The Mongolian People's Republic : Toward a Market Economy

Padej Sukachevin, John Leimone, F. Rozwadowski, and Elizabeth Milne

• Publisher: INTERNATIONAL MONETARY FUND
• Year: 1991
• ISBN:
  9781557752079

NONE

Contents

Preface

Map of Mongolia

I. Political and Economic History

Introduction

Political History

Economic History

Feudal Period

Post-Revolutionary Period: 1921–48

Development of the Command Economy: 1948–84

Structural Change and Mounting Imbalances

II. Initiation of Reform: 1985–90

Background

Economic Restructuring: The First Phase

III. Impact of Reform

Overview

Output, Income, and Expenditure

Sectoral Developments and Organization

Investment

Employment, Wages, and Pensions

Prices

Budgetary Trends

Revenues

Expenditures

Financing

Monetary Developments

Credit

Deposits

Interest Rates

Balance of Payments

Recent Developments

Structure of Current Transactions

Capital Account

Debt and Debt Service

Exchange System

Convertible Currencies

Nonconvertible Currencies

IV. Toward a Market Economy

The Medium-Term Path of Reform

Challenges and Outlook

Appendices

I. Government and Budget Structure

II. Structure of the Banking System

III. Structure of External Transactions and Payments

IV. Mongolian Statistics

Boxes

1. A Profile of Mongolia

2. Energy Sources and Uses

3. Key Economic and Structural Reforms

TABLES

I.

Box I

1. Social Indicators

2. Main Economic Indicators

3. Summary of Selected Ouput, Employment, and Price and Wage Indicators

III.

4. Summary Operations of State Budget

5. Monetary Survey

6. Consolidated Balance of Payments

Appendix IV

A1 Real NMP and Real GDP

A2 Implicit NMP Deflators

A3 NMP and GDP at Current Prices

A4 Composition of NMP and GDP at Current Prices

A5 Gross Output, Material Input, and NMP

A6 Income and Expenditure of Population

A7 Sources and Uses of NMP

A8 Gross Fixed Capital Investment

A9 Output of Major Agricultural Products

A10 Output of Basic Industrial Products

A11 Composition of Gross Industrial Ouput

A12 Coal Statistics

A13 Electricity Balance

A14 Employment by Sector

A15 Employment in Selected Industries

A16 Average Monthly Wages

A17 Price Indices and Volume Index of Retail Sales

A18 Domestic Wholesale and Foreign Contract Prices of Exports

A19 Retail Prices of Selected Products

A20 State Budget Revenues

A21 State Budget Expenditures

A22 Foreign Trade Budgetary Taxes and Subsidies

A23 Export Subsidy Coefficients, 1989–June 1990

A24 Sectoral Distribution of Gross Short-Term Credit Extended

A25 Sectoral Distribution of Credit

A26 Interest Rates

A27 Composition of Exports

A28 Composition of Imports

A29 Balance of Payments with the CMEA Area

A30 Balance of Payments Under Bilateral Clearing Arrangements

A31 Balance of Payments with Convertible Currency Area

A32 Export and Import Deflators and the Terms of Trade

A33 International Reserves

A34 External Debt

A35 Exchange Rates

CHARTS

III.

1. Trends in Budget Aggregates

2. Budget Revenue and Expenditure, 1980 and 1989

3. Composition of State Bank Credit and Deposits

4. Trends in External Balance

5. Commodity Composition of Exports and Imports, 1988

Appendix I

6. Structure of Government, October 1990

Appendix II

7. Banking System, August 1990

The following symbols have been used throughout this paper:

… to indicate that data are not available;

— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;

– between years or months (e.g., 1990–91 or January-June) to indicate the years or months covered, including the beginning and ending years or months;

/ between years (e.g., 1990/91) to indicate a crop or fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.

Appendix I. Government and Budget Structure

The Constitution

Under Mongolia’s 1960 Constitution, which established the central role of the public sector and the MPRP, all land, natural resources, factories, transportation, and banking organizations were designated state property. Individuals had the right of cooperative ownership of public enterprises, including livestock. Limited private ownership of herds (10 per individual and 50 per household nationally, adjusted to 15 and 75, respectively, for herders in the Gobi) and of traditional tent dwellings (ghers) was permitted.

Supreme power resided in the upper house, or People’s Great Khural, whose chairman was also a member of the MPRP politburo; the MPRP was designated the sole political party. The election of 370 deputies to the Great Khural took place once every five years (1981 amendment to the Constitution) by universal suffrage of the adult population o...