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MongoliaStructure of the Economy
Socialist development transformed Mongolia from a
predominantly agrarian, nomadic economy in 1921 into a
developing, agricultural-industrial economy in the late 1980s. In
1985 a reported 18.3 percent of produced national income was
derived from agriculture, 32.4 percent from industry, 4.9 percent
from construction, 11.2 percent from transportation and
communications, 31.6 percent from domestic trade and services,
and 1.6 percent from other sectors. Sixty percent of disposable
national income went to consumption, and 40 percent went to
accumulation. Fixed assets totaled about 38.9 billion tugriks, of
which 66.5 percent were productive fixed assets, including
livestock, and 33.5 percent were nonproductive. Industry and
construction accounted for 38.1 percent of the productive fixed
assets; agriculture, 16 percent; transportation and
communications, 9 percent; and domestic trade and services, 3.4
percent. Investment totaled 4.624 billion tugriks, 97.9 percent
of which went to the state sector, and 2.1 percent, to the
cooperative sector. During the Seventh Five-Year Plan (1981-85),
68.9 percent of investments went into the productive sectors of
the economy, and 31.1 percent, into nonproductive sectors.
Industry and construction received 44.7 percent of investment
during this period; agriculture, 13.9 percent; transportation and
communications, 9.0 percent; and domestic trade and services, 1.3
percent. The Eighth Five-Year Plan (1986-90) called for
increasing produced national income by 26 to 29 percent and for
raising investment by 24 to 26 percent, of which 70 percent was
to go to developing material production.
In the late 1980s, Mongolia was divided into three economic
regions. The western region (Bayan-Olgiy, Hovd, Uvs, Dzavhan, and
Govi-Altay aymags), with 21 percent of the nation's
population, was predominantly agricultural
(see
fig. 1). The
western region had 32 percent of Mongolia's livestock and
produced about 30 percent of its wool and meat. Local industry
was engaged in processing of animal husbandry products, timber,
minerals, and building materials. Transportation was
predominantly by motor vehicles.
The central economic region (Arhangay, Bayanhongor, Bulgan,
Darhan, Dornogovi, Dundgovi, Hovsgol, Omnogovi, Ovorhangay,
Selenge, Tov, and Ulaanbaatar aymags) was the dominant
producer. The region had 70 percent of Mongolia's population
(including the cities of Baga Nuur, Darhan, Erdenet, and
Ulaanbaatar); 55 percent of its territory; 75 percent of its
arable land; 90 percent of surveyed coal deposits; and 100
percent of copper, molybdenum, iron ore, and phosphate deposits.
This region accounted for 80 percent of gross industrial
production, 90 percent of light industrial production, and 80
percent of food industry production, 75 percent of coal
production, and 100 percent of copper-molybdenum, iron ore, and
phosphate mining. It also accounted for 60 percent of gross
agricultural production, 60 percent of milk production, 50
percent of meat production, and 80 percent of grain, potato, and
vegetable production.
The eastern economic region (Dornod, Hentiy, and Suhbaatar
aymags) had 9 percent of Mongolia's population, 20 percent
of the arable land, and 15 percent of the livestock. The region
contributed 15 percent of gross meat production and 13 percent of
wool production. Grain production on large state farms hewed out
of virgin lands contributed 90 percent of the region's
agricultural output. The major industrial center was Choybalsan,
which produced 50 percent of regional gross industrial output.
Data as of June 1989
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