TOPICS

Four students of my undergraduate Advanced Seminar (30 students in total) participated in fieldwork in Ulaanbaatar, Mongolia, between September 1 and 5. In the Zemi Research Convention, they gave a presentation titled “Small-state hedging and economic constraints: The case of Mongolia’s “Third Neighbor Policy”. 

My students conducted interviews with government officials and visited the following venues, among others.  

Central Bank of Mongolia

Investment and Trade Agency of Mongolia

Genghis Khan National Museum 

Sükhbaatar Square

At the Central Bank of Mongolia

At the Central Bank of Mongolia - Can you tell three famous historical figures in the painting behind us? 

In the interview with central bankers, my students asked several questions, including those related to the bank’s priorities in its monetary policy and its contribution to promoting Mongolia’s economic diversification. In the interview with the officials of the Investment and Trade Agency, my students asked several questions, including those related to investment diversification and the “third neighbor” policy aimed at reducing Mongolia’s economic and energy dependence on China and Russia. 

At the Investment and Trade Agency of Mongolia

In addition to conducting interviews with government officials, we visited the Genghis Khan National Museum, which is an excellent venue for understanding the history of the Mongol Empire and its aftermath. We also visited other landmarks in Ulaanbaatar, including Sükhbaatar Square -its main central square.  

At the Genghis Khan National Museum 

At the Sükhbaatar Square, when the Governor-General of Australia was visiting Mongolia

Through this fieldwork, my students learned how the Mongolian government had implemented its foreign economic policy to address its external challenges. Building upon this valuable experience, they are ready to enhance the quality of their individual and group research! 

“During the research trip, I learned how to organize and conduct interviews in a professional setting. From preparing focused questions to listening carefully and adjusting the flow of conversation on the spot. Working as a team also taught me how to divide responsibilities, support each other, and synthesize our findings afterward. At the same time, hearing directly from officials gave me a much clearer and more practical picture of Mongolia’s economic challenges, especially how dependence on resources and external partners shapes decision-making. This combination of hands-on skills and real-world insights made the learning experience much more concrete than just studying theory in class.”

“This research has enabled me to deeply understand the geo-economic logic of Mongolia's efforts to develop in a constrained environment. Through this research, I have realized that the study of international relations must be combined with economic policies and institutional realities. I plan to further expand this interdisciplinary perspective in my future studies. I will use Mongolia's "third neighbor" strategy and debt management practices as examples to deeply study the autonomy strategies and risks of small countries in the competition among major powers, while also continuously monitoring the cooperation dynamics and financing model evolution of countries along China’s "Belt and Road" route.”

“Through this activity, I have learned that Mongolia, strategically located between China and Russia, remains highly dependent on the mining sector, yet the government is actively pursuing economic diversification and digital transformation. The government provides strong institutional support for investors through tax incentives, stability certificates, and special policies in free zones, alongside ongoing infrastructure development in railways, highways, and airports. In addition, initiatives such as the E-Mongolia platform highlight its digital governance agenda. Overall, Mongolia demonstrates significant investment potential in mining, renewable energy, agriculture, logistics, and tourism, making it an increasingly attractive destination for foreign investors.”

“During my field research trip to Ulaanbaatar and my interviews with the Central Bank of Mongolia and the Investment and Trade Agency, I not only gained substantial knowledge about Mongolia's current economic strategy but also accumulated practical research experience. I also learned that large projects require meticulous coordination among various institutions (Investment Bureau ↔ Finance Department ↔ Mongolian Bank) to manage finances and risk exposure. At the same time, the actual obstacles faced by third-country foreign direct investment - legal uncertainty, transportation/logistics restrictions, and infrastructure gaps - remain important constraints, and areas that need to be improved through relatively rapid policy adjustments (clear regulations, improved customs procedures, and the formulation of targeted incentives).”