The transport system and general infrastructure in Ulaanbaatar are heavily outdated and in quite bad shape.

Nothing has been changed so far since the Russians left in 1991. The aging minibuses are crawling under the weight of their occupants. They constantly break down in great clouds of smoke in the middle of the potholed roads.

Ulaanbaatar as a whole has developed too fast, going from a quiet little capital to a bustling metropolis in the space of a few years. The number of cars has increased exponentially, the number of inhabitants has doubled and the free market economy has encouraged and promoted entrepreneurs, shops, restaurants and various commercial ventures to set up shop and drain even further the few resources available. The result is a city in chaos, with corruption so far hampering efforts to improve the situation. The capital only improves when foreign countries agree to update its infrastructure. The Japanese built and restored a new road to the south of the city and offered the city new buses, the Chinese restored and repaired the Chinggis Bridge, the Koreans gave new fire engines, and the Americans are planning to repair the aging Soviet power stations. The Mongolians, on the other hand, have increased police presence on the street to fine traffic offenders (who comprise almost every driver in UB), which allows the government to be seen to be doing something, while the policemen earn extra revenue in the form of pocketed fines and the general traffic situation maybe calms down a little bit.

There has been much talk in recent years of a subway system, but this is pure wishful thinking, as the Mongolian government does not have the money nor the ability for this. In fact, the city is far too small to even need a subway.

In the grand scheme of things Ulaanbaatar is better serviced than any other part of the country. Outside of the city, the general civic, transport, medical and educational infrastructure is next to nonexistent. All public transport has to go through Ulaanbaatar, as Aimags (provinces) are not interlinked by public transport and they lack all but the most basic necessities.

It is possible to improve infrastructure in UB at little cost, since it is still at the stage where would be manageable. Tougher traffic systems as well as a more logical street setup would help. Improving the state of the roads is essential; building new roads where there are now dirt tracks, widening the existing roads, replacing the aging fleet of buses, and introducing more underpasses or pedestrian crossings would all be a good start. Canceling the state-run central heating system, which is an enormous waste of energy, and transforming the now defunct public support systems into viable commercial enterprises would be essential in the short term, not only to save energy but also to give the government the possibility of selling carbon credit to other nations. Mongolia needs to rely less on other nations to provide for the UB infrastructure and, most importantly of all, to end the corrupt practices rife in Ulaanbaatar and within the government.