The Effects of Governance on Development: Access to Economic and Social Opportunities in Post-Communist Rural Mongolia

This paper studies how poor governance has affected herder livelihood in Mongolia's new free-market economy. It focuses primarily on their ability to make a living on government-owned land following poor livestock distribution practices. The affects of these changes were analyzed through economist Amartya Sen's capability approach: specifically, the herders' ability to access economic and social facilities that would otherwise enable them to develop via their own capacities.This study found that livestock distribution practices severely inhibited the Mongolian herders. A majority of the herders were given far below the number of livestock necessary to meet their basic needs. This prevented them from accessing financial capital due to lack of collateral in the form of livestock, which hindered their ability to build shelters or purchase fodder. It also prevented their ability to migrate and reach better grazing pastures or water, causing herders to overgaze near roads and water sources. Many herders have returned to urban centers for secondary and informal jobs.Land allocation patterns have proved equally harmful. Many officials do not understand the extent of their authority over grazing, livestock capacity and migratory patterns. Due to biases in land tilting, poorer herders are forced to migrate often and graze illegally on pastures in the vicinity. Migratory patterns have grown smaller over time as herders are less capable of migrating long distances for seasonal pastures. This has contributed to overgrazing