Mongolia's Economic Transition Model And Evaluation

While there is no market, which can completely keep up with market conditions, once it has reached a certain level, it must unceasingly change to achieve better results. It ran be said that there isn' t any such thing as an eternal unchanged market. Any kind of market changes unceasingly and continues doing' reforms if it is to maintain its existence. In. reality, neither a free market economy nor a centrally planned economy is complete. In a central planned economy all economic activities are regulated by a planning committee, for which there exist many problems, for example, they can' t satisfy consumer's demands, they haven't any choice among the products, they are state controlled monopolies, etc. However, they have much advantage since enterprises do not have to take any big risks, there aren't magnanimous decreases in production output, and there is no inflation risk. In a free market economy, production would be decided by the consumers' demand and can be supplied just in time where there is demand. But it also contains many disadvantages, such as uncontrolled price rises, a high unemployment rate, the; existence of poverty, gaps between the rich and the poor, decreases in education quality, as well as many other problems.It's impossible to remain within a central planned economy without doing any basic reforms; therefore economic reform is inevitable. Every country faced with the problem that to build an ideal economic development model through the suitable way of economic reform Especially, the developing countries how to make their choices to achieve the main goals of a market economy? This thesis will answer these questions, through research into the whole democratic and economic reforms (including regulation on organization, structure and market system) started in 1989 in Mongolia...