think that if Chinggis Khaan arrived anywhere in the countryside of Mongolia and he walked into any ger, he would know exactly where he was. He would know where to sit. He would know what the food was. The Mongolian culture has survived in Mongolia stronger than in most places of the world. Of course, if Chinggis Khaan arrived at Sukhbaatar Square, he might look around and think that the Mongolians had lost all of their culture. In the city he might say, “Not MongoliaMongol bish ”.If in the countryside, he would know. - I heard that the book was published in more than 20 countries. You have probably met many readers of many countries and cultures. What is the most memorable comment you heard from these readers? - The book was published in approximately in 25 countries. The most unusual comment about the book was from the President of India,

who said that it was his favorite book. At first I was very surprised. But at the end, I read his comments how the Indian people lived together and they learned from the Mongols. Then I began to understand why he liked the book also. One of the most important comments I began to hear from some young Mongolians who no longer lived or who did not live in Mongolia. Sometimes their parents were Kalmyks and they were raised in Russia, China or in America. There are Mongols from China and I began to hear from them how much they wanted to be reconnected to Mongolia and even though they didn’t learn the language, they were finding this connection through this book. I didn’t expect that. But it was very important to me when I heard from those people. - Are there any letters from those people still in your mind? - Yes, there was one, the most dramatic about whose parents suffered being Mongols. Sometimes that’s extremely sad because the parents didn’t want the children to know the Mongolian language because they didn’t want their children to suffer. Even yesterday I had a young Hazara man come here. And of course they are people who have been terribly persecuted in Afghanistan, and also in Pakistan, and in surrounding countries. And yet, they still cling to their love of their Mongolian heritage. Under the Taliban, in Afghanistan, many tens of thousands of Hazara were killed. It is very moving. I was not thinking about those Mongols when I wrote this book. - The reason why I asked this question is that I met and talked to Sanchir, the ethnographer, and author of a documentary about Mongols, whose ancestors remained in the conquered countries. She tells many moving stories which made me cry. One is that, when they were leaving Tsagaan (white) Mongols after their visit, an old woman started collecting her things and packing. The research team wondered why she was doing that. She said she wanted to join them and go to Mongolia. As she tells it, it was very difficult to explain to her that they could not take her with them right away because she did not know about a visa or a passport which was necessary in order to travel. - But for 800 years they kept that… the flame of light in their hearts. For about 800 years. - Let’s turn our interview to another topic. Let me ask 2 questions. First, who else would you include in the list of the people

whose actions brought changes to the world as much as Chinggis Khaan did, or changed it to the extent equal to Chinggis Khaan? Do you expect such a leader to be born? Second, as Fukuyama says, it is the end of History. We have reached the end of history. All big revolutions have taken place. Has humankind come to the edge of its history? - On the first one, I think that it is very clear who are the greatest leaders of history. I think that Buddha, Jesus, Mohamed and Chinggis Khaan, those were the four greatest leaders in world history. It is very interesting that all four were very deeply spiritual men. But the fourth, Chinggis Khaan, combined the most practical aspects of life together with the spiritual aspects of life. I have the feeling that we will never have another person as important as those four people. But to be honest, I don’t want to predict the future of history because I can’t even know what tomorrow’s weather will be, or what the world will look like in five or more thousand years. - What is your feeling about his personality? Not as a military leader or great political leader, but as an individual. For example, how good of a father was he? - If we could ask Chinggis Khaan what he most regretted in his life, I think, it might be that he was not a better teacher to his sons, because none of them was as great as he was. Like any father, I think he’d have been very upset that his sons fought too much and drank too much. But he’d never been disappointed in his daughters. As far as how I imagine, I don’t see Chinggis Khaan in my mind, but mostly I just feel him in my mind. - But what I feel about him is not the great conquests he had, but what I feel about him is the great love that he felt. The great love that he felt first to his wife, Borte. Like a boy and a man, that he would sacrifice everything for her. Then later he felt great love for his people, that he could sacrifice anything for his people. - It might seem like a beaten question to you, but what do you think the secret of the success of Chinggis Khaan’s Empire was? - That was the people who were united under one great leader. If the people are united, but there is no leader, they will not accomplish anything. If they have a great leader, but people are not united, they do not accomplish. - Thank you very much for your interview. SUMMER | 2016

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Chagdarjav, Prime Minister T. Namnansuren, Ching Wang Khanddorja

Mongolia’s New Declaration of Independence Summarizing one might say that the primary significance and historical merit of the National Liberation Revolution of 1911.

Mongolia, formerly a border region of the Manchu empire, but drawn into the free world market from the end of the 19th century on, has now become a zone of geopolitical interest for the great powers. When the Manchurians had brought all of China under their sway, the policy of the Qing Dynasty changed into the chauvinist imperialism of the Chinese officials, and 104 mongolica

the Mongolians were confronted with the evil of forced assimilation. In Outer Mongolia, however, the National Liberation Movement, issuing a call for ‘Adherence to the National Customs’, was victorious against foreign rule and declared the independence of Mongolia. The so-called ‘New Government Policy’, that had been imposed upon the country in the interests

of the Qing Dynasty, the Chinese proprietary classes, and the sinisized landowners, trying to do away with the traditional lifestyle of the steppe nomads by implementing several reforms detrimental to Mongolian language, culture, and religion, was finally abolished, opening up an opportunity for the independent development of Mongolia.

In 1911 – the year of the white sow according to the traditional Mongolian calendar – the violent resistance movements that had been springing up in every corner of the country united to form the National Liberation Movement. In June of that year, the Ching Wang (prince of the first rank) M. Khanddorj, commander-inchief of the Tusiyetu Khan Aimag, and G. Tserenchimed, Great Lama of the main ecclesiastical fief, pledged allegiance to the Jebtsundamba Khutugtu, the spiritual leader of Outer Mongolia. A secret meeting of the great princes and lamas of Khalkha Mongolia was organized, where they agreed upon the restoration of their country’s independence with the help of Tsarist Russia. The Ching Wang M. Khanddorj, the Great Lama G. Tserenchimed, and the inner Mongolian official Khaisan were assigned the task of confiding the matter to Russia. The Tsarist government received the letter written by the Jebtsundamba Khutugtu and the four Khans of Khalkha to Nicolas II, and though they were not yet ready to separate Mongolia completely from the Manchu empire, they at least promised that they would tell Peking to stop the so-called reforms, and that they would protect the Mongolians against imminent Chinese massacres. Upon the pretext of ensuring the security of their consul

Queen Dondogdulam

Jebtsundamba Khutugtu

residing in Urga, they also increased the number of Russian troops stationed in the Mongolian capital. The request for help from Tsarist Russia, thus, was not a complete success, but when a revolt broke out in the the Chinese city of Wuchang in October 1911 and the revolution against the Qing Dynasty gathered pace, the situation took a positive turn for the Mongolians. At the end of November 1911, a central commit-

tee for organizing the national freedom fight was founded—the ‘Provisional General Autonomy Authority for All Affairs of Khalkha Mongolia’. This organization, a kind of provisional government rallying the Mongolian nation and establishing a unified homeland, was advertised in a bull issued by the Jebtsundamba Khutugtu that was hurriedly spread among the people of Inner Mongolia and the regions of Bargu, Alashan, Kokonor, Ili, and Tarbagatai. Troops were mobilized in the Tusiyetu Khan Aimag and the Sechen Khan Aimag and with their help, the Manchurian governor in Urga was ousted from his post and expelled from the country. On the ninth new day of the middle month of winter in the year of the white sow – Friday, December 29, 1911 of the Common Era – the restoration of the state of Mongolia was ceremonially proclaimed, and the eighth Jebtsundamba Khutugtu was enthroned as its monarch, taking the reign title of ‘Elevated by Many’. When the crowd had assembled, Puntsagtseren, who had held the title of ‘beise’ and the high rank of ‘amban’ since the time of Manchu rule, stepped forward and officially announced that the state of Mongolia had been founded anew.

Mongolia, The 1910's

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peaceful heritage

Then he ceremonially proclaimed that the Jebtsundamba Khutugtu had been elevated as the ‘Bogd Khan’ or ‘Holy King’ of Mongolia and his wife Dondogdulam as the state’s ‘Eke Dakini’ or ‘Mother Fairy'. On the same day, the monarch ordered a Mongolian government to be formed, comprising five ministries. M. Khanddorj, G. Tserenchimed, B. Khaisan, and G. Chagdarjav, who had fought for the freedom and independence of their country, were entrusted with the leadership of state and government, decorated with high ranks and titles, and richly rewarded.

In December 1911, Mongolian troops liberated Uliastai and in August of the following year Kobdo in the far west. At the same time, in Hulun Buir, Shilin Gol, and other regions of Inner Mongolia, the movement to unite with Outer Mongolia became more and more active. The new state did everything it could to get its independence recognized by the outside world. From 1912 to 1913, Foreign Minister M. Khanddorj and in 1914, a delegation led by Prime Minister T. Namnansuren travelled to Russia time and again. A note was sent to the governments of England, France, the USA, Japan, Denmark, Hol-

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land, Belgium, and Austria via their foreign consuls in Harbin, but none of them deigned to send a reply. The efforts of the Jebtsundamba Khutugtu’s government to establish a unified state for the whole Mongolian nation and to gain diplomatic recognition of Mongolia’s independence met with harsh opposition from China and Russia. During the talks between Russia, China, and Mongolia held in 1915 in the city of Kyakhta, the delegates from Mongolia fought like lions for the independence of their country, but the Chinese and Russian sides imposed their previous (1913) agreement on them by force. Mongolia had no choice but to sign the tripartite treaty, but she did not take orders from the president of the Republic of China and refused the golden seal and golden-leaved tablet of honour he deigned to accord to the Jebtsundamba Khutugtu. Moreover, Mongolia enjoyed broad autonomous rights in domestic affairs, curbed the brazen encroachments by the two great powers, and was tolerated to entertain foreign relations concerning issues outside the realm of politics. The various activities of the political leaders of Mongolia to gain recognition for their country’s independence were doomed to failure in the political climate of their time, when their opponents were prepared to use violence in order to settle disputes over matters of foreign relations, as well as in the geopolitical situation of their homeland, which found itself hard-pressed between two powerful neighbours. Nevertheless, the Mongolians were not daunted but kept on fighting for political independence under the new historic conditions, finally attaining success. The new declaration of independence gave Mongolian society a very strong impulse, and the People’s Liberation Revolution was the point of origin for all future development. The form of the new state was a theocratic absolute monarchy. The government at first consisted of five ministries, namely Internal Affairs, Foreign Affairs, Treasury, Army, and Justice. Later, a Ministry of General Government Affairs and a Customs Ministry were added. In 1914, following international practice,

Russian store, The 1910's

Great Lama Tserenchimed

a bicameral parliament with advisory function was established. The new Upper and Lower House made several motions, proposing the introduction of a state budget, the building of coach and lorry terminals, and the erection of small and medium sized factories. As a result, a state budget was approved, domestic and international customs tariffs were fixed, and a tax system was introduced. Foreign investors were issued permits to open mines and to built the first small and medium sized production sites. The development of animal husbandry intensified, and in 1918, the number of livestock reached sixteen million. From 1913 on, official state farming was revived with a tendency to support privately managed farms. In transport, motorcars were used for the first time, at least on a small scale, and the telephone network was expanded. The new government also attended to questions of Mongolian education and culture to a greater extent than the former Manchurian administration. In 1912, the first elementary school was opened next to the Foreign Ministry. The primary and secondary education

of Mongolian citizens was modelled on the European system. More than sixty schools were opened in that fashion, in the capital as well as in the countryside. Two periodicals, named ‘The New Mirror’ and ‘The Capital Newspaper’, began to appear regularly. The country’s official history, ‘The Chronicle of Mongolia Written by Royal Order’ was compiled and published. The fine arts were taking a new trend away from the demands of religion towards the life and needs of the common people. At the beginning of the 20th century, the wish for national independence was the dominant frame of mind in Mongolia, in spite of the many views and concepts vying with each other. To summarize, one might say that the primary significance and historical merit of the National Liberation Revolution of 1911, which a hundred years ago restored the independence of our nation and re-established the state of Mongolia, consists of two points. Firstly, it reasserted our national independence and statehood that had been lost for over two hundred years. Secondly, it gave us back our great national idea. SUMMER | 2016

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The scholar who showed the true Mongolia to the world

he Mongolians love their grey-haired scholar who managed to do so much more than ordinarily fits into a single human lifetime. Even the common people who do not know much more about him than his name speak with reverence of Byamba Rinchen. Everyone who has read his books just calls him Teacher Ri, even those who have never been his students. It is something special to be loved and honoured by everybody without further ado. No ordinary man can write this destiny into the stars for himself by the power of his mind. There are many stories of heroes who became the pride of their people because of their courage and strength, but stories of great minds who have advanced their nation and impressed the world with their erudition and their intellect, those one can count on the fingers of one’s hands. Heroes fight, are proud, conquer or suffer defeat in public, right under everyone’s eyes. With scholars, however, this is quite different. They work in the quiet of their studies and lead an uneventful life. The majority of those whose power of mind and whose intellectual faculties are acknowledged by the general public, who appreciate and produce books, and who value learning have invariably left the world in silence after having lived their allotted time. One of the few scholars who have been fortunate enough to gain public recognition is Mongolia’s B. Rinchen. This distinguished man was a linguist, a researcher, a writer, a journalist, a translator, a critic, an ethnographer, and an expert on shamanism. The Cuban writer Gregorio Ortega praised him effusively, ‘This man who looked at everything with a broad view and in whose eyes always shone a wonderful light was the living encyclopedia of his old nomadic people who decided about their moving and staying with a glance at the horizon’. In one respect Rinchen was special among those scholars and researchers who explored Mongolia and made the works from the peculiar history and culture of the nomads available to the global public. Since he was a descendant and relative of those nomads, he delved deeper and brought to light findings from the very roots. Therein lies the significance of his scientific work and his artistic creations.

‘Folklore Mongol’

His fellow Mongolists admire B. Rinchen, and since he has done an amazing quantity of work, this distinguished scholar’s name has left a clear mark on Mongolian studies up to the present day. He dedicated a considerable part of his life to the collection of the Mongolian nation’s cultural heritage. Because of this work, he is famous as an ethnographer. His five collections containing the classic oral works of Mongolian folklore were printed in Germany under the title ‘Folklore Mongol’. This book can be found on the desk of Mongolists even today. At the time ‘Folklore Mongol’ was first published, the well-known British Mongolist Charles Bawden exclaimed, ‘Much has recently been published in the field of Mongolian studies that must be considered important, but the most interesting publications are those of Rinchen’. In his five volumes, B. Rinchen shows that Mongolian epics have to be viewed alongside the Iliad, the Odyssey, and the old French ‘Chanson de Roland’. ‘The Mongolian epics with their richness of vocabulary and their inspired meaning and courage’, he concludes, ‘when compared to written literature in their size and scope, have the form of great novels’. The scholar who was not afraid of his traditional religion and culture

The shamans of Mongolia mediate between the natural and the supernatural universe. They are a topic of interest and a subject of study all over the world. And the foundations for studying shamanism, one of the earliest religions of mankind, were laid by B. Rinchen, full member of the Mongolian Academy of Sciences. A considerable part of his valuable material collected over fifty years beginning in the 1920s consists of shamanism research. It has been published in Mongolian as volumes 3, 8, and 40 of the German series ‘Asiatische Forschungen’, and still constitutes valuable research material today. There was a time in Mongolia when intellectuals were afraid to open their mouths to talk about the old culture. Those days when socialism took a violent turn in many countries of the SUMMER | 2016

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peaceful heritage world have been dubbed the period of the Iron Curtain. At that time, when it was forbidden even to utter words like ‘shaman’, ‘Tsam-dance’, ‘temple’, or ‘monastery’, when intellectuals stood in fear of their traditional religion and culture, Rinchen published his book ‘Lamaistische Tanzmasken. Der Erlik-tsam in der Mongolei’ (Lamaist Dance Masks. The Erlik-Tsam in Mongolia) in collaboration with Werner Forman, a step that ordinary people would not have ventured. In this work, he gives detailed descriptions of the state of the old temples and monasteries in Khalkha Mongolia, a history of the Tsam-dance, the Tsam-masks of Erlik-Khan, the preparations for Tsam-dances, and the Tsam ceremonies – complete with pictures and other supplements. His introduction into the global research process of a considerable number of things in direct connection with the religious history of Mongolia was not favourably received, much less supported by the regime. One can read in his biography how he was continually criticized and harassed. During the last years of his life, the pressure grew very strong. It has never been, however, the custom of great minds to bend their heads and knees in front of this kind of vulgar adversity. The grey-haired scholar suffered his fate without a word and produced his works in silence, revealing to the world Mongolia’s unique and amazing history and culture and never leaving the way he considered right and proper. In light of the present situation of Mongolian studies, his behaviour seems justified. ‘He put a considerable effort’, a fellow scholar sums up his work, ‘into systematically developing and enhancing many branches of Mongolian studies on a global scale’. This evaluation does not quite play down the merits of someone who applied exact proof and scientific method to not a few problems of the Mongolian people’s culture and traditions that had been confusing international scholars, but it certainly does not run the risk to exaggerate them either. An ‘Encyclopedia of the East’

When Rinchen was a boy working as an assistant scribe in the department for Manchuria and Mongolia, the colonial office of the Manchus, he was one day sent for by general D.Sukhbaatar, the future leader of the People’s Revolution of 1921, before the latter set off in order to liberate the city of Urga, now Ulaanbaatar. ‘What do you want to be when you grow up’, the general asked him. ‘I want to be a doctor’, the boy answered, but Sukhbaatar ordered, ‘We certainly need doctors, but Soviet Russia will send us as many as necessary. What we really want is our own Mongolian scientists. You had better go to a good school of language and literature’. And this was what started him on his career. At the time when he was studying at the Institute of Oriental Languages in Leningrad, a request was made from the part of Mongolia for the training of a Mongolian scientific staff. One of the four students out of eighteen who were chosen for this programme was Rinchen. Apart from the lectures of the Asia Museum of the Soviet Academy of Sciences and those of the Institute of Language and Literature in the phonetic laboratory of the University of Leningrad, he was taught special lessons by nine famous Academy members. His teachers were: Vladimirtsov, Mongolian studies, Oldenburg, Indian studies, Shcherbatskoy, Tibetan studies, Barthold, Oriental history, Yudakhin, Turkic languages, Shcherba, Phonetics, Marr, linguistics and history, Kozin, 110 mongolica

Mongolian studies, and Alexeiev, Chinese studies. But it is one thing to hear the leading experts in their branches, and another to apply the knowledge passed on by them in one’s own research and to leave behind a work of lasting importance. In this respect, he was surely some kind of ‘Encyclopedia of the East’. His case for his native language and his letter to N. Khrushchev

Before Rinchen’s four-volume work ‘A Grammar of Written Mongolian’ came out, researchers all over the world had been studying the Mongolian language on the model of Indian, SinoTibetan, and European Languages. This book, however, his thesis for his doctoral degree in Hungary, Academy members led by the famous Ligeti unanimously evaluated as ‘the first work that studied Mongolian according to its own characteristics and inaugurated a new epoch in the history of Mongolian language research’. Unfortunately, the third volume about ‘The Morphology of the Mongolian Language', was burned after having first been printed. At the time, even his colleagues cried out against him. They criticized and found fault in exchange for merits and rewards. Informed sources remember that among those there were some who have later become well-known and popular. It was not an easy time for scholars to swim against the tide. B. Rinchen was a shining example in the ranks of Mongolian scholars, never bowing his head, always speaking his mind, and ‘guarding his honour in the face of death’. This scholar and full member of the Mongolian Academy of Sciences loved his native language with its traditional script, and he did not suffer them to come under foreign influence. After the Uyghur-Mongolian script had been replaced with the Cyrillic alphabet, he wrote letters to N. Khrushchev and Mao Zedong. The fear that Mongolians might lose their language under the influence of a powerful empire and the worry that Mongolia might cease to exist without her own language led the grey-haired scholar to reach for pen and paper. During the reign of the Soviet Union, more than a hundred nations between Ukraine and Chukotka are believed to have lost their language and culture. So it seems the great scholar saw far into the future. Linguistic independence as the basis of cultural independence is the sole guarantee of independent statehood. In a poem, Rinchen wrote, ‘Whenever I harken to the melodious Mongolian language, jewel of the ear, precious heirloom from ancestors of true courage, I admire and revere its elegance’. B. Rinchen managed to defend his mother-tongue and to leave his own clear marks on Mongolian language research. He initiated and organized the First International Congress of Mongolian Linguists in 1959. He secretly feared that their hundreds, if not thousands of historical documents, their precious cultural heritage, the trace they left in the past, would be obscured by foreign influence or fall into foreign hands. The great scholar’s son, academy member R. Barsbold, recalls, ‘My father constantly worried, “We shall loose our Hun empire to others”’. The 2200th anniversary of the Xiongnu empire will be celebrated soon. On that occasion Mongolia will probably proclaim the Xiongnu, or

Huns, as our ancestors. There are several countries in the world with a history of statehood to be counted in millennia. There are very few scholars who have claimed that history for us. Teacher Ri, interpreter, translation theoretician, and writer

When B. Rinchen during the years of the great purges had been sentenced to death and put into prison, where he was locked up for five years, it was his fluent knowledge of Russian that saved him. Because of the need to translate the history of the Bolshevik party from Russian, the ‘counter-revolutionary’ scholar was not executed. It is reckoned that he knew seventeen languages. He had a perfect mastery of English, French, German, Russian, Czech, Old Slavonic, Latin, Hungarian, Esperanto, Manchu, Turkish, Tibetan, and Chinese. Richen learnt French when he was in prison. The story of how he became acquainted with the language of the ‘Grande Nation’ of European culture contains an element of comic. He was carrying a large barrel filled with excrements together with some other inmates, when his eyes fell on a thick volume in a heap of ‘counter-revolutionary’ books next to an oven inside the prison fence, that were about to be burned. Trying to grab it with a quick dart, he discovered it to be a textbook of French. ‘Put down the book’, the warden accompanying their group of prisoners shouted, but he begged, ‘Toilet paper is scarce. Let me use this’. And so he took possession of the French textbook and mastered that language during his captivity. As his student Ts.Shagdarsuren remembers, most of his scholarly works printed abroad were in French. He kept urging his students at any rate to learn English, French, Russian, and German. The old scholar thought it impossible not to study Latin, too, the written language of Europe during the Middle Ages, as well as Sanskrit, the ancestor of the Indo-European family of languages, which had covered all of Central Asia in ancient times. He continued to learn languages throughout his entire life. When his health was declining before his death, he was still studying Latin

and Classical Chinese. B. Rinchen is also one of the famous translators of Mongolia, and a translation scientist of renown. He wrote vivid and captivating translations of classics like Gogol’s ‘Taras Bulba’, Sholokhov’s ‘The Fate of a Man’, Andersen’s ‘Fairy Tales’, and Kalidasa’s ‘The Cloud Messenger’. Critics emphasize that his translation of the famous ‘Cloud Messenger’ turned out to be a masterpiece. Rinchen translated about 240 titles by seventy writers from twenty different countries, written in many different languages like Russian, English, French, Polish, Czech, and Hungarian. Unfortunately, he could not obtain permission to print many of his translations, like those of Jack London’s ‘The Sea-Wolf’, Jules Verne’s ‘The Journey to the Centre of the Earth’, John Reed’s ‘Ten days that shook the world’, Pushkin’s ‘The Undertaker’, and Shakespeare’s ‘Othello’ and ‘Macbeth’. The manuscripts then disappeared without a trace. Had their publication not been forbidden, how much would Rinchen’s Pushkin and Shakespeare have touched the strings of the Mongolian heart? Many sad questions of this sort arise when one studies his biography or talks to his friends and relatives. ‘When I read my works in another language’, he used to say, ‘I always want to correct them. Looking at my writings in different languages is like looking at them through a magnifying glass’. As his students keep saying when remembering their old teacher, this shows to what degree he internalized and mastered a foreign language. When he was just a little youngster who had translated one ballad by A.S. Pushkin in collaboration with D.Natsagdorj, the founder of modern Mongolian literature, exchanging his views and thoughts with the latter, he became Mongolia’s best-known interpreter and translation critic. Besides being a translator, he was also one of Mongolia’s famous authors. ‘Choghtu Tayiji’, ‘Princess Anu’, ‘The Elephant Clan’ and other historical novels and stories by this honoured man, who became a member of the first union of Mongolian writers, are among the best literary works of Mongolia. SUMMER | 2016

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Welcome to Mongolia Welcome to the ancient home of Asiatic nomads – legendary, mysterious, and beautiful Mongolia. It is home to a wealth of paleontological and archeological discoveries and sites from the Paleolithic age on and is a cradle of statehood, where world-renowned ancient states and empires formed. Yet Mongolia is one of the fascinating few locations still alive on Earth where, into the 21st century, a harmonious but elsewhere all-but-vanished relationship between humanity and nature has managed to survive. Coexistence of nomadic and urban civilizations that never dissolved each other; religious and ethnic tolerance. These are the key qualities of the Mongol people and that may be why modern Mongols have managed to preserve their pristine nature, their generous hospitality, and their unique culture, which they are known for in across Europe and Asia. Perhaps one has to experience in person the endlessly rolling Mongolian great steppes, the high ranges of the Altai Mountains, the vast Gobi desert, the snowcapped peaks and ice-rivers, and the nomadic way of life to fully feel the worldacclaimed Huumii or throat-singing, the long songs, and the melodies played on only two strings of the Mongolian horseheaded fiddle. This is because Mongolian thinking and way of life and Mongolian nature are closely interconnected and exist in mutual balance. It’s a particular emotion that we believe can only be felt here, in this unique land and we would like you to 112 mongolica

feel it too. The beautiful and pristine lakes, the high peaks of the mountains that seem to pillar the skies, the desert landscape almost seems a different planet, the petroglyphs that tell stories from thousands of years back, the ruins of ancient settlements scattered like pearls all around the country, the majestic and beautiful monasteries and temples, and the ancient relics and monuments –these are some of the fascinating things that can be found in Mongolia. The most important of these things, though, is the persistence of a multimillennial nomadic way of life that is peaceable and open, which makes for a hospitable, warm-hearted and yet sophisticated culture that has managed to adapt to modern times. That culture is the most important reason foreign tourists come to Mongolia. We encourage you to travel across the beautiful land that gave birth to Great Chinggis Khan, get familiar with the nomadic way of life, experience and appreciate the hospitality of the Mongols, ride Mongolian horses across the vast steppe, and discover the sources from which nomads derive their happiness. In this chapter of our magazine, we present twelve ways to get a feel for Mongolia as it is, and also feature an article ‘Dragon Bones of the Gobi’, based on travel notes made during a visit to Mongolia’s most tourist-visited site in the Gobi, a graveyard of dinosaurs.

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Twelve ways to experience Mongolia like a Mongolian

Sacred mountains. Massive freshwater lakes. Resplendent rock formations and sizzling hot springs. Thriving Creatures of the Gobi and fossils found nowhere in the globe. These are just a few of the surprises found in the Mongolian wild. We are inviting you to experience the beauty, joy, and humanity of the natural world, as only Mongolia can offer. 120.

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Twelve ways to experience Mongolia like a Mongolian

Life in a herder’s family Be a member of an ordinary herder’s family, and you will understand their simple lifestyle, their amazing resourcefulness, and the mutual respect between man and nature. Enter their world not ruled by written regulations where they herd their animals, raise their children, honour their wise and elderly, and transmit their values of empathy and courteousness. Then you will get a better understanding of what is going wrong in the modern sedentary civilisation. Choosing a family from one of the minority tribes in Uvs, Kobdo, or the other aimags on the western border of Mongolia, you will fathom the depth of their unbroken traditions. We promise that this tranquil life will be a better recreation than any luxury holiday resort. 114 mongolica

For the ultimate wildlife watching – no matter if you’re a bird or a bear lover —Balazs Szugeti, birdwatcher “From the endless Gobi desert to the slopes of the Altai mountains covered with beautiful evergreen forests, this country provides unspoilt scenery, stunning landscapes and a mouthwatering array of species.”

The deel, Mongolia’s national dress These are special foods prepared and eaten together with cheerfulness. These meals consist wholly of meat. On a trip to the countryside, they will show you the real taste of meat while you smell the smoke of an open fire on the bank of a river. Eating khorkhog and boodog is very different from dining with knife and fork from porcelain plates, nibbling at something deprived of all original taste and appearance. It is very interesting to watch the Mongolian men leave their women to prepare the meat and chat at leisure, and collect stones on the riverbank with naked breasts in the fresh county air, then kindle a fire, growing lively and getting the food ready. Boodog is mostly made by skinning a marmot or a goat, leaving the skin intact and filling it with pieces of the animal’s meat and glowing hot stones, while khorkhog is made in a churn, also with glowing hot stones and meat

Exploring new ways of being —Liza F.Carter, author of “Moving with the Seasons: Portrait of a Mongolian Family” “While in Mongolia, I certainly explored new landscapes, but more importantly, I discovered new ways of seeing and being. Spending time with my Mongolian family recalibrated my internal scale to what needed to have a happy life.”

The singing sand dunes, camels and so much more of the Gobi —Thomas B.Allen, National Geographic “Shaped by the wind into countless curves and bathed in countless shadows, the dune rose in marvelous mystery. Sand but not desert, high but not mountain, this ultimate dune towered well over 300 meters (1000 feet); its slopes merged into an edge that gleamed like a blade. I climbed the knife-edge, breathing hard after a hundred yards because each step upward plunged my foot deeper into the fine sand. I felt as if I were struggling with the stuff of time in a giant hourglass. My footsteps faded away in a living metaphor of human passage upon this land.”

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Mongolia

The Naadam Naadam is held in summer when the flowers and the grass have spread. It is the nationwide festival with the most participants and spectators. On the face value, it is an amusement with three traditional kinds of tournaments: A race of six-year-old horses, wrestling, and archery. Grasping the full meaning of Naadam, however, implies a history and culture of broad conception and deep significance. Lily, a traveler from Australia, says, ‘Naadam is not just a series of competitions, but three days uniting sports, art, joy, merry-making, and vacation. But since there is no chance of seeing everything at one time, I have been com-

ing to Mongolia for three years in a row. I have become fond of celebrating Naadam and eating khuushuur with the Mongolians in summer.’ On Naadam, I have seen Lily jumping in the stirrup to admire the strength of the Mongolian horses with their tiny riders, coming galloping from about 30 kilometres far, and the courage of the child jockeys. But I for myself prefer the Mongolian State Ceremony, the excitement of the people being glad at heart in the circle of their families, the khuushuur eaten and the airag drunk at Naadam, as well as the finery and manners of my compatriots.

Pristine Lake Khuvsgul: The Blue Pearl of Mongolia and one of the world’s largest —Lubomir Svoboda, scuba diving expert

Meeting Living Eagle Hunters —Craig Smith, photographer

“I was surprised to hear that it is possible to drink straight from the lake. A place like that is rare in this world.”

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“It isn’t a circus or a professional event. This is their tradition. They are proud of what they do, their culture and their heritage.”

A cultural trip through the capital If you want to get an overview of the cultural heritage of Mongolia on a trip through the city of Ulan Bator, this is possible, of course, though you will only see a small selection from of the immense treasure chest filled during the history of the country. The Gandantegchinlen monastery, the centre of Buddhism in Mongolia, can be reached on foot, as can many museums and galleries throughout the city centre. Gandantegchinlen, or Gandan for short, is not only a place of worship where many believers bow to the 80-cubits-high Avalokiteshvara Buddha, but also the seat of the Buddhist art academy of Mongolia and the main store of Mongolian Buddhismâ&#x20AC;&#x2122;s cultural heritage. On a visit to the Bogd Khaan Palace Museum, you can discover many unique remains of Mongoliaâ&#x20AC;&#x2122;s imperial and religious history, art, and culture, as well as the works of famous artisans and masters of the relevant times. There are Buddha statues, objects of the late Jebtsundamba Khutugtu and his queen Dondogdulam. The Museum of National History and the Museum of Natural History are of course must sees, but there are many other museums like the Military Museum of Mongolia, the G.Zanabazar Museum of Fine Arts, the National Costumes Museum of Mongolia, the International Intellectuals Museum, and the Choijin Lama Temple Museum.

On the path of nomadic history If you wish to learn about the culture of the nomads, you must follow the path of the great history beginning in Ulaanbaatar. If you follow the itinerary UB-Khustai-Ungut-YisunzuilShankh-Karakorum-Temeen Chuluu-Tuvkhun-Tsagaan Sumiin Tuur-Karabalgasun-Doit-Khushuu Tsaidam-Khar Bukhyn Balgas-Chintolgoi-Ulaan Kherem-Tsogtyn Balgas, you can see many kinds of monuments from the history and culture of the last two thousand years. Making a round trip of only 700 kilometres, you can experience the Orkhon valley, the hotbed of the wide Eurasian steppes. Traveling along this way, you will make a journey through the different landscapes and nationalities of Mongolia at the same time. You will feel the immense difference between the remains of the nomadic cities and settlements on one side and the European heritage on the other. Travelers on this route will not make an ordinary pleasure trip, but an intellectual experience. You may be lucky enough to discover the secret of why the nomads, though they seem to have been backward and underdeveloped for centuries, still lead a secure and happy life. You may find genuine freedom, unspoilt nature, and a meaningful life in this remote region of the earth. Images: zazaa/iRMUUN Photo

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EITHER WAY, IT’S YOUR WAY Since opening its first restaurant in 1992, BD’s Mongolian Grill has been providing its customers with unique interactive dining experiences, now with branches in 30 countries around the world. It’s branch in Ulaanbaatar, Mongolia was a phenomenon hit when it first opened in 2005. BD’s Mongolian Grill not only serves delicious meals but offers its customers full control over every aspect in creating their own stir-fry. From the choice of ingredients, portion size to whatever cooking method. Here at BD’s, you can choose from 10 varieties of meat and seafood, over 20 kinds of fresh vegetables and crisp green salads, and a wide array of flavorful spices and sauces. Now watch your meal in action, as our chefs prepare the dish you invented right in front of you! In keeping up with it’s “Stir It Up, Your Way” philosophy, BD’s takes care of pretty much everyone’s individual requirements for deliciousness. For instance, BD’s offers vegetarians and vegans a create-your-own soup and salad service as well as providing a play space with toys and other amusements for our little customers as well. What’s more, BD’s at lunch time has extra-reasonable prices, significantly lower than other high-end restaurants in town. So what will it be? Have BD’s chefs cook the ingredients of your choice for you on the 260°C, 7-foot grill or let them create something for you in one of our trademark fusions of Mongolian traditional and international cuisine. Either way, it’s Your Way! And whatever way, expect to be happily surprised. At BD’s, there’s always a new exciting combination to try - because you can create it yourself!

in front of Metromall shopping center, Baga Toiruu, Ulaanbaatar 14201 Mon-Sat 11am-midnight, Sun 11am-11pm (+976) [11] 311191

Mongoliaâ&#x20AC;&#x2122;s sandy geologic formations, a legacy of the Cretaceous Era, has kept millions-year old fossils remarkably well preserved. 120 mongolica

Dragon Bones

of the Gobi

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Mongolia

"Let's start our dinosaur journey with Tugrugiin Shiree, where Romeo and Juliet were found," said Sainaa, our local guide in the South Gobi. He referred to the nicknames of the fossilized Protoceratops and Velociraptor remains discovered in 1971 by a joint Polish-Mongolian paleontological expedition. The two dinosaur skeletons were found locked together in a timeless embrace. Sainaa, with his red round face and joyful eyes, let me wonder for a minute at the image of a pair of lover dinosaurs before he revealed the truth. “They likely died fighting each other.” Sainaa, a decades-long veteran guide, had assisted a good number of national and international paleontological expeditions in his lifetime, while maintaining his base camp at ‘Gurvan Temee,’ or the Three Camel Lodge. We left this remote desert outpost after sunup and drove into the Gobi, the land where explorer Roy Chapman Andrews first discovered a bounty of dinosaur fossils a century ago. Ever since, teams of paleontologists have combed the Gobi for the fossilized remains of ancient giant beasts and vicious killers. As they say locally, we followed the path of the dragon bone hunters.

Tugrugiin Shiree 30 km northwest of the Three Camel Lodge we caught our first glimpse of Tugrugiin Shiree looming in the distance. The 30 meter high Tugrugiin Shiree, formed as a result of primeval tectonic uplift, is a geologic formation with southward crests and slopes of loose white sandstone. Once atop the crest, I found it to be a

flat bench formation covered with sedimentary gravel, void of vegetation, mostly composed of consolidated sediments and volcanic rocks. Sainaa explained: “It was in this sandy depression where a Polish paleontologist found the embraced dinosaurs. And two years ago, right nearby, 15 fossilized dinosaur hatchlings were found all buried together in the same nest.” From the height of Tugrugiin Shiree, looking down at its sandy basin and the vast desert landscape beyond, it was possible to imagine the Cretaceous rivers and lakes that brought the region life; flourishing vegetation, giant sauropods with long necks stretched to the heavens, their smaller cousins squabbling underneath on hind legs. We walked from the crest down the sandy slopes. I was still hoping to see a piece of dinosaur bone. Here and there grew scattered Zag, or saxaul shrubs, in layered beds. Clay rocks that resembled ceramic splinters and small and polished white stones were easily spotted here and there. “Is that a fossilized bone?” I would ask. Patient Sainaa would reply, “No, that is just a white stone. A fossilized bone is crystal white. And they stick to your tongue.” Soon, my trained-eyed guide called me over. A row of small vertebrae the size of a finger bone was visible in the sand. “Recent rain washed the ground and uncovered it. Dinosaur bones are unearthed by rainwater and windstorms. But the next rain or storm can conceal them again.” It didn’t look like the remains of a dragon, but out here a find like this is just the tip of the iceberg. We left its buried secrets for the rain to uncover.

The Flaming Cliffs

Our next destination, 70 km from Tugrugiin Shiree,

The low sun in the clear western sky covered the hillocks and precipices of the red cliffs in vibrant splashes of fire and shadow.

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Images: B. altangere/irmuun photo (camels), A. BACHKA/ irmuun photo

Cliffs developed various shapes that seemed more at home on a distant planet (below). A herder boy offering camel rides at Khongoriin Els Sand Dunes.

Images: bulgan/irmuun photo (top, FAR left), G.Gan-Ulzii/Three Camel Lodge (OPPOSITE) ÂŠ

Mongolia was Bayan Zag, or the Flaming Cliffs. It was here in the last century where the Central Asiatic Expedition of the American Museum of Natural History, led by naturalist Roy Chapman Andrews, found dinosaur eggs, crystallized embryos, fossils of giant rhinoceros-like mammals (Baluchitherium) and parrot-beaked lizards (Psittacosaurus), which made the name ‘Gobi’ famous the world over. Mongolia’s sandy geologic formations, a legacy of the Cretaceous Era, had kept the millions-year-old fossils remarkably neat and well preserved. We reached the valley of the Arts Bodg Uul Mountain and the sandstone cliffs of Bayan Zag before sunset. We chose a good spot to take photos on the western flank of the cliffs knows as Ulaan Ereg, or the Red Banks. Locals refer to the sandy red soil as Tsav, and call the 20-50 meter-high red cliffs Tsonj. Weathered by rain and wind for millions of years, these cliffs had developed various shapes that seemed more at home on a distant planet. The low sun in the clear western sky covered the hillocks and precipices of the red cliffs in vibrant splashes of fire and shadow. The rich tones of sunset sandstone blazed atop the vastness of the Gobi. The Flaming Cliffs—Roy Chapman Andrews’s moniker for the spectacle—was quite apt. On the western flank of the Flaming Cliffs a local woman displayed handmade felt souvenirs and rare stones for sale. We took our photos and enjoyed the exhibition of such rare natural beauty, returning back to the Three Camel Lodge at dark. Local dishes were served for dinner, such as a beef steak with a unique flavor acquired from the chives that make the diet of the local animals, and a fresh vegetable salad of local produce grown in nearby Bulgan Soum. Nighttime silence quietly settled on the starlit camp, broken only by the occasional hooting of a friendly owl.

The Valley of a Thousand Dragons

The next morning we arose at 6A.M. and headed for Nemegt Basin. 300 km from the Three Camel Lodge, it is located in the adjacent territory of Gurvan Tes Soum. A local myth tells that long ago, a dragon sustained an injury in the air and crashed to its death. Its broken hind legs and tail fell onto Nemegt Uul Mountain, while its head and torso fell onto Tost Uul Mountain. Locals know where the best dinosaur bones can be found, but never disclose this knowledge to tourists or passersby out of respect for the fabled creatures. Nemegt Uul Mountain is a red sandstone formation similar to the Flaming Cliffs. This year, the Nemegt Basin had a good number of floods due to high precipitation in the region. The recent rain favored our chances for paleontological discovery. Unwittingly, I stumbled onto something sticking out of the wall of a ridge—a fossilized dinosaur’s egg the size of a human palm. I left it in place, after taking only a photo. Our guide suggested that we stop by a local nomad family living in the Nemegt Basin. He pointed at a lonely ger far in the distance. As water sources are scarce and scattered, desert nomads are equally few and far between. A well-built housewife with a weather-burned face welcomed us warmheartedly and offered us sour Khoormog, or thinned camel milk. We asked her about life in the Basin. “In our childhood,” she said, “big pieces of dinosaur bones could 124 mongolica

A row of small vertebrae the size of a finger bone visible in the sand.

Clay rocks and small and polished white stones were easily spotted here and there. Images: bulgan/irmuun photo

The rich tones of sunset sandstone blaze atop the vastness of the Gobi.

be easily found. The area was called the ‘valley of a thousand dragons.’ But now locals and foreigners are picking up so many more fossils than before, that they are becoming a rare thing.” Sainaa inquired about a large dinosaur skeleton that used to be in the Basin but had disappeared.“The neck, torso and tail parts were clearly visible, like a painting on a wall, at the Khongiltin Am Pass. Tourists and visitors used to come and see it. Who took it is a mystery—one day it was just gone. Maybe it’s that 'T. Bataar' which went to America and came back,” she responded, referring to the recent case of a repatriated Tarbosaurus skeleton now on display in Ulaanbaatar. The T. Baatar incident is the most famous example of the alarming recent growth in the international illegal fossil trade. Cleaned and restored fossils are being sold to private buyers around the world at lofty prices, with full skeleton displays reaching upwards of one million dollars. Scientists estimate that more than 80 small and large pieces of the unique Tarbosaurus Bataar alone—fossils found only in the Mongolian Gobi—have been smuggled out of the country. The Mongolian Government Image: G. Gan-Ulzii

"It was in this sandy depression where a Polish paleontologist found the embraced dinosaurs." has been able to bring back some of its lost skeletons, but the illegal trafficking of fossils continues to be widespread. The road back to the lodge was smooth over the endless Gobi. It is are markable land the nomads have always treasured, and lived upon with great reverance. Before we departed, Sainaa reminded me that, to this day, it is taboo to pound a stake into the ground to tether a horse, out of respect for the earth’s surface. Beneath that surface, however, in the depths of the Gobi, lie an unknown number of fossils. The desert remains a land of ancient dragon bones, perhaps one day to be exposed by rain, or perhaps to linger in secret for millions of years to come. SUMMER | 2016

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Focus

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Altai Mountain Khovd province Photo by: Pichugin Dmitry/Shutterstock

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Khuvsgul Lake Khuvsgul province Photo by: Zazaa (iRMUUN) SUMMER | 2016

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Welcome to ulaanbaatar Whether a city is small or large, its history is always big when properly examined. Cities, mountains, and waters not only preserve fascinating and sometimes enigmatic memories but also create their own distinctive history, values, and local culture. Thatâ&#x20AC;&#x2122;s what the ancient Romans defined as Genius Lociâ&#x20AC;&#x201D;the spirit of the place. Can you believe that the capital city of Mongolia, Ulaanbaatar, is only 400 years old but preserves global history from 100 million years ago? Yes, you read it correctly. Modern Ulaanbaatar not only preserves world history going back tens of millions of years but also keeps safe the memory of statehood of ancient nomads over two millennia, the glory and history of the Great Mongol Empire, masterpieces of Buddhist architecture and art found nowhere else, and the intellectual and artistic masterpieces of modern and ancient nomads. It is the hub of all the historical Mongols scattered all around the world and an old city that coins modern values. The Mongolian capital of Ulaanbaatar, settled at the present location in 1778 after moving 28 times and traveling over more than 300 km, is located in the valley surrounded by four

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mountains and on the banks of the Tuul and Selbe rivers. In 1921, a new era of modern architecture and urban planning started for Ulaanbaatar, which resulted in the energetic building of new structures and apartment blocks. You can easily spot these Soviet-era buildings and structures in Ulaanbaatar. Modern Ulaanbaatar is a rapidly changing, growing and developing city with 1.3 million residents, 67 percent of whom are young people. Finding a beautiful ancient monastery hidden among glass skyscrapers featuring luxury brands and logos of local and international corporations is like discovering a hidden pearl in a large ocean reef. In startling contrast to this glass-and concrete cityscape and its islands of tradition are the so-called ger districts that have not only surrounded Ulaanbaatar but also spread to the tops of surrounding mountains. This unique social geography proves once again the remarkable ability of the Mongolian nomadic way of life to co-exist with modern urban living. These are a few of of the fascinations of Ulaanbaatar, a contemporary city that keeps ancient and modern interwoven like no other. Discover Ulaanbaatar as you travel through the section, then, as time in your busy schedule permits, go out and discover it in realityâ&#x20AC;&#x201D;along with the rest of Mongolia.

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That beautiful shape reflected in the mirror is an eternal mystery

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Ulaanbaatar: Then and Now

Since its foundation in 1639 as a mobile-yurt monastery and palace, Ulaanbaatar City has moved its location over 20 times. The nomadic origins of Ulaanbaatar distinguish its history from other world capitals.

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Education Without Borders: Changing Perspectives

One of the near future’s most crucial technological achievements, made possible by the Web and by cheap, ubiquitous access to it via mobile devices, is to offer the same educational opportunities—the same informational start line, if you like—anywhere in the world, regardless of where the student resides. 142.

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Signature People of Mongolia

The young are carrying out their plans to achieve their dreams, which as a whole may be the future of Mongolia. Their successes, as well as their failures and defeats, are inspiration and motivation for the next generation. travel guide

Welcome to Mongol Village The Must-See Place in Ulaanbaatar: Gobi’s Oasis

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Touch of Home Relax and Reconnect at Khaan Jims Beautifying the world with Mongolian cashmere A Taste of French Cuisine Experience Plus Innovative Service What you wear can mean a lot: Evseg’s ethics

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Ulaanbaatar:

Then and Now The city you’ll never get bored 48 hours in Ulaanbaatar

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Since its foundation in 1639 as a mobileyurt monastery and palace, Ulaanbaatar City has moved its location over 20 times. The nomadic origins of Ulaanbaatar distinguish its history from other world capitals. According to Mrs. Sergelen, an art historian and professor at Mongolian University of Science and Technology, Ulaanbaatar settled in its current location at the end of 18th century. From then until today, Ulaanbaatar has developed in waves of concentric circles, known in Mongolian as a khuree-style of organization and development. Thus, most of the larger business and government buildings fall within the inner, ‘Big Circle,’ where you’ll find today’s modern Ulaanbaatar,

with its mix of luxury stores, skyscrapers, government offices and high apartment complexes all located downtown. The outer circle is more traditional, with entire districts composed mostly of nomadic style ger dwellings surrounding the city center. In every corner of Ulaanbaatar, however, you’ll find examples of the modern mixed with the traditional way of life.

DAY one

Morning: Introduction to Nomadic Art A visit to a museum or an art gallery can be a great introduction to Mongolian history. The Bogd Khan Winter Palace Museum is worth a stopover for its

beautiful 19th century architecture and treasure-trove of sculptures and other art. The Fine Arts Zanabazar Museum displays wonderful exhibits from 7,000 years of local history, with early humancarved rocks, monolithic deer stones, Buddha statues, and traditional Mongolstyle paintings by famed artists B. Sharav, Jugder and Tsagaan Jamba. For a taste of modern Mongolian art, the Mongolian National Modern Art Gallery, the 976 Art Gallery, the Tsagaandarium Art Gallery & Museum, and the Blue Moon Art Gallery all have great showcases and a number of public events. The Badamkhand Art Museum as well contains many rich exhibits of modern and Asian art.

Afternoon: chinggis Square Chinggis Square at the heart of downtown is the largest square-shaped central plaza in the world. The Government Palace, the City Administration Building and the Stock Exchange surround Chinggis Square. Take a peek inside the Government Honor and Ceremony Room to see the Nine White Banners, the most treasured artifacts of the Mongolian state. The Central Cultural Palace Building complex on the east side of the square is representative of 20th century Mongolian architecture, combining the modern with the traditional. The complex includes the Grand Concert Hall,

Am, cuscima ximolor ehendament alis sequi ommoloribusa sitinct aquam, ut recatum id moluptat apictum re iustem quasimpe dolesaturiti aut alis

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ulaanbaatar the Theatre Museum, the State Philharmonics, the National Modern Art Gallery and the Children’s Library. Visit the Central Tower on the square’s southeast corner at lunchtime. A variety of chic restaurants on the third floor offer Japanese, Korean, and European cuisine, plus a top-floor restaurant has a beautiful view of Ulaanbaatar from above. Plenty of shopping on the first and second floors, so get your boutique fix at Louis Vuitton, Burberry, Emporio Armani, Hugo Boss, L’Occitane, Shiseido and Hublot. Evening: Dining and Nightlife Downtown You’ll find most of downtown’s deli-

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cious eateries on Baga Toiruu and Seoul streets. Options include Mongolian, Korean, Japanese, Turkish, Sri Lankan, Uzbek, Czech and American cuisine. The Bull Restaurant on Seoul Street is famous for its lively décor and Asian-style ‘hot pot’—trendy, make-your-own-soup fare complete with the freshest ingredients. Each table contains an individual hot plate for every diner to keep your preferred broth base at a boil. The fun starts in deciding what ingredients to add for your soup—choices include fresh beef, lamb and chicken, dumplings, mushrooms and vegetables of all kinds. Both locals and foreigners enjoy getting creative and crafting their own soups on the fly. If you’re in the mood for Mongo-

lian cuisine, try Modern Nomads on Baga Toiruu. Order a delicious Mongol-fusion dish from their select ‘Avatar’ menu. The best nightlife can be found at the Blue Sky Lounge, Ulaanbaatar’s premier nightclub, on the 23rd and 24th floors of the Blue Sky Hotel & Tower (south across the street from Chinggis Square). Here you can relax with great music and a full bar, while enjoying a panoramic view of the city from Ulaanbaatar’s tallest building.

DAY two

Morning: Introduction to Mongolian Buddhism Gandantegchinlen Monastery, located near downtown, is one of the most recogniz-

just in you may visit Zaisan hill Drive south to Zaisan Hill, where you’ll have your best view of the city as the sun sets. Stay a little longer until the stars come out and reflect on the sights and sounds of your wondrous visit to Ulaanbaatar. 26.5-meter-high statue of Mig jid Janraisig, also known as Avalokitesvara.

able landmarks in Ulaanbaatar. The first thing you see as you cross through the monastery gate is the Janraiseg Temple, housing the largest relic in Mongolian Buddhism—the beautiful, 26.5 meterhigh gilt statue of Migjid Janraiseg. The monastery compound also includes 6 temples, each with displays of ancient sutras and antique statues, and a Buddhist university. Afternoon: Shopping Downtown If you walk south down the street from Gandantegchinlen Monastery you arrive at Peace Avenue, aligned with dozens of shops, cafes and restaurants. Many large shopping malls, such as the Grand Plaza, Max Mall, the State Department Store, and the Ulaanbaatar Department Store, are conveniently located within walking distance along Peace Avenue. International luxury brands, locally produced quality goods (such as cashmere) and other souvenirs can be found in each mall. The State Department Store, however, is a one-of-a-kind destination to have your name written in calligraphic Mongolian script. Narantuul Market, or the old ‘Black Market,’ is a nearby outdoor bazaar and popular tourist destination. Here vendors sell everything under the sun—from

Chinese knockoffs of luxury brands to authentic Mongolian traditional costumes, leather jackets and hats, famous Mongolian leather riding boots and a variety of handcrafts and antiques, all for a reasonable price. Evening: Classic and Traditional Mongolian Performances Mongolia is well-known within Asia as a great contributor to classical art. Many Mongolian ballet dancers have toured the theatres of America, Germany, Korea and Japan. The wide achievements of Mongolian artists can be seen in the repertoire of the Mongolian State Opera and Ballet Theatre, which have many performances throughout the year. If you wish to get to know traditional Mongolian art, attend a concert by Tumen Ekh, Mongolia’s premier traditional performance group, at the National Recreation Center. Performances of ‘long songs’, throat singing, ‘horse head’ fiddles and contortionists will give you a great introduction to native Mongolian art, and all are expertly done. After the performance, drive south to Zaisan Hill, where you’ll have your best view of the city as the sun sets. Stay a little longer until the stars come out and reflect on the sights and sounds of your wondrous visit to Ulaanbaatar. SUMMER | 2016

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Artist J. Munkhtsetseg, Liberation. Oil on canvas, 2007

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That beautiful shape reflected in the mirror is an eternal mystery Every painter who illustrates the world of woman on his or her canvas applies a unique personality and technique to the task. Nevertheless, special mention must be made of several beloved Mongolian artists. G.Zanabazar cast the heavenly beauty of Mongolian women into the shape of supernatural beings. Oyunchimeg portrayed the legendary ballet dancer Oyun as a fair swan. L.Bavudorj embodies motherly feelings in every stroke of his brush. And J.Munkhtsetseg ‘cuts her hair’ whenever she creates a piece of art.

The names of many Egyptian Pharaohs do not mean anything to us, yet the names of Nefertiti or Cleopatra conjure up images of beauty and power. The Ancient Greeks conceived many of their gods as female, not only the Goddess of Love and Beauty (Aphrodite) and the Goddess of Wisdom (Athena), but also the Goddess of Strength, Speed, and Victory (Nike) and the Goddess of the Order of Things Established by Law, Custom, and Ethics (Themis). Moreover, many of the famous masterpieces of the Renaissance represent women like Leonardo da Vinci’s ‘Mona Lisa’, Raphael’s ‘Sistine Madonna’, and Botticelli’s ‘Birth of Venus’. In the second half of the 19th century and in the 20th century, the appearance of women in art began to change. Instead of pretty girls with beautiful dresses and fluttering hair, there were the ‘strong’ women painted by Gustav Klimt (uniting in themselves the extremes of good and bad), the ordinary women, fleshy and gentle, portrayed by Renoir, and Gauguin’s exotic, nearly otherworldly Tahitian beauties. For centuries, the elegant women in the colour woodcuts by Kitagawa Utamaro have fascinated view-

ers with the impression that looking into a mirror, they were reflecting their inner thoughts. In modern times, not only the fine arts, but also the television screen, magazine pages, and advertising spaces are dominated by pictures of women. Since paleolithic men began to shape their fertility goddesses, the artists of all times all the world over have painted women on rocks or on canvas and sculpted the female body in wood, clay, stone, bronze, gold, marble, or in statues and reliefs inlaid with jewels. Their most precious creations, however, were the imaginations of their minds. Most of the classical masterpieces of the world are portrayals of women. It is no exaggeration to say that it is the most beautiful women of all times who constitute the value of today’s museums. In Mongolian art, likewise, women have always been one of the most important and noble topics. In all epochs, artists have studied the qualities of Mongolian women, ever and anon rediscovering the feminine world, which seems to lie wide open at first sight but never gives up all its secrets. In their creative process,

Artist Ya. Oyunchimeg, Ballerina. Oil on canvas, 2000

Artist L. Bavuudorj, Mother. Oil on canvas, 1991 SUMMER | 2016

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Artist S. Zayasaikhan, Urban girls. Mixed media on canvas, 2010

Artist D. Narantsetseg, Princess Agai. Oil on canvas, 2006

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they have been suffering from inner grief or driven by a burning passion. J. Munkhtsetseg’s women always seem to shine from within. She is one of the most famous artists of modern Mongolia. The main topic of her work is woman, and a lot of herself is going into her art. The thin strokes in her painting ‘Girl’ from 1994 resemble the lines of an EEG, creating the impression that the subject’s mind is being recorded to reveal the fascinating multifaceted and mysterious inner life of a woman. Those lines undulate like waves, each one being different from all the others. Trying to decipher each brush stroke, the viewer gets the impression that the woman’s secrets are being gradually disclosed. Most of the people who stop in front of Munkhtsetseg’s work to listen to their own diverse feelings seem to be women. Her female figures always exist in two different worlds, divided by the parting of their married woman’s hairdress, and they are portrayed in a state of meditation. In ‘Concentration’, for example, the red-coloured figure of the painter is divided in two halves by a line. One side of her hair is orderly groomed in a married woman’s hairdress, but on the other side is fluttering open. Not only does Munkhtsetseg divide two worlds by a stroke of the brush, the division is apparent even by the different hairstyles alone. But if one wants to figure out the main cause of the distress the woman in the picture is experiencing, one is rebuffed by her hands crossed within the folds of her garment. Munkhtsetseg’s works contain many symbolic features, but what has attracted most attention is that her women are always cutting their hair. Hair is something growing out of the human body, like an ‘extension’ of one’s personality, and the respective woman in the picture who is cutting off part of her own body is the painter herself. What suffering and grief are those women hiding behind the ‘moisture’ in their eyes? The ‘moisture’ of their eyes is glistening like tears. Munkhtsetseg’s works show their creator’s body, life, mind, suffering, sadness, medita-

tions, and thoughts. And the intelligent, vigorous, and energetic figure of Mongolian woman is shining through. Munkhtsetseg’s technique of representing the other women by herself reveals them in an amazing way. It is quite common for modern Mongolian painters to portray queens and noblewomen. Those painted by Narantsetseg are beautiful, majestic, proud, wise, and brave. Mongolian women have been enjoying the same rights as men throughout their history. Moreover, numerous cases of queens taking over government business have been recorded in historical chronicles. When confronted with war and grave affairs of state, those women had to become majestic, wise, and brave. Since Narantsetseg's queens display a very high intelligence, the viewer’s mind cannot help feeling attracted to them. The woman portrayed in ‘Princess Agai’ looks preoccupied and slightly sad, the artist seems to have chosen the moment when Princess Agai was giving the finishing touch to her ‘Poem of Grief and Anger’. That noblewomen is considered to have been the first poetess of Mongolia. Her father, the Lian Wang Bazar Varmi, put his sonin-law to death, believing the poisonous lies fed to him by his enemies. Historical legend has it that Princess Agai, grieving for her husband, committed suicide right after finishing her ‘Poem of Grief and Anger’. Narantsetseg painted many portraits of Mongolian queens, like ‘Queen Khulan’, ‘Mandukhai’, and ‘Borte’. But there are also works like ‘Dragon-Eye’ and ‘Mental Paradise’, praising female beauty with chiaroscuro, chords of soft colours, and stunning bodies painted with amazing skill. Such works become themselves feminine and make the viewer fall in love with them. Zayaasaikhan (Zayaa), in her portraits of noblewomen, enriches the Mongolian painting style by combining it with modern Western and other Asian art styles. Those fascinating women inspire quite different feelings from those painted by Narantsetseg. Although decorative elements dominate in Zayaa’s work, she is very creative in her enrichment of the Mongolian painting style. It is captivating how she exploits the possibilities of Mongolian painting methods. The bodies of her noblewomen appear light and supple on a background of ancient wall. For the women’s clothes and the background she chooses colours rarely found in Mongolian painting. Her paintings ‘Girl with Dolls’ and ‘Melody’ are very impressive. In the former work, a

Artist Z. Uyanga, Buriad woman. Aquatint, 2003

young woman is portrayed like an inexperienced and somewhat naughty little girl. The seam of her garment appearing behind her sleeveless vest has a geometrical pattern that gives the work an intriguing and mysterious touch. That the girl, very young but with her hair groomed like a married woman’s, is unwilling to leave her childhood is evident from the tiny dolls looking out of her sleeve. One cannot help but wonder what might be in the other hand hiding behind her back. Maybe just another doll? The artistry and intelligence apparent in Zayaa’s works are quite poignant. When taking about women in Mongolian art, the graphic ‘Buryat Woman’ by Uyanga cannot be left out. It is a portrait of a woman in national dress. At each look, one gets the impression of reading a ‘book’ about the life of all the women in the world. It is fascinating how the portrait of a single person can express the many different qualities of women, their joyful thoughts, their innocent good intentions, their sense of humour, their passing sadnesses and griefs, their naughty and flirtatious moods, their beauty, endurance, and wisdom, in short – their whole mysterious and incomprehensible character. This painting lays bare the inner thoughts of a human being not by the visual and symbolic force of colour, but only by creating a human body and its surrounding space with lines and points.

Every painter who illustrates the world of woman on his or her canvas applies a unique personality and technique to the task. Nevertheless, special mention must be made of several beloved Mongolian artists. Zanabazar cast the heavenly beauty of Mongolian women into the shape of supernatural beings. Oyuunchimeg portrayed the legendary ballet dancer Oyuun as a fair swan. Bavuudorj embodies motherly feelings in every stroke of his brush. And Munkhtsetseg ‘cuts her hair’ whenever she creates a piece of art. The space of this article being limited, unfortunately I could neither tell you, dear reader, of Gerel’s ‘artistic’ women, nor Batjargal’s women absorbed in their own lives, nor Sarantsatsralt’s archaic women, nor the fascinating individual women by Nasantsengel, the master of the art of portrait. There is only one thing that has ever been able to subdue everything else under the sun, the wide earth and the flow of time, unfettered dreams and boundless wonder, the human mind, love, and honour. That is woman. Woman is the origin of the world. But the reason why this is so, why from the ‘dawn’ of art until the present day the shape of woman is the most beautiful and the most ‘forceful’ of all the objects of artistic expression remains a mystery and probably will remain so in the future. We can no more than guess about the world of woman. SUMMER | 2016

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Education Without Borders:

Changing Perspectives One of the near future’s most crucial technological achievements, made possible by the Web and by cheap, ubiquitous access to it via mobile devices, is to offer the same educational opportunities—the same informational start line, if you like—anywhere in the world, regardless of where the student resides. But athletes’ differing levels of training and experience (as well as native ability) determine how fast they can reach the finish line, and the same is true of students in higher education. Hence, Mr. L. Gantumur, Mongolia’s Minister of Education, Culture, and Science, thinks that student exchange is vital to training, analogous to performance practice in diverse venues for athletes. He also emphasized that today, the goal of a national economy founded in science, technology, and innovation is not only a positive aspiration—it is a vital requirement. That’s why the government of Mongolia has started to give full scholarships to students who would have been accepted by the world’s top 100 universities since 2012. For these students, majors in science, engineering, and technology are preferred. “The main advantage of educational exchange or study abroad is to change a student’s perspective and to provide new experiences. It is important that our students studying at top foreign universities get access to laboratories where they can do trials and to various type of innovation centers and other opportunities to do research. Many Mongolians now work in or near Silicon Valley at some of the world’s top technology companies and study at nearby top universities like Berkeley and Stanford. In my opinion, this is good experience and a chance to learn the best technology,” says Z.Enkhmunkh, director of “Sant” Secondary School in. Mr. Enkhmunkh speaks from first-hand knowledge. He graduated from MIT with a BS in Computer Science and from Stanford with an MA in Education. His desire to improve fundamental educational institutions and use technology to advance education led him to pursue the MA at Stanford. Every year, Mr. Enkhmunkh trains final-year students for university entrance exams. Now many of his students are studying at these and other world-class universities. That said, M.Battushig, currently a student at MIT and one of Mr. Enkhmunkh’s former students, signified that education, however excellent and vital, is only a tool. Minister Gantumur agrees with him, explaining: “Our responsibility is to provide Mongolian graduates with opportunity to work here using their higher education after they finish their studies at the world’s best universities. If there is no structure there to offer them salaried employment or the chance to establish start-ups or otherwise earn enough money, all their training is useless. So we have been working to address this issue recently.” And in fact, he Ministry 140 mongolica

started to establish science parks next to universities last May. These science parks will provide many opportunities to students and researchers: they will be able to test their ideas in lab spaces and using highspeed internet to exchange views and search databases with colleagues worldwide, create their own research and development teams, get information and advice from experienced professors, then establish their own start-up companies and join incubator at the science park. While priority is given to science and technology degree programs in educational exchange funding, the social science and cultural sectors are left behind. Some government scholarships are awarded regardless of major according to the bilateral agreements. For example, Ms. J. Khulan, a General Producer at Eagle TV—the most-watched TV network in Mongolia—is one of these scholarship recipients. While she was a lecturer in the Journalism Department of the Mongolian University of the Humanities, she received a Mongolian government scholarship to study in London. While she was a student there, internet access had started to spread widely and was getting more powerful. Journalism has been influenced enormously by the power of the internet. Accordingly, Ms. Khulan chose to study in the then new field of digital media and online journalism. Meanwhile, she passed on her knowledge internet journalism online to her students in Mongolia. After completing her course of study, she came back to the University of the Humanities and developed a digital media and online journalism program there. Minister Gantumur told this reporter: “This year, we concluded an agreement with the Japanese government to prepare 1,000 engineers. We also finalized agreements with Russian and Chinese Government to have 1,000 students study in each country. More students will have the opportunity to study abroad by virtue of our renewing agreements with Chevening UK Scholarships and Germany’s DAAD program. A new program, the 2+2 Program, is currently in preparation. 2+2 that allows Mongolian students to study for two years abroad and then for two years in their home country. In order to launch this program, we must equalize our domestic curriculum with foreign universities’ curricula. Within this framework, development reform has been underway for three years.” In last four years, 5,000 students from Mongolia have studied at some of the world’s top 500 universities. The Ministry of Education, Culture. and Science is trying to maintain this number going forward. Experts in Mongolia’s higher education sector believe that if we can keep up this number for the foreseeable future, we will have no problem providing Mongolia with the highly educated and trained professionals its economy and government need.

Dreaming the Steppe, Learning the People Johanna Voith National University of Mongolia Department of German language, Student

“Several years ago, I was so moved by watching The Story of the Weeping Camel by [the director] D. Byambasuren. I had almost never been outside of Germany, but the nomadic Mongolian lifestyle and totally different environment attracted me. Living as nomads, interacting sensibly with the earth, caring for livestock, and moving around with their small ger [yurt] over a huge grassland … all this sounded like a fairytale. After I finished my studies in linguistics, I got an opportunity to do an internship and at the same time study at the National University of Mongolia. As I said, my background is in linguistics, which is why the Mongolian language is also so interesting to me. The funny thing is that Mongolians say the German language sounds hard, but for me, the Mongolian language sounds pressed. Mongolian songs are very melodic and moving, truly amazing. When I first came to Ulaanbaatar, one of my friends doubted that I would like the city. Except for traffic jams, Ulaanbaatar is very calm and sequestered place. But it’s always filled with new events and interesting young people. Since I got here, I’ve just stayed in Ulaanbaatar making Mongolian friends. I’ve planned to go to my dream place, the countryside, this summer.”

Learning in Many Dimensions Yesukhei Chuluunbat Chevening UK Scholarhsip Middlesex University London, MBA

“The MBA degree is very popular among young Mongolians. MBA programs at universities in London can be better choices in terms of curriculum content, ranking, and framework of study. And curriculum ranking and location factors affected my choice of school, but I thought that quality delivery, faculty, database access, and other learning resources were most important. At Middlesex I have been learning a lot of things in theory. Now I need to use that knowledge in practice and convert it into real knowledge— have many good ideas and plans to implement once I come back to Mongolia. At a personal level, there have been many changes, too. It is an opportunity to experience different surroundings, different culture, and different lifestyles. London is a metropolis that has a long history and where a diverse range of people and cultures live together. So I want to emphasize that being here gives me opportunities to study, compare, get new ideas, understand myself and my country, and see things from different angles.”

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Signature People of Mongolia Y

ou may have noticed that most of the people you pass on the streets of Ulaanbaatar are young adults. This is no coincidence—it represents our demographic reality. Young adults (18-34) make up one third of more than half Mongolia’s population. For this reason, Mongolia today is sometimes known as the “youthful country.” Everybody in our fast-developing country, especially these young people, is eager to be the best they can be and prove themselves in their chosen fields of endeavor. The young are carrying out their plans to achieve their dreams, which as a whole may be the future of Mongolia. Their successes, as well as their failures and defeats, are inspiration and motivation for the next generation. Thus, a young person’s story does not end with them. It becomes a beacon of ambition for their peers and the industries they represent. This is the reason behind our selection of these members of the youngwe generation, who will represent Mongolia to the world.

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Healing by Art Munkhtsetseg Jalkhaajav, artist

It’s hard to miss artist J. Munkhtsetseg, also known as Mugi. Some would say she’s not very tall. And she’s not one to be associated with unusual clothing either. However, her long hair, pleasant demeanor and polite composure are familiar to many. Anybody who’s seen her work will recognize her with ease. Graduated from Mongolia’s College of Fine Arts and Bulgaria’s Academy for Theater and Film Arts, Mugi is an established artist who has showcased her works in galleries in Thailand, Hong Kong, San Francisco, Bonn and Venice. Her signature paintings of women with horn-like wife’s hair, loose flowing hair, or braided hair could very well be self-portraits. The shell-like brush strokes reminds of a quite yet stagnant movement of the floating sand dunes. Most of the women in Munkhtsetseg’s works are nude, but this is not to focus attention on the women’s femininity or the beauty of their bodies or sexual organs. You also won’t see sad or contemplative gazes in the eyes of her subjects, because it is impossible to show them apparently looking back at the viewer when they are busy looking into themselves. For this reason, the eyes of her warriors are filled with dots. Accordingly, it can be understood that the characters in Munkhtsetseg’s paintings are representations of our spiritual bodies, our feelings and intuitions, perhaps in another existence, rather than flesh and bone in the real world. Traditional, folk cures and treatments based on philosophy can be explained through their therapeutic properties. Munkhtsetseg’s artwork’s resuscitating properties seem to heal the artist during the painting process and soothe the mind and senses of the audience as finished pieces. Art historian and professor at the University of California Ts. Uranchimeg wrote: “The effort to find one’s self after living in a closed society led to a boom in shamanic religion and the birth of national heroes. For Munkhtsetseg, it led her to the discovery of herself, or more precisely, the female body. The chaos of the collapse of Soviet society coincided with her physical and psychological questions as a women and a mother. Her internal effort to overcome this battle through her work is, in one sense, an escape, but also a discovery”. SUMMER | 2016

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Rising Star of Opera

Ariunbaatar Ganbaatar, Mongolian State Honored Artist and guest singer at Mariinsky Theater in St. Petersburg

Nomadic Design, Minimal Rhythm Ariunaa Suri, Designer at ARIUNAA SURI

The Mongolian fashion world is young but full of trends to show the world, often borrowing designs from traditional nomadic garments and accessories and adding contemporary Western elements. From designers at national brands such as Torgo Salon and Goyo, to Tsolo Munkh, a designer working in Paris, and D. Ovdogmed, a designer living in Italy, Mongolian fashionistas are more and more integrating their nomadic Central Asian heritage with modern manufacturing technology and global style trends. Yet their designs are mainly made using Mongolian materials like wool, cashmere, and sheepskin, making them organic products. Designer Ariunaa Suri, who studied fashion design in Germany, also incorporates organic materials into her designs, which stand out for their integration of East and West. Ariunaa Suri was the first designer to show her fashions on a water-covered runway and the first Mongolian designer to be featured in Mercedes Benz Fashion Week Tokyo as well as the pages of Vogue magazine. Her fashion house, ARIUNAA SURI, is based in her home country, but has already focused on foreign markets with collections sold in Japan, France, Germany, Austria and Hungary and continues to introduce seasonal collections. Her simple yet mysterious designs are perhaps a result of her deriving inspiration from the environment and natural phenomena. In other words, organic and minimal designs are her signature. The 2016 Fall/Winter collection, which preserved nomadic clothing characteristics while featuring pictures of the Mazaalai bear endemic to the Gobi, seems to be a manifestation of her brand’s vision. 144 mongolica

The art of opera came to Mongolia a little over over 50 years ago, which may seem adolescent when compared to the history of world opera spanning more than five centuries. However, the range of talented singers and soloists prove Mongolian opera is far from insignificant. The Mongolian State Academic Theatre of Opera and Ballet has featured many performances, from acclaimed national operas “The Vulnerable Monk’s Tear” and “Three Dramatic Characters” to world-renowned classics such as “Madame Butterfly”, “The Magic Flute”, “Barber of Seville” and “La Bohème.” The Theatre of Opera and Ballet is also the creative cradle of singers such as Urtnasan Khorloo, a national artist who was invited to perform at the Bolshoi Theatre, the first opera house in Asia; P. Ganbat, who introduced Mongolia to the world of opera when he competed in the International Tchaikovsky Competition; and E. Amartuvshin, to whom Placido Domingo said: “You have the whole world ahead of you!” G. Ariunbaatar is another of the calling cards that Mongolia, a country with rich musical tradition, presents to the world. Ariunbaatar began life humbly as a herder boy born in the steppe who used to sing all the time, whether he was herding sheep or riding horseback. He followed his dreams of becoming a singer to Ulaanbaatar and enrolled in the Mongolian State University of Culture and Arts. His first recognition came while he was singing with the Mongolian Police “Suld” Ensemble while he was still a student. However, he validated his talent worldwide when he became the Grand Prix Winner at the 15th International Tchaikovsky Competition held in July of last year, the first Mongolian to achieve this honor in what is often called the Olympics of classical music. Ariunbaatar fulfilled another dream when he debuted at Carnegie Hall last November. Presently, he is working with widely acclaimed conductor Valery Gergiev and performing at some of the largest and most renowned opera houses and theaters around the world.

Images: courtesy of Ariunaa Suri, courtesy of Ariunbaatar Ganbaatar

Albatross: From Khovd to Boston

Altankhuyag Dugaraa, Mongolian State Honored Performer, Second Soloist at Boston Ballet and Head of Mongolian Ballet Development Foundation “Communicating the mental and psychological world through movement, dancers who can awaken every single cell in their body through just one movement express the empathy and forgiveness of the human soul through the inner strength and bursts of energy of dance,” said ballet dancer D. Altankhuyag. He was commenting on the ballet show featuring internationally acclaimed artists that is organized annually by the Mongolian Ballet Development Foundation. For Mongolians, who love and value art, his name evokes both pride and respect. Born in Khovd, the most multi-cultural province in Mongolia, Altan was recognized at a young age while dancing a Mongolian folk dance. His talent, passed on to him by his dancer father, opened many doors to him, from the Mongolian State Academic Theatre of Opera and Ballet to the Asami Maki and Komaki Theater of Japan and America’s Boston Ballet. D. Altankhuyag was also one of eight dancers chosen by French ballet choreographer Roland Petit to tour the world 10 years ago. Now serving as Cultural Ambassador for Mongolia, Altan, as he is known, has been focused most recently on developing ballet to a new level in

Mongolia by organizing “A Night of Ballet” international ballet festival annually, performing “The Nutcracker” during Christmas every year, and running his own ballet school. More generally, Ulaanbaatar is never short of exceptional performances for those who love classical music and dance. Aside from D. Altankhuyag, dancers such as D. Odsuren, winner of the 2012 German Theater Oskar for Outstanding Ballet Performance, B. Tsolmonbud, who has been working in dance theater in Korea, and of course the talented dancers of the Mongolian State Academic Theatre of Opera and Ballet all contribute to the directing and organizing of modern dance performance in Mongolia. And as to classical dance, the State Academic Theatre features world-famous works every weekend. As the State Academic Theater’s former director B. Sergelen explained to the New York Times: “ We like to keep to tradition. People ask me why I don’t focus on modern artforms. In my opinion, there are two types of theater in the world: One preserves while the other transforms. My objective is to preserve.” The State Theater holds true to this goal to this day. SUMMER | 2016

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Mongolian Model Oyunnomin Dagva, model

The history of fashion models in Mongolia begins with country’s period of transition to democracy. For most of them, the biggest and most important runway of their career is Goyol, a fashion show that has been organized annually for twenty years. One model who passed across this threshold and expanded the limits of Mongolian models is D. Oyunnomin, or Nora. Nora, who graduated from National University of Singapore, has been signed by the International Agency of Singapore, the Diva model agency, and Milan’s Flash model management for over ten years and has worked in Singapore, Hong Kong, Shanghai, Paris, and Milan advertising major brands such as Chanel, Gucci, Kenzo, Hermes and Maxmara. You may have seen her on the covers of Elle, Marie Claire, Dazed and Confused. With unique captivating features, hardworking and dedicated demea-

nor, and a temperament with just the right mix of arrogance and modesty, she is an outstanding role model for new young models who are starting their career in the fashion industry. So much so, in fact, that she has established her own modeling agency, Unique model management, in Mongolia and is training aspiring young models. Nora’s advice to her students is: “If you truly want to be a professional model, commit yourself to that career and avoid distractions. Develop your body properly. Learn a foreign language and travel to different places. The most important thing is being self-assertive and having a strong mind. At first when you enter the competitive world of modeling, you will be afraid and embarrassed, sitting in the corner or holding back, but we all overcome our fear, and by the second or third time, you will open yourself.”

The Sharp Mind

Enkhmunkh Erdenebatkhaan, World Champion, Mental athlete at Mongolian Intellectual Academy On a screen, 225 15x15 dice appear. On each die, single-digit numbers are randomly highlighted for one second. Five minutes after observing the 225 random digits, two competitors take the stage. In front of them is a wall made of cans. The cans located in the middle of the wall have the digits 1-9 written on them. Then, lights run through each die on the big screen. The light randomly stops at one die, and the competitors must remember which digit was shown on the die within three seconds. The competitor who selects the correct digit from the wall and places it on the podium on the other side wins. This is the final round of Super Brain, a Chinese television show with over 300 million viewers. It was just last April that the Mongolian mental athlete E. Enkhmunkh completed all the challenges with ease and became the Ultimate Winner. Previously, he was already World Champion in two other memory and mental championships. Enkhmunch, who is quickly winning the affection of the whole country, likes to joke: “I am banned from casinos” because he can memorize 52 cards in 22 seconds. His coach is Kh. Khatanbaatar, Director of the Mongolian Intellectual Academy. Kh. Khatanbaatar, who can read and comprehend 1,000 words in less than a minute, is also a champion at many international intellectual competitions. Neither he nor others are disappointed that he is now coaching the younger generation. Furthermore, the IQ Learning Center and IQ Olympiad, established by professor Ts. Demberel, have become an arena where Mongolian children compete using their brains. These gifted children are Mongolia’s future. 146 mongolica

Images: zazaa/irmuun photo (Enkhmunkh Erdenebatkhaan)

Symbol of Peace

Tuvshinbayar Naidan, Mongolian State Honored Athlete, 2008 Beijing Summer Olympics Gold medalist, 2012 London Summer Olympic Silver medalist On the day he brought the first Olympic gold medal to Mongolia in 2008, the whole country celebrated. Since the nation’s first participation in the 1964 Tokyo Olympics, Mongolian athletes have won a total of 15 silver and bronze medals. Ch. Damdinsharav, the Mongolian wrestler who brought home Mongolia’s very first Olympic medal when he won the Bronze in Men’s Freestyle Flyweight at the 1968 Summer Olympics held in Mexico City, remembers: “We were all just kids from the countryside then. Kids who had dreams of becoming a star, a State Honored athlete, one that would raise high the name of Mongolia. We only had multivitamins and dried glucose for supplements. To compensate, we used to eat fatty mutton.” In fact, it was the self-assertive, courageous quality of a Mongolian that won the Gold Medal. At the time, not a lot of people knew about Mongolia. So when Mongolians won four medals at the Olympics, people were taken by surprise. Image: ch. ganbat

Since 1945, there have two significant events that exposed Mongolia to the world. One was Mongolia becoming a UN member in 1961, and the other was Mongolian athletes winning four medals at the Olympics in 1968. But when Gold medalist Tuvshinbayar, who was vying for his second Gold Medal at the 2012 Summer Olympics in London, only won Silver because of knee injuries, the Guardian wrote: “Bound to a wheelchair due to his injuries, he may now be forced to retire”. However, that was not the case for Tuvshinbayar, respected by Mongolians with the nickname “Champion.” Having completely healed from his injuries two years ago, Tuvshinbayar resumed competing and was Champion at the 2016 Asian Championships held in Tashkent City in April, 2015. Now the Rio de Janiero Summer Olympics await. Here, the anticipation is not just for Tuvshinbayar. For Mongolians, who have taken pride in the technique and cunning of their wrestlers for centuries, it’s hope for all the country’s athletes. SUMMER | 2016

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A Man with a Camera

Byamba Sakhya, Cinematographer and Busan Film Festival Award winning Director Living in a tiny room near the capital city, a boy named Tsog makes a living by selling milk from his neighbor. The trials Tsog faces over a period of a few days, his dreams and passion, and his encounter with first love are shown in Remote Control, a film with a simple narrative but that is full of insightful context and symbolism. Byamba Sakhya directed the film, which won the New Currents Award at the 18th Busan International Film Festival. It’s not the first time this talented director has used his art to reflect the current social situation of Mongolia, its traditions, innovations, adaptations, and emulation through the character in an artistic manner. Since graduating as a cinematographer from the Russian Film Institute VGIK in Moscow, he has been involved in more than twenty films and documentaries as cinematographer, director, writer and executive producer. Some of his notable works, including State of Dogs, Poets of Mongolia, Alag Urs, Khadak, and Passion were nominated for awards at the Venice, Cannes, Amsterdam, Toronto, Neon, Yamagata, and San Francisco Film Festivals and have aired on France’s ARTE and Japan’s NHK channels. Among the films that S. Byamba has directed or participated in, two motion pictures feature characters during a shift in society, whose dreams and loneliness are clearly portrayed along with their hope that never dies. Emerging as a filmmaker in the wake of Soviet-era propaganda films into the scattered Mongolian film industry of the 1990s and the influx of comedy beginning in the 2000s, Byamba and his films will, without a doubt, set an example for a new generation of young cinematographers and directors who wish to create films of artistic value.

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A Dream Not So Far Away Ganmaa Davaasambuu, professor at Harvard University

Many policymakers believe that a knowledge-based economy driven by science and technology is the best gateway to development. Acting on that belief, the Mongolian Ministry of Education, Culture and Sciences launched an effort to fully support students wishing to study abroad in these fields and provide a technological incubator to use upon their return to Mongolia. The future they hope to build is not very far away, given the Mongolian researchers working at some of the best research centers around the world—including Harvard University, MIT, Johns Hopkins University, and McGill University. One of those researchers is D. Ganmaa. After graduating from the Mongolian National University of Medical Sciences, she worked as an army doctor before earning her PhD in Japan. Her research is featured in the article “Modern Milk” published in Harvard Magazine, which starts with her saying “The milk we drink today may not be Nature’s perfect food”. Her pilot study on the correlation between cow milk hormones and the health of consumers, and vitamin D, which she started while working on her PhD, has been ongoing for the 10 years since. America’s National Institutes of Health, one of the world’s leading medical research centers, is set to grant $3.2 million to Ganmaa’s project team. “We will study the influence of Vitamin D fortified milk on the growth of children,”she explains. During the first stage of D. Ganmaa’s project, her team will stabilize the vitamin D needs of ten thousand children. Although Mongolia is known as the land of blue skies, her research concluded that we don’t get enough vitamin D from the sun. She is working to validate her hypothesis that the eradication of vitamin D deficiency can lead to elimination of as many as 7 of the 10 fatal diseases in humans.

travel guide

Welcome to Mongol Village We Mongolians have many valuable things for us to proudly protect and pass on to our future generations—most of all, our culture, history, and customs. Esteemed guests, as it is not possible for you to become fully acquainted with these things during your short visit here, we have strived to prepare for you a highly condensed experience at the ASEM Village, the nomads’ lodge, Mongol Village.

ere you can view not only exhibits depicting Mongolian history, culture, and way of life, but also directly observe the craftsmen in the process of making some of the things exhibited. Additionally, you may choose to attend some of the many interesting events taking place, such as the traditional Mongolian Yazguur Arts and Mongol Horsemen performances. You may also purchase mementos of Mongolian culture and history, have your picture taken in Mongolian traditional clothing, and receive postal services. Something else that may pique your interest is the traditional five hooved animals—cow, sheep, camel, goat, and horse— that have been for many centuries the mainstay of the Mongolian nomadic way of life, grazing just as they would in the wide-open grasslands where they were born. Esteemed guests and delegates, welcome to Mongol Village.

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Mongolian Statehood Symbols

Mongolia has a wide variety of governmental symbols, all chosen with the highest respect. The 10-walled Mongol Ger here at Mongol Village houses governmental stamps, flags, and other symbolic objects of many generations along with letters sent to the heads of foreign nations, and many more interesting exhibits.

Mongolian Calligraphy

The Mongolian people have not only used and created many forms of writing and script, but also have a tradition of writing them artistically as calligraphy. The Mongolian Language and Script Ger here at “Mongol Village” exhibits the traditional Mongol script and art of making books, and a skilled calligrapher is available to write whatever our esteemed guests may desire in the Mongolian script.

National Costumes

The Mongolian people’s robes and other garments are

one of the most basic heritage that define the distinctiveness of nomads. This clothing manifests the wearer’s enterprise and way of life. You can not only view the clothing that expresses the unique values of the many ethnicities found within Mongolia, but you may also have your pictures taken wearing them.

Traditional Religions

Mongolians, through their nomadic way of life, came to worship the eternal blue sky, and Mongol shamanism reveres nature and the forces at play in it. However, in the “IhZasag” of the Great Mongol Nation in the 13th century, it was decreed that anyone might practice their religion of choice equally. In this way, Altanhan of the Tumeds named the Tibetan Buddhist leader Sodnomjamts as Dalai Lama in the 16th century, and hence Buddhism spread spread rapidly across Mongolia. Many cultural objects and exhibits of the Buddhist religion practiced by the majority of Mongolians today have been put on display in the Buddhism Ger, where you may learn about its traditions and customs.

Performing Arts

Mongolians are a people with a great wealth of songs, music, dance and tales. Accordingly, the Mongolian long song, Bii Biyelgee, Hoomii, and closed flute breathing have all been recorded in the UNESCO intangible cultural heritage list. We invite you to pay a visit to the Traditional Performing Art Ger and interest yourselves with these unique works, we have no doubt they will produce a unique feeling.

National Games & Pastimes

The Mongolian traditional puzzle toy is a valuable and unique cultural heritage . Its pedagogical benefits and

ability to develop the mind have become more sophisticated with each generation. The Mongolian puzzle toy, generally handcrafted from wood, is an intellectual creation whose design is especially well suited to nomadic life and yet is capable of attracting the interest of all kinds of people. These puzzle toys are designed to develop a person’s hidden talents as well as enhancing their overall thinking ability.

Traditional Craftsmanship

Mongolians craft many things, from domestic articles to souvenirs made of leather. We also invite you to to observe the craftsmen and smiths of bone, horn, wood carving, and precious metals.

Felt & Wool Crafts

Mongolians handcraft many household items out of the wool they collect from their five hooved animals. They have many unique craft traditions, such as beating wool and the process of making felt. Besides lining their Gers with felt, they also quilt many kinds of ornamental patterns and designs onto it. If you are interested in felt, this unique product of Mongolian craftsmanship, and the quilting of it, or if you would like to purchase these products, we urge you to pay a visit to the Hand Craftsmen Ger.

Nature and Minerals

Map of mongol village

Finally, we invite you to explore the unique mineral riches and the wealth of animal and plant life that can be found in Mongolia at this Ger-Museum. SUMMER | 2016

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The Must-See Place in Ulaanbaatar: Gobi’s Oasis Every country has its own national product that incorporates its unique traditional features. For instance, tourists in Scotland visit their famous whiskey distilleries or go on a whiskey trail in order to get the ultimate Scottish experience. As such, for people traveling to the heartland of nomadic culture, one of the must-sees is a visit to the cashmere factories and stores in Mongolia. D. Naranbaatar, COO of the largest cashmere factory, Joint Stock Company Gobi, once said: “Just like the saying that if you have not seen Rome then you have not seen yet Italy, it would be unfortunate if you returned home without experiencing and getting to know Mongolian cashmere.”

Gobi’s main focus in recent years has been to manufacture high quality 100% pure cashmere coats. By 2021, Gobi aspires to become one of the largest manufacturers of pure, high-quality cashmere coats in the world. For a nation with such a small population, to compete in the world in any business is a difficult threshold to cross. Nevertheless, given Gobi’s continuing success and the company’s current technological advancement, the goal does not seem so farfetched.

Gobi’s slogan “From GOAT to COAT” represents the company’s aspiration to deliver a genuinely organic coat made straight from nomadic raw materials that are processed and developed in a pure, ecofriendly fashion. Depending on the geographical composition, Mongolian goat herds usually yield four different colors of fiber, thus gaining an advantage over the other cashmere producing regions of the world. With this underlying advantage, the colors of Gobi’s products come from these four organic fibers or from combinations thereof. Moreover, no chemical components are involved in manufacturing the organic line, and Gobi proudly delivers 100% organic products. Gobi introduced a reversible or double faced design in one of its latest coat lines, and this has been quite successful in the Mongolian and international market. While visiting Gobi Oasis, you have a chance to see one of the fifth largest vertically integrated cashmere factory in world - a chance that that not many have experienced.

If you would like to purchase a high - quality cashmere product at the factory price available only here in Ulaanbaatar, you must visit the Gobi Factory Store. While you enjoy the Store, open from 9 am to 10 pm, located in the southwestern part of Ulaanbaatar, you can attend a fashion show, visit the Chinggis Khaan wax museum, enjoy delicious Mongolian, Japanese or Western cuisine at one of the nearby restaurants while listening to a folk art performance, and or go to souvenir shops—all this in one area will save you time and help you get the ultimate Mongolian experience. Visiting Gobi Oasis is not just casual or ordinary shopping but a special experience for anyone visiting Mongolia. Gobi warmly welcomes you to its fashion show, factory tour every day. Moreover, they are cordially inviting you to the nomadic live music and dance show every day in July - August. 152 mongolica

www.gobi.mn

Touch of Home Relax and Reconnect at Khaan Jims With its scenic mountains, glacial lakes, and lush river valley, Terelj National Park is one of the must-go places for every visitor to Mongolia. People go there for various reasons – to enjoy the calm and beauty of nature with their families on weekends, in response to the call of adventure, or for conference and training events. And whatever your reason for coming to Terelj, the best resort in the area— Khaan Jims—is there to meet and surpass all your expectations whenever you visit, winter or summer. When you arrive, you will be welcomed with warm smiles and the taste of sea buckthorn and blackcurrant grown by the resort staff themselves and brewed into a delicious and healthful tea. Khaan Jims also uses campgrown fresh vegetables in the kitchen. You will never run out of activities to enjoy at Khaan Jims. For exploring the park, the camp offers ATV tours, horseback riding, hiking, autogyro flights, geo-caching, and night-time stargazing under the clear summer

skies. Khaan Jims also boasts a skeet-shooting range and several sports fields, playgrounds, and pools for children at the camp. You can even visit nomadic families in the area and see their traditional lifestyle. But during your stay, you’ll still be able to take care of your business with wi-fi access. The camp’s facilities include the spacious Khaan Ger for conferences, weddings and other ceremonies for up to 80 people, as well as a conference hall for smaller, more formal events. Among the camp’s accommodations, you can choose from comfortable rooms in rustic wooden buildings or gers, which are also capable of hosting 80 people if you’re bringing a group. And there are yurts by the river where you can stay for a lower price but not with less enjoyment. As the camp manager says: “The most rewarding part of our work is when people return with their loved ones after visiting our camp.” Khaan Jims warmly invites you to sample their hospitality.

Erdene Sum, Tuv Aimag, Mongolia (55km from Ulaanbaatar, 2km from Chinggis Khaan Statue) (+976) [11] 353700 /khaanjims.mn www.khaanjims.mn

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Beautifying the world with Mongolian cashmere “When my father took me to work with him for the first time, I found the scent of wool and cashmere strange. Now, after working here for 26 years, it seems like fresh air to me. Each and every piece of equipment in our factory holds a special memory for me, just as a person would,” begins B. Bat-Erdene, a mechanical engineer at the Goyo company, which has a vertically integrated factory to produce cashmere and wool garments sold throughout the world. The privatization of a socialist-period felt factory in 1993 led to the establishment of Mongol Amical, the first private company processing cashmere and wool in the country. After being demobilized from the military in 1990, Bat-Erdene began his career at the felt factory where his parents had been working together for 35 years. He was involved in every milestone of the spinning factory establishment and expansion, such as installing the wool spinning line together with British specialists Bob Shackleton and Peter Ashley in 1996. Later when the factory was repurposed by Goyo in 2005, Bat-Erdene worked side by side with Italian expert D. Raffaello to commission cashmere spinning line. “Raw cashmere directly sourced from the herders is processed through 10 different technological stages to become yarn. Our company’s mission 'To beautify the world with Mongolian cashmere' 154 mongolica

starts from yarn quality, I think. I am proud of our yarn that we produce using the best available equipment in the industry made in England, Italy, and Japan," says BatErdene with a smile while watching the cashmere fibers passing through the carding machine. “Fine roller teeth and thin sliver spots result in higher-quality yarns. And the best way to enhance carded web is through good blending," he explains, before detailing the importance of the current project that Goyo is implementing to derive cashmere directly from herders so that it is sorted and classified at combing. As part of a project of the NGO “Agronomes et Veterinaires Sans Frontieres”, the cashmere from the goats belonging to families that are members of cooperatives from Bayankhongor aimag, are classified into males, females, and kids (less than two years old) and the fibers from each group are combed and processed separately. This favours uniformity in the length and thinness of the fibers, a characteristic of a good blend, which in turn leads to excellence in yarn quality. At the same time, the project focuses on a number of broader noncommercial goals including connecting better priced cashmere sales to sustainable pastureland use, by encouraging herders to collectively manage their pastureland. Keeping the goat population at

1996. with Mr Bob Shackelton & Mr Peter Ashley.

2006. with Mr Raffaello.D.

a sustainable level and improving breeds, while increasing herder income are all part of the social responsibility mission of Goyo company. Engineer Bat-Erdene concludes: “I’m always proud of the entire Goyo team bringing Mongolian cashmere from herders’ homes onto the world stage of fashion, especially that of Italy, France and Japan.”

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travel guide

A Taste of French Cuisine

Less than ten minutes’ walk north of Government House, there’s a beautiful little piece of France. Le Bistrot Francais, the oldest and best French restaurant in Ulaanbaatar, awaits you. You will be warmly welcomed by English- and French-speaking staff to a sophisticated yet homey atmosphere, where top-notch Mongolian professionals, businesspeople, and politicians like to come for meetings. Plus, Le Bistrot’s ground-level terrace is perfect for relaxing with a drink— for example, a glass of St. Emillion 2000 Bordeaux— on summer evenings. “Good communication is everything. Our staff are like family to each other, and I believe this warmth shows in the overall atmosphere of our restaurant, not just in how we care for our customers,” says Duka, Le Bistrot’s manager. Perhaps a recent guestbook entry says it best: “Dishes were more ‘French’ than I was expecting—so French that they made me feel like I’m home again.” After getting a taste of Le Bistrot Francais’ chateaubriand steak with any of the sauces on their menu, or their famous onion soup, I’m sure no one could walk past Le Bistrot without making a return visit.

- facebook.com/bistrotfrancaisUB - bourelguy@gmail.com - (+976) [11] 32 0022

www.bayangolhotel.mn

Experience Plus Innovative Service

The influx of famous-brand shops and large-chain hotels and restaurants in the last 25 years has altered the Mongolian image of the city. So we’re highlighting hotels and services that invoke genuine Mongolian and Ulaanbaatar ways. To get a real sense of Ulaanbaatar’s development, we suggest a stay at the Bayangol Hotel. Though one of the oldest hotels in the city, with a 50-year history, the modernized Bayangol offers innovations like classic Mongolian-inspired decor, free wi-fi, newly equipped conference rooms, five restaurants, and the city’s largest parking area. It’s centrally located, which makes it easy for guests to visit the Government building, museums, and Sukhbaatar Square. You can read more about the Bayangol at booking.com, which has information on more than 85,000 hotels around the world. Last year, the Bayangol won a rating of 8.1 out of 10 from guests and received the “Booking Award.” Notable guests include Richard Gere, Daniel Craig, and Jackie Chan, the Crown Prince and Princess of Austria, and the famous Russian dance team Todes.

Celebrities who have graced Bayangol Hotel

A cashmere product is the perfect memento to take home from Mongolia, because wherever you are, its smooth and warm feel will keep reminding you of the hospitable, kind, warmhearted nature of our people and the sunny weather of our country. Evseg proudly presents the finest Mongolian cashmere to the world’s luxury cashmere market, meeting the high standards of clients from the United Kingdom, Switzerland, Italy, the USA, Japan and many other countries in every aspect—design, quality, sustainability, and ethics of manufacturing. Founded in 1982 as Eermel, the company changed its name to Evseg in 1994.

What you wear can mean a lot:

Evseg’s ethics The word Evseg means “harmonious and affectionate” in a general sense, and when referring to clothing it connotes “gracefully comfortable.” As the name suggests, Evseg is a humanistic enterprise, one that applies ethics and affection to every stage and every aspect of its work while competing successfully on the market. Evseg’s creation of luxury products begins by buying cashmere directly from herdsmen, who keep alive traditions of husbandry thousands of years old that are in harmony with nature. In the manufacturing stage, the company chooses to expand by providing more job opportunities rather than by buying machinery, thereby incorporating handmade value in every product. Besides being hand-made, Evseg products are as organic and natural as they can be. Additionally, the company’s workers are also shareholders, owning 49 percent of it. Finally, wearing a piece from Evseg means you are supporting local herders and a fairer distribution of income as well as sharing love for nature—and that is true luxury.

www.evsegcashmere.mn

Welcome to the Kempinski Hotel Khan Palace Kempinski Hotel Khan Palace is the first international five-star hotel and the luxury chain hotel which reflect the finest tradition of European heritage in Mongolia. We provide the highest quality service standards of European hospitality enhances our expertise in creating remarkable experiences. A true ambassador of Hospitality is the Lady in Red who welcomes our guests alike and accompanies you throughout your stay. Enjoy DISCOVERY, a hotel loyalty program which makes your travels unforgettable with Kempinski Hotel Khan Palace.

www.kempinski.com/ulaanbaatar

Thank you

for always flying with MIAT Mongolian Airlines www.miat.com