The study aims to validate the measures taken by the government of Mongolia against COVID-19 and to analyse the negative impacts of COVID-19 on the livelihood of different types of households. The survey covers 362 households consisting of five different types, namely, apartment households, ger district households, herder households, vegetable growing households, and small farmer households. Principal component analysis is used to reduce the number of variables to a few factors that best explain the variation in the variables. Two to three components were found from the principal component analyses that describe (i) government policy, (ii) challenges due to COVID-19, and (iii) risk and vulnerability that occurred due to COVID-19. Multiple regression models attributed by the household’s type were used to analyse the impact of the selected variables on the households’ income. According to the regression results, herding households are the least affected, compared to the other four types of households. The government measures to mitigate the negative impacts of COVID-19 have better results for apartment households and ger district households. Rural households are less affected and seem to be more resilient to COVID-19 shocks than other households.
More than half the world's population lives in rural areas
The classification of livelihood strategies is important for identifying different lifestyles and developing poverty reduction measures. The research was aimed to identify Mongolian herder households’ livelihood strategies and assess capital factors that impact their choice and livelihood outcomes in connection with wealth and poverty. A total of 350 herder households were surveyed using the stratified sampling methods from four different economic regions. The Income-Based Approach was applied to identify herder households’ livelihood strategies based on their primary income sources and Pearson correlation was used for assessing the influencing input. The study hypothesizes that herder households earn the majority of income sources from animal husbandry and an essential factor in the choice of livelihood strategy is the number of animals. The study found that livelihood strategies of nomadic herder households clustered into four main types: а) livestock income sources, solely b) earn from kinship and assistant herder salary in addition to livestock income; с) social benefits and pension income in addition to livestock income and d) income sources dependent on natural resources in addition to livestock income. Location, financial capital, and physical capital were the main factors for choosing a specific livelihood strategy. There was an insignificant difference between poor and wealthy herder households in terms of physical assets ownership. To reduce rural poverty, we need tailored sustainable development policies based on different herder households’ livelihood strategies. JEL code: Q01, Q12, I30, D19, D31
Increasing the use of natural resources can improve the country’s wealth, but it has adverse effects caused by improper usage, and it is non-renewable. The depletion of natural resources is a global environmental issue that threatens the livelihoods of billions of people. Moreover, not all resource-rich countries are highly developed. Mongolia is one of the natural resources-rich countries in the world. The agricultural sector is Mongolia’s traditional economic sector, and it still plays an essential role in the country’s economy. This paper investigated the interrelation between the agriculture and the mining sectors and their impact on Mongolia’s economic growth. A multiple-stage regression model was used to analyse the selected variables’ time series data over 20 years of Mongolia. In addition to the model’s sectoral data per capita wealth, other control variables are added to explain economic convergences, human capital impact, and government size. Result proves that the mining sector has a substantial impact on the economic growth of Mongolia. However, agricultural sector growth does not depend on the mining sector. The high dependency from one sector, particularly the extractive sector, warns against the sustainable development of the country’s economy. Therefore, it is essential to support agriculture and other secondary sectors based on renewable natural resources and agriculture.
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