ABSTRACT
Mongolian political and economic strategists see their nation, region, and continent as at a critical juncture which stimulates openness to institution-building to reduce tensions and the rise of regional networks to overcome energy and transportation challenges. From the 'critical juncture' theory perspective, the major factors of changing geostrategic context, political leadership, and crises, real or perceived are all present and certainly Mongolia and its political leadership are reacting to these circumstances. Mongolia for centuries was a weak pawn whose fate was determined by the nature of the Sino-Russian relationship. Its decision in the beginning of the 20th century to align with Russia preserved its national sovereignty. During the last 25 years of democracy and building of a free market economy, Mongolian policymakers domestically have faced the dilemma of development and poverty alleviation within the overall rubric of managing delicate foreign relations.
