Subsistence Or Market Economy? Assessment Of A Pastoral System Of Mongolia Twenty Years After The Fall Of Socialism

We studied herder practices in a pastoral system of the Mongolian Gobi, to assess its degree of integration in commercial networks and reliance on monetised resources (purchased inputs, machinery and salaried workers). Little infrastructure is present, few inputs are bought, herders primarily rely on standing grass and natural water sources, and labour is primarily provided by household members. As a result, the monetised items only account for five per cent of the production costs. Conversely, the monetary value of the products sold (live animals and fibre), and those consumed for subsistence (meat and milk products), are almost similar (sold: 59 per cent/subsistence: 41 per cent). Herders are therefore well connected with markets in terms of outputs produced, despite a small amount of integration in terms of inputs, which is made possible by the family workforce and the ecosystem services of provision of grass and water.