Mongolia. According to
countryaah, agriculture was affected by drought and poor
harvest from the previous autumn and by a harsh winter that
threatened the livestock. The cold reached minus 50 ～ C and
the snow prevented the shepherds from moving their livestock
to fields where they could find bait. Hundreds of thousands
of camels, horses, cows, sheep and goats succumbed and aid
agencies predicted that the figure would rise to over 1
The owner of the huge copper mine Oyu Tolgoi decided
during the year on investments of $ 5.3 billion to expand
production. It was expected to provide thousands of new
Mongolia's previous record-growing economy was almost at
a standstill with rapidly growing foreign debt following
falling prices for coal and copper and declining demand from
China. In the capital Ulaanbaatar, construction had stopped
with half-finished office buildings and hotels.
US Secretary of State John Kerry visited Mongolia in June
and praised the country as an "oasis of democracy" in a
difficult environment between the Russian Federation and
China. At the same time, criticism from the US Foreign
Ministry came in a report on human rights for unclear
legislation and a lack of transparency that favors
After the electoral law was changed to the detriment of
small parties, the parliamentary elections in June became a
clash between two major blocs, the ruling Democratic Party
(AN) and the opposition Mongolian People's Party (MAN).
In the opinion, AN was blamed for the decline of the
mining industry and the economy. The party had promised that
wealth from the mines would be spread to everyone, but
instead investors had withdrawn and the economy slowed.
The opposition therefore won a landslide victory. MAN
increased from 26 to 65 seats, while the ruling AN lost
about three-quarters of its mandates and stayed at 9. MAN
gained a solid majority in Parliament and was expected to
Both the Prime Minister and the President lost their
seats in Parliament. Former Finance Minister Jargatulga
Erdenebat, 42, from MAN became the new head of government.
He was described as representing a new generation of
well-educated and professional Mongolian politicians. But
Erdenebat ended up in conflict with President Tsachiagijn
Elbegdorj, who felt that some ministerial appointments led
to conflicts of interest, including that a wealthy
businessman was given responsibility for Mongolia's high
In July, Mongolia hosted the Asian-European summit ASEM,
which included, among others, EU leaders.
In August, the central bank raised the interest rate to a
record high of 15% in an attempt to curb the currency's tug
of war against the dollar. The new government sought to
follow the International Monetary Fund's (IMF) call to cut
government salaries, reduce welfare benefits and hold back
student loans in hopes of reducing the budget deficit and
being approved as recipients of IMF support.
Despite the austerity, the budget deficit turned out far
worse than expected. In August, more than 20% of GDP was
declared. In the revised budget for the year presented, the
goal was to reduce the deficit to around 18%.