Poverty and the Transition to a Market Economy in Mongolia

Abstract

The book contains an analysis of the economic and social problems encountered while Mongolia moved from a centrally planned to a market-guided economy. The transition strategy adopted, the so-called 'big bang' or shock therapy, resulted in a sharp fall in average incomes, a rise in inequality and a dramatic increase in poverty. Human development indicators in health and education declined and the economic and social position of women was eroded. An alternative strategy intended to improve the well-being of the population quickly therefore seems necessary. The strategy concentrates on stimulating growth, creating employment opportunities and constructing a social safety-net to reduce poverty, mainly by exploiting opportunities to expand the nomadic livestock sector and on labour-intensive investments organized at the provincial level. Measures to safeguard human capital by improving primary health care and halting the fall in school enrolment rates are presented, together with specific programmes to assist women, the importance of NGOs and people's participation is also considered. The book thus demonstrates how a human development strategy can be applied under the unique conditions faced by Mongolia. CAB HEALTH 1990-9/97 77 of 430