mongolia-gets-new-prime-minister

The new prime minister of Mongolia has pledged to address the economic demands of protesters after their daily rallies led to the fall of his predecessor.

 

Lawmakers approved former parliament speaker Zandanshatar Gombojav as prime minister by an overwhelming majority in a vote late Thursday night.

 

His election appeared to mark the end of several weeks of political uncertainty in a still-young democracy of 3.4 million people that is sandwiched between much larger China and Russia. The new leader faces multiple challenges including high inflation, a looming government budget deficit and fears of power shortages this winter.

 

Speaking ahead of the vote in parliament, Zandanshatar said this year's government spending needs to be reduced by about USD 640 million to avoid a significant revenue shortfall.

 

“Revision of the budget has become inevitable,” the former banker said, saying he would submit a revised budget to parliament next week.

 

Zandanshatar, 45, studied economics at university in Russia and was vice director of one of the largest commercial banks in Mongolia.

 

He was parliament speaker from 2020 to 2024 and was named head of the president's office after he lost his seat in an election last year. From 2014-16, he was a visiting scholar at Stanford University in California.

 

His predecessor, Oyun-Erdene Luvsannamsrai, resigned 10 days ago after losing a vote of confidence in parliament.

 

The protests against Oyun-Erdene's rule were sparked by reports of lavish spending by his son. Many Mongolians feel the nation's mineral wealth has benefited politicians and their business friends rather than the general population. The poverty rate remains high in the sparsely-populated country.

 

Zandanshatar said he would ensure that economic growth is inclusive and reached all Mongolians. He promised to launch a tax reform to reduce the burden on the middle class and increase taxes on luxury consumption and those with ultra-high incomes.

 

He won election by a vote of 108 to 9 in the 126-member parliament. The other nine members were absent.