Why mongolia is poor

A further 15 percent of the total population is clustered just above the national poverty line, risking to slip into poverty in an event of any unanticipated shocks. Despite robust economic growth, Mongolia is struggling to translate the benefits of growth into household-level welfare, especially for the poor. Many of the poor, in particular low-skilled wage workers, are missing out on the benefits from the recent capital-intensive mining sector-led growth.

Between and , poverty reduction was uneven, declining in rural but not in urban areas. Growth in rural areas was faster and favorable to the poor, contributing to reducing rural poverty by 4 percentage points from By contrast, less-inclusive consumption growth in urban areas was accompanied by stagnation in poverty, leaving the poverty rate unchanged at 27 percent from to The lack of progress in poverty reduction in urban areas was mainly driven by stagnant wage growth in the poorest population group, while strong growth in farm income supported by rising livestock prices, together with the expansion of poverty-targeted social protection programs, contributed to robust poverty reduction in rural areas.

Consequently, poverty is increasingly concentrated in urban areas. Although the incidence of poverty is still higher in rural areas Poverty is most prevalent among young children. Two in five poor people in Mongolia are children under the age of Poverty is highly associated with the number of children and dependency ratio, reflecting the inadequate number of income earners to support the children at home.

While economic growth is necessary for human development, human development is not necessary for economic growth. Despite this flow of capital, there has not been a satisfactory increase in more and better job opportunities; thus, impoverished families are not able to lift themselves out of poverty and share in the new wealth. Not only are not enough jobs being created, but most lower-class Mongolians are unqualified or under-educated for the advantageous jobs that are present. Furthermore, adequate job opportunities are not present where poor Mongolians live, so they must resort to low-productivity work that only provides enough income to sustain their livelihoods rather than improve them.

To answer and address the question of why Mongolia is poor, the nation must focus on equal and quality access to jobs and education. Urban: This uneven economic growth can best be seen in the divide between the rural and urban poor. While poverty percentages have decreased in rural areas, the rate of urban poverty has remained unchanged.

As previously stated, those in rural areas are experiencing economic growth while the urban poor are trapped in stagnation. Rural poverty decreased from These structures are cheap compared to apartments and other housing arrangements, with both the rural and urban poor living in them.

However, most gers lack many modern necessities such as insulation and running water. This exacerbates the fact that nine in 10 poor Mongolians lack access to various basic infrastructure services like sanitation and heating. The central government is continuing to address these issues and is attempting to move those living in gers into more modern housing.