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The Independent
13-06-2025
- Business
- The Independent
Mongolia gets a new prime minister who pledged to address the economic demands of protesters
The new prime minister of Mongolia has pledged to address the economic demands of protesters after their daily rallies led to the fall of his predecessor. Lawmakers approved former parliament speaker Zandanshatar Gombojav as prime minister by an overwhelming majority in a vote late Thursday night. His election appeared to mark the end of several weeks of political uncertainty in a still-young democracy of 3.4 million people that is sandwiched between much larger China and Russia. The new leader faces multiple challenges including high inflation, a looming government budget deficit and fears of power shortages this winter. Speaking ahead of the vote in parliament, Zandanshatar said this year's government spending needs to be reduced by about $640 million to avoid a significant revenue shortfall. ' Revision of the budget has become inevitable,' the former banker said, saying he would submit a revised budget to parliament next week. Zandanshatar, 45, studied economics at university in Russia and was vice director of one of the largest commercial banks in Mongolia. He was parliament speaker from 2020 to 2024 and was named head of the president's office after he lost his seat in an election last year. From 2014-16, he was a visiting scholar at Stanford University in California. His predecessor, Oyun-Erdene Luvsannamsrai, resigned 10 days ago after losing a vote of confidence in parliament. The protests against Oyun-Erdene's rule were sparked by reports of lavish spending by his son. Many Mongolians feel the nation's mineral wealth has benefited politicians and their business friends rather than the general population. The poverty rate remains high in the sparsely-populated country. Zandanshatar said he would ensure that economic growth is inclusive and reached all Mongolians. He promised to launch a tax reform to reduce the burden on the middle class and increase taxes on luxury consumption and those with ultra-high incomes. He won election by a vote of 108 to 9 in the 126-member parliament. The other nine members were absent.
Associated Press
13-06-2025
- Business
- Associated Press
Mongolia gets a new prime minister who pledged to address the economic demands of protesters
ULAANBAATAR, Mongolia (AP) — The new prime minister of Mongolia has pledged to address the economic demands of protesters after their daily rallies led to the fall of his predecessor. Lawmakers approved former parliament speaker Zandanshatar Gombojav as prime minister by an overwhelming majority in a vote late Thursday night. His election appeared to mark the end of several weeks of political uncertainty in a still-young democracy of 3.4 million people that is sandwiched between much larger China and Russia. The new leader faces multiple challenges including high inflation, a looming government budget deficit and fears of power shortages this winter. Speaking ahead of the vote in parliament, Zandanshatar said this year's government spending needs to be reduced by about $640 million to avoid a significant revenue shortfall. 'Revision of the budget has become inevitable,' the former banker said, saying he would submit a revised budget to parliament next week. Zandanshatar, 45, studied economics at university in Russia and was vice director of one of the largest commercial banks in Mongolia. He was parliament speaker from 2020 to 2024 and was named head of the president's office after he lost his seat in an election last year. From 2014-16, he was a visiting scholar at Stanford University in California. His predecessor, Oyun-Erdene Luvsannamsrai, resigned 10 days ago after losing a vote of confidence in parliament. The protests against Oyun-Erdene's rule were sparked by reports of lavish spending by his son. Many Mongolians feel the nation's mineral wealth has benefited politicians and their business friends rather than the general population. The poverty rate remains high in the sparsely-populated country. Zandanshatar said he would ensure that economic growth is inclusive and reached all Mongolians. He promised to launch a tax reform to reduce the burden on the middle class and increase taxes on luxury consumption and those with ultra-high incomes. He won election by a vote of 108 to 9 in the 126-member parliament. The other nine members were absent.
Irish Times
11-06-2025
- Politics
- Irish Times
Questions over who gains from Mongolian prime minister's downfall
Soon after the start of the demonstrations that led Mongolia's prime minister to resign last week, Enkhbadral Myagmar noticed masked figures following him when he left home. One day, after he received a call from an unfamiliar number, a man on the street asked to use his phone and when he was finished, Enkhbadral saw he had called the same number. The 32-year-old sociologist was one of a small group that organised the protests, which followed reports of lavish spending by former prime minister Luvsannamsrain Oyun-Erdene 's 23-year-old son. The others had noticed suspicious behaviour too and all had been subject to aggressive trolling online. 'We kept it quiet because we didn't want to scare young people away from joining the protests,' says Enkhbadral. The daily demonstrations in front of the building on Ulaanbaatar's Sukhbaatar Square that houses the State Great Hural, Mongolia's parliament, began on May 14th with just 40 people. But by the time the prime minister announced his resignation last week, thousands were coming to the square every day. READ MORE 'It was started by a group of friends who all knew one another and had collaborated on things before. I am the oldest, the others are in their 20s,' Enkhbadral said, adding that none of the group had any political party affiliations. 'It was building up over time, the frustration over how freedom of speech and media freedom, and civic space, was shrinking. It was all building up and the outburst was this protest. As soon as the news about the lavish lifestyle of the prime minister's son came out on social media, frustration really peaked, and then they started to contact each other.' Oyun-Erdene, who became Mongolia's prime minister in 2021, rose to prominence as an organiser of mass demonstrations against corruption and presented himself as a politician in touch with ordinary people. But when his son's fiancee posted pictures of an expensive Dior bag and boasted of helicopter rides and luxury cars, it was not clear how the couple could afford such a lifestyle. The demonstrators demanded an explanation from the prime minister but for weeks he declined to address the issue. Even when, on the eve of his resignation, Oyun-Erdene and his son submitted financial statements to anti-corruption authorities, they offered no public account of where the money came from. With 3.5 million people living on a landlocked territory between Russia and China, 22 times the size of Ireland, Mongolia is the most sparsely-populated country in the world. Rich in copper, gold, coal and other minerals, it is still a lower middle-income country where 30 per cent of the population live below the poverty line. A communist state with close ties to the Soviet Union from 1921 until 1990, Mongolia has been a parliamentary democracy for the past 35 years. International monitors have consistently approved the country's elections as free and fair but the political system has been dogged by corruption, much of it linked to the mining industry. 'After 70 years under a socialist system, the first accumulation of capital was only possible in mining and real estate. And this was of course misused by people close to decision-making,' said Jargalsaikhan Dambadarjaa, an economist and policy analyst who runs the DeFacto Institute in Ulaanbaatar. 'Because of this unequal distribution of wealth there are groups which support political parties above or under the table and certain interests prevail.' Mongolia's then prime minister Luvsannamsrain Oyun-Erdene bows after losing his position in a vote on June 3rd. Photograph: Byambasuren Byamba-Ochir/AFP via Getty Images Oyun-Erdene's government, a grand coalition including his Mongolian People's Party (MPP) and their usual opponents in the Democratic Party, commanded 94 per cent of the seats in parliament. Last April, it passed a long-anticipated law establishing a sovereign wealth fund that allows the government to take a 34 per cent stake in 16 mines judged to contain strategic mineral deposits. 'That's why this guy paid the cost. He finally wanted to really accumulate money in this wealth fund,' Jargalsaikhan said. 'Out of the 16 mines, seven are state-owned, which means they can give money to the wealth fund. But the other nine are owned by private individuals, nine families really. They don't want to, because this new law says that 34 per cent of the deposits of the strategic mines come to the state and will accumulate into that fund. You can imagine what big money we're talking about.' Jargalsaikhan believes that the new government will leave the sovereign wealth fund law on the books but that it will not implement it. So the state will simply not move to take its 34 per cent stake in the privately-owned mines. Enkhbadral agrees that the private mining interests are probably happy to see the back of Oyun-Erdene but he rejects any suggestion that they orchestrated or manipulated the demonstrations. And he argues that strengthening Mongolia's democratic culture is essential to make politicians more accountable and their links with moneyed interests more transparent. 'To maintain the legitimacy of the protest and to protect it from interference from outside interests, we formulated three demands,' he said. 'The first was that the prime minister should resign. The second was an end to the grand coalition and the return of a parliamentary opposition. The third was that there should be no constitutional amendment to allow the president to run for another term in office.' Oyun-Erdene claimed he was the victim of an 'organised campaign' by 'major, visible and hidden interests' but when he failed to win a majority in a confidence vote on June 2nd, he resigned as prime minister. His MPP announced the end of the grand coalition, putting the Democratic Party back into opposition. Mongolia's president is directly elected and is limited to a single, six-year term. Although the office has few executive powers, the president appoints the chief justice and nominates other members of the judiciary and the chief prosecutor, chairs the national security council and can veto legislation. Demonstrators demanding the resignation of then prime minister Luvsannamsrain Oyun-Erdene earlier this month. Photograph: Byambasuren Byamba-Ochir/AFP via Getty Images There has long been speculation that Khürelsükh Ukhnaa, who took office in 2021, would attempt to seek a second term and to change the constitution to give the president more powers. But the president confirmed last week that he had no intention of seeking a further term in office, conceding the demonstrators' third demand. 'All the protests and demonstrations before this one, they were never successful in the end, or they were used by the government. But this protest achieved its demands,' Enkhbadral said. 'Since 2008, any kind of demonstration was not a way to change anything. They were all very unsuccessful. This one not only won the three demands, but also culturally, it set a new standard. Every day we had agendas, every day, whatever the protesters were doing was transparent and announced. The organisers were young people from media backgrounds and from civil society and they brought a new approach to democracy. It showed a new era of democracy emerging in Mongolia.' The MPP this week nominated Zandanshatar Gombojav, president Khürelsükh's chief of staff and a former party general secretary, as prime minister. Enkhbadral is optimistic that the Democratic Party will resume its role as an opposition party in holding the government to account. New legislation regulating political parties and requiring greater transparency on their funding should come into force after a year-long delay. And a change to the electoral system means there are now more members of parliament, a portion of whom are elected in individual constituencies rather than as part of a party list. 'Ever since the Covid pandemic, we have had what we call a PR government that tried to buy the media and control the information that the public received,' Enkhbadral said. [ From Mongolia to Dublin: 'Coming to Ireland was a blessing. It was a great move for my life, I have no regrets' Opens in new window ] 'And their attitude was, we're going to make you think what we want you to think. So the outcome of the demonstration is not about one person or one government, one coalition. Its effect is to break this PR government that has been in place since the pandemic until now.'
CTV News
07-06-2025
- Politics
- CTV News
How protests over designer handbags threw Mongolia into political crisis and sparked a prime minister's resignation
Protestors gather at a rally calling for the Prime Minister's resignation at the Sukhbaatar Square in Ulaanbaatar, Mongolia, Thursday, May 22, 2025. (AP Photo/Ganbat Namjilsangarav) Mongolia has been thrown into fresh political crisis with the country's prime minister announcing his resignation following weeks of protests sparked by his family's lavish displays of wealth. Young Mongolians had taken to the streets of the capital putting pressure on Prime Minister Oyun-Erdene Luvsannamsrai, who lost a vote of confidence in his government on Monday, before stepping down. Democratic Mongolia is a landlocked nation of just 3.5 million people sandwiched between authoritarian giants China and Russia, and the latest political crisis has put renewed scrutiny on the stability of the country's democracy. Here's what to know: Luxury car, designer handbags The protests were triggered by social media posts that went viral showing the prime minister's 23-year-old son's lavish engagement proposal and their apparent extravagant lifestyle including helicopter-rides, an expensive ring, designer handbags and a luxury car. Suspicion grew over how the son accumulated such wealth – especially as Prime Minister Oyun-Erdene campaigned on being from a rural, not wealthy family. 'With no visible sources of income, their display of luxury bags, private travel, and high-end living was a blatant slap in the face to the average Mongolian citizen,' said Anima, 28, a member of protest group Ogtsroh Amarhan (Resigning is Easy). Anima, who wanted to go by one name for security reasons, said the protests go beyond the social media posts flaunting wealth, which she said were symptomatic of a widening disconnect between the ruling elite and everyday people. Deepening the anger is the rising cost of living, soaring inflation in the wake of Russia's war in Ukraine, and choking pollution in the capital that's home to half the population. 'The cost of living in Mongolia has skyrocketed — many people are paying nearly half of their monthly income in taxes while barely making enough to cover food, rent, or utilities. Most are not living paycheck to paycheck anymore — they're living loan to loan, debt to debt,' she said. Protesters have gathered in the capital Ulaanbaatar's central Sükhbaatar Square, in front of the Government Palace, almost daily for two weeks, calling for Oyun-Erdene to release his finances and resign. The Prime Minister's office called the allegations of financial impropriety 'completely unfounded.' 'The prime minister makes regular financial declarations annually in line with Mongolian law,' the office said in a statement to CNN. Corruption For decades, Mongolia has struggled with endemic graft and protests often break out over allegations that corrupt officials and business leaders were enriching themselves with public funds. Mass protests erupted in 2022 over a corruption scandal involving the alleged embezzlement of billions of dollars' worth of coal destined for China. Though analysts say there is no evidence of corruption by Oyun-Erdene, his son's social media posts deepened the frustration of a public long wary of their elected officials misusing public resources. 'I want a fair society where ordinary people have a voice, and where government officials are held accountable. Seeing so much inequality, injustice, and arrogance from those in power pushed me to speak up,' said Ariunzaya Khajidmaa, 23, a resident of Ulaanbaatar who joined the protests with her 2-month-old baby. Part of public frustration is that even when corruption cases are prosecuted, they are slow to work their way through the judicial system, leading some to question the independence of the judiciary. The 2024 Freedom House index said 'corruption and political influence in the daily work of judges remain concerns.' 'If you look at the corruption index, it has gone down. And one explanation is that, even though the Prime Minister has exposed a lot of the corruption cases, nothing has been done. So now everybody's looking at the judiciary,' said Bolor Lkhaajav, a Mongolian political analyst and commentator. What's the Prime Minister's position? The Prime Minister had tried to save his coalition government and parliament, called the State Great Khural, held a vote of confidence on Monday. Oyun-Erdene failed to secure enough votes and a parliamentary statement later announced in a statement that he had resigned. He will continue to serve in an interim capacity until a new party leader is appointed, his office said in a statement. Oyun-Erdene and his son have submitted themselves to Mongolia's anti-corruption agency and the prime minister said he would resign if the investigation uncovered any irregularities. 'It has been an honor to serve my country and people during this challenging time marked by a global pandemic, war, and economic turmoil such as tariffs,' he said. 'Tip of the iceberg' The protests are just 'the tip of the iceberg,' said Jargalsaikhan Dambadarjaa, a Mongolian broadcaster and political commentator, who pointed to some of the major economic shifts in the country. Oyun-Erdene, who was re-elected to a second term in 2024, had promised to diversify the country's economy, which is dependent on the mining industry accounting for about a quarter of GDP. Mongolia has huge deposits of coal, copper, gold and phosphorite, and about 90% of Mongolia's coal exports go to China. Oyun-Erdene's coalition government last year announced 14 new mega projects to boost economic growth, including cross-border railway connections and a major expansion of renewable energy. And one of Oyun-Erdene's signature policy centerpieces was establishing a national wealth fund, which the government said aimed to redistribute the country's assets to the people. The Sovereign Wealth Fund law, approved by parliament in April, allows the government to take a 34% stake in mines considered to have strategic mineral deposits, meaning they are vital for the country's economy and development. There are currently 16 such sites and the profits will go into the fund, with portions allocated to benefitting Mongolian people including through financial assistance, healthcare, education, and housing, according to public broadcaster Montsame. The move has not sat well with the country's wealthy and powerful mining elite. 'These people, they are now at the edge of losing their power - huge money - which created huge inequality in the country. So they are fighting to the death against this government,' said Jargalsaikhan. A democracy between two autocratic giants Mongolia has been a parliamentary democracy since its democratic revolution in 1991. But the years since have seen multiple governments toppled, or leaders shuffled. This instability has led some Mongolians to believe the powers of President Khurelsukh Ukhnaa, who is head of state, should be extended. Currently, the president can only serve one six-year term. 'In this mosaic, those who are supporting presidential power argue that, look at Russia and China, they are one-man presidential powers and they are very stable. They say, we tried this parliamentarian system and it looks like it doesn't work. That's their idea,' Jargalsaikhan said. Khurelsukh has repeatedly said he does not want to change Mongolia's parliamentary democracy. However, some believe amending the constitution to extend presidential term limits is on the table. 'It's a very crucial time, a very delicate time, and it's another test to our democracy,' said Jargalsaikhan. 'Freedom comes only with the parliamentary system… If we don't do that, we will be another failed economy, a failed nation.' In a statement, the prime minister's office said, 'there has been a deliberate attempt to undermine' the reforms of the coalition government by a 'hostile campaign' that would 'turn Mongolia away from a parliamentary democracy and return power and wealth to a small group driven by self-interest.' Analysts say Mongolia needs to show it can have stable governance so it can attract broader foreign investment and reduce its economic dependence on China and Russia. Khurelsukh last year welcomed Russian President Vladimir Putin for an official visit to Mongolia, a trip condemened by Ukraine. The visit was Putin's first to a member country of the International Criminal Court which had issued an arrest warrant for Putin on charges on war crimes. 'A lot of the governments that are looking at Mongolia as an oasis of democracy between Russia and China, so they want to trust us, but at the same time, you have to show some accountability and stability for other governments to say, okay, Mongolia is getting better,' said Bolor. Those on the streets say they are tired of political games and want to see tangible improvements to their daily lives. 'We want stronger anti-corruption measures, public officials who are held to ethical standards, and a system that ensures no one is above the law,' said Ariunzaya. 'It's time for the government to listen to its citizens and take meaningful, lasting action—not just offer words.'
Independent Singapore
03-06-2025
- Business
- Independent Singapore
Luxury handbags spark political meltdown in Mongolia
INTERNATIONAL: Mongolia has plunged into a new political crisis as Prime Minister Oyun-Erdene Luvsannamsrai formally stepped down after a no-confidence vote and weeks of dissent led by fuming Mongolians, particularly the young generation. According to the latest CNN report, the turbulence was prompted by viral social media posts displaying the profligate lifestyle of the Prime Minister's 23-year-old son, which includes helicopter rides, expensive and fashionable bags, and an intricate engagement party featuring an extravagant car and a diamond ring. Many probed how such affluence was attained, primarily since Oyun-Erdene's is known to have originated from a modest countryside upbringing, according to his narrative. 'With no visible sources of income, their display of luxury bags, private travel, and high-end living was a blatant slap in the face to the average Mongolian citizen,' said Amina, a demonstrator belonging to the group Ogtsroh Amarhan (Resigning is Easy). Corruption, cost of living, and public disillusionment Citizens' fury is not restricted to viral pictures. Activists in central Ulaanbaatar's Sükhbaatar Square have spoken about more pressing concerns, specifically economic difficulties, widespread fraud and exploitation, and a political class viewed as 'out of touch.' Price increases, intensified by Russia's confrontation in Ukraine, have escalated the cost of living, with many Mongolians struggling to survive on a 'loan to loan, debt to debt' existence, said Amina. Transparency fears have deepened after years of sluggish progress in corruption cases, such as the 2022 outrage over coal exports to China. Although no direct proof implicates Oyun-Erdene in the crimes, his son's posts served as a lightning rod, triggering extreme resentment among the people. 'I want a fair society where government officials are held accountable,' said Ariunzaya Khajidmaa, a fledgling mom who joined the demonstrations with her newborn. Reform agenda meets resistance from the elite Oyun-Erdene stepping down is a major setback to his alliance's forceful reform program, which comprised a Sovereign Wealth Fund intended to reallocate revenues from Mongolia's mineral assets, such as coal and copper, to the public. The fund allows the government to claim a 34% stake in mines deemed to be of strategic national importance. Although the régime asserted that these reforms were meant to assist ordinary Mongolians through housing, healthcare, and education, they were confronted with intense hostility and resistance from the deeply rooted economically privileged. 'These people are now at the edge of losing their power—huge money, which created huge inequality in the country,' said newscaster and political expert Jargalsaikhan Dambadarjaa. 'So, they are fighting to the death against this government.' A crossroads for Mongolia's democracy Ever since it was converted into a democracy in 1991, Mongolia has struggled with political instability, and the latest predicament has rekindled discussions over the usefulness of its parliamentary structure. Some now contend for extended presidential terms, alluding to the assumed stability of adjacent authoritarian governments in China and Russia. President Khurelsukh Ukhnaa, who has openly expressed his dedication to parliamentary democracy, is facing increasing pressure amid rising demands to amend term limits. 'It's a very crucial, delicate time, and it's another test to our democracy,' said Jargalsaikhan. International spectators view Mongolia as a distinct democratic bastion between surrounding authoritarian regions. Still, political analysts warn that only genuine accountability and robust governance can attract foreign investment and safeguard its democratic identity. 'It's time for the government to listen to its citizens and take meaningful, lasting action—not just offer words,' said protester Ariunzaya. 'We want stronger anti-corruption measures and a system where no one is above the law.'
