Latest news with #OyunErdeneLuvsannamsrai
The Independent
3 days ago
- Business
- The Independent
Resource-rich Mongolia faces political uncertainty after the prime minister resigns
Resource-rich Mongolia is facing political uncertainty following the resignation early on Tuesday of its prime minister in the wake of protests over endemic corruption in the landlocked Asian country, squeezed between China and Russia. Before he lost the confidence vote in the parliament, Prime Minister Oyun-Erdene Luvsannamsrai warned that his removal could undermine Mongolia's fledgling democracy. The vote followed weeks of protests sparked by reports of lavish spending by his son and calls for him to step down. The reports, which cited expensive jewelry and helicopter rides for the son's female companion, underscored the vast gap between Mongolians who have grown extremely wealthy off the country's exports and much of the rest of the population, mired in poverty. Here is a look at why what is happening in Mongolia matters: A fledgling democracy between two big powers Mongolia, a country of about 3.5 million people, borders Russia to the north and China to the south. Its stunning alpine mountains interspersed with vast deserts hold an abundance of coal, copper and other natural resources used in high-tech manufacturing. The question of who benefits from the wealth has been a key issue since Mongolia began negotiating with foreign mining giants — rumors of secret deals and under-the-table payments have circulated for years. After Mongolia threw off Communism at the end of the Cold War, it lost generous Soviet Union aid packages. Since then, it has been slowly becoming a democracy but is struggling to avoid falling into debt while holding Chinese and Russian interests at bay. China is a particularly important neighbor as its ruling Communist Party buys up 92% of Mongolia's exports. A 'spiders' web' of the greedy Over the years, the capital of Ulaanbaataar transformed itself from a city of clunky Soviet-era buildings surrounded by traditional herders' felt tents known as gers, into a metropolis of shopping malls and fancy hotels. The protesters have said the country's mineral riches have benefited business interests and the wealthy, while many Mongolians still live in poverty. Early on Tuesday morning, Oyun-Erdene only got 44 votes of support in the 126-seat legislature — the State Great Khural — well short of the 64 needed, according to the head of the counting commission, M. Narantuya-nara. Oyun-Erdene accepted defeat, saying it had been an honor to serve the nation through the coronavirus pandemic, Russia's war on Ukraine and the ongoing strife over U.S. tariffs. But he also warned of the threat of a 'spider's web' of special interests that he said are working to hold the Mongolian people back. What happens next? Oyun-Erdene, who ran a coalition government, will remain prime minister until his replacement is elected in parliament, most likely from the ranks of opposition lawmakers. Those who pick his successor will likely also have to find a platform that will satisfy the demands of the largely young and well-educated class that has led the protests. That could include moving ahead with a national sovereignty fund introduced recently to better help spread the wealth. In stepping down, Oyun-Erdene defended his integrity but said he had made the mistake of 'paying insufficient attention to social and internal political matters.' He also warned of political instability ahead, saying it "could lead the public to lose faith in parliamentary rule and potentially put our democratic parliamentary system at risk of collapse.' What do experts and the ordinary people say? Erin Murphy, deputy director and senior fellow of India and emerging Asian economics at the Center for Strategic and International Studies, said it's not easy to "build that foundation for democracy' at a time when Mongolia also must tackle economic problems. Julian Dierkes, a Mongolia expert at the University of Mannheim in Germany, said he doesn't expect any major policy changes, whoever becomes the next prime minister. 'They will be selected on the basis of personal networks and patronage,' Dierkes said. Many people on the street seemed worried for the future and some defended the outgoing prime minister on Tuesday. Oyun-Erdene should not be responsible for his son's failings, said Gansukh Batbayar, a military retiree in Ulaanbaatar who lauded what he described as Oyun-Erdene's efforts to 'confiscate illegally earned assets and money of corrupt officials' and distribute it more fairly. 'We barely survive in these chaotic times and our pensions are very small,' said an older woman on a public bus in Ulaanbaataar, who declined to give her name to speak about the political developments. She counts on her children "to have food to eat and a roof over my head,' she said. ___
Telegraph
3 days ago
- Business
- Telegraph
Designer handbags and diamond rings bring down Mongolian PM
Mongolia's prime minister has resigned in ignominy after photos of his son's lavish lifestyle were plastered across social media, sparking weeks of protests. Oyun-Erdene Luvsannamsrai lost a vote of no confidence after a corruption investigation into his family's sources of wealth was launched. Mr Luvsannamsrai's 23-year-old son Temuulen showered his fiancee with gifts, including Chanel and Dior handbags worth thousands of pounds, and a diamond ring. For weeks, frustration towards the prime minister mounted as Mongolians struggled to understand how the son of a civil servant who earns less than £20,000 a year could afford such gifts. In an ostentatious show of wealth, pictures on social media appeared to showed Temuulen's fiancee with a MiuMiu blazer worth nearly £4,000, bags of goods from Canada Goose, a luxury winter wear clothing store, and her behind the wheel of a £40,000 Volvo. The fiance, named as Uguumur, has since deleted all the posts on her Instagram account. Temuulen was also reportedly enrolled in a language programme at Harvard University, which costs around ￡6,000. He has reportedly been recalled since the protests. '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,' Amina, a 28-year-old member of the Ogtsroh Amarhan (Resigning is Easy) protest group, told CNN. Mongolia is a landlocked country with a population of only 3.5 million, nestled between China and Russia. The minimum wage is around £160 a month, and there is a cost of living crisis. For years, the country's economy has been hugely dependent on Russia for energy and China for commerce. The current government coalition, elected last July and led by Luvsannamsrai, had tried to establish greater relations with the West, but little came of it. Against this backdrop, it was not surprising that Uguumur's posts quickly went viral and began sparking questions around corruption, which both father and son deny. In a statement, the prime minister's office called the allegations of financial impropriety 'completely unfounded'. Mongolia currently ranks 114 out of 180 on the Corruptions Perceptions Index, with a very low score of 33 per cent, and for decades the country has dealt with corrupt officials and wealthy business leaders enriching themselves with public funds. With Mr Luvsannamsrai and his family, many Mongolians thought history was repeating itself. More than 58,000 people signed a petition calling for him to step down and hundreds took to the streets in the capital, Ulaanbaatar, shouting slogans that reflected a lack of trust in the government. Mr Luvsannamsrai claimed only that he was 'dedicating too much time to major projects while paying insufficient attention to social and internal political matters'. Analysts have said there is no evidence of corruption by Mr Luvsannamsrai, and he and his son have submitted themselves to Mongolia's anti-corruption agency – but the protests were enough for the prime minister to call a vote of no confidence on Monday. He received only 44 of the 64 votes he needed to maintain his position, and resigned shortly afterwards. While Mongolia has been a parliamentary democracy since 1991, over the years many governments have been toppled, leading to calls for constitutional changes that would enable more stability. Shortly before the vote on Monday, Mr Luvsannamsrai echoed some of these concerns, noting that his country's democracy was still fragile. 'If governance becomes unstable, the economic situation deteriorates, and political parties cannot come to consensus. It could lead the public to lose faith in parliamentary rule and potentially put our democratic parliamentary system at risk of collapse,' he said.
Washington Post
3 days ago
- General
- Washington Post
Mongolia's prime minister resigns after losing a parliament vote of confidence after protests
WASHINGTON — Mongolia 's prime minister resigned early Tuesday after he failed to receive enough support in a vote of confidence in parliament, Mongolian media reported. The country's embassy in Washington confirmed it. Prime Minister Oyun-Erdene Luvsannamsrai received 44 votes, well short of the 64 needed, according to news site
The Independent
3 days ago
- Business
- The Independent
Mongolia's prime minister resigns after losing a parliament vote of confidence after protests
Mongolia 's prime minister resigned early Tuesday after he failed to receive enough support in a vote of confidence in parliament, Mongolian media reported. The country's embassy in Washington confirmed it. Prime Minister Oyun-Erdene Luvsannamsrai received 44 votes, well short of the 64 needed, according to news site The vote followed weeks of protests sparked by reports of lavish spending by the prime minister's son. Some called for the prime minister to step down. Before the vote, Oyun-Erdene warned that the vote could lead to instability and shake Mongolia's fledgling democracy. 'If governance becomes unstable, the economic situation deteriorates, and political parties cannot come to consensus. It could lead the public to lose faith in parliamentary rule and potentially put our democratic parliamentary system at risk of collapse,' he said. He defended his integrity but acknowledged a mistake: 'dedicating too much time to major projects while paying insufficient attention to social and internal political matters.' Oyun-Erdene had held the post for four years and survived previous calls to step down. Last year, parliament was enlarged from 76 seats to 126 following electoral reforms. It resulted in a coalition government. Landlocked between Russia and China, Mongolia has struggled to become more democratic after its party-state era. A communist state during the Cold War, it has been transforming into a democracy since the collapse of the Soviet Union. Protesters have said the country's mineral riches have benefited business interests and the wealthy, while many Mongolians still live in poverty. 'It's very difficult to build that foundation for democracy' at a time that Mongolia also must tackle economic problems, which are a major source of people's frustration, said Erin Murphy, deputy director and senior fellow of India and emerging Asian economics at the Center for Strategic and International Studies. 'We still have to see what happens next and how the new government plans to tackle these issues," she said. While democracy is yet to thrive in Mongolia, 'it is taking root,' Murphy said.
The Guardian
27-05-2025
- Politics
- The Guardian
Mongolia PM expected to call vote of confidence in the face of protests
The political direction of mineral rich Mongolia is to be put to the test, with the country's prime minister expected to call a vote of confidence in his premiership, amid claims that allegations swirling about his son's lavish lifestyle are being exploited to push the country back to authoritarianism. Mongolia has been an outpost of parliamentary democracy since 1992, uneasily squeezed between superpowers Russia and China. Small but persistent protests by young Mongolians have been held in the capital's main square over the past week after reports appeared on Instagram that the son of prime minister, Oyun-Erdene Luvsannamsrai, had given lavish gifts to his fiancee. Concerns over inequality and minerals related to corruption have been a frequent source of protests, but until recently the prime minister maintained a reputation as someone who was challenging the many vested interests that kept rare minerals in the hands of a small wealthy oligarchy. The prime minister's allies say he is leaning towards announcing the vote of confidence on Tuesday with the vote likely to occur in the middle of next week. The protests have been fuelled by allegations the prime minister's family are enjoying wealth far beyond the level of a civil servant. The fiancee of the prime minister's 23-year-old son, Temuuleni, posted pictures on her Instagram account showing luxury bags, an expensive ring and even a Mercedes-Benz, prompting anger. It has been claimed the prime minister must have been aware of his son's luxury lifestyle or even funded some of gifts. Luvsannamsrai has submitted himself to a full inquiry by the country's anti-corruption watchdog, but has explained little in public. A petition signed by 59,000 people had called for him to quit citing the unknown sources of his son's wealth, high inflation and growing repression of press freedom. But sources inside the government say the lifestyle of the prime minister's son is being exploited by the supporters of Mongolia's President, Ukhnaagiin Khürelsükhto, in a bid to give him the power to sideline the parliament and take up a second term in office. Currently the president can only serve one term of six years. Last September the president courted controversy in Europe when he invited Vladimir Putin to Mongolia even though as a signatory to the Rome Statute, Mongolia had an obligation to arrest the Russian leader for war crimes in Ukraine as requested by the international criminal court. The president also attended Putin's recent 'victory parade' in Red Square. Figures inside the government say Khürelsükh, previously the country's prime minister and like the current prime minister a member of the Mongolian People's Party, wants to be able to stand for a second six year term and would like to see Luvsannamsrai removed in favour of someone willing to reduce the power of the parliament. Luvsannamsrai was re-elected prime minister only 10 months ago, with his party winning 68 seats in the 126 seat parliament. But trying to build a political consensus around the long-term changes needed to modernise the country's economy, including developing a national wealth fund and some major infrastructure investments, he chose to form a three party coalition with the Democratic Party (42 seats) and the HUN Party (8 seats) instead of governing alone. But after three members of the Democratic Party (DP) expressed support for the street protests against the prime minister, the Congress of the Mongolian People's Party at a marathon closed door meeting voted to declare the DP had expelled themselves from the coalition, a decision that could spell the end for the prime minister. DP leader Gantumur Luvsannyam, who is the deputy prime minister, said that the views of the three legislators were not his or his party's position, but exercising their right to free expression was not in conflict with any coalition agreement. Jargal DeFacto, a leading Mongolian commentator and broadcaster, told the Guardian: 'Those that want an extended Presidency with more power have a simple argument. They say because China and Russia, our neighbours, have stability, when we keep changing political leaders, we need a strong Presidency. This clash has been coming for more than a year because the next Presidential election is in 2027. The controversy is dividing the ruling Mongolian People's Party into two camps'. He added 'The government also wanted to move away from being a commodity and debt driven economy by setting up a sovereign wealth fund funded by strategic deposits. That has set the prime minister against wealthy private individuals that will not relinquish their strategic resources to the wealth fund.' 'Ironically he is facing political resistance because he is disclosing corruption in banking, mining and education, which means he is making a lot of enemies, but the court system is itself corrupt so they do not go after the big shots, and instead concentrate on small cases. It creates distrust in the state as a whole, especially when inflation and interest rates are high.' China is Mongolia's single biggest export market, but the coalition government has tried to diversify the economy by focusing on a raft of 14 major infrastructure projects.
