CNN
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Mongolia has been thrown into a fresh political crisis as protesters seek the resignation of the country’s prime minister over an exhibition of gorgeous wealth in his family.
For two weeks, the young Mongols have put pressure on Prime Minister Oyun Elden Luvusannamsura, who is facing a vote of confidence in the government on Monday, bringing them to the capital city.
Democratic Mongolia is a landlocked country with only 3.5 million people caught between China and the authoritarian giants of Russia, and the latest political crisis renews its scrutiny of the country’s democratic stability.
What should you know about this:
Luxury cars, designer handbags
The protest was sparked by social media posts, showing the prit’s 23-year-old son’s gorgeous engagement proposal and the obvious luxury lifestyle of helicopter rides, expensive rings, designer handbags and luxury cars.
Questions have risen about how his son accumulated such wealth, especially as Prime Minister Oyun Elden campaigned about his rural origins rather than wealthy families.
“With no visible source of income, the display of gorgeous bags, private travel and high-end life was a blatant slap in the faces of the average Mongol citizen,” said Amina (the resume is simple), a member of the protest group Ogtsroh Amarhan.
Amina, who wanted to go under one name for security reasons, said the protests go beyond social media posts showing off their wealth.
To deepen your anger is the trigger for the Russian war in Ukraine, which suffocates rising costs of living, rising inflation and pollution in the capital, home to half the population.
“The cost of living in Mongolia is rising sharply. Many people pay nearly half of their monthly income with tax while they are made sufficiently enough to cover food, rent or utilities. Most don’t live on their salary.
Protesters gather at the central Sukhbaatar Square in the capital Ulaanbaatar, in front of the government palace, and are calling for Oyun Elden to free his finances and resign for two weeks almost every day.
The Prime Minister’s Office called the allegations of financial fraud “completely unfounded.”
“The Prime Minister makes regular financial statements annually in line with Mongolian law,” the office said in a statement to CNN.
For decades, Mongolia has been suffering from endemic grafts, and often protests allegations that corrupt officials and business leaders are enriching public funds.
In 2022, massive protests erupted over a corruption scandal that included allegations of embezzlement of billions of dollars worth of coal for China.
Analysts say there is no evidence of corruption by Oyun Elden, but his son’s social media posts have deepened the frustration of the public, wary of elected officials misusing public resources.
“I want a fair society where ordinary people speak up and government officials are responsible. I saw the inequality, injustice and arrogance from people in power, and I tried to speak up,” said Arinzaya Kazidoma, 23, a resident of Uran Butter who protested along with a two-month-old baby.
Part of the public’s frustration is that even when corruption cases are indicted, they are slow to pass through the judicial system, and some people question the independence of the judicial system.
The 2024 Freedom House Index said it would “remain corruption and political influence in the judges’ daily work.”
“If you look at the corruption index, it’s falling. And one explanation is that despite the Prime Minister revealing many corruption cases, nothing has been done. So now everyone is looking at the judiciary.”
The Prime Minister is trying to save the coalition government and Congress, known as the state’s great Kururu, and votes confidently on Monday.
Oyun Elden and his son are surrendering to Mongolian anti-corruption agencies, and the prime minister said he would resign if the investigation reveals irregularities.
His Mongol People’s Party (MPP) is the largest in the 126-seat parliament, holding 68 seats. What complicates the vote of confidence is that the dominant coalition appears to be disbanding. The MPP has kicked out Democrats, the Democratic junior partner who manages 43 seats, after some members supported the protesters.
The protests are merely the tip of the iceberg, said Jalgalsaikan Dambadarja, a political commentator at Mongolian broadcaster, pointed out some of the major economic changes in the country.
Oyun-Erdene, who was reelected for a second term in 2024, had committed to diversifying the economy of the country, which relies on the mining industry, which accounts for about a quarter of GDP.
Mongolia has huge deposits of coal, copper, gold and phosphate, with about 90% of Mongolian coal exports being sent to China.
Last year, the coalition government of Oyun-Erdene announced 14 new Mega projects to drive economic growth, including cross-border rail connections and a major expansion of renewable energy.
And one of the centerpieces of Oyun-Erdene’s signature policy was to establish a national assets fund aimed at redistributing citizens’ assets to the people.
The Sovereign Wealth Fund Act, approved by Congress in April, allows the government to take 34% stake in the mines that are believed to have strategic mineral deposits. In other words, it is essential for the country’s economy and development.
Currently, there are 16 such sites and profits are allocated to the fund and benefiting people in Mongolians, including financial support, healthcare, education and housing, according to public broadcaster Monshame.
The move has not worked well with the country’s wealthy and powerful mining elite.
“These people, they are now on the edge of losing their power that has created great inequality within the country. So they are fighting death against this government,” Jargalsaikhan said.
Mongolia has been a parliamentary democracy since the 1991 democratic revolution. But since then, we have seen multiple governments fall or leaders shuffle.
This instability led some Mongols to believe that the power of President Krersk Ukna, the head of state, should be expanded. Currently, the president can only serve one six-year term.
“In this mosaic, people who support the presidential powers look at Russia and China and claim that they are one presidential force and that they are very stable. They tried this parliamentary system, but it doesn’t seem to work.
Khurrelsukh has repeatedly said he does not want to change Mongolia’s parliamentary democracy. However, some believe that the table would be to amend the constitution to extend the president’s term limit.
“It’s a very important time, a very sensitive time, another test of our democracy,” Jargalsaikhan said. “Freedom comes with only the parliamentary system. Otherwise we will become another failed economy, a failed country.”
In a statement, the Prime Minister’s Office said there was a deliberate attempt to “weak” the reforms of the Union government through a “hostile campaign” to “steer Mongolia away from parliamentary democracy and return power and wealth to small groups driven by self-interest.”
Analysts say that Mongolia needs to show that it can have stable governance, thus attracting wider foreign investment and reducing economic dependence on China and Russia.
Last year, Krersecki welcomed Russian President Vladimir Putin and a public visit to Mongolia, a trip denounced by Ukraine. The visit was the first to the International Criminal Court member states that Putin issued a warrant for Putin on charges of war crimes.
“Many governments who see Mongolia as an oasis of democracy between Russia and China want to trust us, but at the same time, in order for other governments to say, they must show some degree of accountability and stability to say that Mongolia is getting better,” says Bolor.
People on the streets say they’re tired of political games and want to see concrete improvements in their daily lives.
“We want stronger anti-corruption measures, civil servants bound by ethical standards, and a system that ensures that no one exceeds the law,” Alinzaya said.
“It’s not just that governments listen to the public and take meaningful, lasting actions, but also provide words.”
