The Economics of Everyday Things
Cashmere (Replay)
Dec 23, 2024
Explore the intriguing transformation of cashmere from a luxury item to an everyday staple, driving a goat boom in Mongolia. Discover how this shift impacts local herders, balancing tradition with inflation pressures. Dive into the economic complexities and environmental challenges facing the cashmere industry, including over-reliance on middlemen and the consequences of climate change. Learn about the sustainable efforts of communities committed to preserving their heritage while navigating the modern market demands.
15:10
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Quick takeaways
- The massive demand for cashmere has led to overgrazing in Mongolia, degrading 70% of the country's grasslands due to environmental instability.
- Despite the vital role of cashmere in the economy, many herders face financial struggles due to inflation and market access challenges.
Deep dives
The Importance of Cashmere to Mongolia's Economy
Mongolia is home to approximately 27 million cashmere goats, which outnumber the human population by eight to one, making the cashmere industry a crucial economic pillar. Herders rely heavily on cashmere as a primary income source, with it being a significant part of the country's economy and livelihoods. Each goat can yield around $10 worth of cashmere, meaning that herders require a herd of about 500 goats to achieve Mongolia's median household income of $5,000. Despite the abundance of goats, many herders struggle financially due to inflation, rising costs of living in urban areas, and the challenges of accessing markets.
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