Mongolia. According to
Countryaah website, the Socialist government received harsh
criticism for suspected corruption. Thousands of protesters
demanded in April that responsible ministers be dismissed.
Among the criticisms were also concerns that the government
should negotiate control of the mining company Erdenet to
Russia to reduce Mongolia's debt from the Soviet era of over
SEK 90 billion. Concern was sparked by the darkening of the
Foreign aid donors also showed irritation over corruption
and slow pace of economic reform. The US and the
International Monetary Fund made less contributions as a
In January 1992, Parliament passed a constitutional
reform presented by the government. The reform removed the
People from the name of the Republic, so the
country was now officially called the Republic of Mongolia.
At the same time, a democratic multi-party system was
introduced to replace the socialist system that had existed
In the June 1992 parliamentary elections, the incumbent
government won 70 out of the 76 seats of the parliament. The
Democratic Coalition of the opposition only got 3-4 seats -
according to. figures from the Supreme Election Commission
that monitored the count. Over 90% of the population took
part in the elections.
Following the defeat in June, in October 1992, the
opposition transformed into the Democratic National Party of
Mongolia (MDN). The Social Democrats preferred to remain
Up to the privatization of 80% of state enterprises in
November 1992, each resident was allocated vouchers for the
purchase of shares, but the predominantly nomadic population
did not understand the system and preferred to sell the
vouchers on the black market.
The withdrawal of the Russian troops that began in 1987
was completed in 1992. At the same time, the incumbent
President Otchirbat approached the MDN and the Social
Democracy. That enabled the president in June 1993 to regain
his post by 58% of the vote, and he subsequently declared
that the economy would be turned in a more "western"
During 1994, the conflicts between Otchirbat and the
ex-communist majority in parliament worsened. Poverty and
unemployment continued to rise, and according to. official
estimates had 26.5% of the population not enough to survive.
In 1994, for the first time since the collapse of
communism, the country experienced economic growth of 2½%.
In Parliament, the disagreements between the MDN and the
Social Democrats, on the one hand, and the ex-Communist
majority, on the other, intensified, which in 1995 led to an
agreement on changes in the electoral system. It was decided
that 24 of the 76 parliamentarians should be elected by a
proportional system, while the remaining 52 seats would be
filled from the single-circle system.
In the economic sphere, a number of international
organizations criticized the apparent slowness with which
Mongolia liberalized its economy and encouraged the
development of the private sector.
In the June 1996 parliamentary elections, the Democratic
Alliance (DA) won a majority. The DA was an alliance between
the Social Democracy and the MDN. The communist monopoly of
power was thus broken. AD got 50 of the parliament's 76
seats, while the ex-communists had to be reduced from 70 to
25 seats. In July, Parliament appointed Mendsayhany
Enkhsaikhan as Prime Minister.
After the election, the government devised a reform plan
for rapid transition to market economy. This process had
high social costs as it increased unemployment and poverty.
However, this situation was also largely due to the
consequences it had had when technical and financial
assistance ceased with the collapse of the Soviet Union.
About 19.6% of the population now lived below the poverty