Communism to Capitalism in Mongolia: Privatisation in the First Seven Years

Curtin University Economics and Finance Working Paper No. 2001-8

17 Pages Posted: 25 Aug 2001

See all articles by John L. Simpson

John L. Simpson

Curtin University - Centre for Research in Applied Economics

Date Written: August 2001

Abstract

In the centre of Ulan Bator, the capitol of Mongolia, stands a statue of Lenin. A silent reminder of past ideology, when dependence of the country was concentrated towards Russia. Approximately six years on in the economic transitional process, the path remains difficult to negotiate. Mongolia lies landlocked between two large nations who, perhaps luckily, are also in transition. The focus today seems more on China, as a potential wealth creating market for Mongolian agricultural products and minerals. It is not just a matter of the trains running on time for the country to develop economically. Certainly infrastructure is vital, so is overseas investment, so is economic reform, but, so is education and the inculcation of the new capitalistic ideology into the hearts and minds of the people. This may well begin, according to Thayer (1997), with the persuasion of the country's nomadic herdsmen, who comprise over half the population of over 2.2 millions, that they need money, and that business and trade is not done most efficiently, by barter.

A starting point in the re-education and reform process has been privatisation. This paper tracks some of the major legislation, reforms, moods and events in this area. The paper commences by providing a background of some of the major developments from 1990 to 1993. It then examines developments to 1996 leaving the remaining sections as a report on the present status and future directions.

Suggested Citation

Simpson, John L., Communism to Capitalism in Mongolia: Privatisation in the First Seven Years (August 2001). Curtin University Economics and Finance Working Paper No. 2001-8, Available at SSRN: https://ssrn.com/abstract=281281 or http://dx.doi.org/10.2139/ssrn.281281

John L. Simpson (Contact Author)

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

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