New Mongolian Prime Minister Vows to Address Economic Challenges Following Protests

The newly appointed prime minister of Mongolia, Zandanshatar Gombojav, is determined to respond to the economic grievances that have prompted ongoing protests, culminating in the resignation of his predecessor. Lawmakers overwhelmingly supported Gombojav, a former parliament speaker, in a vote that solidified his leadership during a time of political instability for Mongolia, a young democracy with a population of 3.4 million situated between China and Russia.

As Gombojav steps into his role, he confronts considerable challenges including rising inflation, a potential budget deficit, and concerns about energy shortages as winter approaches. Ahead of the parliamentary vote, he highlighted the urgent need to cut government expenditure by around $640 million to prevent a budget shortfall. The economic expert, with a background in banking and education from both Russia and Stanford University, emphasized his intent to submit a revised budget soon.

His predecessor, Oyun-Erdene Luvsannamsrai, recently stepped down after facing a vote of no confidence fueled by public outrage over perceived corruption, particularly allegations surrounding his son's extravagant spending. With many Mongolians feeling the benefits of the country’s mineral wealth have not trickled down to the populace, Gombojav has promised to pursue policies that foster inclusive economic growth. This includes introducing tax reforms aimed at lessening the financial strain on the middle class while implementing higher taxes on luxuries and affluent citizens. His election was decisively in his favor, receiving 108 votes in the 126-member parliament, with only nine absent.