Financial organisations failed to reach their goals when sending financial aid to Mongolia in the 90’s. The main reason for this was an incomplete analysis of the institutional and conceptual framework of their own organisations and the situation in Mongolia.
|Date||26 April 2013|
Marije Schouwstra studied programmes initiated by international organisations to assist Mongolia’s transition from a communist to a market-driven economy. Many of these international programmes did not meet their objectives. This was the focus of Schouwstra’s research.
In 1990 the communist political and economic system changed abruptly to a democratic capitalist system. After almost 70 years as one of the most loyal communist states in the Soviet Union, Mongolia was on its own. The country’s financial system was a shambles and Mongolia had no idea what a capitalist system entailed.
International financial organisations and a number of donor countries assisted Mongolia in the transition to a market economy. What these organisations failed to realise was that former communist states had no structure to serve as a foundation for building capitalist institutions. Schouwstra believes that this incomplete analysis of the situation resulted in the failure of international policy programmes to reach their objectives.