New Mongolian Prime Minister Zandan Shatar Faces Economic and Corruption Challenges
Gombojargal Zandan Shatar succeeded Oyun Erdene, who was dismissed after intense youth protests erupted in Ulaanbaatar. The latter had served as the previous prime minister.
He was once a banker, studied in Russia, and also worked on research at Stanford University. He will face severe economic challenges including inflation, deficits, and unemployment. He stated, "Budget review is inevitable," and announced tax reform measures as well as restrictions on luxury consumption and high-income earners.
Rome (AsiaNews/Agencies) – At 55 years old, Gombojargal Zandan Shatar, an educated banker in Russia, has been appointed as the new prime minister of Mongolia. He previously held several key positions, including Minister of Foreign Affairs, head of the Cabinet Secretariat, and Chairman of the State Great Khural of the Mongolian Parliament.
On June 3, 44-year-old former Prime Minister Lubsangnamzayn Oyun-Erdene resigned, and the parliament elected him as prime minister. Oyun-Erdene was suppressed during weeks of youth protests in Ulaanbaatar and was subsequently impeached by the parliament.
The focus of the protests was political corruption, widespread poverty among the people, and the flaunting of wealth by Oyun-Erdene's son and girlfriend on social media.
On June 12, Zandan Shatar was elected as prime minister with an overwhelming majority of 108 votes to 117. He belongs to the same party as his predecessor—the Mongolian People's Party.
Zandan Shatar said, "Through respect for unity, we will overcome the current difficult economic situation." The economy is one of the core issues during the tenure of the new prime minister: he must address high inflation, looming budget deficits, and concerns about energy supplies for next winter.
Before the vote on Thursday, Zandan Shatar stated that this year's expenditures had been significantly reduced. This former banker said, "The budget review is inevitable." He also mentioned that he would revise the budget and submit it to the parliament next week.
The protests that led to the resignation of Oyun-Erdene, who had been in power since 2021, were triggered by rising living costs and low wages.
The former prime minister once positioned himself as a reformer in digitalization, tourism, and infrastructure and formulated a plan looking toward 2050.
His goal was to reduce Mongolia's dependence on mining through a series of investments in strategic sectors. Mining is the traditional economic driver of Mongolia (the elite class is accused of appropriating mining revenues). In 2022, Mongolia's economic growth initially reached 4%.
Nevertheless, public spending has increased significantly in recent months, while commodity and coal exports have declined. Despite Oyun-Erdene's public opposition to corruption, corruption within Mongolia has not improved.
In the confidence vote to end his term as prime minister, only 44 out of 126 members of parliament supported his government.
"People's livelihood development will be the largest plan of our government. The new government will strive to become a government with the development of the Mongolian people as its policy core and citizens' rights as its solution core." Zandan Shatar, the 34th prime minister of Mongolia, stated that there is an urgent need to address salary and welfare policies, adhering to the principle that "employment is the best welfare."
"The government will deepen pension reform, reduce losses in the social security fund, and transfer management authority to a fair, transparent, and professional asset management system." Zandan Shatar stated. He promised tax reforms—supported by the public—to alleviate the burden on the middle class and increase taxes on luxury consumption and high-income earners.
The new prime minister was born in 1970 in Bayankhongor Province, Batgan District. From 1987 to 1992, he studied at the Irkutsk National Economy Institute of the Russian Federation and earned a degree in financial economics.
His career began as a university lecturer. He served as director of the training center of the Mongolian Bank and its representative.
Subsequently, he served as deputy president of Khan Bank and held multiple institutional positions, finally working as a researcher at Stanford University in the United States from 2013 to 2015.
His university education and professional experience make him an ideal candidate to lead the Mongolian government today, particularly beneficial for addressing pressing economic challenges.
Source: https://www.toutiao.com/article/1835479390566400/
Disclaimer: This article solely represents the views of the author.