Most impressive, and a direct result of the sound reform program of the Democratic Union Coalition, has been the growth of the private sector. The nature of the private sector is also changing. New firms are emerging. For example, in 1998, textile and garment exports were larger than mineral exports for the first time in Mongolian history. Due to the relative stability of Mongolia, some American firms have established operations here, using Mongolia as a base for operations in Siberia.
Poverty is still an important issue.
However, there is general agreement that poverty rates appear to have stabilized, with about one-third of the population being defined as poor in statistical terms. Poverty has declined in Ulaanbaatar and in some rural areas as well. Furthermore, official statistics do not capture the impact of the vibrant informal private sector on poverty. Other key social indicators, including maternal and infant mortality, school enrollment rates and literacy rates have improved over the last four years. Significant progress was also made in rationalizing the power sector, with important legislation presented to the Parliament at the end of 1999.