Mongolia has a new Prime Minister: Zandanshatar Gombojav. The appointment comes after a period of political turbulence and public demonstrations. Depending on who you ask, this is either a triumph for people power or a worrying lurch towards authoritarianism. Zandanshatar is a russian-educated former banker who has held positions such as Foreign Minister, Chief of the Cabinet Secretariat, and speaker of the State Great Khural parliament.

“I will work forward, not backward,” Zandanshatar stated to the State Great Khural.He was overwhelmingly approved for the premiership by 108 out of 117 members present. “By respecting unity, we will overcome this difficult economic situation.”

The economic difficulties in Mongolia contributed to the downfall of the outgoing Prime Minister Luvsannamsrain Game-erdene. He belongs to the same Mongolian People’s Party (MPP),but resigned after failing to receive sufficient backing in a June 3 confidence vote. The vote was called to quell popular protests demanding his ouster.

For several weeks, thousands of demonstrators, predominantly young people, gathered in central Ulaanbaatar‘s Sukhbaatar Square. They protested the lavish displays of wealth posted on social media by Oyun-Erdene’s son and fiancée, including helicopter rides, an expensive engagement ring, a luxury car, and designer handbags.

The demonstrators demanded that Oyun-Erdene disclose his personal finances. He declined, stating that they had already been provided to the nation’s Anti-Corruption Agency, as required by law.However, public trust in that body and the wider judiciary is low, following a series of high-profile graft scandals and a lack of prosecutions or accountability.

“Oyun-Erdene was the one who was talking about morals, transparency, and corruption.But Mongolia is actually degrading when it comes to the economy and freedoms.”

According to protest leader unumunkh Jargalsaikhan, rising living costs and stagnant wages are driving public anger, especially among young people. Mongolia is facing an economic crunch with government spending strained.

Zandanshatar’s Background and Policy

While Zandanshatar is known to be close to the President, he is also a highly educated career politician with his own power base. He is a former visiting scholar at Stanford. His rise to the premiership raises questions about Mongolia’s future direction.

Zandanshatar, 55, is a married father-of-four. He developed a reputation as a thoughtful, steady speaker of parliament. After his time at Stanford,he became excited about deliberative polling, which was later used to gauge public opinion before the 2019 constitutional amendment. However, Zandanshatar faces a democratic deficit, as he is one of the few senior MPP figures not to have won a seat in the 2024 election, despite being elected three times previously.

Challenges Ahead

Although choosing a non-lawmaker as Prime Minister is not unprecedented, Dierkes fears this may serve as a “legitimacy achilles heel” should the winds turn against him. Jargalsaikhan also notes Zandanshatar was one of the proponents of Mongolia’s 2006 “windfall tax” on copper and gold mining profits. (The 68% levy-the world’s highest-was repealed in 2009 after decimating investor confidence.)

Oyun-Erdene had earmarked 14 new mega projects to boost economic growth,including a major expansion of renewable energy and cross-border railway connections with China,which receives 90% of Mongolian exports. He also promised to diversify the country’s economy, which is heavily dependent on a mining industry that accounts for a quarter of GDP.But policy continuity is key to attracting the foreign investment necessary to realize these goals.

According to Steve Potter, an honorary member and former chairman of the American chamber of Commerce in ulaanbaatar, consistent investment laws are crucial.”Until investment laws are consistent here, investors are going to be wary,” he says. “Constant changes in rules and regulations have long been a problem. Consequently, foreign investment has been very lackluster.”

Investor uncertainty isn’t the only worry. Having lasted in power four-and-a-half years, Oyun-Erdene was the longest-serving of Mongolia’s 18 Prime Ministers as its 1990 democratic revolution.The revolving door of governments and leaders has augmented the idea that parliamentarian democracy is flawed or inherently unsuited to Mongolian society,while rendering a centralized political system more appealing for some-an idea that is being amplified by shadowy actors on social media and galvanized by Oyun-Erdene’s tone deaf response to protesters’ demands.

Bolor notes that the protests were organic, but the Prime Minister’s response was overly political. “The protests were organic, but instead of showing his financial papers the Prime Minister’s response was so political,” says Bolor. “His reaction showed just how disconnected he was from the people, who only care about how his policies are impacting their daily lives, such as air pollution, unemployment, and corruption.”

While Oyun-Erdene’s demise was likely rooted in factional bickering rather than a nefarious power grab, the debacle contains a stark warning that mongolia’s political class needs to start pulling in the same direction for cherished freedoms to be secured. Jargalsaikhan emphasizes the fragility of democracy. “Democracy itself is very fragile,” says Jargalsaikhan. “But it’s so significant and can only be protected by a thriving parliamentarian system. And we must not lose democracy in Mongolia.”