Since the privatization of livestock in 1992, rates of absentee ownership of livestock have increased sharply in Mongolia. Unlike other documented instances of absentee herding in pastoral societies, absentee herd ownership has few detrimental ecological or social impacts in Mongo[ia. Rather, the relationship between absentee herd owners and herders may be viewed as a revitalized institution, with links to customary patterns of urban-rural exchange, emerging to meet the needs of both herders and town-dwellers during the transition from a socialist planned economy to a free market economy. Absentee herding in Mongolia differs from absentee and contract herding accounts from Africa and the Middle East in its continuing emphasis on subsistence rather than speculative investment anti accumulation. Other important distinctions include: (1) absentee owners and herders ape usually kin or friends; (2) herders tend their own private herds in addition to absentee-owned animals; (3) few ethnic, caste, or class differences exist between herders and absentee herd owners; and (4) herders from all wealth strata tend absentee-owned animals. Policies to restrict or regulate absentee livestock ownership must be carefully considered in the Mongolian context, making clear distinctions between informal, mutually beneficial subsistence-driven arrangements among kin and friends, and more formal investment-driven contracts between businesses or investors and herders.