Mongolian government dissolved (January 23, 2006)

Vancouver — The pullout of the Mongolian People’s Revolutionary Party (MPRP) from Mongolia’s ruling coalition has prompted the dissolution of the country’s government.

MPRP, the largest political party in Mongolia, announced its withdrawal from an alliance struck in late 2004 supporting Prime Minister Tsakhiagiin Elbegdorj, whom it accuses of failing to effectively fight corruption and accelerating poverty in the Central Asian country. Parliament voted 39-to-0 to dissolve the government, albeit without the participation of 37 members who left in protest prior to the tally, including 20 from Elbegdorj’s Democratic Party.

The move creates a temporary void for Mongolia and concern for the numerous foreign mineral exploration companies operating in the geologically rich country.

MPRP was the party that led Mongolia, under Soviet Communist direction, up until 1990, before the country transitioned into democracy. The party currently sits with 38 seats in Government House, one shy of control in the 76-seat parliament.

The next stage will see MPRP moving to form a new coalition to govern the country, a task it will have to achieve without the Democratic Party’s 25 seats. MPRP is headed by Nambaryn Enkhbayar, who also serves as president of Mongolia, a primarily ceremonial position.

The Mongolian parliament has recently been debating proposed changes to the country’s minerals policy. Initial drafts worried foreign companies when proposals for government participation in mineral projects were put forward. The government quelled fears when it announced it would not seek state participation in mineral projects discovered by foreign companies.