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MongoliaConsolidation of the Mongolian People's Republic, 1925- 28
Soviet troops ostensibly were withdrawn in March 1925
(although some historians have debated whether all actually
departed). Despite the treaty--between the Soviet Union and
China--that acknowledged Outer Mongolia as an autonomous, but
integral, part of China, the Soviet Union explicitly recognized
Mongolia's independence of China in internal affairs and its
ability to pursue an independent foreign policy. While continuing
its cautious relationship with Beijing, Moscow made it clear that
it would permit no Chinese encroachment on Mongolia. Mongolia's
general foreign policy line was based on strong ties with the
Soviet Union, "the reliable pillar of [Mongolia's] independence
and prosperity" according to the party line.
Under Moscow's guidance, the leftist leaders of Mongolia
began to strengthen their still-weak position. The Mongolian
communists, with Comintern help, gradually undermined the
rightist elements in the Mongolian People's Revolutionary Party
and attacked the power of the two great institutions that had
dominated Mongolia for centuries: first the nobles; then, the
abbots (whose monastic followers comprised at least one-third of
the adult males). In this period of cautious consolidation, the
party abolished the aristocracy's feudal privileges, a reform
which had the initial effect of influencing wealthy nobles to
embark on capitalist ventures, such as investing in the new
cooperatives. Gradually, however, the revolutionaries built a
state-guided economy supported by Mongolian cooperatives and by
Soviet trade.
Moscow's economic hold on Mongolia tightened as exports to
the Soviet Union rose rapidly from about 14 percent of Mongolia's
total production (chiefly livestock and animal products), in 1923
to 1924, to 85 percent, in 1928 to 1929. By 1929 Mongolia's
imports lagged far behind its exports. Aside from the provision
of technical and political advisers, Soviet trade policy did not
yet provide for economic development aid to newer socialist
countries as had been envisioned by Lenin in 1920.
Other areas of the economy showed more progress. The
Mongolian National Bank, established in 1924 as a joint
Mongolian-Soviet company, issued the tugrik, the new national
currency, as part of monetary reform. The cooperative movement,
directed by the Mongolian Building Cooperative, began to show
impressive results. A standardized tax system was instituted, and
other administrative reforms slowly took hold. The army, equipped
and trained by the Soviets, was steadily growing and improving
(see The Mongolian Army, 1921-68
, ch. 5). The government
refrained from a direct attack on the venerated religious
establishment, but some higher-level monks were imprisoned and
executed.
Although the Mongolian communists had not yet overthrown the
conservatives in the government and the economic sectors during
this period, they had gained progressively in strength as
evidenced by the changes they had made in society
(see Society
, ch. 2). Slowly, the young Soviet-taught Mongols were taking over
the political, the military, and the economic apparatus. Many
nobles retained their wealth, however, and the number of
monastics actually increased between 1925 and 1928. Nearly 90
percent of all trade was controlled by Chinese firms in Mongolia.
The Fourth Party Congress (September 1925), the Fifth Party
Congress (September 1926), and the Sixth Party Congress
(September 1927) had witnessed policy struggles between leftist
and rightist elements that presaged the victory of the left.
Data as of June 1989
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