2016 Review: Mongolia

UNEXPECTED ​ELECTION RESULTS 

Mongolia held it's Parliamentary and Citizens' Representative Khural election on June 29.

This year Mongolian People's Party took a strong lead, winning 85.5% of the Parliamentary vote giving it 65 seats out of 76. 

Parliamentary Election Result: 
Total seats - 76

• Mongolian People's Party - 65 seats
• Democratic Party - 9 
• Mongolian People's Revolutionary Party - 1
• Independent - 1 

Citizens' Representative Khural Election result:
Total seats - 45

• Mongolian People's Party - 34 seats
• Democratic Party - 11

Mongolia is currently facing economic difficulties, US Dollar shortage, rising debt, weak commodity prices, worst air pollution and the country needs to bring in foreign investment into the country. The solution hangs on whether or not Prime Minister Erdenebat’s cabinet will be allowed by his political party to tackle the challenges, and – if so – if the government can succeed.

The newly formed government has established 14 ministries:

1. Ministry of Environment and Tourism 
2. Ministry of Defense
3. Ministry of Population Development and Social Protection
4. Ministry of Foreign Affairs
5. Ministry of Education, Culture, Science and Sports
6. Ministry of Energy
7. Ministry of Finance 
8. Ministry of Road and Transport
9. Ministry of Health
10. Ministry of Justice and Internal Affairs 
11. Ministry of Food, Agriculture and Light Industry 
12. Ministry of Mining and Heavy Industry
13. Ministry of Construction and Urban Planning
14. Ministry of Labor and Social Welfare 

MONGOLIA HAS SUCCESSFULLY HOSTED THE ASEM 11  

The 11th Asia-Europe Meeting (ASEM11) Summit was successfully held in Ulaanbaatar on July 15-16. The summit was attended by 10 heads of state, 23 heads of government, 17 foreign ministers and special delegates, and over 4,000 representatives and guests.

The ASEM Summit has great significance to Mongolia politically. This was an important occasion, as government, the private sector, civil society, and business representatives from Asian and European nations came together and had extensive discussions. It also has historical significance, as the summit was held in Mongolia, which is the only country that connects Asia and Europe, and Russia and China.

In scope of the meeting, following agreements and discussions were made;

• China and Mongolia discussed about remaining amount of credit service payment for 1958 and 1960 credits, and the repayment of balance for 1991, 1992 and 1994 credits allowed from the Government of China to the Government of Mongolia. The two countries have signed an agreement to write off Mongolia`s debts to China, which amounts to MNT 38 billion (15.2 million USD). 
• Mongolia and Singapore have reached mutual negotiations to launch a reciprocal visa waiver for visits of up to 30 days.
• Kazakhstan has offered to donate MNT 500 million (200 thousand USD) to help people of Bayan-Ulgii aimag, suffering from flood. 
• Vietnam has promised to overhaul Bogd Khan Museum, includes a significant collection of religious artworks commissioned by or presented to the Eighth Bogd Jivzandamba and his wife Queen Dondogdulam during his residence at the palace and Choijin Lama Museum, a hidden gem of architecture and history, smack in the middle of downtown Ulaanbaatar city. 
• Poland has announced to grant EUR 1 million, that are possible to be invested in non-mining sectors. 
• South Korea has decided to construct new building for Natural History Museum of Mongolia. Moreover the two sides have signed an agreement to implement education project. ​

MONGOLIA LEFT RIO DE JANEIRO WITH FOUR MEDALS

14th DALAI LAMA`S VISIT HURTS RELATIONS BETWEEN MONGOLIA AND CHINA

His Holiness the 14th Dalai Lama paid his ninth visit to Mongolia on November 18-22 at the invitation of Gandantegchinlen Monastery. 

Since his first visit to Mongolia in 1979, he arrived back in 2002 and the Chinese side had protested the visit, closing the border with Mongolia for two days.

Ninth visit of the Dalai Lama to Mongolia was absolutely religious courtesy. 

However China called off talks with Mongolian senior officials after the Dalai Lama’s four-day visit. Mongolia has been seeking soft loans from sources including China and the International Monetary Fund as it struggles with a $1 billion budget gap and looming debt repayments.

Chinese Ministry of Foreign Affairs spokeswoman Hua Chunying said at a regular news briefing Wednesday in Beijing that [we] hope Mongolia will truly learn lessons from this incident, truly respect the core interests of China, honor its promise and make efforts to improve the relations between China and Mongolia.

Mongolia’s government pledged to extend no more invitations to the Dalai Lama after China signaled that a trip by the exiled Tibetan spiritual leader could derail ties.

“The Dalai Lama’s visit by the invitation of Gandan Monastery negatively affected two countries and these two countries have a misunderstanding,” Mongolian Foreign Minister Munkh-Orgil Tsend told the Onoodor newspaper Wednesday. “The government feels sorry for this,’’ he said, adding that the Dalai Lama “probably won’t be visiting Mongolia again during this administration.’’

MONGOLIAN TUGRIK HITS BOTTOM RECORD AGAINST US DOLLAR

Mongolia has witnessed sharp rise in dollar exchange rates since the beginning of 2016. 

Mongolian Balance of Payments shows that shortage of US dollar deepens in Mongolian market. For instance, as of the first nine months of 2016, Mongolian balance of payments totaled to US$ 232 million deficit, meaning that total of US$ 231 million went from the Mongolian market.

Moreover, the country`s export has not increased, direct foreign investment has not restored as well as the foreign loan and aid has not granted. Thus, the dollar rate is continuously increasing. 

Therefore, the Government should urge to forward major projects and cooperate with international organizations in order to bring back the dollar which is avoiding from the country day by day. As a result, Mongolia could attract investment, improve balance of payments and stabilize the rate. Briefly, rate future depends on Mongolian balance of payments. However, the balance of payments has facing a deficit today. Therefore, tugrik rate reaches record low against US dollar. 

The Bank of Mongolia has been trying to minimize the pressure on rate and taken following actions:

1. On August 18, Bank of Mongolia increased the policy interest rate by 4.5 percentage point to 15 percent from 11.5 percent. 
2. On December 19, Bank of Mongolia decreased the policy rate by 1 percentage to 14 percent. 

In such circumstances, it is significant for the Government to take immediate actions to attract investment and stabilize the rate and the ministers should rush the negotiations with the authorities of International Monetary Fund and the Government of China. 

MISS MONGOLIA MADE IT TO THE TOP 11 FINALISTS AT MISS WORLD 2016

A.Bayartsetseg, 25 years-old beauty showed historic success by qualifying to Top 11 finalists at the 66th edition of the Miss World pageant, took place on 18th December 2016 at the Gaylord National Resort & Convention Center in National Harbor, Maryland, United States, Washington, D.C.

She was announced as the winner of People`s Choice Award by receiving the most votes and got a direct entry in the Top 11 finalists. 

In Miss World 2016, A.Bayartsetseg has shown a marvelous success, having won the “Best Video Introduction” nomination with her movie-like intro inspired by her role in the forthcoming Mongolian film “Khutulun - The Brave Princess” and won the title of Miss Talent with her magic performance combining calligraphy, dance and magic tricks.

The humanitarian project, which she has initiated and co-organized, came in the 13th place in the Beauty With a Purpose. The ongoing project aims at helping children from the state orphanages to learn basic life skills such as cooking, managing own finances and running errands in general. These are some crucially important and necessary skills that are “often taken for granted”, but always lacks in orphans, who were raised in orphanages, said A.Bayartsetseg.

This is the best ever performance in the history of Mongolia in the Miss World. Before her, Mongolia saw its first semi-finalist in 2011 – a Miss World Mongolia A.Sarnai.

ULAANBAATAR AIR POLLUTION REACHES HAZARDOUS LEVELS