Study Of Mongolian Socioeconomic Institution And Underground Economy

The end of the twentieth century has been brought largest changes into social andeconomic systems of the world. The changes have established a diverse social andeconomic transition in many countries depending on their unique features. Mongoliahas also undergone this transition for over20years learning from its errors andshortcomings. Mongolia, who has entered the transition of new thinking and neweconomic relations without preliminary preparation has history where many events hasarisen simultaneously, such as an establishment of new regulations, a learning andadaption to market economy. During the transformation into the new system, shadoweconomy emerged upon performing distinct functions in social and economic relationswhich has been brought researcher’s attention.As a researcher, who has been examining the shadow economy since1995, I ampaying a special attention on consequences of the shadow economy and seeking a wayfor shrinking or ceasing it. During my observation I have found that the shadoweconomy has been continually changing its shape derived from the particular systemsand regulations. Accordingly, I have wrote my dissertation under the topic “Economicsystem and shadow economy in Mongolia” with the advice and help of my supervisor.In summary, I reflected my opinion how to direct the shadow economy uponconsidering ‘The theory of new economic system’ as a basis of ideology of economicdevelopment and comparing the nature and quality of the system employing globalresearch findings and local information, and recapitulating its root, emergence andchallenges. Hereto, I included issues which is being highly attracted my attention, suchas employment structure, corruption, legislation defects or inaccuracies and loophole inthe legal system, duplication of regulations, red-tape, mistrust, state interference in freemarket and their outcomes. Correlations of these issues, their sources and market response have been revealed upon analyzing domestic data and information. Thereby, Ihave made a proposal for a potential guidance on the issue.My dissertation divided into to7chapters:Chapter one: Introduction, introduces the research background and significance,research methodology and scope of underground economy.Chapter two: theoretical analysis, the main content of the concept of the systemand the underground economy and new institutional economics theory, therelationship between them, some of the jargon explanations, reasons and explanationscaused by the international research profile, research methods, the scope of theinternational community. And Definition of the underground economy, estimation ofthe world underground economyChapter three: The case for the social system in Mongolia. This chapter includesMongolia’s geographical background, population, language and culture, religiousstructure, administrative structure and other. Then I clarified the current economicsituation, market conditions in various types, and state policy of informal economy.Chapter four: Research works of informal economy of Mongolia from transitionperiod until today.Chapter five: Social and economic system evaluation of international institutionsand domestic research. Profoundly studied and analyzed error characteristics.Chapter six: Corruption is a causation of underground economy. This chapterappears which were wrong in the system evaluation. For example: rules, mistrust,regulatory and bureaucratic strengths, and employment support policy issues,increasing of state officials its social and economic effects, corruption issues. Today’san appearance of underground economy.Chapter seven: Conclusions. There summarized all my results of the study andconsequences. Between the relationships of Economic situation, underground economy and System quality. Elaborated own solutions.