The National Assembly quickly established reforms meant to destroy
feudal society, but it took several decades to truly build a socialist
economy under a totalitarian government controlled by the Mongolian
Communist Party (Mongolian People's Revolutionary Party, or MPRP).
In fact, several leaders tried to build a free market economy before
the socialist planned economy was imposed.*
With the advent of Stalin's dictatorship in Russia (1928), Mongolia
became a puppet state of the Soviet Union. Its leaders (Choibalsan,
Tsedenbal, and the Politburo) organized purges of those who opposed
the government every time Stalin held a "purge," the command
economy imposed 5-year plans on the rural and industrial parts of
the economy, herders were gathered into collectives, and daily life
Choibalsan, first Communist dictator, courtesy
of the National Museum of Mongolian History.