The Nomad Economy

I had often wondered about how the Nomads earn a living. My impression was that they just “lived off the land” meaning they get whatever they need to live/survive from their animals and land itself. “Barter” and purchase of goods are fundamental to any people and culture though, and the nomads are no different. So what are the sources of “income” for the nomads?

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I went to college at UC Davis (a well known agricultural school), which automatically makes me an expert in agricultural economics (even though I studied engineering) 😛

So I had wondered why the nomadic lifestyle was so prolific in Mongolia. It is a simple matter of (agricultural) economics! There is very little arable (fertile) land in MongoliaIMG_0187 for raising staple crops. Weather wise, the ground is frozen for several months out of the year. Mongolia is also landlocked with no access to ocean ports (where trading centers establish and thrive) further limiting its economic capacity. All these factors manifested over hundreds have years have most likely resulted in the nomad way of life: sustenance through animals. Read about how this whole scenario
could be changing due to the “myth” of global warming, and how Russia and the nearby Mongolian region can become “Food Superpowers”

It seems that the nomads’ wealth is directly measured by the number of livestock he possesses. This became apparent when I realized that despite having so many sheep and goats, Durukh would effortlessly know when even one or two were missing! Even more impressively, he would know where to go to “round up” or collect the missing animals. A lost head of livestock means a loss of money.

Nomads do not own the land on which they live or on which they graze their animals. I don’t know how grazing territory is defined therefore. I am guessing it is simply not defined, which is why great care is taken in keeping one nomad’s flock separate fromIMG_0118 another. Once per year, the nomads will go to the provincial or district office to pay a “tax”. The tax is based on the number of head of livestock belonging to the nomad. I have yet to understand how these numbers can be confirmed, or what would prevent a nomad from misreporting the number of livestock???? Well, Mongolia was founded on a Meritocracy.

Nomads also generate income by selling animal products such as goat’s wool or “cashmere” The wool harvest is backbreaking and exhausting work as can be seen in this video:

[youtube https://www.youtube.com/watch?v=cU0ElJniDyo&w=560&h=315]

Maybe that’s why Cashmere products are so expensive?

I believe the nomad’s operate in a “Cooperative” style when it comes to harvesting wool. What I mean by this is that other nomads will come an do the shearing or the wool on your goats for a percentage of the sale of the wool.

Milk, milk products, leather, etc, etc, are all available for sale at the nearest “sum” or district/subdivision capital (the same place where nomads handle most government and business affairs).

So that summarizes my self proclaimed analysis into “Nomad Economics.” In all seriousness, I am no economist this post is based on empirical (observed) facts and some good hard thought and reasoning. If you have some insight you’d like to contribute please do so in the “comments”. Actually leave a comment even if you don;t have anything to contribute 🙂

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