Bad news out of Mongolia. That's all we need!
May 19, 1997
EX-COMMUNIST'S POLL WIN COULD SLOW MONGOLIA
REFORM
ULAN BATOR, May 19 (Reuter) - The surprise victory of the ex-communists in Mongolia's presidential election will not stop the nation's march toward a
market economy, but it may slow the pace, foreign diplomats said on Monday.
The government's privatisation plans could be one part of the reform programme to face delays following the election win of Natsagiin Bagabandi of the
opposition Mongolian People's Revolutionary Party (MPRP) on Sunday, they added.
"He (Bagabandi) cannot change things but he can block things, and he will slow down change," said a foreign diplomat.
"Bagabandi will slow down economic reforms, especially privatisation," said another diplomat. "Parliament will have disputes in future."
The 47-year-old Bagabandi upset reformist incumbent President Punsalmaagiin Ochirbat, candidate of the Democratic Union Coalition, capturing more than 60
percent of the vote.
Ochirbat, 55, had backed a drive to scrap Stalinist central planning and adopt market-style reforms, but his programme led to harsh economic dislocations such
as surging inflation and mounting unemployment.
Mongolia's president is largely a figurehead, but he has the power to block legislation.
Ochirbat's reformist coalition still controls parliament though it is one seat short of the two-thirds majority needed to override a presidential veto.
Analysts said the MPRP, which had ruled the country for 75 years until its shock defeat in parliament last year, may be willing to work with the reformist
coalition.
The MPRP no longer espouses communist doctrine and it has supported many of the economic reforms enacted to date.
MPRP spokesman S. Bayar advised Western obeservers not to react too drastically.
"There are no communists in Mongolia. The Mongolian People's Revolutionary Party is not a communist party."
The current reformist government says it wants to privatise 60 percent of all state assets, and some 30 percent of the total is already in the hands of the private
sector.
The most recent privatisation drive has focused on small businesses and shops, while the sale of state housing has been another objective.
Some bigger companies have also been privatised. Part of the government's stake in NIC, the big petrol company, has been sold while travel agency Zhuulchin
and local distillery ABU have listed shares on Mongolia's stock market.
Future candidates for privatisation could include state airline MIAT, garment maker Gobi Cashmere and the national railway if the reform programme continues
in its current direction, analysts said.
Diplomats said members of the reformist parliamentary leadership have privately expressed concern over possible difficulties in dealing with the new president.
But at least publicly, they were optimistic about prospects of the reform programme.
"Our country has a parliamentary system and we are still in control of parliament," said T. Buyandalai, an official of the Social Democrats, a party in the reform
coalition.
"Bagabandi has said he would cooperate with the government and the parliament."
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