From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector
The Mongolian cashmere industry has experienced a series of booms and busts over the last decade. Unsatisfactory public sector policies contributed to this result. External factors such as the unfavorable economic environment of the early 1990s, th...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/12/6762004/mongolia-goats-coats-institutional-reform-mongolias-cashmere-sector http://hdl.handle.net/10986/14431 |
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okr-10986-14431 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO MARKET AGRICULTURAL MARKETING AGRICULTURE ANIMAL ANIMAL GENETICS ANIMAL HEALTH ANIMAL HEALTH SERVICES ANIMALS AUCTIONS BANK LOANS BORDER PRICE BREEDING BREEDS COLLECTIVE FARMS COMMAND ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE ADVANTAGES COMPETITIVENESS COMPREHENSIVE STRATEGY CONTRACTUAL ARRANGEMENTS CROP PRODUCTION DEVALUATION DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DIRECT MARKETING DONOR AGENCIES ECONOMIES OF SCALE EFFICIENT MARKET ENVIRONMENTAL SUSTAINABILITY EQUIPMENT EXPORTS EXTENSION EXTERNAL MARKET EXTERNALITIES FAIR FARM FARM SECTOR FARMERS FEEDING FEMALE GOATS FINANCIAL CRISIS FINISHED PRODUCTS FODDER FODDER PRODUCTION FODDER SUPPLY FORAGE FORAGE UNIT FUR GDP GENETIC MATERIAL GOAT PRODUCTION GOATS GRAZING LAND GRAZING RIGHTS GROSS DOMESTIC PRODUCT GROWTH POTENTIAL HERD MANAGEMENT HERD SIZE HERDERS HERDING HERDS HORIZONTAL INTEGRATION INCOME INCOME LEVELS INCOMES INEFFICIENCY INTERNATIONAL MARKETS INTERNATIONAL TRADE LAMB LAND USE LIVELIHOODS LIVESTOCK LIVESTOCK COMMODITIES LIVESTOCK HEAD LIVESTOCK INSURANCE LIVESTOCK MANAGEMENT LIVESTOCK OWNERS LIVESTOCK SECTOR LIVESTOCK WATERING MACROECONOMIC STABILIZATION MARKET ACCESS MARKET CONDITIONS MARKET DEMAND MARKET DEVELOPMENT MARKET DISTORTIONS MARKET ECONOMY MARKET EXIT MARKET FAILURE MARKET FAILURES MARKET INFORMATION MARKET PRICE MARKET PRICES MARKET TRENDS MARKETING MARKETPLACES NATIONAL HERD OPTIMIZATION ORGANIZATIONAL STRUCTURE OVERGRAZING PARTIAL EQUILIBRIUM ANALYSIS PASTURES POLITICAL ECONOMY POVERTY REDUCTION PRICE CONTROLS PRICE MARGIN PRICE TREND PRIVATE SECTOR PRODUCT DIFFERENTIATION PRODUCTION COSTS PRODUCTION PROCESS PROPERTY TAXES RANGELAND REGULATORY FRAMEWORK RURAL DEVELOPMENT RURAL HERDERS SAFETY NETS SALE SALES SHEEP SOIL EROSION SUPPLY CHAIN SUPPLY CHAIN MANAGEMENT THICKENING TRADE POLICIES TRADE POLICY TRANSITION ECONOMIES UNEMPLOYMENT VALUE ADDED WELLS WOOL WORLD MARKET WORLD TRADE ORGANIZATION WTO |
| spellingShingle |
ACCESS TO MARKET AGRICULTURAL MARKETING AGRICULTURE ANIMAL ANIMAL GENETICS ANIMAL HEALTH ANIMAL HEALTH SERVICES ANIMALS AUCTIONS BANK LOANS BORDER PRICE BREEDING BREEDS COLLECTIVE FARMS COMMAND ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE ADVANTAGES COMPETITIVENESS COMPREHENSIVE STRATEGY CONTRACTUAL ARRANGEMENTS CROP PRODUCTION DEVALUATION DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DIRECT MARKETING DONOR AGENCIES ECONOMIES OF SCALE EFFICIENT MARKET ENVIRONMENTAL SUSTAINABILITY EQUIPMENT EXPORTS EXTENSION EXTERNAL MARKET EXTERNALITIES FAIR FARM FARM SECTOR FARMERS FEEDING FEMALE GOATS FINANCIAL CRISIS FINISHED PRODUCTS FODDER FODDER PRODUCTION FODDER SUPPLY FORAGE FORAGE UNIT FUR GDP GENETIC MATERIAL GOAT PRODUCTION GOATS GRAZING LAND GRAZING RIGHTS GROSS DOMESTIC PRODUCT GROWTH POTENTIAL HERD MANAGEMENT HERD SIZE HERDERS HERDING HERDS HORIZONTAL INTEGRATION INCOME INCOME LEVELS INCOMES INEFFICIENCY INTERNATIONAL MARKETS INTERNATIONAL TRADE LAMB LAND USE LIVELIHOODS LIVESTOCK LIVESTOCK COMMODITIES LIVESTOCK HEAD LIVESTOCK INSURANCE LIVESTOCK MANAGEMENT LIVESTOCK OWNERS LIVESTOCK SECTOR LIVESTOCK WATERING MACROECONOMIC STABILIZATION MARKET ACCESS MARKET CONDITIONS MARKET DEMAND MARKET DEVELOPMENT MARKET DISTORTIONS MARKET ECONOMY MARKET EXIT MARKET FAILURE MARKET FAILURES MARKET INFORMATION MARKET PRICE MARKET PRICES MARKET TRENDS MARKETING MARKETPLACES NATIONAL HERD OPTIMIZATION ORGANIZATIONAL STRUCTURE OVERGRAZING PARTIAL EQUILIBRIUM ANALYSIS PASTURES POLITICAL ECONOMY POVERTY REDUCTION PRICE CONTROLS PRICE MARGIN PRICE TREND PRIVATE SECTOR PRODUCT DIFFERENTIATION PRODUCTION COSTS PRODUCTION PROCESS PROPERTY TAXES RANGELAND REGULATORY FRAMEWORK RURAL DEVELOPMENT RURAL HERDERS SAFETY NETS SALE SALES SHEEP SOIL EROSION SUPPLY CHAIN SUPPLY CHAIN MANAGEMENT THICKENING TRADE POLICIES TRADE POLICY TRANSITION ECONOMIES UNEMPLOYMENT VALUE ADDED WELLS WOOL WORLD MARKET WORLD TRADE ORGANIZATION WTO World Bank From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector |
| geographic_facet |
East Asia and Pacific Mongolia |
| description |
The Mongolian cashmere industry has
experienced a series of booms and busts over the last
decade. Unsatisfactory public sector policies contributed to
this result. External factors such as the unfavorable
economic environment of the early 1990s, the East Asia
crisis, and weather conditions have also affected its
performance. Over 1993-96 cashmere exports doubled from
US$33.5 million to US$71.2 million, as cashmere's share
in exports increased from 9.2 to 16.8 percent. Cashmere
exports weakened in 1997 and 1998, recovered briefly in
1999-2000, and faltered again in 2002 to US$45.2 million,
below their 1996 levels. Cashmere's share in exports
fell from 16.8 to 8.6 percent over 1996-2002. Within this
background, the report examines the industry's five
principal shortcomings: supply distortions; decreasing
cashmere quality, demand imperfections, inadequate marketing
and distribution systems, and poor public and private
institutional capacity to guide industrial policy
development. The lack of an efficient public sector to
provide public goods, inadequate strategic business
development policies, and unregulated and outdated
production patterns have stifled competition, and prevented
the industry from reaching its potential. Mongolia's
cashmere industry has moved only marginally up the
value-added chain beyond primary production, leaving it
especially vulnerable to changes in market demand. It also
examines Mongolia's current legal and administrative
mechanisms for regulating grazing land - poorly understood
by central and local governments that also frequently lack
the capacity to implement the laws. The 1995 Land Law gave
local governments broad authority to regulate grazing. With
clarification of their legal mandates and capacity-building
interventions, local governments, perhaps in partnership
with local herding associations, would be capable of
regulating pasture use. This paper examines the structure,
conduct, and organization of Mongolia's cashmere
industry and discusses the strategic supply chain linkages
needed to improve its production, marketing, and
competitiveness. The paper looks at how agents along the
cashmere industry supply chain can generate collective
efficiencies and gain competitive advantages by deepening
collaboration. It also examines how public policy affects
industry and firm decisions on cashmere production and
marketing systems, and the incomes of herders and rural
communities. It suggests a set of actions and policies for
the private and public sectors - including the donor
community - to facilitate cashmere's transition to a
truly competitive industry. Highlighted are existing
initiatives to improve market coordination, and generate
cost savings, and propose areas for expansion. |
| format |
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector |
| title_short |
From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector |
| title_full |
From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector |
| title_fullStr |
From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector |
| title_full_unstemmed |
From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector |
| title_sort |
from goats to coats : institutional reform in mongolia's cashmere sector |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/12/6762004/mongolia-goats-coats-institutional-reform-mongolias-cashmere-sector http://hdl.handle.net/10986/14431 |
| _version_ |
1764429297522573312 |
| spelling |
okr-10986-144312021-04-23T14:03:19Z From Goats to Coats : Institutional Reform in Mongolia's Cashmere Sector World Bank ACCESS TO MARKET AGRICULTURAL MARKETING AGRICULTURE ANIMAL ANIMAL GENETICS ANIMAL HEALTH ANIMAL HEALTH SERVICES ANIMALS AUCTIONS BANK LOANS BORDER PRICE BREEDING BREEDS COLLECTIVE FARMS COMMAND ECONOMY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE ADVANTAGES COMPETITIVENESS COMPREHENSIVE STRATEGY CONTRACTUAL ARRANGEMENTS CROP PRODUCTION DEVALUATION DEVELOPMENT POLICIES DEVELOPMENT STRATEGY DIRECT MARKETING DONOR AGENCIES ECONOMIES OF SCALE EFFICIENT MARKET ENVIRONMENTAL SUSTAINABILITY EQUIPMENT EXPORTS EXTENSION EXTERNAL MARKET EXTERNALITIES FAIR FARM FARM SECTOR FARMERS FEEDING FEMALE GOATS FINANCIAL CRISIS FINISHED PRODUCTS FODDER FODDER PRODUCTION FODDER SUPPLY FORAGE FORAGE UNIT FUR GDP GENETIC MATERIAL GOAT PRODUCTION GOATS GRAZING LAND GRAZING RIGHTS GROSS DOMESTIC PRODUCT GROWTH POTENTIAL HERD MANAGEMENT HERD SIZE HERDERS HERDING HERDS HORIZONTAL INTEGRATION INCOME INCOME LEVELS INCOMES INEFFICIENCY INTERNATIONAL MARKETS INTERNATIONAL TRADE LAMB LAND USE LIVELIHOODS LIVESTOCK LIVESTOCK COMMODITIES LIVESTOCK HEAD LIVESTOCK INSURANCE LIVESTOCK MANAGEMENT LIVESTOCK OWNERS LIVESTOCK SECTOR LIVESTOCK WATERING MACROECONOMIC STABILIZATION MARKET ACCESS MARKET CONDITIONS MARKET DEMAND MARKET DEVELOPMENT MARKET DISTORTIONS MARKET ECONOMY MARKET EXIT MARKET FAILURE MARKET FAILURES MARKET INFORMATION MARKET PRICE MARKET PRICES MARKET TRENDS MARKETING MARKETPLACES NATIONAL HERD OPTIMIZATION ORGANIZATIONAL STRUCTURE OVERGRAZING PARTIAL EQUILIBRIUM ANALYSIS PASTURES POLITICAL ECONOMY POVERTY REDUCTION PRICE CONTROLS PRICE MARGIN PRICE TREND PRIVATE SECTOR PRODUCT DIFFERENTIATION PRODUCTION COSTS PRODUCTION PROCESS PROPERTY TAXES RANGELAND REGULATORY FRAMEWORK RURAL DEVELOPMENT RURAL HERDERS SAFETY NETS SALE SALES SHEEP SOIL EROSION SUPPLY CHAIN SUPPLY CHAIN MANAGEMENT THICKENING TRADE POLICIES TRADE POLICY TRANSITION ECONOMIES UNEMPLOYMENT VALUE ADDED WELLS WOOL WORLD MARKET WORLD TRADE ORGANIZATION WTO The Mongolian cashmere industry has experienced a series of booms and busts over the last decade. Unsatisfactory public sector policies contributed to this result. External factors such as the unfavorable economic environment of the early 1990s, the East Asia crisis, and weather conditions have also affected its performance. Over 1993-96 cashmere exports doubled from US$33.5 million to US$71.2 million, as cashmere's share in exports increased from 9.2 to 16.8 percent. Cashmere exports weakened in 1997 and 1998, recovered briefly in 1999-2000, and faltered again in 2002 to US$45.2 million, below their 1996 levels. Cashmere's share in exports fell from 16.8 to 8.6 percent over 1996-2002. Within this background, the report examines the industry's five principal shortcomings: supply distortions; decreasing cashmere quality, demand imperfections, inadequate marketing and distribution systems, and poor public and private institutional capacity to guide industrial policy development. The lack of an efficient public sector to provide public goods, inadequate strategic business development policies, and unregulated and outdated production patterns have stifled competition, and prevented the industry from reaching its potential. Mongolia's cashmere industry has moved only marginally up the value-added chain beyond primary production, leaving it especially vulnerable to changes in market demand. It also examines Mongolia's current legal and administrative mechanisms for regulating grazing land - poorly understood by central and local governments that also frequently lack the capacity to implement the laws. The 1995 Land Law gave local governments broad authority to regulate grazing. With clarification of their legal mandates and capacity-building interventions, local governments, perhaps in partnership with local herding associations, would be capable of regulating pasture use. This paper examines the structure, conduct, and organization of Mongolia's cashmere industry and discusses the strategic supply chain linkages needed to improve its production, marketing, and competitiveness. The paper looks at how agents along the cashmere industry supply chain can generate collective efficiencies and gain competitive advantages by deepening collaboration. It also examines how public policy affects industry and firm decisions on cashmere production and marketing systems, and the incomes of herders and rural communities. It suggests a set of actions and policies for the private and public sectors - including the donor community - to facilitate cashmere's transition to a truly competitive industry. Highlighted are existing initiatives to improve market coordination, and generate cost savings, and propose areas for expansion. 2013-07-09T22:36:34Z 2013-07-09T22:36:34Z 2003-12-19 http://documents.worldbank.org/curated/en/2003/12/6762004/mongolia-goats-coats-institutional-reform-mongolias-cashmere-sector http://hdl.handle.net/10986/14431 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work East Asia and Pacific Mongolia |