Socio-Economic Development of Mongolia and Turkmenistan After the Collapse of the Socialist Camp

Following the dissolution of the socialist camp, both laypersons and researchers closely monitored the processes of reintegration of these countries into the global community, the transition to market-based economies, and the adoption of more democratic and liberal values. However, less prominent representatives of the former socialist camp, such as Mongolia and Turkmenistan – countries that share significant historical and geographical similarities – have often been overlooked as they embarked on divergent paths following their departure from socialism. The article examines and compares the consequences of the transition of these two states from a planned economic system to a market-oriented one. The author analyzes the common historical features of the countries under study, their socio-economic indicators, and identifies the causes and factors influencing the formation of these indicators. Additionally, the article presents brief recommendations for improving these metrics. In conclusion, it is posited that due to inclusive state institutions, Mongolia is likely to have long-term advantages in social and economic indicators compared to Turkmenistan, which is characterized by extractive institutions.