Mongolia Update— Coverage of 1998 Politic nges Tap ¢ Mongolia Update — Coverage of 1998 Political Changessamt Mongolia Update ~ Coverage of 1998 Political Changes CONTENTS A note about Mongolia Update 1. Background —a year of change 2, Who's Who in the Cabinet 3. What’s on the government's plate?Mongolia Update— Coverage of 1998 Political Changes A note about Mongolia Update ‘The Mongolia Update has proven to be one of the more popular documents produced by the UNDP Mongolia office. Since the autumn OF 1997 UNDP has been able to off Wo more frequently updated sources of informa Hon:the UNDP homepageand ourmintiily newsletter, | the Blue Sky Bulletin (available from our office if'voudre Aptalrendy receiving it). Please use the United Nations ae Homepage at hip: www unemen go! lis.iin to keep abreast _ oF the latest political, economic and so DP and isd eats essa criss ntheical Changes Mongolia Update — Coverage of 1998 Pol ee 1. Background — a year of change stelected none government the Democratic Union Coalitic office in June 1996 withastrome manduteanda promise at'sweepiag social andeconomie change. The coalition ofthe Mongolian National Democratic Pariy andthe Mengeliain Social Democtatie Party ran on tne basisofa L'S-stvle election platioms, the Contract with Voters auld gained 30 of the 76 seats in the State [kl Hurl (Parliamens), cameto, Theneweavemment saction programnie wus founded on fundamenial economic reform, inchiding pivausationafthe mxijor industeia ente-prisesand the state- ‘owned banks. iberalisaion of prices anilthe abolition ofimporttarifls, government of Prime Minister M. Enkhstikban began ta face opposi- tion asthe high social cost of the economic retirms beuan te become apparent. ‘The Seprember 1997 launch of the firstever UNDP? Governmentat Mongolia Hua Revelopment Report (HDR) high lighted the living status of Mongolians during the diffie:it transition era Atte start ofthe seademic year in September 1997, collewe and university students. Jed by the Mon 4olian Students” Union, stayed un escalating series of protests that culminated in aoneday student ike, Their demand was i reduction invtuition fees which had doubled Insomecases. and indonnitery rents. alsy up sluumple: Altes meeting sith student leaders: the e tMongolia Update ~ Coverage of 1998 Political Changes Parliament naan Augusthycekeetion, used fis maiden speech to demand {hewesignation ofthe woveriment. He accused te Coalition of ignoring its election promise to cut taxes by 20 to 30 percent, of bungling privatisation and of newlectiny the social sphere Thepovernment, he suid, “isserving the interests ofa few companies including those of'some members or the Stare Ik tural — while oyerburdening the nation’s small- andl mediuinysized indusiries,” The MPRP demand wis backed by demo astralions organised by the party, trace unions and activist groups ike the Mongolian {nied Movement, Hutthese protests were small. and made up largely of pensioners, one ofthe groups hardest hii by shrinking sceial spending ches yote by a margin, The Prime Minister used the occasion to cefend his #overnmenh’s record, noting that hipinall sectors, The lobe private owne rate of privat intensified, with wnemphasison selling off the state-owned banks, [Health and edueation were to he maved toward a“financed by the client "system, ain wi Butihe year also bewan with worry- ingeconomic signs, as the Asian economic crisis finally beyan to filter downto Mongolia The price ef Copper, Monigolia’s largest foreign fellby nearly a ‘st four months of currency ¢amey quater inthe 1 1998, Prices foreashmere and gold. sther major exports, alsocectined Atthe beginning of 1998. differences within the Coalition intensified, A number of Democrats were dissatislied with the system under \whiel the Prime Minister and Cabinet were not parliamentarians but“expens“appointed fromm the outside, On January 15, alter several weeks of wrangling, the Stare fkh Hucal raled that, under the Mongolian Constitution, MPs could serve ay Cabine: Ministers. Atroup of Col tion MP5. arzuing that gteater coordination was neededMongolia Update—Cover: ge of 1998 Political Changes members, Likewise, on March 27, the General Comneil of the Mongolian National Democratic Party had tailed forthe resignation of its own gover nent. Themove was led by Ts, Elbeudor), the 35-year-old Deputy Speaker of the State lich Hural and parliamentary gaticus leaderof the MNDP —aratural Prime Minister inagoyemmentof MPs The goverriment had notacted in line \with the wishes of Parliamentand so should resign, be said. Pritne Minister Finkhseikhan complained that a faction in the pany Yas trying W oust him, He was right Asthe spring parliamentary session ‘begin. the intensity ofdemonstrativas calling forthe goverment’ fesignation, which bad goneon sporadically since the fall, increased thes Prime Minister Enkhsaikhan on Apiil 17-aday afteran extraordinary Jott meeting of the ruling councilsot the MNDP and MSDP. handed his ‘resignation to President. Baxabandi i Wasapproved by the n April 22, bya ‘operate a more open and transparent Hoyerment, Although he replaced a numberof senioreivil servants, he suid he would not make changes to the structure of the nine government Ministries: He vowed to press forward with a busy spring session, in which a number of billscentral tothe government's programme — including a nev law on foreien investment anda long-awaited media law — were slated to be passed. Buthe immediately ran into trouble, Elbeudor| nominated is nine- member Cabinet April27. but only fiveatthe nominees received the approval of Parliament, as nominee aliernominge Wwasrejected in the State 1kh Mural The last Minister — Education Minister Ch, Saikanbifes Nas nbtapproved until May 28 He wasthe fitth nomines put forward forthe post. The lotal media expressed conces abour the averaeage of 35.8. In Plateat list some people besan jo Worry abput its lack ofe c$25 nso Vent. With 79 percent ofits Tg 11. 2billion(U.S. $13.7 million) in ut'standing loansclassed as unreii able, The Opposition fabelled the mergera “varspiracy”” charging the govem- ment with driving the bank to its doom by recking up) Te 8.7 million (610.5 niillion) inéebis and pointing tolinks between the Gulom! Bank anid members of the National Democratic Pasty The result wasa Parliament paralysed forall of June. since without the opposition a quorum could fo} bereachec and, thos, Parliament could notricet. Kes bills — including the foreigninyestment longolia Update— Coverage of 1998 Political Changes dill Slated to'be approved before a June 24-26 investors” conference in Ulnanbeatar languished The crisis deepened when a majority ofthe all-party task foree appointed toinvestigate the merger ruled Wat the move was improper. The President wamed that ifthe impasse were notneso}ved soon, he would hayeno choice but to dissolve the State fkh Huraland call “a early election, ~Exen ifthe goverment resizns or there isa new election. itwill not mean that Mongolia will reyeise its chosen paih "Prime Minster Elbegdorj told journalists on June 18, “Thepeopl=have already nace their choiceMongolia Upilate= Coverage of 1998 Potitienl Changes{aya rom 1992 xlof the MNDP's | Health and Social Security Minister Sh. athayar $2. trained! asaidoctarat the Mongolian Medical University: Aiter mulitary service sn 1964-67, he workedias a Joetor at Zuunkharan hospital in Selens aiiag. 2 lecturerat Darkhan Medical Collegeand chief doctor st Markhae city osplti He held that post vit he was lected to parliament in 1996 forthe Mongottan Social Democratic Party Mongolia Update— Coverage of 1998 Political Changes ructure Development ofl Navional Democrat MP. a Menuber of Parliament since 1990. & sociology graduate of Moscow Sate Univ ledthe Revolutionary Vouth Onganias tion's Ulaanbaatar wing feo HS to 1986 and was a lecturer at the Mongolian, National Liniversity beeen 1986 and 1949, obtaining a Masters deyree (9mm the ivaeversity in 199), He eas amember of the State Baga Hlural in 1990-199 and ha bechamember ofthe State Hkh Hurt since 199%,Mongolia Update Cove inister H Odlonimatar ior nnd majage bie Mongolian Sational University a Noobs wera He. completa sya soaroaf ailitn’ service eraser [4A vind 180. He srk ou sy aecunanant se seamenbal fae see al sour adipsia ‘ooits i hs nye Isioyamy wl and vias head othe witeay branch of thie MNDOM fiom 1962 00 1995, Ne waselectot orth State thi ural ina 19 bys fection Detome rape Of 1998 Politionl Changes Minintvr af Pulightenment (seiner, Feclualogy, Falyoatianand Cultures h Ssuikiunhitey Mite studied at Muscovy Communit Univeral ational Hn sretty and to ‘ufidne Monipatian Youth Feder (OL. isi ty (resent apcsiion the st Halil Hy wecwed to patiamint fo! the 18 ANKP ipMongolia Update — Coverage of 1998 Politic! Change Authestirtol L908 the bnkhsaikhin yovernmoent inticated that it had Aulllled 8 por cent ofits Contest With Voters: But there i still alot te Uo, 1998 was supposed ta be the velirthan de waermmentinereasal the rates oF rlivnt, Phacs frie y= includedlane society trom ils ofall s mi anh Stabitisiny the rnderoceesion tithe tnajoryoal ith seltingacaraetob emits hold eit swing und ering, aokline nthe below 20 percent ke ibe enehane ye Stubble \Wwithhith fPQG pas sent and rates ‘an finveign-cunsn, scenreal growch i Adstieat hefdto:S.6 per ‘aah a dicelinne in bed Kes onsessot fessitian 2 percent. 3. What’s on the government’s plate? (nth tnlestrial fron (needs jproainatinn of wilds tnrinerats and Gib ig hehe ‘nite sell sie, Vite Cutting spronating. tte dinprovs the infiasiructure and cilidleney of fuel, tater and electri supplies erease pensions it Hie rametit vowel sit atitlation. set ness moniem)t Svlkge Ce movie that came ititeeticet fhieaty, EV aunticeeate none forbs anid sjiwuiialbied Mongolians.anal prove both fous supply ain Ged imvestinstt hw anid tie iia any, wwonehuing tiekbuphy a boxcar ot, Parlidinent be the opposition MPRY (he MPRP has ectiascd to return ae