Mongolia: Agrarian crisis in the transition to a market economy

• Published in: Europe-Asia studies Vol. 48; no. 4; pp. 615 - 628
• Main Author: Spoor, Max
• Format: Journal Article
• Language: English
• Published: Abingdon, UK Taylor & Francis Group 01.06.1996; Carfax Publishing Company; Carfax Pub. Co
• Subjects: Agrarian reform; Agrarian Structures; Agriculture; Crisis; Crop economics; Crops; Economic change; Economic crisis; Economic Development; Economic liberalism; Economic Policy; Economic reform; Farm exports; Industrial agriculture; Livestock; Market economies; Market Economy; Mongolia; Privatization; Transition; World Bank
• ISSN: 0966-8136; 1465-3427
• DOI: 10.1080/09668139608412370

An analysis of economic reforms in the most important sector of the Mongolian economy, agriculture and its closely linked industries, demonstrating that the supposed relationship between privatisation, market liberalization and economic recovery is complex, and that the attribution of the country's resumption of positive economic growth to the effects of these reforms, though mainstream, is superficial. Structural problems persist in the traditional livestock sector; capital intensive livestock and crop production sectors suffered enormously when price liberalization made them uncompetitive and lead to their near collapse, from which recovery is slow; production of typical Mongolian exports such as leather products, cashmere textiles, sheepskin coats, camel hair sweaters and carpets, is still decreasing, so that the country's economic dependence on mining exports continues, a basis on which sustainable growth is doubtful. New rural marketing systems need to be promoted and developed in place of the state order system to avoid private livestock farmers, still largely nomadic, retreating further into self sufficiency. Equal emphasis must be given to the recovery of agro industry, currently in deep crisis.