Mongolia is a vast, landlocked and sparsely populated country. Half its population lives in rural areas. Agricultural production, dominated by nomadic herding, accounts for about 20% of gross domestic product. The country is moving from a centrally-planned to a market-based economy; a transition accompanied by a significant rural-urban migration.
The EU-Mongolia Strategy Paper for 2007-13 outlines the EU’s priorities for Mongolia: improving living conditions in the countryside and slowing down the rural exodus.
An initial €14 million multi-annual indicative programme (2007-10) allocates 80% of the budget to sustainable rural development with the remainder for education and private sector development.