Mongolia has successfully managed a double transition - from an authoritarian state to a democracy, as well as from a centralized to a market economy. The political reform and democratization in Mongolia have been remarkably swift, smooth and thorough. After almost seventy years of socialist rule in virtual isolation from the outside world (except for the COMECON countries), Mongolia stands out as one of the front-runners in political and institutional reform. An open and democratic society has been established and is being consolidated at all levels.

There have been positive developments in the level of governance in Mongolia. The overall drive towards democracy and a market economy is undoubtedly a national commitment and an irreversible process. Some results have been achieved in strengthening the institutions and mechanisms of government over the past few years, and in putting into place mechanisms for redressing mismanagement and inefficiency.