United States Agency of International De

Property Rights and Land Privatization: Issues for Success in Mongolia United States Agency of International De

Publisher Marketing: Land privatization is traditionally accomplished through sequential steps. The first step usually focuses on developing an understanding of the linkages between private property rights and economic growth. In Mongolia, it is clear that this knowledge exists. What is still inadequate is the second step in the process developing a sound and consistent policy (coupled with legislation and practical regulatory framework supporting that policy) for the development of private property rights. Property rights and land privatization are at the forefront of economic growth, good governance, and urban/rural development in Mongolia. Many of the foundations for economic growth and income generation are necessarily based on sound land reform, private ownership, and secure property rights. Mongolia has been pursuing a deliberate and constructive program of property rights reform. However, in some ways, an urgency to address land and property rights reform has not been present in the country, due to in large part to its large size, small population, and historically singular focus on livestock production and common pool resources. Recent Government of Mongolia (GoM) efforts to develop new land and land privatization laws, while welcome, fall short of a policy and practical regulatory framework needed to realize the benefits of land privatization (increased capital formation, social stability, greater sustainable resource use, and reduced corruption/improved governance).