Ending Poverty in Mongolia: From Socialism to Green Inclusive Growth?

Abstract

This case study traces the evolution of poverty in Mongolia, a country currently developing a pluralist approach to poverty alleviation. Mongolia is unique because it transformed from nomadic pastoralism to Soviet socialism without a natural industrial development though capital markets. In the 1990s, it was one of few countries to simultaneously undertake market liberalism and multiparty democracy. Collapse of the socialist safety net increased poverty for women and rural areas. Although macroeconomic “shock therapy” reforms in the 1990s stabilized inflation, poverty estimates remained at 36% and called into question poverty alleviation strategies. In the face of severe winters, families attempt sustainable livelihoods though employment income, bartering livestock, informal trading, remittances from overseas relatives, and unlicensed mining. Current national social development strategies affirmed at Rio 20 combine a green economy for inclusive growth and poverty elimination by using redistribution from mining revenues and overseas development assistance.