IIAS | P.O. Box 9515 | 2300 RA Leiden | The Netherlands | T +31-71-527 2227 | F +31-71-527 4162 | [email protected] | www.iias.nl Website: www.IIAS.nl <Theme: Mega- Urbanization in Asia PhotoDisc 31 page 5-15 July 2003 | the IIAS newsletter is published by the IIAS and is available free of charge Is ¶ cal tra- cal Accord- p.22 ¶ ice Wright ice ]. From the Year of the White Horse p.36 Whereas early-mod- Whereas to the Year of the Black Horse ¶ p.19 7 ¶ Mongolia After Twelve Years of Transition Following the collapse of communism, Mongolia embarked upon an ambitious path of political and economic reform. The ensuing p.54-55 ¶ transition brought new opportunities to the country and its people: an end to international isolation, the introduction of political Art theft galore in this issue. Tijhuis and Tijhuis issue. this in galore theft Art freedoms and a nascent private sector after many decades of centralized planning. Economic liberalization, however, has yet to p.37 deliver benefits to the Mongolian majority. At the beginning of the 1990s, many believed that the market economy would bring unprecedented prosperity within a decade. Instead, it brought unprecedented poverty. In many respects, life for most people is more precarious today than during the communist era. By Sanjaasuren Oyun growing at 1.5 per cent and good governance lacking, Mon- Forum > golia needs a minimum annual growth rate of 4-5 per cent Digital Himalaya: Unlike many early anthropologists, botanical anthropologists, early many Unlike Himalaya: Digital ASEMUS: The exhibition ‘Peranakan Legacy’ adds an important an adds Legacy’ ‘Peranakan exhibition The ASEMUS: Central Asia ¶ efore the 1990s poverty as such was not a problem in in order to raise general living standards. Yet, over the last ¶ BMongolia. With the advent of transition and the sudden several years, Mongolia’s growth has been insufficient, aver- Surely a reason for laughter in Indonesian politics, Arndt Graf explains Graf Arndt politics, Indonesian in laughter for reason a Surely International Conference Agenda. Conference International collapse of economic structures, the economy contracted and aging 1-3 per cent. p.20-21 Robert Cribb speculates on why the mixed-race ‘Indisch’ community did community ‘Indisch’ mixed-race the why on speculates Cribb Robert ¶ ¶ unemployment soared. Surveys undertaken over the last Foreigners are easily impressed by the many jeeps in the Yasser Tabaa gives his view on why the Iraqi’s stole from their museums [6]. museums their from stole Iraqi’s the why on view his gives Tabaa Yasser p.52 seven years indicate that one in three Mongolians live below streets of Ulaanbaatar and the expensive houses that are ¶ p.50 Centred on a Muslim prostitute coming from Muzzafarpur to Mumbai, Fareeda Mumbai, to Muzzafarpur from coming prostitute Muslim a on Centred the poverty line, earning less than a dollar a day. During the being built in the capital’s suburbs. In a country with a per ¶ > Asian art & cultures & art Asian > p. 29 p. period 1995-2002, the Gini coefficient of inequality increased capita GDP of USD 450, however, these are not signs of a p.16 from 0.31 to 0.37.* Despite the recent return of moderate eco- healthy but of a sick economy. So what went wrong? Mon- nomic growth, the number of those living in poverty has not golia has been, in the words of The Economist, ‘the star pupil decreased. of Western liberal economics’, ‘the darling of ultraliberals in Mongolia did not recover its 1989 pre-transition GDP of the West’. Meticulously following the instructions of inter- > In this edition this In > just over USD 1 billion until 2000. Like many post-commu- national financial institutions, the country liberalized its cur- nist countries, Mongolia began the 1990s with negative rency, trade and economy, privatized most of its state assets, growth and extreme inflation (up to 350 per cent). The mid- and brought down inflation. Below are some examples of 1990s witnessed economic stabilization and inflation around how these reforms were undertaken. is an almost abstract odyssey in to migration, marginalization, and displacement [2]. displacement and marginalization, migration, to in odyssey abstract almost an is opens the floor to your reactions on the latter. the on reactions your to floor the opens 10 per cent; growth and single-digit inflation had to await the Tight monetary policies dictated by the IMF and end of the decade. Unfortunately, Mongolia is still struggling implemented by the Central Bank of Mongolia aimed to to achieve growth rates necessary for poverty reduction and reduce inflation; bank rates, however, were kept too high job creation. According to a 1999 World Bank study of poor for local businesses to be profitable. Foreign aid (ODA) Kali Salwaar Kali developing countries, poverty reduction requires economic brought benefits to tens of thousands of Mongolians, 123456 IIAS Newsletter IIAS growth rates at least twice the rate of population growth. That but the overall amount is reaching dangerous levels. ¶ is for countries with good governance. Without good gover- Over the past twelve years, Mongolia received ODA aver- nance, when the distribution of wealth is unequal and cor- aging 20 per cent of GDP. In addition the old (commu- collectors roamed across Nepal. Adam Stainton’s travel accounts provide anthropological information of a wide regional scope [4 scope regional wide a of information anthropological provide accounts travel Stainton’s Adam Nepal. across roamed collectors Gus Dur’s [1] humour in terms of political strategy. strategy. political of terms in humour [1] Dur’s Gus antiquities. Chinese in trade illicit the explore Soudijn dimension to exploring Singapore’s ‘ancestral cultures’ [7]. cultures’ ‘ancestral Singapore’s exploring to dimension ern Indian medical history is substantially defined by Sanskrit systems of thought [3], Hormuz Ebrahimnejad shows European medi European shows Ebrahimnejad Hormuz [3], thought of systems Sanskrit by defined substantially is history medical Indian ern ditions to be more readily incorporated in nineteenth century Iran. century nineteenth in incorporated readily more be to ditions p.43-44 not take a more prominent role in the nationalist movement. nationalist the in role prominent more a take not Mehta’s film Mehta’s has dared to interview these mandarins among mandarins, who are the pick of the bureaucracy. bureaucracy. the of pick the are who mandarins, among mandarins these interview to dared has ing to Richard Boyd, Japan’s Ministry of Finance is surrounded by a mystique, which has long held researchers at bay. Now, Maur Now, bay. at researchers held long has which mystique, a by surrounded is Finance of Ministry Japan’s Boyd, Richard to ing this Wimbledon? Nandana Chutiwongs takes us into a Thai temple in London in her review of ‘Making Merit, Making Art’ [5]. Art’ Making Merit, ‘Making of review her in London in temple Thai a into us takes Chutiwongs Nandana Wimbledon? this ruption thrives, economic growth needs to be at least three nist-era) debt to Russia has not yet been negotiated or times the rate of population increase. Its population currently continued on page 3 > > General news continued from page 1 > Ulan Bator 2001 prises were privatized, out of which 330 shareholding com- settled. Thus the accumulated debt over the last twelve panies were created. Currently, no more than 1,500 individ- years nearly equals GDP. uals, representing 0.5 per cent of the population, own over Compared to Southeast Asia, where Foreign Direct 70 per cent of the shares of these 330 companies. Investment (FDI) averages 15 per cent of GDP, or China Despite certain notable achievements, many things have where the figure varies from 20 to 30 per cent, Mongolia gone wrong with Mongolia’s transition. Paralleling the expe- attracts FDI amounting to only 3-5 per cent of its GDP. Obvi- riences of other badly managed transitions from commu- ously, Mongolia must strive harder towards creating a more nism to a market economy, poverty in Mongolia has soared attractive investment climate. It has only been in the last two and inequality has increased. At present, 40 per cent of the years that mining investors have expressed greater interest, population can be categorized as poor or very poor. It is time due to the discovery of a seemingly world-class deposit of cop- to start remedying these problems. Mongolia is at a cross- per and gold (Oyu Tolgoi) in South Gobi. Despite ten years roads: will its government come up with home-grown poli- of efforts to build a favourable economic and investment cli- Morozova Irina cies for economic development and introduce new, higher mate, Mongolia is still failing to attract investors, both for- standards in the way it leads political, economic and social eign and domestic. Current business taxation rates are pro- milk and the like), in which Mongolia can compete with its processes, or will it continue to slide on the path of impru- hibitively high and resemble those of developed Western neighbours, should be protected until they are strong enough dent policies and the weak rule of law? < countries, not those of developing transition countries. to be competitive. So-called blanket protectionism deserves no praise, but one cannot expect infant domestic industries Dr Sanjaasuren Oyun is Member of the Mongolian Parliament WTO and trade tariffs to compete with their more advanced counterparts in neigh- since 1998 and leader of the Citizens Will - Republican Party since The wealthy countries controlling the international finan- bouring China and Russia, let alone the rest of the world, if 2000. A geologist by profession, she has a PhD in isotope geochem- cial institutions have demanded that poor countries, includ- the government does not initially support them.