Mongolia, Dismantling Communism, to Allot State Assets to Citizens

Dismantling seven decades of communism at surprising speed, Mongolia’s new-look socialist party plans to give away state assets in equal lots to every citizen--man and woman, baby and retiree.

“We have no time to lose to transfer to a market economy,” Deputy Prime Minister D. Dorligjav said in an interview.

Under a law that could be passed before the end of the year, state-owned factories, enterprises and some land would be divided and distributed equally to all of Mongolia’s 2 million people, making them instant shareholders.

“We might manage to avoid sinking into a deep economic crisis by giving some property to people as soon as possible,” Dorligjav said.

Last Sunday, about 5,000 people demonstrated in the city’s main square, calling for private ownership and equal sharing of state assets.

The rally was organized by the opposition Mongolian Democratic Alliance founded in the wake of the democratic movement that swept Eastern Europe last year.

The Mongolian Parliament will debate the privatization law at a session, due to start Nov. 14, which will include discussion of a Law for Citizens, a human-rights charter.

Dorligjav said people would be able to use their shares to set up private enterprises or sell them to the state bank. The value of the allotments has not been set.

Private home ownership would also be expanded.

“We are convinced that every citizen has to be provided with property before we can switch to a market economy to avoid problems arising from extreme poverty and extreme wealth arising from unequal starting positions,” Dorligjav said.

In the long term, the Mongolian People’s Revolutionary Party, which hung on to power last July in the country’s first free elections, plans a stock market in every province for people to trade their shares, government officials said.

Land used by Mongolia’s herdsmen, the majority in this vast country, will not be allotted, as historically it has been common land owned by all. Some arable land will be divided up, however.

Certain key sectors of industry will remain under state control, including mining and energy.

Mongolia’s fragile economy has taken a serious battering from the Soviet Union’s recent decision to cut fuel supplies to its former satellite state and conduct trade in dollars starting next year.