In 1921–1990 Mongolia maintained a rigid planned command economy model. Since 1990, the process of transition to a market economy began in specific conditions: underdeveloped communications, sparsely populated territory, adverse climatic conditions for the development of agricultural production, dependence of the country's economy on the USSR and other former socialist countries. Market economy as a science and business practice management was a completely new concept for the country and required developing approaches to solve many theoretical and methodological problems. The main challenge was that an integral theory of the country's social development was not evolved yet. All known theories did not model a concept for the transition from a centrally-operated economic system to a market economy.