Ulaanbaatar, (literally "Red Hero") is Mongolia's capital and largest city. A municipality, the city is not part of any province, and its population as of 2014 was over 1.3 million, almost half of the country's total population. When the city became the capital of the new Mongolian People's Republic in 1924, its name was changed to "Red Hero". On the session of the 1st Great People's Khuraldaan of Mongolia in 1924, a majority of delegates expressed their wish to change the capital city's name to Baatar Khot ("Hero City"). However, under the pressure of the Soviet activist of Communist International, Turar Ryskulov, the city was named Ulaanbaatar Khot ("City of Red Hero").

The city was founded in 1639 as a nomadic Buddhist monastic center. In 1778, it settled permanently at its present location, the junction of the Tuuland Selbe rivers. Before that, it changed location twenty-eight times, with each location being chosen ceremonially. In the twentieth century, Ulaanbaatar grew into a major manufacturing center.

As the main industrial center of Mongolia, Ulaanbaatar produces a variety of consumer goods  and is responsible for about two-thirds of Mongolia's total gross domestic product (GDP). The transition into a market economy in 1990, which has led to a shift towards service industries making up 43% of the city's GDP, along with rapid urbanization and population growth has so far correlated with an increase in GDP.

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