The Setting of Outer Mongolia
By the early 20th century, Mongolia was impoverished. Repercussions from the Taiping Rebellion (1850-1864) were primarily responsible for this economic deterioration. Loss of tax revenue from south China during the rebellion and expenses for its suppression had depleted the Qing treasury. Silver, rather than livestock as was the custom, became the primary medium for paying taxes. The major source of silver for Mongolians was from loans borrowed from Chinese merchants. These loans, transacted at crippling interest rates, were repaid in livestock, which was then exported to China. The result was a catastrophic decline in the size of the herds upon which the livelihood of Mongolians depended.
A disintegrating economy, growing debt, and increasing tax demands were ingredients of social and political unrest in Mongolia. However, it was Qing plans for the transformation of Outer Mongolia that produced the impetus for rebellion.
Read more about this topic: Outer Mongolian Revolution Of 1911
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