Mongolia to hold parliamentary elections in June

ULAN BATOR, Jan. 31 (Xinhua) -- Mongolia has set June 24 as the date for this year's parliamentary elections, the parliament's press office said Friday.
The resolution to set June 24 as the date of the election was approved by lawmakers on Thursday evening, the Mongolian authorities said.
Mongolia's State Great Khural, the country's parliament, is unicameral, and consists of 76 lawmakers, whose term lasts four years.
The previous parliamentary elections in Mongolia were held on June 29, 2016. Enditem
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Mongolia, ADB Sign Grant to Develop Participatory Food Waste Recycling

The Asian Development Bank (ADB) and the Government of Mongolia have signed a $3 million grant agreement to improve food waste recycling in local communities in the capital city, helping to keep Ulaanbaatar cleaner.
“Discarded food waste sullies the city and can be unhealthy for the people living here,” said ADB Country Director for Mongolia Mr. Pavit Ramachandran. “Implemented jointly with the government, the grant will help improve the living conditions in Ulaanbaatar by introducing participatory food waste recycling practices. It supports national programs and policies of Mongolia on solid waste management and the operational priorities of ADB’s long-term strategy—Strategy 2030.”
Around 1.2 million tons of solid waste are generated annually in Ulaanbaatar. Although close to 20% of the waste is recycled, food waste is typically dumped in formal or informal landfills. This large quantity of food waste pollutes the soil and groundwater and damages the health of urban communities, particularly in ger areas, where there are few water,sanitation, and waste disposal services.
The Ulaanbaatar Community Food Waste Recycling Project, with the participation of local communities, will identify food waste generation and composting options based on current food waste recycling practices. It will also pilot both smaller and larger food waste recycling activities, scale-up existing projects across Ulaanbaatar, and raise overall awareness of the need to recycle food waste.
The project is funded by the Japan Fund for Poverty Reduction, which has supported projects in Mongolia in poverty alleviation, improving livelihoods, and safeguarding the environment over the past 20 years.

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Mongolia earns over 607 mln USD from tourism in 2019

ULAN BATOR, Jan. 25 (Xinhua) — Official data released Saturday shows that Mongolia raked in a total of 607.2 million U.S. dollars from tourism in 2019, up 10.2 percent from the previous year.

The Mongolian Environment and Tourism Ministry said the Asian country attracted around 577,300 foreign tourists last year, up 9.1 percent compared to 2018.

Chinese visitors accounted for more than one-third of the total foreign tourists to Mongolia last year, according to the ministry.
Mongolia, whose economy is largely dependent on export earnings from the mining sector, has been striving to diversify its economy by developing the tourism sector.
The country has set itself a goal of receiving 1 million foreign tourists and earning 1 billion dollars from tourism in 2020.
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Mongolia-China trade volume reaches 8.9 bln USD in 2019

ULAN BATOR, Jan. 26 (Xinhua) -- Trade volume between Mongolia and China reached 8.9 billion U.S. dollars in 2019, accounting for 64.4 percent of Mongolia's total foreign trade, according to data released Sunday by the country's National Statistics Office.
Mongolia traded with about 152 economies across the world in 2019. Its major export items to China include coal, copper and molybdenum concentrates, according to the office.
The Mongolia-China trade volume took 89.1 percent of the Asian country's total exports through 2019, according to the statistics.
The bilateral trade volume between the two neighbors was valued at 8.4 billion dollars in 2018.
The two countries have set a 10-billion-dollar target for bilateral trade in 2020.
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Former Prime Minister of Mongolia Retains Amsterdam & Partners LLP to Defend against Politically Motivated Charges

"Judicial independence and rule of law are under attack by the current Government of Mongolia," says lawyer Robert Amsterdam
LONDONJan. 22, 2020 /PRNewswire/ -- Chimediin Saikhanbileg, who served as Prime Minister of the Government of Mongolia from 2014-2016, has retained Amsterdam & Partners LLP as international defence counsel in response to a series of fabricated criminal charges aimed at weakening democratic opposition in the country and seizing control over the country's mineral wealth.
Former Prime Minister Saikhanbileg is currently facing four charges stemming from his role in negotiating a 2015 agreement with mining firm Rio Tinto for the development and foreign investment in the Oyu Tolgoi underground copper mine project located in Khanbogd sum, prospectively the largest mining development in the country's history. "The charges against Saikhanbileg are thoroughly without merit and lack evidence," says lawyer Robert Amsterdam, founder of Amsterdam & Partners LLP.
"What we have in this case is a textbook example of the abuse of the anti-corruption process to commit a grave injustice, including direct personal interventions by Government officials with judges to rig politically motivated outcomes against their opponents," says Amsterdam. "Former Prime Minister Saikhanbileg is innocent of these farcical charges, and we intend to shine a light on the abuses being committed in this case."
After being unlawfully detained in Mongolia without proper judicial orders, former Prime Minister Saikhanbileg is currently in the United States. Numerous other members of the opposition Democratic Party, the independent judiciary, and members of media have come under intense pressure since the 2017 election of President Battulga Khaltmaa. Organisations such as Transparency International and Amnesty International have issued sharp warnings about President Battulga's expansion of presidential powers, including a new law he passed allowing him to dismiss judges and senior members of the nation's legal system via his role as chairman of the National Security Council.
"Former Prime Minister Saikhanbileg negotiated these mining agreements with full transparency and parliamentary authority conforming to the letter of the law," says Amsterdam. "This baseless campaign of persecution represents not only an attack on the country's judicial system, but also damages Mongolia's foreign investment profile by engaging in blatant resource nationalism."
Amsterdam & Partners LLP intends to explore a broad range of response options on behalf of former Prime Minister Saikhanbileg, with further announcements coming soon.
James Kimer
President
Media Theory LLC
917-355-0717
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How Great Power Competition Is Changing the Geopolitics of Mongolia

HIGHLIGHTS
  • To protect its sovereignty and independence, Mongolia has walked a geopolitical tightrope tethered by a "good neighbor" policy with Russia and China and a "third neighbor" policy with the United States and other countries.
  • The great power competition among China, Russia and the United States is changing the calculus on Mongolian sovereignty; the most visible feature of that competition is China's emergent regional and global hegemony.
  • For Mongolia, deepening its relationship with Russia and its strategic alliances with select allies will strengthen prospects for a hard global pushback from multiple directions should China ever decide to seriously threaten Mongolia's sovereignty and independence.
Mongolia is in a uniquely precarious situation, geographically, demographically and economically. Landlocked and isolated in East Asia, it has the lowest population density of any sovereign nation in the world. Its 3 million people, in a country about the size of Alaska, are dwarfed by 133 million Russians to the north and 1.4 billion Chinese to the south. It also has one of the coldest climates in the world. While these factors greatly constrain Mongolia economically, it has the world's best cashmere, huge eco- and cultural tourism potential and — most critically — an enormous mineral resource endowment.

Mongolia in the 20th Century

Mongolia has a proud cultural history dating to the founding of the Mongol Empire (1206-1368). Its later occupation by China's Qing dynasty lasted from 1691 to 1911, when Mongolia deposed the local ruler and declared independence. The 1915 Treaty of Kyakhta briefly reestablished Chinese control, but Russia helped Mongolia finally expel the Chinese after the 1917 October Revolution.

The Soviet Red Army settled in, abolished the Mongolian monarchy in 1924, and used Mongolia as a buffer with China. Mongolia maintained good relations with both China and the Soviet Union until the Sino-Soviet schism of the 1950s. By 1968 the Soviets had six military divisions in Mongolia, which Russia kept there until December 1992.

After the Cold War

Russia's departure left Mongolia facing two major problems. The most immediate was a severe economic crisis. Russia had accounted for 40 percent of Mongolia's national income, all of its gasoline, 90 percent of its imported machinery and half of its consumer goods. As Russia withdrew, Mongolia's economy effectively collapsed.
The second problem was existential. For the first time, Mongolia was truly on its own. Although Beijing recognized its independence in 1945, China by some accounts still harbors latent territorial designs on Mongolia. Some see Mongolia as part of China's historical domain, and Mongolian elites are concerned that younger and more nationalistic Chinese could press for annexation. China's history with Inner Mongolia, Tibet, Hong Kong and Taiwan — as well as Mongolia itself — isn't reassuring.
Because of this, protecting its sovereignty and preserving its independence is Mongolia's top priority. Its strategy has been to walk a geopolitical tightrope tethered by two policies: a "good neighbor" policy with Russia and China, and a "third neighbor" policy to build ties to other countries — especially the United States, Japan, South Korea, India, Germany, the United Kingdom, Australia and Canada.
In the three-dimensional chess game of Mongolian geopolitics, great power competition is now changing the calculus on Mongolian sovereignty.
After the Cold War, rooted in Francis Fukuyama's idea that the end of history was nigh, there was great initial enthusiasm for a lasting new liberal international order. That notion proved both illusory and short-lived. By 2014 great power competition had fully reemerged, bringing with it a fundamental shift in the international security environment. In the three-dimensional chess game of Mongolian geopolitics, great power competition is now changing the calculus on Mongolian sovereignty.

Beijing's Changing Calculus

The most visible feature of great power competition is China's emergent regional and global hegemony. It relies on using big infrastructure as leverage, built in countries of strategic importance through its Belt and Road Initiative.
One of the initiative's six transnational corridors would connect China to Eastern Europe via Mongolia and Russia. That would open new mineral export markets for Mongolia and help it develop as a regional logistics hub. China appears to be slow-rolling the project, however, even as it rapidly builds expensive infrastructure around the globe.
The U.S.-China trade war affects Mongolia directly. China now dominates important parts of Mongolia's economy, buying about 80 percent of its exports — primarily copper, coal and gold. This geo-economic reality renders Mongolia highly vulnerable to Chinese economic fluctuations, a factor contributing to the International Monetary Fund's $5.5 billion bailout of Mongolia in 2017.
Economic leverage is a potent tool of Chinese foreign policy. In 2016 it slapped import tariffs on Mongolian goods as punishment for the Dalai Lama's visit. With China now weaponizing its 80 percent share of global rare earth production, the geopolitics surrounding Mongolia's rare earth deposits are likely to heat up.
Perhaps the most consequential impact on Mongolia derives from the new political, economic and military alliance formed by Russia and China to counter the United States. As the Sino-Russian alliance strengthens, Mongolia's value as a buffer state will weaken.

Moscow's Changing Calculus

Moscow, however, still sees China as a potential long-term threat. Balancing China's influence in Mongolia is a priority, and Russia is attempting to rebuild and strengthen its economic ties there. It supplies about 80 percent of Mongolia's oil market, and trade has grown nearly 40 percent since 2017. In 2019 the two countries announced a strategic partnership that includes a $1.5 billion infrastructure investment fund, an upgrade of the trans-Mongolian railway and possible routing through Mongolia of a Russia-China natural gas pipeline.
Russia worries that if its 3,485-kilometer (2,165-mile) border with Mongolia falls under Chinese control, its Siberian underbelly would be exposed. Meanwhile, Russian territorial issues elsewhere concern Mongolia because of their potential to strengthen Chinese arguments for reoccupation. These include Russia's annexation of Crimea in 2014 and its negotiations with Japan over the Kuril Islands.

Washington's Changing Calculus

While Mongolia's location is strategically important, the United States has broader interests in the country. These include commerce, democracy, security, nonproliferation, trade, investment, sovereignty, the rule of law, peacekeeping and North Korea. What the United States most wants, however, is to see Mongolia remain a sovereign and independent state — one that is successful, prosperous and plays a constructive role in the region and beyond.

The U.S. national defense and security strategies — both constructed around great power competition — are opening doors for bilateral and regional cooperation that can strengthen Mongolia's geopolitical hand.
The significance of democracy in U.S. foreign policy has arguably declined. But the U.S. national defense and security strategies — both constructed around great power competition — are opening doors for bilateral and regional cooperation that can strengthen Mongolia's geopolitical hand. These include the U.S. emphasis on Russia and China, the U.S. pivot to the Indo-Pacific and U.S. outreach to North Korea — where Mongolia is positioned well to facilitate peace negotiations.

The Upshot

Ultimately, the final guarantor of Mongolian sovereignty remains Russia. It has a clear and enduring interest in an independent Mongolia, and its strategic control over Mongolia's energy and transportation sectors would make it a formidable adversary in the event of future Chinese threats, be they economic, political or military.
Mongolia under President Khaltmaa Battulga is deepening that relationship, but it also needs to strengthen the threat of hard global pushback from multiple directions should an aggressive China ever decide to move on it. To do that, Mongolia needs to deepen its strategic alliances with select allies, and build regional bridges in peace and security in the Indo-Pacific.
At the geographical nexus of great power competition, Mongolia has its work cut out for it.
Jeff Goodson is a retired U.S. Foreign Service officer. Dr. Jonathan Addleton was the U.S. ambassador to Mongolia from 2009 to 2012.



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Finance Minister of Mongolia signs loan agreement with China’s Exim Bank Vice President

Minister of Finance of Mongolia Ch.Khurelbaatar met with Vice President of the Export-Import Bank of China Xie Ping in Beijing to exchange views on the projects being implemented in Mongolia by Chinese government soft loans, Montsame reports.
The two pointed out the importance of timely and effective execution of projects under the partnership between Mongolia and China.
Following the meeting, a signing ceremony of loan agreement on construction project of new central waste water treatment plant in Ulaanbaatar city was held. The project will be implemented in Mongolia by USD 1 billion soft loan issued by the Chinese government.

Officials from Mongolian Embassy in China and Ministry of Construction and Urban Development of Mongolia and Export Import Bank of China were present at the ceremony.
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IMF says Mongolia's debt forgiveness plan violates 2017 bailout deal

ULAANBAATAR/WASHINGTON (Reuters) - A plan by the Mongolian government to repay 776 billion tugriks ($283 million) of debt held by its elderly citizens is not in line with the pledges it made in 2017 to secure a bailout deal from the International Monetary Fund, the IMF said on Friday.   
President Khaltmaa Battulga, a populist businessman and former wrestler elected in 2017, said during his New Year address last week that the government would pay off all “pension-backed loans” this year.
He said the move is aimed at “relieving elderly people who dedicated their lives to the development and prosperity of Mongolia of their debt pressures.”
The president said the costs of the program would be covered by raising production at the Salkhit silver mine, which was seized by the state from private Chinese investors during a special military operation at the end of 2018. 

The plan was approved by Mongolia’s parliament on Thursday. The central bank has already ordered commercial banks to stop issuing new pension loans from Jan. 1.  
“The government’s proposal to cancel pension-backed loans is not consistent with the authorities’ goals under the IMF-supported program agreed in 2017,” said Geoff Gottlieb, the IMF’s mission chief in Ulaanbaatar, in a statement emailed to Reuters.
“It increases already high public debt by 2% of GDP to help one narrow part of the population, regardless of their financial need,” he said, adding that the off-budget spending by the central bank causes inflation, puts pressure on the exchange rate and also “raises concerns about governance and proper parliamentary oversight”. 
Battulga’s office did not immediately respond to requests for comment on Friday. 
Mongolia secured a $5.5 billion economic stabilization package from the IMF and other partners in 2017 in a bid to head off an economic crisis brought about by plummeting foreign investment, declining commodity export revenues and a collapse in its currency, the tugrik.  
As part of the deal, the government agreed to cut spending and raise taxes in a bid to balance its books. It also pledged to implement fiscal reforms in order to maintain budget discipline, and to improve the way it regulates the banking and finance sector. 

Reporting by Anand Tumurtogoo in Ulaanbaatar and Andrea Shalal in Washington; Writing by David Stanway in Shanghai; Editing by Kim Coghill

Source:Reuters news agency
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Mongolia to hold camel festival to promote tourism

ULAN BATOR, Jan. 8 (Xinhua) -- Mongolia will hold its annual camel festival in the southern province of Umnugovi in March, in an effort to attract more tourists, local government said on Wednesday.
With the support of the Mongolian Ministry of Education, Culture, Science and Sports, the event will be held for the 23rd year on March 6-8 in the city of Bulgan, it said in a statement.
According to the event's organizer, the event aims to promote winter tourism while passing on the camel culture to future generations and encouraging herders to increase the animal's population.
The festival will include several activities, including camel racing, camel polo and a trade fair featuring camel products.
According to the National Statistical Office of Mongolia, there were over 70.09 million livestock animals in the country as of the end of 2019, of which 0.7 percent were camels.
Among the all 21 provinces of Mongolia, Umnugovi ranked first in terms of camel population.
2020 is a special year for Mongolia's tourism sector. The Asian country has set a goal of receiving 1 million foreign tourists and earning 1 billion U.S. dollars from tourism in 2020.
In the first 11 months of 2019, the country received a total of 549,756 foreign tourists, up by over 10 percent year-on-year, according to the tourism ministry.
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Mongolia raises monthly minimum wage

ULAN BATOR, Jan. 2 (Xinhua) -- Mongolia has raised its monthly minimum wage by 100,000 Mongolian tugriks (about 36.6 U.S. dollars), the country's Ministry of Labor and Social Protection said Thursday.
In April 2019, Mongolia's Tripartite Council, which brings together representatives of the Ministry of Labor and Social Protection, employers and trade unions, agreed to raise the minimum wage to 420,000 tugriks (about 154 dollars) from the first day of 2020, the ministry said in a statement.
Currently, roughly 1.1 million people are employed in the country, of whom about 8 percent receive minimum-wage salaries, according to the ministry.
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Mongolia to write off loans of all pensioners

ULAN BATOR, Jan. 1 (Xinhua) -- The National Security Council of Mongolia led by the country's president has decided to write off the loans of all pensioners in the country.
President Khaltmaa Battulga announced the decision on Tuesday night while extending New Year greetings to his people via media.
"I am happy to announce that the National Security Council of Mongolia has decided to pay off the loans of all pensioners ... with the aim to help them get out of debt," he said.
It is not yet clear when the decision will be implemented.
There are over 380,000 seniors who receive retirement pensions in the country, and more than half of them have taken out loans, according to statistics.
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This dad took his son to Mongolia just to get him off his phone

How do you get a teen to put down their phone and talk to you? Jamie Clarke went all the way to Mongolia to find out.
Riding through a remote valley in Mongolia on the back of his motorbike, adventurer Jamie Clarke let the hum of the engine and the wind echo in his mind while his thoughts wandered.
After several hours, he pulled over to shake off his helmet and take a look at the map.
This was what he loved about adventuring - the solitude, the landscape and the feeling of being in charge of your own destiny.
But when his 18-year-old son pulled up right behind him on his own motorcycle, he had a different take on the long ride they had just finished.
For him, being alone in his thoughts was novel and unsettling.
"Oh my God, that was terrible! I can't be left with my brain like that!"

But that was precisely why the two had decided to embark on this adventure together.
Mr Clarke, a lifelong skier, mountaineer and trekker, had felt like he was losing touch with his son Khobe, who was always on his phone at their home in Calgary, Alberta.
He blames himself, partly. He has a smartphone just like everyone else, and he enjoyed playing games with his son on his Blackberry when he was small.
"If there's any addiction that we have today as individuals and as a family, we (the parents) perpetuated it," Mr Clarke told the BBC. "They're cool devices, but we began to feel like they were controlling us and not vice versa."
The issue had come to a head a few years before, when Mr Clarke went with his family to a remote ski lodge for a weekend to celebrate his 50th birthday.
The area had no wi-fi and no cell reception.
"I had never before that experienced a weekend without my phone, essentially," Khobe told the BBC. "It was very weird for me."

Khobe admits that at the time he was angry that he had to go, and miserable because without Snapchat or Instagram, he had no idea what his friends back home were up to.
That got his father thinking about the role technology had come to play in his family life - and about how to fix it.
For a long time, he had dreamed of travelling across Mongolia on a bike. Now that his son was older, why not do it with him?
About a year ago, he proposed it to Khobe. It wasn't an automatic hit.
"I said no pretty quickly," Khobe says.
"But it kind of turned into this fun idea… it became such a thing of preparation that it was very exciting to go do it."
Khobe got his motorcycle licence and the two practised longer trips. While his father has climbed Everest twice, Khobe had never climbed a mountain so he had to practise that, too.
They left on 28 July, and over the course of the next month travelled more than 2,200 kilometres (1,367 miles) across Mongolia by motorbike, horse and camel.
Although the journey was certainly Instagrammable, they refrained from posting their photos online until after they returned.
Khobe says being away from his phone was a challenge.
"I think the whole time I was pretty consumed by missing my phone," he says. "You realise how boring everything gets. When I'm bored I can just turn on YouTube or watch Netflix. What am I going to do, look at the stars and twiddle my thumbs?"
But he also says getting to know his dad was worth it, especially the time they spent off the road in their tents or yurts just cooking and bonding.
"I was surprised that when he's away from a work environment and family that he acts maybe closer my age," he says.
Similarly, Mr Clarke was surprised to learn how mature his son was when they weren't confined to their typical father-son parenting dynamic.
"It helped me see Khobe in a new way. I saw him as a kid who kept leaving his jacket on the table, not cleaning up the dishes," he says. "And I was able to see him step up to being a young man, and I was impressed by how well he was able to perform under pressure."
You don't have to go all to the other side of the world just to bond with your children, says Caroline Knorr, the parenting editor for Common Sense Media, a non-profit organisation that educates parents about media and technology.

"Parents can establish screen-free time zones in the house all year round, but especially around vacations," she says.
She says try and do fun things during unplugged time, like play a game, go for a walk or even watch a movie.
It's easy around the holidays to find yourself reaching for your phone while you're lying around the sofa, but Ms Knorr says it's important to model the behaviour you want your children to adopt.
"The really important thing is for parents to communicate why that's valuable. Why it's a family value to have unconnected, unplugged time as human beings," she says.
"Say explicitly 'I'm turning off my phone so we can have family time'."
Ms Knorr says it's also important to not demonise technology, or your children for using it.
"I think a lot of time parents become really worried that 'it's the media that's changing my kids' behaviour'," she says.
"But really what is leading that behaviour is a natural normal part of development where kids are becoming interested in pop culture and not as interested in family time."
This natural part of teenagehood is compounded by social apps like Tik Tok and Snapchat, however, which are designed to keep users on for as long as possible in order to make money from advertising.
"It's a double whammy," Ms Knorr says.

Mr Clarke says now that their trip is over, he and his son are trying to apply some of the lessons they learned to their everyday life.
"I've got to realise that technology is valuable and use it, and he's realising how consuming it is. And maybe both of us need to remind ourselves who's in control - you or the app," he says.
Khobe says he's trying to make technology something he "wants to do, not has to do".
"When you're in a group of people and you're supposed to have social interaction time, but everyone's on their phone, that's when I've tried to change my habits," he says.
"It's rude to not give people your undivided attention."

Source:BBC.com
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OUTLOOK 2020 Mongolia

Politics
The 2020 parliamentary election looms over Mongolia as populist politics continue to keep the country in a deadlock that has so far lasted a quarter of a century. Dubbed a “democratic oasis” for its geographic placement between two authoritarian giants, Russia and China, Mongolia may have the status of parliamentary republic, but when it comes to getting things done, the role of the legislature is often paralysing. Chronic issues facing the country include slow progress in approving major projects and little momentum in addressing environmental issues such as air pollution in the capital, Ulaanbaatar.  
Meanwhile, there are uncertainties over the 2021 re-election prospects of Populist Mongolian President Battulga Khaltmaa, a former Sambo wrestler who won the presidency as a member of the centre-right Democratic Party (DP) in 2017. He is not exactly close to his party and is more of a Donald Trumpesque figure than a regular politician. Analysts say the return to active politics of a former Mongolian president, Elbegdorj Tsakhia, who held office from 2009 to 2017, might pose further difficulties for Battulga. If Elbegdorj gets in the way of Battulga getting the DP nomination, the centre-left Mongolian People’s Party (MPP) would be unlikely to let the president run as their candidate. However, the DP may struggle to find a viable alternative to Battulga, a politician who opponents fear might be attempting to sway Mongolia towards strongman politics and away from democracy.
Generally, Mongolian parliamentary election cycles see citizens overwhelmingly vote against the party controlling the parliament out of frustration that the sitting government has failed to achieve its promises. Actual policymaking is thus completely divorced from the group holding power at any given moment. The ball—the ball being control over parliament—constantly rolls back and forth between the MPP and DP, with no concrete implications for policy.
Elections are charged with nationalist discourse over Mongolia’s mineral-rich resources. Candidates attempt to capitalise on ordinary Mongolians’ distrust of foreign mining companies. Mongolians typically exist in a constant state of anger that their mining wealth has yielded no benefits for them, but only for a privileged few. The majority of the electorate appears to favour public ownership of Mongolia’s mines. More of the same can be expected in 2020—with the mining sector providing the main political weapon. 
The situation has long been inconvenient for Anglo-Australian miner Rio Tinto’s flagship Oyu Tolgoi copper and gold project. The successes and failures of its mine are often seen as a barometer for the general state of foreign investment in Mongolia. Oyu Tolgoi is 66%-owned by Rio Tinto’s subsidiary Turquoise Hill Resources, while 34% is held by the government.
In 2019, Rio Tinto faced difficulties after calls by a parliamentary working group to enact changes to the terms of the Oyu Tolgoi expansion deal. Legislators complained that under the agreement as it stood, Mongolia would not be seeing any dividends until 2039. Mongolia funds its share of the mine’s development costs via loans provided by Rio Tinto and its lenders. The debt is repaid by deferring dividends. Rio has previously expressed support for “win-win solutions” to this matter such as by lowering project funding costs.
The uncertainty faced by Rio dissipated in December when it announced that a new government resolution “effectively re-confirm[ed] the validity of all the investment agreements between the Government of Mongolia, Rio Tinto and Turquoise Hill Resources”. The statement came after the parliament gave unanimous approval to a resolution instructing the government to find ways to improve the implementation of the 2009 Investment Agreement, the 2011 Amended & Restated Shareholder Agreement and the 2015 Underground Mine Development & Financing Plan. The development ended an 18-month review of the investment agreements governing the operation and development of the Oyu Tolgoi mine by the Parliamentary Working Group.

This does not mean, however, that if the current MPP-run parliament was to be replaced by a DP-controlled one in 2020, more mining sector anxieties would not arise for Rio to tackle.
Business
The Oyu Tolgoi mine expansion project was originally set to see its first output by around 2020, but that is now not likely to occur until the second half of 2021. Such a delay would hurt the mine’s free cash flow. The longer period needed to complete the project has been caused by management failures and geopolitical obstacles, which pushed the expansion costs up to $6bn-$8bn, compared to the original $5.3bn. Oyu Tolgoi has been producing copper and gold since 2013
Mongolia’s economy in 2018 and 2019 benefited greatly from another major segment of its mining sector—coal. Coal mining saw a 38.1% y/y surge in the first 11 months of 2019, due to growing coal exports to China. Beijing replaced North Korean coal with Mongolian coal in 2017 in a sanctions response against North Korea's nuclear testing activities. China has also been replacing coal exports from Australia with Mongolian coal. Mongolian coal shipments to China grew by 12% y/y to $2.947bn in January-November.
Amid the coal boom, Mongolian state-owned coal miner Erdenes Tavan Tolgoi earlier this year picked banks for its planned Hong Kong initial public offering (IPO) to raise over $1bn. They reportedly include Bank of America and Credit Suisse Group. The company operates the Tavan Tolgoi coal mine, located in the Gobi desert. It is the largest coal ore deposit in Mongolia, estimated as having a total of over 6bn tonnes of coal with more than one-third of that is high-grade hard coking coal.
A successful sale of shares in Hong Kong would mark the third attempt to raise money to develop the Tavan Tolgoi mine following the failure of international partnerships in 2011 and 2015. In 2018, Mongolian lawmakers approved a plan to sell up to 30% of Tavan Tolgoi. No specific details exist on the size and timing of the offering and, as such, it is unknown whether the offering will take place in 2020 or later. 
On another front, Mongolia’s livestock industry, once the primary engine of the country’s economy, is facing threats from climate change and overgrazing, according to a report from the International Monetary Fund (IMF). The national and regional costs to economic growth and inequality from this environmental threat are expected to continue to grow without prompt policy action, the Fund argued.
Mongolia’s livestock industry accounts for nearly 90% of agricultural production and employs 25% of Mongolians, providing more jobs than any other sector. Major challenges are arising in the sector as hotter and drier summers along with massive overgrazing have resulted in sharply accelerating land degradation. The damaged land, in turn, harms the food supply for the livestock and leaves animals poorly prepared to survive increasingly frequent extreme bouts of cold weather. Land degradation and desertification have also contributed to the formation of “yellow dust storms”, which contribute to rising health and economic costs.
The government has attempted to stem the land degradation with official livestock targets in the National Livestock Programme by setting limits on the number of livestock, which reflect the carrying capacity of the grasslands. The measures, however, have gone mostly unheeded and actual livestock numbers are twice the required levels.
Without prompt action, 2020 is likely to witness the continuation of this environmental trend. The likelihood of this is compounded by the government’s resolution adopted in September to grant monetary incentives to members of herder cooperatives and citizens with livestock who supply sheep wool and camel wool to the nation’s wool processing plants. That continues the government-approved four-year programme from 2018 to boost the country’s cashmere industry and value-added wool-products in an effort to diversify Mongolia’s mining-dependent economy. However, this is likely to encourage further overgrazing and thus land degradation.
Mongolia is the world's second-largest producer of raw and washed cashmere as the country’s goat population amounts to 27mn and its annual cashmere production capacity stands at 9,400 tonnes.
The overall business environment in Mongolia has lately improved only slightly according to the World Bank’s Ease of Doing Business latest ranking. The Mongolian score edged up just 0.1 of a point to 67.8 year on year.
In terms of the country’s Ease of Doing Business ranking, Mongolia fell to 80th position from 74th.

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