Transition and democracy in Mongolia

Abstract

The first section provides a brief review of the economy on the eve of the rapid reforms introduced after the July 1990 presidential election. The second section describes the reform programme introduced in the first half of the 1990s and reinvigorated after the 1996 elections. The third section argues that the lack of strong political backlash against economic transition in Mongolia is partially due to two economic stabilisers which smoothed the adjustment process: the traditional pastoral lifestyle and the flourishing informal sector. The next section analyses the role of democracy in Mongolia, emphasising the broad consensus on underlying fundamentals, including the desirability of a market-based economy and incorporating attitudes towards the pastoral sector and the informals. The final section draws some conclusions.