Mongolia's Transition Economy

5 Pages 1309 Words

Mongolia has always been an area of conflict, even now it is trying to find a way to stabilize it’s foundations so that it can achieve economical and financial success.
Mongolia is located in eastern Asia between Russia and China. This area became established around the 13th century when the Mongols conquered a large portion of Eurasia. A couple hundred years later, the area was taken by Chinese rule, and remained that way until 1921 when it won it’s freedom with Russian support. The economy was in the hands of the communists from 1924 until the early 1990s. During that time the economy and the political system had become outdated, and inefficient. Since then there has been much turmoil and controversy on where Mongolia should look next. The struggle has left Mongolia crippled, and struggling to find answers. Below is an overview of the current Mongolian economy, and standard of living.
GDP: $5 billion
Per capita GDP: $1.840
Economic growth rate: 3.7%
Inflation rate: 5%
Unemployment rate: 20%
Trade balance: $185 million
Number of togrogs per dollar: 1,034
Leading export: copper
Leading import: machinery
Life expectancy: male 62/female 66
Infant mortality rate: 57 deaths/1,000 live births
Literacy rate: 89%
Average years of school: about 10
Land use: arable land: 1% crops: 0% pastures: 80% forests: 9% other: 10%
Mongolia’s current economy is struggling to find stability and a balance between current life-styles and those that are traditional. Much of the culture and business in Mongolia centers around herding.
Many of the herders are being affected by a current environmental crisis called a zud. This is because of a combination of drought in the summers of 1999 and 2000, with extremely cold winters in between. There has been massive death of livestock, at least 1.4 million of the 33.5 million in the country have died. Livestock is the sole source of income for most herders, and this loss has affected roughly ...