Mongolian broadcaster Central Television has commissioned two seasons of a local version of gameshow format 5 Gold Rings.

Co-created by John de Mol and ITV Studios label Possessed, 5 Gold Rings sees contestants answer questions by placing gold rings onto an animated picture, displayed on a huge LED floor. The prize money per level gets higher, whereas the rings get smaller. ITV Studios distributes the format.

At its meeting on May 12, the Cabinet decided to give discounts on the imported seeds in the Agriculture Support Fund amid the pandemic. Specifically, a 30 percent discount will be given on wheat seeds, 50 percent discount on feed crop and potato seeds and agricultural films, and an 80 percent discount on seeds of field vegetables and greenhouse crops.

This year, crop seeds will be planted on 389 thousand hectares, of which wheat will be grown on 368 thousand hectares, potatoes on 18 thousand hectares, other vegetables on 10 thousand hectares, feed crops on 66 thousand hectares, oil plants on 40 thousand hectares and fruits and berries on 7,000 hectares.

Around 496 thousand tons of crops - 471 thousand tons of wheat, 222 thousand tons of potatoes, 116 thousand tons of other vegetables, 170 thousand tons of feed crops, 26 thousand tons of oil plants, and 3,000 tons of fruits and vegetables - will be harvested and 360 thousand hectares of farmland will be fallowed.

A total of 5,421 citizens were involved in immunization in the capital city yesterday, May 11. More specifically, 3,794 people received their first shots of COVID-19 vaccine while 1,627 people have gotten their second shots.

Since the vaccination rollout launched in February 2021, 94.8 percent of capital city citizens aged over 18 or 903,948 people have had the first dose of vaccine and 50.8 percent or 481,414 people have been fully vaccinated.

At the national level, 1,678,198 people or 81.2 percent have been vaccinated with the first dose of vaccine and 631,666 people or 30.6 percent with the second dose.

The Cabinet made the following decisions at its regular meeting on May 12.

-Imported tractors, combines, and other agricultural machinery, irrigation and greenhouse equipment, forestry and poultry farming equipment, fertilizers and plant protection products will be exempted from customs tax until January 1, 2022. The Cabinet approved a list of over 120 types of equipment and substances to be exempted from the tax.

-Imported and domestically sold tractors, combines and other agricultural machinery, irrigation and greenhouse equipment, forestry and poultry farming equipment, fertilizers and plant protection products will be exempted from value added tax until January 1, 2025. The Cabinet approved a list of over 120 types of equipment and substances to be exempted from the tax.

-Minister of Food, Agriculture and Light Industry Z.Mendsaikhan was ordered to look into making additions to the list of goods to be purchased from domestic enterprises that meet the quality and standard requirements and have verification of conformity. Government and local organizations were ordered to actively make purchases under the General Agreement and annually participate in the Patriotic Purchase-Domestic Production exhibition fair. Last year, 51 government and local organizations purchased products worth around MNT 326 billion from domestic producers. The amount equals 98 percent of the total cost of products included on the list.

-The Cabinet also decided to name the border military unit No. 0108 in Zamyn-Uud soum of Dornogobi aimag after Honored Scientific Worker, Academician, Doctor, Professor, Lieutenant General Sh.Arvai and the border military unit No. 0166 in Gurvantes soum of Umnugobi aimag after General M.Batkhuyag.

On June 9, presidential elections will take place in Mongolia for the eighth time since the democratic revolution in 1990. In the weeks leading up to the election, the political stakes have soared. Political polarization has been coupled with court rulings, presidential decrees, party splits, and mergers. All of this has put Mongolia’s rather institutionalized party system in an unprecedented state of instability which, if not checked, might lead to the unexpected collapse of democracy in the country.

Mongolia never had a president until the figure was introduced in the aftermath of the 1990 revolution. Even then, Punsalmaagiin Ochirbat, former chairman of the presidium of the People’s Great Khural (as the Communist parliament was named) and first Mongolian president, was appointed by the parliament. It was only two years later that the new constitution, after long and hard discussions, decided to include a popularly elected head of state. Ochirbat was re-elected as president with 60 percent of the vote on June 6, 1993. We revisit here not only the problems popular presidential elections have posed for Mongolian politics in the past, but also the reasons why the current situation is not surprising.

Ever since the American-based Spanish scholar Juan Linz published his seminal article “The Perils of Presidentialism” (1990), academics have showcased the problems popular presidential elections might entail. In a recent policy paper published by Friedrich Ebert Stiftung, another Spanish scholar (one of this paper’s authors) – although this time U.K.-based – warns anew about the perils of popular presidential elections. Among other issues, the paper highlights how popular presidential elections might lead to party de-institutionalization, party system fragmentation, and polarization. Each can be observed in the case of contemporary Mongolia.

Party System Fragmentation

Presidential office, even in countries like Mongolia where the position does not entail many real powers, constitutes the highest aspiration of many politicians. The idea of becoming head of state becomes an obsession for ambitious politicians who, in the case of losing office or not winning nomination, might decide to create their own parties with which they can bid again for the highest office. This, for example, is what happened after the 2009 presidential election, when the then incumbent president and Mongolia People’s Party (MPP) candidate, Enkhbayar Nambar, lost to the Democratic Party candidate. Nambar blamed his loss on MPP leaders and decided to establish a new party, the Mongolian People’s Revolutionary Party (MPRP), with other members of parliament originally from the MPP. Interestingly enough, these two parties will be merging again before a presidential election next month.

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Party De-institutionalization: Factionalism

Given the zero-sum logic the popular election of a president entails, presidential elections tend to present an extremely personalistic character which, in turn, tends to lead to organizational splits and the formation of new, weaker political parties. This is especially the case in countries where, like Mongolia, parties are already extremely factionalized. The formation of MPRP in 2010 and the current internal disputes within the Democratic Party (DP) are clear examples of factions generating instability within parties.

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The DP’s present troubles were mainly triggered by President Battulga Khaltmaa’s attempt to get the party’s nomination for the upcoming presidential elections. This led to a split in the party between those supporting Khaltmaa’s aspirations and those standing behind former DP Chairman Erdene Sodnomzundui.

It is important to understand that, contrary to most semi-presidential countries in the world, in Mongolia only parliamentary parties can nominate candidates in presidential elections. This poses a problem, especially when incumbents who have lost grip on their own party because of the obligation to resign their membership when elected, want to run for re-election. The DP case clearly illustrates the extent to which presidential elections might be a curse for Mongolian political parties. As former Minister of Justice Temuujin Khishigdemberel once put it, “parties suffer the most when their candidate is elected president.”

The split within the DP, Mongolia’s main opposition party, forced the Supreme Court to reject the petition of its two factions, which held party primaries simultaneously, to register their respective leaders as leader of the party and potentially a presidential candidate. This would have cleared the path for MPP to win the June presidential elections in the first round, if not for another important event, another outcome characteristic of semi-presidential regimes: polarization.

Polarization

Popular presidential elections might not just lead to an in increase in the level of electoral support for anti-establishment parties, but also foster political polarization. Because of the necessity of presidential candidates to appeal to voters beyond their own parties, presidential election campaigns in Mongolia have been characterized by negative campaigning, inimical competition, and populist discourse. There is no better example of this than Battulga’s 2017 campaign motto: “Mongolia will win.” To some it meant that his MPP rival, Enkhbold Miyegombo, was not a “pure” Mongolian. To others it meant that he was an agent of foreign powers or multinational corporations. Ideology and policies were left aside, leading to personal attacks among politicians and voter polarization.

The current situation characterized by MPP’s illegal banning by the president in response to a resolution of the Constitutional Court barring him from running in the forthcoming elections is another example of how popular presidential elections constitute a venue for polarization, more so than legislative elections.

Government Instability

Presidential elections can also lead to government instability and, ultimately, party system change and de-institutionalization. Khurelsukh Ukhanaa’s recent resignation is just the most recent example. Under the excuse of public demonstrations in Ulaanbaatar’s central square, despite MPP’s supermajority after the 2020 parliamentary elections, Khurelsukh became the first prime minister to resign, making his cabinet the shortest in the history of Mongolian democracy. Now it is clear that it was just a pretext, and that his intention was to run in the forthcoming presidential elections. There have been many other instances where cabinet changes where triggered by presidential elections or presidential power struggles within ruling parties. Former Prime Minister Altankhuyag Norov has continuously maintained that it was President Elbegdorj who orchestrated his removal from office, even though they were both from the same party, the DP.

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The timing of presidential elections, just one year apart from parliamentary polls, has been also an important factor behind the country’s political turmoil, as newly formed governments always need to adjust to results in the presidential contest. If Khurelshukh loses, the current Luvsannamsrai cabinet, formed at the end of January, is expected to change again.

Conclusion

Scholars have shown that the popular election of a country’s head of state can be a peril for its democracy. By increasing fragmentation, weakening political parties, hindering party system institutionalization, increasing government instability, and promoting polarization, popular presidential elections perhaps should be avoided, especially in new democracies. As explained above, the current political situation seems to confirm these fears, showing that – barely one year after a constitutional reform was passed – an important opportunity to introduce the type of checks and balances characteristic of parliamentary regimes proposed by Mongolian experts was missed.

By Bat-Orgil Altankhuyag and Fernando Casal Bértoa

“E-Mongolia” Center was opened at the Central Post Office on May 9. The center will provide 516 online services of around 50 government organizations, giving instructions and advices to citizens.

Opening ceremony of the center was attended by Prime Minister L.Oyun-Erdene, Governor of the Capital City D.Sumiyabazar and authorities of information and communication technology sector.

The PM said that the government should be transparent to its citizens. Digitization of government services will eliminate bureaucracy, red tape and corruption. This is an important step for good governance. Further, we will digitize all public services. Government officials will come to the center and exchange information with you all. The Government will collaborate with its citizens for good governance and make all necessary changes.

For the capital city, 113 types of public services have been fully integrated into E-Mongolia system. Further, aside from 20 services of eight organizations, 34 types of special permission services will be digitized with the financing of the Urban Governance Project being implemented by the Asia Foundation, said D.Sumiyabazar, Governor of the Capital City.

As of May 9, citizens have obtained 1.6 million public services (in repeated counting) from e-Mongolia system. If the citizens have any problem to get public services from www.e-mongolia.mn and mobile applications, it is available to be served by the center and get instructions.

The Mineral Resources Professional Council (MRPC) concluded that it supports and will approve Petro Matad’s Plan of Development for the Block XX Exploitation License once certain technical clarifications have been provided and any resulting amendments to the documentation deemed necessary have been made. The meeting of the to review Petro Matad’s Plan of Development was convened virtually due to the Covid-19 lockdown in Ulaanbaatar.

The items requiring clarification have been received from MRPC. With the recent relaxation of lockdown restrictions in Mongolia, the Company is now in discussion with MRPC’s designated officials to clarify the points raised in order to secure MRPC written approval of the Plan of Development.

“We are pleased to have received the support of the MRPC for our Heron Field Plan of Development and we are working with the designated representatives to provide clarification and complete any minor amendments as soon as possible,” said Mike Buck, CEO of Petro Matad.

Further updates will be provided in due course. Petro Matad holds 100% working interest and the operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,367 square kilometers (4,003 sq mi) in the far eastern part of the country.

Mongolia recorded 512 new cases of coronavirus, the Ministry of Health said on May 12.

464 new cases were registered in Ulaanbaatar, the rest were confirmed in the regions.

The total number of coronavirus infection reached 46,448.

35,733 patients recovered, with 1,503 in the last 24 hours.

5 new deaths were recorded.

The Bank of Mongolia has reported that there are a total of 100,867 borrowers of mortgage loans totaling around MNT 5.2 trillion as of March 2021. Among them, 74.7 percent or 75,570 borrowers have taken out mortgage loans amounting to MNT 3.7 trillion under the mortgage loan program, 21.7 percent of borrowers have loans sourced from the commercial banks’ own funding and 3.6 percent are from other types of sources. 17 percent of all mortgage loans issued, which equal to MNT 851 billion are allotted in rural areas. In March 2021 alone, banks issued loans to 1,870 new borrowers with total funding of MNT 149 billion.

In order to increase affordability and accessibility of apartments and reduce air pollution in urban areas, the Mongolian government started implementing a mortgage loan program in 2013, targeting mostly families living in Ger district areas. With loan funding from the Bank of Mongolia, commercial banks have been providing Mongolian citizens aged above 18 years old housing mortgages at a subsidized interest rate of eight percent per annum for a maximum of 30 years for the purchase of an apartment of up to 80 square meters.

Beginning from October 2020, the Bank of Mongolia’s regulation on the housing mortgage financing have been changed to reduce the annual interest rate of housing mortgages issued after October 01, 2020 down to six percent with a view to make mortgages more affordable by providing reduced interest rate loans with government subsidies.

As of April 21, 2021 a total of MNT 364 billion in mortgage loans with a six-percent interest rate have been disbursed to 4,972 borrowers. The six-percent mortgage loans will remain available as part of the MNT 10 trillion comprehensive plan for health protection and economic recovery with MNT 2 two trillion earmarked for mortgage loans through 2024.

According to the Bank of Mongolia, the central bank is also planning to issue mortgage-backed bonds in the future, with an annual repayment of MNT 350-450 billion, which will be used to finance subsidized mortgage loans. As a result, yearly mortgage loan funding is expected to grow to MNT 600-700 billion, with at least 30 percent of the total funding provided to borrowers in rural areas.

The Mongolian government is aiming to open a 258.4 km railway line, connecting Tavan Tolgoi, its largest coking coal mine in South Gobi region, to the Gashuun Sukhait checkpoint also in South Gobi bordering China by July next year; once operational, the new railway will facilitate the country’s minerals logistics whilst simultaneously substantially reducing the transportation cost for coal.

The railway line will have the capacity of handling 30-50 million tonnes/year in coal exports. It is anticipated that the domestic coal transportation cost will be reduced to a quarter compared with the current haulage cost of the trucks being used on the road from Tavan Tolgoi via the Gashuun Sukhait (Ganqimaodu) checkpoint to China.

China represents the destination of almost all Mongolian coal for export. As elsewhere in the world, the pandemic has caused a slowdown. ‘The Chinese side demanded that coal truck drivers be tested for COVID-19 at the border,’ Mongolia’s Ministry of Mining and Heavy Industry noted. Since this demand was issued, over 1000 drivers had been tested. The ministry noted it is working to fully test 3,000 drivers.

China accounted for 92.5 percent of Mongolia’s total exports and 39.1 percent of its total imports during the January-March period.