Mongolia's strong relationship with Japan received a new boost this month when Japan announced a new USD 1.5 million project to aid urban migrants in Bayanhogar, Choyr, and Erdenat. Mongolia's population has been urbanizing rapidly. Many of these new urbanites live in temporary settlements and need employment and business opportunities. Japan's new grant provides funds, technical support and guidance for the development of 165 business opportunites. Its goal is to aid up to 23, 749 households.
Japan's presence in Central Asia has grown since 1992. At the breakup of the Soviet Union, Japanese diplomacy within the Organization for Economic Cooperation and Development (OECD) allowed the Central Asian Republics to become eligible for OECD aid initiatives, over U.S. and French objections. Japan also sponsored the Central Asian republics into the Asian Development Bank (ADB), making Central Asian states the first to belong to more than one regional development bank (the European Bank of Reconstruction & Development (EBRD) as well as the ADB). Japan has pursued regular opportunities with Central Asia in direct investment and aid initiatives. In its partnership with Mongolia, however, Japan can also address many diplomatic initiatives in East Asian affairs as well.