By Mario D. Lamberte, Robert C. Vogel, Roger Thomas Moyes
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Extra info for Beyond Microfinance: Building Inclusive Rural Financial Markets in Central Asia
As of 2003, some 63% of the population lived in rural areas, up from 60% in 1996. Per capita income in current US dollars varies considerably among the six transition economies, with Tajikistan having the lowest at $184 and Kazakhstan having the highest at $1,992. Chapter 2 Rural Finance in Central Asia: Emergence and Challenges Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan became part of the Soviet Union after the 1917 Revolution. Although not part of the Soviet Union, Mongolia, which became the second socialist republic in the world in 1924, was largely dominated by the Soviet Union.
However, following the democratic revolution in the early 1990s, Mongolia’s rural economy was hard hit by transition. Crop production, which had depended heavily on machinery and monetary assistance from CMEA, was most negatively affected. Soviet assistance, at its height one third of gross domestic product (GDP), disappeared almost overnight in 1990 and 1991 at the time of the dismantlement of the USSR. 43 Like most economies starting from state ownership and central planning, the six countries’ road to a private, market-based economy has not been smooth.
Christen, Robert. 1992. Lessons from the Moneylender. In Informal Finance in Low-Income Countries edited by Dale W. Adams and Delbert A. Fitchett. Boulder, Colorado: Westview Press. Christen, Robert Peck, and Richard Rosenberg. 2000. The Rush to Regulate: Legal Frameworks for Microfinance. CGAP Occasional Paper No. 4 (condensed version published in the Journal of Small Enterprise Development. December). , and Douglas H. Graham. 1984. Agricultural Lending Costs in Honduras. In Undermining Rural Development with Cheap Credit.