Following a landslide election victory for his Mongolian People's Party (MPP) on June 24, 2000, Prime Minister Ukhnaagiin Khurelsukh has unveiled a new cabinet, emphasizing experience and continuity as he navigates the country through economic challenges and the ongoing COVID-19 pandemic.
The new cabinet, comprised largely of technocrats and non-politicians, was confirmed and sworn in this week, signaling a potential shift towards a more technocratic approach to governance. Notably, recent constitutional amendments barring lawmakers from holding cabinet positions have contributed to the influx of new faces.
Economic Challenges Take Center Stage:
In his appointment speech, Khurelsukh highlighted key priorities for his government, including:
Energy Independence: Reducing Mongolia's reliance on Russia for its energy needs will be a key focus. This comes amid growing concerns about Mongolia's economic dependence on its neighbors, particularly in light of the COVID-19 pandemic's impact on trade with China.
Infrastructure Development: Khurelsukh emphasized the importance of completing an Indian-backed oil refinery and constructing new railways to boost commodity exports.
Economic Recovery: With Mongolia's economy facing a potential contraction due to the pandemic and the need to repay $2.9 billion in bonds within the next two years, managing public debt and stimulating growth will be crucial.
Political Stability Expected, But Questions Remain:
The MPP's supermajority in Parliament and Khurelsukh's strong relationship with President Khaltmaagiin Battulga, despite their different party affiliations, suggest a period of political stability. This continuity is likely to be welcomed by investors who have long grappled with policy inconsistencies in Mongolia.
However, challenges remain. The MPP's use of a winner-take-all electoral system, which allowed them to secure 62 out of 76 parliamentary seats with only 45% of the vote, has drawn criticism. Additionally, the long-term viability of the Khurelsukh-Battulga alliance, particularly as the 2021 presidential election approaches, remains to be seen.
Key Cabinet Appointments:
Ya. Sodbaatar: Former Minister of Road and Transport, appointed Deputy Prime Minister.
L. Oyun-Erdene: Retained as Cabinet Secretary and lead negotiator with Rio Tinto, with an expanded portfolio to include long-term economic development.
Ch. Khurelbaatar: Remains Minister of Finance.
G. Yondon: Former MongolRosTsvetMet executive appointed Minister of Mining and Heavy Industry.
N. Enkhtaivan: Former commercial counselor in Beijing appointed Minister of Foreign Affairs, highlighting the importance of relations with China.
Looking Ahead:
The new cabinet will need to act swiftly to address Mongolia's economic challenges and deliver on the MPP's populist election promises. The government's four-year action plan, expected to be approved in August or September, will provide further insight into its policy direction.
Full List of the Cabinet Ministers
Ya. Sodbaatar becomes deputy prime minister. He was formerly an MP and minister of road and transport.
MP L. Oyun-Erdene remains cabinet secretary. He will continue to lead the government negotiation team with Rio Tinto. His portfolio has been expanded to include long-term economic development issues, including the 2050 vision.
MP Ch. Khurelbaatar remains minister of finance.
MP D. Sarangerel changed her portfolio from health to head the Ministry of Nature, Environment and Tourism.
MP Kh. Nyambaatar becomes minister of justice. He was chair of the legal standing committee in Parliament since 2019.
G. Yondon becomes minister of mining and heavy industry. He spent almost all his career at state-owned MongolRosTsvetMet, a fluorspar mining company.
G. Saikhanbayar becomes minister of defense. Educated in Russia and China, he held a long-time senior position at the ministry.
B. Munkhbaatar becomes minister of construction and urban development. He was a former deputy minister and Oyu Tolgoi copper-gold mining company's board member.
L. Tsedevsuren becomes minister of education and science. She was a state secretary and spent her career at the ministry.
N. Enkhtaivan becomes minster of foreign affairs. He was posted to Beijing as commercial counsellor and has extensive relations with Chinese business. Prior to his appointment, he was a chief of staff for the MPP caucus in Parliament.
L. Khaltar becomes minister of roads and transportation. Previously, he was a deputy minister. Educated in Russia, Khaltar spent his career at Ulaanbaatar Railways.
N. Tavinbekh becomes minister of energy. An electrical engineer by profession, Tavinbekh spent his career at Baganuur-Southeastern region electricity distribution network, starting as a wireman.
Z. Mendsaikhan becomes minister of food, agriculture and light industry.
S. Chuluun was appointed minister of culture.
T. Munkhsaikhan becomes minister of health. He spent his career as a doctor and manager of the national center for trauma and orthopedics.
A. Ariunzaya becomes minister of social welfare and labor. Prior to this appointment, she was a head of the national statistics office.
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