Government

Mongolia existed for decades as a buffer state between the Soviet Union and China, but amid the collapse of Communism and the Soviet Union's disintegration in 1991, Mongolia too underwent rapid change. In 1990, after months of pro-democracy demonstrations, a new Communist party constitution set the goal of building 'democratic humane socialism' based on a multi-party democracy. Elections in July 1990 brought a coalition government, and the move towards privatisation of the economy.
In January 1992, a new constitution was adopted that renounced socialism, changed the country's name to the State of Mongolia, and made Mongolia a republic with parliamentary government and a directly elected president. Mongolia has remained neutral in international affairs. In 1996, the Democratic Union Coalition came to power. The Government's Programme of Action was approved by the State Great Khural in November 1996. The programme emphasised the need for consolidation of democratic gains and rapid short and medium-term economic measures to address economical revival. The central government is headed by the President and supported by the Prime Minister and 11 other ministries.
The Head of State is the President, who is elected for four years. President Natsagyn Bagabandi was elected in 1997.
The government is headed by the Prime Minister who is appointed by the State Great Khural for four years. Prime Minister Tsakhia Elbegdorj was appointed in August 2004.

Administrative structure

Power is shared between the President, the Parliament (State Great Khural), the Prime Minister's cabinet and the Supreme Court. The President and Parliamentary Members are elected directly by the people at two different elections. The Prime Minister is nominated from the party with the largest number of seats in Parliament.
Only the Parliament has legislative power. It determines the basis of domestic and foreign policy, approves and makes changes in laws, determines and announces presidential and parliamentary elections, elects members of the judiciary and the Supreme Court, appoints and dismisses government members, defines the state financial credit , monetary and tax policies and sets base guidelines for the socioeconomic development of the country. It approves and dissolves the territorial and administrative units and regulates the system and the organisational structure of these units. It has spring and autumn sessions and consists of 76 full time members elected for four years.
The territories of Mongolia are administratively divided into 24 regions - 21 provinces and 3 cities. Each province is generally divided into Soums that are further divided into smaller units called bags. The capital city has districts and sub districts.