Mongolia’s Prime Minister Luvsannamsrain Oyun-Erdene has resigned after losing a confidence vote, amid public anger over his son’s lavish spending. The Harvard-educated reformist had led the country since 2021 and gained only 44 of the 64 votes he needed from lawmakers.
Oyun-Erdene faced divisions in his party and protests erupted over his son’s luxury lifestyle, which included gifts such as a black Dior handbag, Smeg appliances, and a Miu Miu jacket. The protests appear to have triggered a split among rival camps in the government’s fragile coalition.
The prime minister had sought to defend his record, pointing to recent economic accomplishments, but acknowledged paying insufficient attention to social and internal political matters. His plans for economic growth had buoyed investor hopes, with Fitch upgrading Mongolia’s long-term foreign currency ratings to B plus in September.
However, the next government faces significant challenges, including fears of high inflation and decreasing export revenues. Coalition politics are never easy, and investors should expect changes when making decisions. The resignation marks a turning point for Mongolia, which emerged from a single-party political system under socialist control in the 1990s.
Source: https://www.ft.com/content/dfb6ad95-6c55-4d40-8e25-d5f4955397bc