The master of economy, Bulhairova Z.S.

The Kazakh Agrotechnical University of S.Sejfullina, Kazakhstan

The basic problems of Mongolian agriculture

Now Mongolia is one of few countries of the world, kept mainly nomadic animal industries. Despite occurring processes of industrialization and an urbanization, which are accompanied by increase in number of urban population, active inclusion of Mongolia in processes of world globalization, agriculture, and its basic branch the animal industries, are the basic branch of the Mongolian economy. On its share one fifth is necessary total internal product annually made in the country, almost half occupied in sphere of production of goods, a quarter of the basic production assets and about 40 % of export resources (drawing 1). [1]

Drawing 1 - Structure of animal industries in Mongolia, 2009

According to the governmental data, in 2002 year 257 000 house economy have been occupied in agricultural sector, and for three quarters from them it was a unique source of incomes. Approximately 40 % of able-bodied population continue to be engaged in nomadic animal industries. In the country, besides, there is 1,2 million hectares of arable lands, however only their one sixth part is taken away under cultivation of agricultural crops (drawing 2). [2]

Drawing 2 - Structure of plant growing of Mongolia

The official Mongolian program: "Strategy of economic growth and poverty reduction" places emphasis on struggle against poverty and rupture reduction in population incomes. The government and a civil society should concentrate efforts to that benefits from high rates of increase went on support of poor layers. The government should put in addition to it of more efforts for an economy diversification. [3]

Absence of economic stability in agriculture strengthens food dependence of Mongolia on import and reduces national safety. Thereupon the decision of problems of perfection of the economic mechanism of development of animal industries becomes more and more actual.

The decision of the given problem in many respects depends on a spent state policy concerning agricultural commodity producers, and also from creation of conditions for delivery of livestock products in a retail network for reasonable prices with quality and assortment observance. [1]

The situation becomes complicated that the state financial support of cattle-breeding commodity producers doesn't lead to expected result. At the limited resources and existing methods of distribution of means the state not to the full promotes animal industries development.

The agricultural sector extremely needs investments. In agriculture small private farms prevail, in the country deficiency of factories on agricultural products processing is observed. The low labor productivity level is influenced also by that fact that existing manufactures are equipped by the out-of-date equipment of the Soviet epoch. For last 20 years serious agricultural innovations haven't come to Mongolia. [1] before the ministry of Mongolia there are three priority problems: farm consolidation, updating of techniques and modernization of systems of an irrigation. Last years the government was accepted to reforms which invariably failed because of insufficient financing.

The list of the used literature:

1. Algaa Erdenechimeg. Formation of the economic mechanism of development of animal industries of Mongolia: the dissertation. Cand.Econ.Sci.: 08.00.05. - Ulan-Ude, 2006

2. Damdyn O. S. The General characteristic of Mongolian agriculture /O. S. Damdin, M.Mundagbaatar//Economy, management, the finance: materials of the international correspondence scientific conference (Perm, June, 2011). / G.D.Ahmetovoj. — Perm: Merkurii, 2011. — p. 33-38.

3. The official Mongolian program «Strategy of economic growth and poverty reduction».