Mongolia’s Crisis Sparks Opportunity for Systemic Transformation

Mongolia’s Crisis Sparks Opportunity for Systemic Transformation

Mongolia faces a critical juncture as it grapples with political discontent alongside economic growth. Despite record exports and increased government revenue, many citizens feel disenfranchised and unheard. The nation has shifted from public outrage regarding resource mismanagement to an open constitutional crisis, revealing the deeply embedded issues of governance.

Mongolia’s Political Turmoil

The removal of Prime Minister Zandanshatar Gombojav in October, only four months into his term, marked a significant political event. This decision faced a presidential veto due to constitutional concerns. The constitutional court supported the veto, highlighting procedural violations by the parliament.

Critics argue that Western media often misinterpret Mongolia’s situation. Instead of framing the political upheaval as a coup instigated by President Oyun-Erdene Luvsannamsrai against reformist leaders, everyday Mongolians perceive it as symptomatic of deeper systemic issues, such as rising costs of living amid political privileges.

The System of Rent-Seeking

Mongolia operates as a parliamentary democracy yet is marred by what citizens describe as nam-tör, a fusion of party and state. The ruling party, the Mongolian People’s Party (MPP), exerts considerable control over governance, with significant access to state resources available primarily to those loyal to political factions.

  • Corruption Redefined: In Mongolia, corruption has evolved into a broader system where rent-seeking dominates political activity.
  • Coal Industry Issues: The coal sector epitomizes these challenges, with opaque offtake contracts underpinning dealings between state-owned enterprises and private traders.

Coal Contracts and Transparency

The Tavan Tolgoi coal deposit, one of the world’s largest, is at the center of a series of controversial deals. Despite efforts to enhance transparency via a new Mining Products Exchange law, the reality reveals that most coal exports occur through long-term agreements, bypassing market-based auctions.

Approximately four-fifths of coal sold still uses offtake contracts, which detracts from genuine competition and transparency. Reports suggest significant revenue losses for Mongolia, as these contracts often allow intermediaries to profit at the expense of the state.

The Impact of Slow Violence

The concept of “slow violence,” introduced by Rob Nixon, fits Mongolia’s context well. As coal production continues, environmental degradation and pollution impact citizens’ health and livelihoods, further straining public services. Increased smog levels and inadequate public infrastructure exacerbate frustrations among the populace.

  • Public Services: Schools remain overcrowded, and essential services fail to meet demand, despite government promises of reform.
  • Protests as Democratic Memory: Demonstrations in Ulaanbaatar have surged, emphasizing the importance of accountability and public goods in governance.

Recent Elections and Future Prospects

The June 2024 parliamentary elections marked a response to widespread discontent. High voter turnout of nearly 70% demonstrates public engagement and a recognition of the connection between corruption and governance quality. The opposition capitalized on rising anger over the economy and state corruption, gaining significant ground in the legislature.

Mongolia’s path forward hinges on whether citizens can leverage this moment of crisis into a movement for genuine accountability and systemic transformation. The continuous cycle of scandal without resolution has eroded public patience, but it also presents an opening for change.

In conclusion, Mongolia’s crisis is not merely a political or economic issue. It encapsulates a broader struggle for democracy and equitable governance. The nation’s future depends on the ability of its citizens to demand reform and hold power accountable, transforming discontent into constructive action.

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