🇲🇳 Mongolia

Mongolia is the world's most sparsely populated country — 3.4 million people in 1.56 million square kilometers, giving it a density of just 2.2 people per square kilometer. GDP is about $17 billion. The country is sandwiched between Russia and China, and mining (copper, gold, coal) has transformed the economy. The Oyu Tolgoi copper-gold mine, operated by Rio Tinto, is one of the largest in the world and could eventually account for 30% of GDP. About 30% of Mongolians are still nomadic or semi-nomadic herders. Ulaanbaatar is the world's coldest capital city, with winter temperatures dropping to -40°C. Genghis Khan, who built the largest contiguous land empire in history, is the national hero.

Mining accounts for about 25% of GDP and 90% of exports. Coal, copper, and gold are the main minerals, with China buying about 90% of exports. The cashmere industry is significant — Mongolia has the world's second-largest cashmere goat herd. The economy is extremely volatile, swinging with commodity prices. The tugrik has been weak, and inflation has been a persistent issue. The country has been trying to develop a "third neighbor" policy to reduce dependence on Russia and China.

Mongolia has more horses than people — about 4 million horses to 3.4 million humans. The annual Naadam Festival features the "Three Manly Sports": wrestling, horse racing (with child jockeys as young as 5), and archery. Ulaanbaatar's air pollution in winter is among the worst in the world — residents in ger (yurt) districts burn coal for heating, creating a toxic smog.

Mongolia's mining wealth is a double-edged sword — Oyu Tolgoi could make the country rich, but the China dependency and commodity volatility create enormous risk. The "third neighbor" strategy is smart but hard to execute from between two giants.