The period 1975- 1980 was characterized by the nationalization and collectivization of private enterprises and properties. All land was proclaimed state property and private ownership and tenure were abolished. Between 1981 and 1986, the process of nationalization and collectivization was still encouraged, but more attention was given to the creation of state enterprises. As in China, landownership lies with the people collectively, but land-use rights are being allocated to individuals. Economic liberalization has brought considerable environmental problems to the forestry sector in Laos, as administrative protection is very weak relative to the economic forces pursuing the rapid exploitation of resources.
Privatization is the keystone of Mongolia's reform policies.
A first phase, during which the former pastoral cooperatives were abolished in favour of private pastoral rights, has nearly been completed. A second phase emphasizes the privatization of state-owned enterprises, including forestry enterprises. By early 1994, about 60 percent of all small and medium-sized state enterprises had been privatized. As in Laos, there is considerable apprehension in Mongolia that the transition to a market economy may put forest resources at a greater risk. It is recognized that strong mechanisms and incentives are needed to ensure sound natural resources management.