Background of the project
In the last decade Mongolia has undergone an economic and political transition, as well as a demographic transformation. A confluence of market reforms, harsh climatic events and greater urban opportunities attracted growing numbers of nomadic herding families to urban areas. 30% of Mongolia’s 2,3 million people already live in Ulaanbaatar, the capital city. Tens of thousands more move to Ulaanbaatar every year, straining social and environmental services, and placing unprecedented stresses on the already fragile environment and economy.
As long as urban areas offer individuals opportunities that they may not have in rural areas, Mongolia will continue to face the challenges of a fast paced urbanization process. The Government recognizes that while fostering economic growth, urban environments also needs to be protected.
The fast paced urbanization leads to a steady increase of number of businesses which again causes a massive environmental burden. Yet these businesses need support, so self developing industries are being established in Mongolia and poverty will be reduced steadily.