Mongolia. According to
Countryaah official website, the economic shift has led to severe political
convulsions in Mongolia. In July, the government under Janlavijn Narantsatsralt was forced to resign after a
conflict over the privatization of the copper mine Erdenet,
owned by 51% of the Mongolian state and 49% of the Russian.
The opposition questioned the Prime Minister's legal right
to approve a Russian private company purchase of the Russian
stake, which would have made it difficult for Mongolian
interests to increase their ownership. The Government
Narantsatsralt took office as late as December 1998 after a
five-month crisis triggered by a contentious bank merger.
Former Prime Minister Rintjinnjamijn Amarjargal was
appointed new Prime Minister. Like the representative, he
belonged to the bourgeois Mongolian Democratic Union
(Mongolyn ardtjilsan cholboo evsel). He promised to
stimulate foreign investment, restructure the heavily
subsidized energy sector and privatize the large state-owned
The impatience of the poor population with the new system
was hinted at by the reformed Communist Party victory in
local elections in three provinces in June. Parliamentary
elections will be held in 2000.
In order to reduce the budget deficit, the government
reintroduced customs duties on a number of import goods and
reduced government spending. However, an important
explanation for the deficit was said to be that many newly
privatized companies ignore the fact that they pay taxes. A
new law on freedom of the press meant that a number of state
media were privatized.