By Keith Griffin
This ebook includes an research of the commercial difficulties encountered in Mongolia in the course of the transition from a centrally deliberate to a marketplace economic climate, whilst poverty elevated dramatically, unemployment rose sharply, wellbeing and fitness and schooling signs deteriorated, and the industrial and social place of girls declined. but there's huge power in Mongolia for a greatly dependent acceleration of output, really if precedence is given to the nomadic farm animals area and to grass-roots improvement on the provincial point. The e-book includes many coverage feedback meant to advertise development and employment and to minimize poverty.
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Extra resources for Poverty and the Transition to a Market Economy in Mongolia
SUMMARY AND CONCLUSIONS The transition to a market economy in Mongolia has proved to be more difficult than was originally anticipated. Inflation has been very Keith Griffin 21 rapid, per capita income has declined by about 25 per cent and poverty has risen dramatically. The government, evidently, lost control of the macroeconomy. One explanation for the poor economic performance is the series of external shocks suffered by the economy: the termination of Soviet aid , the withdrawal of Soviet advisers and the collapse of the Soviet trading bloc , CMEA.
Source: International Monetary Fund. Given the faulty strategy, there was little choice but to rely on foreign aid and fortunately aid proved to be forthcoming in substantial volume. It must be recognised, however, that large inflows of foreign aid during a transition process can be a double-edged sword . On the one hand, aid can help maintain the standard of living during a period of stress and help to contain the rise in poverty. On the other hand , if aid inflows increase substantially at the same time that foreign trade is being liberalised, they will tilt the exchange rate in the wrong direction and provide incorrect long-term price signals.
P. 33. 29. See Ronald I. McKinnon, The Order of Economic Liberalization (Baltimore: Johns Hopkins University Press , 2nd edition, 1993) and Keith Griffin and Azizur Rahman Khan, 'The Chinese Transition to a Market-Guided Economy : The Contrast with Russia and Eastern Europe', Contention, Vol. 3, no. 2, Winter 1994. 30. World Bank, Mongolia : Toward a Market Economy, op. 9. 31. This poss ibility also is raised by the Asian Development Bank, Mongolia: Economic Reforms and Development Issues , op.