The Impacts of Economic Crisis in Mongolia

Reva, Anna; Heltberg, Rasmus; Sodnomtseren, Altantsetseg; Sarantuya, J.

The Impacts of Economic Crisis in Mongolia

Autores

Reva, Anna

Heltberg, Rasmus

Sodnomtseren, Altantsetseg

Sarantuya, J.

Editor

World Bank, Washington, DC

Descripción

Mongolia was hit hard by the global economic recession, notably the fall in commodity prices. Gross Domestic Product (GDP) contracted by 1.6 percent in 2009 after growth of 8.9 percent in 2008. The country is narrowly specialized in production of a few primary goods with minerals comprising 70 percent of total exports. Since mid-2008, the prices of main export goods, including copper, zinc, crude petroleum, combed goat-down and cashmere dropped by close to or more than 50 percent, though prices of coal and gold held strong. Furthermore, construction activity fell sharply in 2009 as both the public and private sectors reduced investments and bank loans became less accessible. The research was conducted in urban and rural areas of Mongolia and involved interviews and focus group discussions with about 500 people total (over the four rounds of data collection) belonging to groups identified as particularly exposed to the impacts of the crisis. The primary impacts of the crisis were observed through: 1) labor market effects (e.g. reduced salaries, increased discrimination in the labor market, intensified competition for jobs and a reduction in profitability of small businesses of the poor), 2) price shocks, and 3) social changes (e.g. increase in crime and alcohol abuse). These impacts were particularly significant for the poor.

Palabras clave

ACCESS TO HEALTH SERVICES, ACCESS TO MARKETS, ALCOHOL ABUSE, ALCOHOL CONSUMPTION, ANIMAL, ANIMAL FEED, ANIMAL FODDER, ANIMAL HUSBANDRY, ANIMAL PRODUCTIVITY, ANIMALS, BABY, BASIC INFRASTRUCTURE, BLACK MARKET, BUS, BUS TICKET, CAMELS, CAR, CAR BREAKS, CARS, CASH TRANSFERS, CATERING, CHRONIC POVERTY, CITIZEN, CITIZENS, COMMODITY PRICE, COMMODITY PRICES, COMMUNITY GROUP, CONFLICT, CONSUMER PRICES, COST OF TRANSPORTATION, COSTS OF TRANSPORTATION, COWS, DAIRY, DAIRY PRODUCTS, DISABILITY, DISASTERS, DISCRIMINATION, DOGS, DOMESTIC VIOLENCE, DRIVERS, DRIVING, DURABLE GOODS, ECONOMIC GROWTH, ECONOMIC OPPORTUNITIES, ECONOMIC SHOCKS, ECOSYSTEM, ELDERLY, EMERGENCY SITUATIONS, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT STATUS, EXPENDITURES, FAMILY MEMBERS, FAMILY TIES, FARM, FARMERS, FEED, FISCAL CONSTRAINTS, FOCUS GROUP DISCUSSIONS, FOOD BASKET, FOOD CONSUMPTION, FOOD IMPORTS, FOOD PRICE, FOOD PRICES, FOOD PRODUCTS, GAME, GENDER ROLES, GOATS, HEALTH INSURANCE, HEALTH RISKS, HEALTH SERVICES, HERDERS, HERDING, HERDS, HIGH TRANSPORT, HOMELESS PEOPLE, HORSE, HOUSEHOLD BUDGETS, HOUSEHOLD CONSUMPTION, HUMAN DEVELOPMENT, ILLNESS, INCOME, INTERNATIONAL MIGRANTS, JOB CREATION, LABOR MARKET, LACK OF SKILLS, LIVELIHOOD OPPORTUNITIES, LIVESTOCK, LIVESTOCK BREEDING, LIVESTOCK PRODUCERS, LIVESTOCK PRODUCTIVITY, LIVESTOCK PRODUCTS, LIVESTOCK SALES, LIVESTOCK SECTOR, LIVING CONDITIONS, LIVING STANDARDS, LOCAL COMMUNITY, LOCAL GOVERNMENTS, LOSS OF LAND, MALNUTRITION, MARKET CONDITIONS, MARKET TRADERS, MATERNITY LEAVE, MEAT, MEAT PRICES, MEAT PROCESSING, MEAT PRODUCTS, MIDDLEMEN, MIGRANT, MIGRANT WORKERS, MIGRANTS, MILK, MOBILITY, NATURAL DISASTERS, NUMBER OF PEOPLE, NUTRITION, PASTORAL LIVELIHOODS, PASTURE MANAGEMENT, PENSIONS, POLICE, POOR, POOR FAMILIES, POOR HOUSEHOLDS, POOR INDIVIDUALS, POPULATION GROUPS, PRICE FLUCTUATIONS, PRICE INFLATION, PRIMARY SCHOOL, PRODUCER PRICES, PROGRESS, PUBLIC AWARENESS, PUBLIC SERVICES, PUBLIC SUPPORT, RANGE MANAGEMENT, REMITTANCE, REMITTANCES, REMOTE LOCATIONS, RESETTLEMENT, ROADS, ROLE OF WOMEN, RURAL, RURAL AREAS, RURAL ENTREPRENEURS, RURAL HOUSEHOLDS, RURAL INFRASTRUCTURE, RURAL POPULATION, RURAL WOMEN, SAFETY, SAFETY NET, SAFETY NETS, SAVINGS, SCHOOL CHILDREN, SCHOOL STUDENTS, SELF-ESTEEM, SERVICE PROVISION, SEVERANCE PAYMENTS, SHEEP, SHEEP WOOL, SINGLE MOTHERS, SKILLED WORKERS, SKILLS DEVELOPMENT, SMALL ENTERPRISES, SMALL LOANS, SOCIAL ASSISTANCE, SOCIAL CHANGES, SOCIAL DEVELOPMENT, SOCIAL IMPACTS, SOCIAL PROGRAMS, SOCIAL SAFETY NETS, SOCIAL SERVICES, SOCIAL WELFARE, SOCIAL WORKERS, STREETS, SUBSISTENCE FARMERS, SUPPLY CHAINS, TAX, TECHNICAL ASSISTANCE, TRADE NEGOTIATIONS, TRANSPORT, TRANSPORT COSTS, TRANSPORTATION, TRANSPORTATION COST, TRANSPORTATION COSTS, TRANSPORTS, TRUE, TURNOVER, UNEMPLOYMENT, UNIVERSITY EDUCATION, URBAN AREAS, URBAN CENTERS, URBAN MIGRATION, URBAN WOMEN, VICTIMS, VULNERABILITY, VULNERABLE GROUPS, WEALTH, WHOLESALE PRICES, WOMAN, WOOL, WORKING CONDITIONS, YOUNG ADULTS, YOUNG AGE, YOUNG MEN, YOUNG PEOPLE