The Consequences of USAID Funding Suspension on Mongolia’s Civil Society
The early 2025 freeze on funding from the U.S. Agency for International Development (USAID), instigated by the newly inaugurated Donald Trump administration, has cast a long shadow over Mongolia’s civil society landscape and geopolitical stability. This abrupt cessation of aid funding jeopardizes essential services and advocacy support critical to various human rights and democratic initiatives that have marked Mongolia’s journey since its transition to democracy in 1990. With a chilling effect on progress in addressing sensitive social issues, the funding freeze presents dire implications for both citizens and the global diplomatic dynamics surrounding the nation.
Human Rights Initiatives in Jeopardy
Local organizations, such as the Youth Policy Watch Group, have played pivotal roles in pushing for social change in Mongolia. This NGO, dedicated to human rights, gender equality, and governance, has been at the forefront of promoting peaceful coexistence among the country’s diverse religious groups. Their project to map the landscape of religious civil society aimed to dismantle barriers and bridge gaps in understanding. Launched with USAID support, this initiative was nearing completion when funding abruptly ceased. “Jumping into this topic in itself was a big risk for us, as nobody talks about this issue in Mongolia,” lamented Mandkhaikhatan Tsevegmid, the organization’s director. The loss of funding not only halts crucial projects but threatens the very discourse surrounding religious freedom in Mongolia.
The USAID funding freeze has similarly crippled efforts to combat human trafficking. According to the U.S. Department of State, Mongolia was listed under Tier 2 in its 2024 Trafficking in Persons report, confirming that while some efforts have been made, the country still fails to meet necessary standards. The Gender Equality Center (GEC), an essential advocate against human trafficking, faces immediate operational threats due to the funding freeze, prompting its director, Bayasaa Geleg, to issue a dire warning: “Without this funding, we can’t operate. Victims are left without support, and perpetrators walk free.” This situation underscores a concerning gap between policy formulations at the government level and the urgent needs of society’s most vulnerable members.
Pressing Issues of Freedom of Expression
The landscape of freedom of expression in Mongolia is also under threat due to the funding freeze. Recent legislative efforts to impose restrictions on public criticism of government officials highlight the growing challenges facing civil society actors and democratic freedoms. Although the Mongolian President vetoed one such bill, the alarm bells regarding the erosion of civil liberties continue to ring. In response to these developments, initiatives like the Media and Civil Society Strengthening (MACSS) program, which aimed to bolster local media and advocacy groups, now find themselves in limbo. The Chair of the Leaders Advancing Democracy (LEAD) Alumni Association, Dolgorsuren Munkhbaatar, expressed her frustration: “If there are issues with certain programs, why not address them directly instead of freezing everything?” Without sustained support, the ability of civil society to hold leaders accountable is severely compromised.
The Shift in Geopolitical Dynamics
The implications of USAID’s funding freeze extend beyond immediate humanitarian and advocacy concerns, intertwining with the larger geopolitical landscape. The U.S. has historically supported democratic development and human rights in Mongolia, reflecting a strategic partnership that helps the nation navigate its relations with neighboring powers, China and Russia. These dynamics include Mongolia’s “third neighbor” policy, which seeks to foster partnerships with democratic nations to balance influence from less democratic regimes.
With over $200 million in USAID assistance provided to Mongolia since 1991, the loss of U.S. support may not just signify a funding void but could also indicate a retreat from U.S. commitments to global democratic values. As nations like China step in to fill the vacuum left by U.S. withdrawal, serious concerns arise about the nature and conditions of such support. China’s massive Belt and Road Initiative exemplifies a focus on economic development that often sidelines democratic accountability, posing a potential shift away from the kind of governance that Mongolia has sought to enact since 1990.
Mongolia’s Path Forward
In light of these challenges, Mongolia must adopt proactive measures to mitigate the fallout from the USAID funding freeze. Prioritizing localization and diversifying funding sources will be essential in retaining a robust civil society. Engaging with alternative donors such as the European Union, South Korea, and Japan can provide critical support as local organizations face funding crises. Moreover, fostering a culture of philanthropy within the Mongolian private sector and implementing progressive tax incentives for donations will be necessary for ensuring ongoing engagement and accountability.
This crisis could serve as a catalyst for deeper social and political engagement in Mongolia, challenging its people to address uncomfortable but vital issues. The future of the nation’s democracy relies on a willingness to foster discussions around marginalized topics. If these critical issues fall into silence, the democratic identity that Mongolia has cultivated will certainly face profound challenges.
As the narrative unfolds around Mongolia’s civil society and geopolitical standing, the world watches closely. The choices made today by both Mongolian leaders and the global community will undoubtedly shape the fate of democracy and human rights in a country that has so bravely forged its own path since the end of communism.