Mongolia is a parliamentary democracy, based on universal suffrage. In the early 1990s, Mongolia abolished the old political and social system and installed a democratic one. As a nation with a long tradition of statehood, Mongolia has been steadily working towards a free market economy. Mongolia has applied a model of the world’s developed countries with democratic legislatures, whilst considering its own specific features and traditions. The new Constitution of Mongolia came into effect on February 12, 1992 and amended 1999, 2001.