Wednesday, June 2, 2010

Post #3 A bit on the economy of Mongolia


Mongolia today faces many economic challenges due to the growing economic difficulties in the USSR and its “ultimate break up”, causing all central Asian countries to change from centrally planned economies to free market societies. Due to this fact, many changes have occurred such as “privatization, price liberation and decentralization of decision making.” Mongolia, is one of the countries of all previous centrally planned economies to most quickly begin privatizing, beginning in 1991. They achieved almost full private ownership of livestock by the year 1993.

The article I read basically stated that livestock production is mainly dominated by private ownership ultimately causing changes in “labour demand and patterns of labour division” causing these countries to become “more free and self-oriented”. This entire reconstruction of the economy has caused the living standards of the people to decrease. Poverty and unemployment have become major problems in the society.

Mongolia practiced nomadic pastoralism (pastoralism is a mode of production which keeps domesticated animal herds, that are used as meat and milk for their diet) however now are transferred to permanent settlements, unfortunately bringing their nomadism to an end. From what I read it seems family farming (production is done to support the family as well as for producing goods for sale ) is taking place no instead of the nomadic pastoralism.

1 comment:

  1. You have put your finger on many significant issues. One other factor--which perhaps wasn't evident in the source you looked at--is the collapse of the food distribution system, which provided exchange of meat, flour, and vegetables between countryside and city, and between Mongolia and the Soviet Union. The increase in family farming you mention is really limited to the north of the country--the southern 2/3 is desert, so it's impossible to grow anything without substantial irrigation!--but also reflects the need for families to provide for themselves rather than rely on market food commodities.

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