Democratic Transition in Mongolia: Achievements and Challenges ...

Democratic Transition in Mongolia: Achievements and Challenges ahead of 2008 Elections 31

※Special Essays※

Democratic Transition in Mongolia: Achievements and Challenges ahead of 2008 Elections Sharad K. Soni ∗ (India)

Abstract Throughout the Cold War period Mongolia remained dependent on the erstwhile Soviet Union for its political, economic and military needs, which led to the Soviet domination in its domestic and foreign policies so much so that it was considered, though unofficially, as not only the “sixteenth” Soviet Republic but also the most dependent “satellite” of the USSR. After the collapse of the Soviet Union, Mongolia got a rare historical opportunity to opt for democratisation and launch sweeping economic and political reforms simultaneously. This paper seeks to analyse the progress Mongolia has made in its domestic and foreign policy implementation since the beginning of transition more than fifteen years back from Soviet style communism to a free-market economy and democratic political system. Besides, it also highlights the challenges Mongolia has been facing ahead of 2008 Parliamentary elections. Key Words：Democracy、Multi-Party System、Parliamentary Elections、 “Multi-Pillar” Foreign Policy、Pragmatism、 Interdependence 、 Non-Aligned and Non-Nuclear Policy、Equidistance、Trilateral Framework

It has been more than a decade and half since Mongolia opted for democracy and market economy. During this period the country has faced the incredible task of undergoing socio-economic and political reforms that it ∗

Dr. Sharad K. Soni is Assistant Professor of Mongolian Studies at the Centre for South, Central, Southeast Asian and Southwest Pacific Studies, School of International Studies, Jawaharlal Nehru University, New Delhi (India). He can be contacted at [email protected]

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never thought of experiencing in such a rapidly growing pace. What is striking is that a small country like Mongolia which has geographical compulsion of being sandwiched between its two giant neighbours-Russia and China, has now come a long way in raising its profile on the Asian map. In the post-Soviet era, i.e., during the democratic transition in the country, while redefining its domestic and foreign policies, Mongolia has confronted numerous problems but commitment to resolve them both on the part of Mongolian leadership and the people as a whole made the task easy if not too difficult. Known as the first Communist state in Asia and the second in the world prior to the collapse of the erstwhile Soviet Union, Mongolia has also the distinction of becoming first such state to have discarded 75-year of one-party rule and adopted multi-party system. Significantly, since the adoption of democratization and market economy it appears that the country stands out as a unique case where a new democratic civilian society has evolved, the role of which remains vital in deciding the political future of the country, whether it’s domestic or foreign policy. As such Mongolia provides a classic case study, which unlike Central Asian Republics has witnessed a relatively peaceful transition to a democratic society.

Move towards Democratic Transition For almost seven decades until 1990, the system of government in Mongolia was based on the Soviet model, and the Communist Party – the MPRP was the only party which was officially permitted to function. However, the onset of glasnost and perestroika in the erstwhile Soviet Union and the ensuing process of reforms and restructuring in the Soviet domestic and foreign policies has had a direct bearing and inevitable impact over Mongolia. It was in 1987 that Mongolia began to diversify itself as Soviets became less inclined to provide economic support to Mongolia and even withdrew subsidies. But at the same time, ties with the United States and further improvements in its relations with China provided Mongolia fair opportunities


for “new options and greater chances to stand on its own.” 1 The process of Soviet-style reforms and restructuring through Il tod and Orchilan baigalalt and the democracy movement in Eastern Europe were imitated in Mongolia. As such there was a dramatic shift towards reform which began in the winter of 1989-90 when the first organized opposition group, the Mongolian Democratic Union (MDU), appeared on Mongolia’s political scene in December 1989. Between December 1989 and March 1990 there was a great upsurge in public political activity, as a series of peaceful demonstrations were held in Ulaanbaatar, demanding faster political and economic reforms. The emergence of further opposition groups, together with escalating public demonstrations (involving as many as 20,000 people), led to a crisis of confidence within the MPRP itself. 2 Following the dialogue initiated between MPRP officials and representatives of the MDU amid street protests in the capital Ulaanbaatar, the entire Politburo of the MPRP resigned in March 1990, and a new leadership took over the party’s reign. Though the countrywide democratic movement started bringing aggressive reforms in the country’s political and economic spheres, it essentially contained “a nationalistic motivation rather than a democratic one.” 3 It soon turned out to be a struggle against Communism, which was held responsible for ruining the country. The dominant factor in this struggle was to bring radical changes, which could take the country towards prosperity by correcting the mistakes committed by the Communist leaders in the past. 4 Besides, it provided a fair opportunity for both the government and the people to carry out open discussions on the prevailing situation and find out ways to overcome the problems. As such reforms were urgently required for 1

Kenneth Jarrett, “Mongolia in 1987: Out From the Cold?,” Asian Survey (Berkeley), Vol.28, No.1, January 1988, p.85. After normalization of relations between Mongolia and China a new equation has now emerged in their overall relationship, see Sharad K. Soni, “Mongolia-China Relations: Post Cold War Scenario,” in Mahavir Singh, ed., Asia Annual 2004 (Delhi: Shipra Publications & Maulana Abul Kalam Azad Institute of Asian Studies, 2005), pp. 220-238.

2

See Alan J.K. Sanders, “Mongolia”, The Far East and Australasia, 1999 (London: Europa Publications, 1998), p.692.

3

Baabar Batbayar, “Post-Communist Transition in Mongolia,” Himalayan and Central Asian Studies (New Delhi), Vol.5, No.1, January-March 2001, p.53.

4

Ibid.

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the prosperity of the Mongolian people not only in the domestic political, social and economic fields but also in the foreign affairs. It further gained momentum due to the collapse of the former Soviet Union in 1991 and the end of the Cold War. Mongolia made a critical reappraisal of its own policy and began changing many of its existing policies which were believed to have prevented country’s progress at the domestic level. In May 1990, the Constitution was amended by deleting reference to the MPRP’s role as the “guiding force” in the country, legalizing the new ‘informal’ parties through official registration, creating a standing legislative body called the State Little Hural, elected by proportional representation of parties, and establishing the office of the President. Besides, a new electoral law was approved and the date of the next general election to be held in July 1990 was announced. The first multi-party elections for a People’s Great Hural were held on July 29, 1990 in which the MPRP won 85% of the seats. The People’s Great Hural first met on September 3, 1990 and elected a President from the MPRP, Vice President from the SDP (Social Democrats), Prime Minister from the MPRP, and 50 members to the Baga Hural (Little Hural). The Vice President was also the Chairman of the Little Hural. In November 1991, the People’s Great Hural began discussion on a new Constitution. The new Constitution, the fourth one since 1921, was finally adopted on January 13, 1992 replacing the 1960 Constitution, which brought considerable changes in Mongolia’s political system. 5 Key elements in the new Constitution emphasised the “establishment of democracy” contrary to the previous Constitutions, which had stressed “building the State through socialism.” As such the traditional Leninist ideology was abandoned. The most notable change made in this Constitution was the replacement of the two-chamber Parliament (bicameral) known as the Great and Little Hurals with that of a single chamber (unicameral), which came to be known as the State Great Hural (SGH) comprising 76 Deputies. It was for the first time that a multi-ownership economy was introduced by this 5

For the full text of the new Constitution, see The Constitution of Mongolia (Taipei: Mongolia and Tibetan Foundation, 1992), pp. 1-31.


Constitution, which would go with the mainstream of the world economy and conform to the special conditions of the country. 6 In order to distance itself from its Communist past, the country’s name was also changed from “Mongolian People’s Republic” to “Mongolia” and the Communist gold star was removed from the national flag under the new Constitution which entered into force on February 12, 1992. 7 The President became more powerful who would be elected by popular vote rather than by the legislature as before. The President is the head of State, Commander-in-Chief of the Armed Forces, and head of the National Security Council. A national majority popularly elects him for a 4-year term, which is, however, limited to two terms. The Constitution empowers the President to propose a Prime Minister, call for the government’s dissolution, initiate legislation, veto all or parts of legislation, and issue decrees, which become effective with the Prime Minister’s signature. 8 In the absence, incapacity, or resignation of the President, the SGH Chairman exercises Presidential power until a newly elected President takes over his office. In June 1993, while running as the candidate of the democratic opposition, incumbent Punsalmaagiyn Ochirbat came out victorious in the first popular Presidential election. The Prime Minister serves as head of the government and has a 4-year term. The President nominates him, who is to be confirmed by the SGH. The Prime Minister forms a cabinet, subject to the approval by the SGH. The Constitution also stipulates that dissolution of the government occurs upon the Prime Minister’s resignation, simultaneous resignation of half the cabinet, or after an SGH vote for dissolution. However, as the supreme government organ, the SGH is empowered to enact and amend laws, determine domestic and foreign policy, ratify international agreements, and declare a state of emergency. Besides, the SGH meets bi-annually and its members elect a

6

Summary of World Broadcasts, FE/1280, 17 January 1992.

7

See Summary of World Broadcasts, FE/1303, 13 February 1992.

8

For more details see US Department of State, Background Note: Mongolia, at http://www.state.gov/r/pa/ei/bgn/2779.htm

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Chairman and Vice Chairman both of them serving four-year terms. The Members of Parliament (SGH) are popularly elected by district constituencies for four-year terms. Over the years one can witness significant changes in Mongolia’s political, economic and social fields, which further gave boost to radical transformation of Mongolia’s economy. To begin with, initiatives towards liberalization of Mongolia’s economy with establishment of a new banking and financial system as well as privatization laid the foundation for the development of a market economy. In fact, a rapid transition in Mongolia’s economy was achieved by “shock therapy” mainly through adoption of three key mechanisms, i.e., privatization, currency reform, and price and wage liberalization. 9 Not only the livestock sector, the backbone of Mongolia’s economy witnessed privatization but also a number of private companies were allowed to operate in key sectors. 10 The main focus of economic growth was given on the utilization of natural resources including agricultural, mineral, oil and water. As a result there has been surge in industrial sector, which led the growth of manufacturing units as well. On the trade front, although Mongolia’s trade relations with the outside world expanded in recent years, there is still need of consistent trading partners who could help achieve Mongolia’s economic security. With changes in Export-Import policy, Mongolia tried to attract as many overseas partners as it can. However, difficulties in trade partnership have also been realized due to high prices of domestic and foreign goods and services as well as weak financial capability of business entities involved in foreign trade. 11 Even though, joint ventures with foreign companies have helped the country to witness growth in several key sectors of the economy. Interestingly, in July 2003 the agreement on the cancellation of 98 per cent of Ulaanbaatar’s Rb 11.4 billion debt owed to the erstwhile Soviet

9

“Mongolia,” Country Profile 2004 (London: The Economist Intelligence Unit limited, 2004), p.11.

10

Oidov Nyamdavaa, Mongolia-India Relations (New Delhi: Bhavana Books & Prints and Himalayan Research and Cultural Foundation, 2003), p.80.

11

Ibid, p.81.


Union, has removed a considerable financial burden from Mongolia, which could prove to be beneficial in confidence building among foreign companies that “considered the financial risk of investing in Mongolia is too high.”12 On the political front, it is to be pointed out here that although multi-party democracy is still in its embryonic stage in Mongolia, lack of interest is not visible in forming political parties. Over the years, particularly since the end of single-party rule, numerous parties and groups have been organized and reorganized or renamed in the process of democratization. However, there remained a few political parties with major influence and stable membership. 13 The MPRP now claims to have rejected the principles of Marx and Lenin, which they did by amending its manifesto at its 21st Party Congress held in 1991. Needless to say, Parliamentary elections have been playing an important role in “the consolidation of political parties and redefining their national agendas.” 14 The first multi-party legislative elections were held in July 1990. After a new Constitution became effective, a second multi-party election was held in June 1992, the third in July 2000 and the fourth in June 2004.

Parliamentary Elections under New Democratic Laws Mongolia has been demarcated into 76 constituencies, which fall under 21 aimags or provinces and one municipality. Soon after the adoption of the 1992 Constitution, a second multi-party election was held on June 30, 1992 in accordance with the new law to elect members to the SGH. A total of 293 candidates contested for 76 seats from 26 multi-constituencies, comprising of 18 aimags (provinces), the towns of Darhan and Erdenet, and six constituencies in the capital Ulaanbaatar. Although the outcome of the election was disproportionate, the MPRP won a landslide victory with 70 seats while

12

“Mongolia”, Country Report November 2004 (London: The Economist Intelligence Unit limited, 2004),

p.27. 13

Ts. Batbayar and Sharad K. Soni, Modern Mongolia: A Concise History (New Delhi: Pentagon Press, 2007), third revised & enlarged edition, p.110.

14

Ibid.

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the remaining seats went to the democratic parties with the MDP-MNPP-UP Alliance winning four and the MSDP and independent one each. Obviously, the government was formed by the MPRP under Prime Minister Puntsagiyn Jasray, who had been a Deputy Chairman of the Council of Ministers and a candidate member of the MPRP Politburo at the end of the Communist period. A few months after the election, the MDP, the MNPP, the UP and the Mongolian Renewal Party merged together in October 1992 to form a new party called the Mongolian National Democratic Party (MNDP). Another political party, the Mongolian United Heritage (conservative) Party (MUHP) came into existence in 1993 by the amalgamation of the United Herdsmen’s and Farmers’ Party, the United Private Owners’ Party, the Capitalist Party and the Independence Party. In 1994, yet another new political formation, the Mongolian Democratic Renewal Party came into being. 15 After amendments to the Election law the third general election was held on June 30, 1996. The main contestants were MPRP and Democratic Coalition. During the electioneering political observers cautiously predicted that the ruling MPRP would retain its majority in Parliament, rather than repeat their landslide victory of 1992, when they had won 70 of 76 seats. The reason behind this clean sweep in 1992 elections was that the Communist leaders of the MPRP were popular and well-known figures, and that helped greatly in their campaigns. They even promised to meet serious challenges Mongolia was facing after the advent of democracy in 1990. But they failed to fulfill their promises and Mongolia reeled under inflation and unemployment. This time too observers expected the voting to be held on the basis of personalities of individual candidates rather than the political parties to which they belonged. However, after final results of the polling were declared, Mongolia’s Democratic Coalition emerged triumphant by winning 50 seats as against six in the previous legislature.

15

For more comprehensive details on different political parties see Alan J. K. Sanders, Historical Dictionary of Mongolia (Lanham, Maryland and Oxford: The Scarecrow Press, Inc., 2003), second edition, pp.205ff.


With 50 confirmed seats the Democrats were able to hold 475,267 votes (66.6%) of the total seats in Parliament as against 408,977 votes for the MPRP, which won only 25 seats thereby constituting about 32 per cent of total seats. 16 By and large, almost all the seats in Parliament were won either by the Democrats or the MPRP except for one seat which was won by O. Dashbalbar of the Mongolian United Heritage Party (MUHP). Though the outcome of the polls revealed a considerable set back for the Communist leaders, the most unpredictable aspect of the result was the defeat of all independent candidates in elections and thus the Mongolian parliament remained unrepresented by independents. The unexpected results of 1996 elections indeed marked the first major change of political power in Mongolia in its almost 75 years of history. With all this sudden change there was an obvious sense of excitement among the young people in the government who wished to move the country and its people ahead with a number of ambitious plans at hand. The first session of the newly-elected SGH opened in mid-July 1996 amidst confusion, the Democratic Alliance being somewhat inexperienced, and the MPRP, now in opposition, deeply dissatisfied and determined to extract every possible political concession from the victors. However, during the next four years the ruling Democratic Coalition had to face stiff resistance from the MPRP in its efforts to promote privatization and the development of a market economy in the face of industrial stagnation, increasing poverty and unemployment. Besides, the Democratic Coalition’s four years in power had been “characterized by revolving-door governments (four in four years), political infighting within the Coalition itself, a corruption scandal, and an attitude among Coalition members that often seemed to put personal political ambition over Coalition or national interests.” 17 While the Coalition tried to do everything it could to run the government, the MPRP did 16 17

See Ibid, p.xlix.

Sheldon R. Severinghaus, “Mongolia in 2000: The Pendulum Swings Again”, Asian Survey (Berkeley), Vol. 41, No.1, 2001, p.62

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everything it could to help them “self-destruct.” Interestingly, the MPRP, which never had to worry about democratic procedures in its past, learned quickly as to how to use principles of parliamentary procedures and Constitutional law to obstruct the Coalition’s reform agenda. 18 In July 2000 parliamentary elections, a total of 1,027,985 voters (82.43% of the electorate) cast their ballots, which finally resulted in the pendulum of power swung back again to the MPRP. Surprisingly, they won 72 of 76 seats (95%) in the Parliament, creating another one-party government, similar in numbers to that in 1992. But the magnitude of victory surprised not only the voters but the leaders of the MPRP as well. The new Democratic Coalition and Social Democrats had to satisfy themselves with 13% and 9% of the votes respectively but without winning a single seat. Rest of the four seats were shared one each by the MNDP, Mongolian Democratic New Socialist Party (MDNSP), Civil Courage Party (CCP) also called Civil Will Party and an independent. Overall the result was so unbelievable that many in the political circles thought that the election law needed to be reformed so that the number of seats held by different parties in the Parliament could more closely reflect the popular vote besides leading to more meaningful debate of the government’s legislative agenda. 19 Although concerns were raised over uncertainties as to which direction the new MPRP government will go in the next four years, the year 2001 saw the MPRP consolidating its political power and demonstrating its resolve to keep market economy reforms on track. 20 On the other side, after their defeat the two main democratic parties, the National Democrats and Social Democrats joined hands together to form a single Democratic Party. However, the strong presence of the MPRP in Mongolia’s political arena was also felt

18

Ibid.

19

Ibid.

20

Christophr M. Finch, “Mongolia in 2001: Political Consolidation and Continued Economic Reform,” Asian Survey (Berkeley), Vol.42, No.1, 2002, p.39.


when the incumbent President N. Bagabandi easily won the 2001 presidential election for his second term. Until the next election held in June 2004, the MPRP tried to convince not only the West and the international donor community but also the people as a whole about its resolve to keep economic and political reforms in Mongolia on track. But the final outcome of the 2004 elections has revealed that the people exercised their franchise against the ruling MPRP. Voter turnout was over 75 per cent, which was remarkable considering the fact that a sizeable number of Mongolian voters live in remote areas far from polling stations and had to travel by horse, camel, or fourwheelers to cast their ballots. As the June 27, 2004 Parliamentary elections approached, the ruling MPRP appeared to be winning another term in the government. There seemed to be no obvious challenger. During the election campaign, the MPRP raised the issue of rising economic growth during its four-year term in office in order to woo the voters but at the same time, it had to deal with questions about the persistence of poverty. On the other side, the opposition parties too appeared to be sure to increase their tally of seats from four in the previous election. The main opposition parties including the Democratic Party (DP), the Mongolian Democratic New Socialist Party (MDNSP) and the Civil Courage Republican Party (CCRP) contested the election together as the Motherland Democratic Coalition (MDC). They highlighted welfare issues during their election campaigns. However, experts believed that differences within the opposition would hamper their attempts to offer a viable alternative to the MPRP. 21 At least 11 parties were in the election fray, including a new party known as the National Women’s United Party (NWUP). When the initial results of the election gave both the MPRP and the MDC 36 seats each in the Parliament, the MPRP supporters responded to it by accusing the MDC of electoral malpractices. On its part the Election

21

“Mongolia”, Country Report May 2004 (London: The Economist Intelligence Unit limited, 2004), p.33.


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Commission upheld a number of complaints over the conduct of the election, leading to a snap by-election on July 17, 2004. It benefited to adjust the tied preliminary result to give the hitherto ruling MPRP 37 seats and the opposition MDC 34 seats, but as neither had the minimum required 39 seats to form a government, the political impasse continued for quite some time. As the situation led to a hung parliament, it was suggested that it would be illegal for a government to be formed that relied on the support of the three independent members of parliament, and therefore, the only way out was a coalition government. 22 Otherwise, there was no option but to hold another election, which was not conducive considering the economic health of the country. This finally led to the formation of a grand coalition government of the MPRP and the MDC under Prime Minister Tsakhiagiyn Elbegdorj of the Democratic Party. With MPRP took over 10 positions in Elbegdorj’s 18-member cabinet, it was decided that the next Prime Minister was to be nominated among the candidates of the MPRP in 2007.23 But the fragile coalition government did not remain intact for long and finally on January 11, 2006 collapsed altogether when all the 10 MPRP cabinet members resigned in protest to what they described as “the coalition’s ineffective governance and loss of public support.” 24 The reason behind the collapse of the democratically elected government was cited as the troubled government’s struggle with growing unemployment, allegations of corruption, and factional differences. The ever-growing disillusionment with the coalition’s rule was reflected in presidential elections in May 2005, when the former Prime Minister Nambaryn Enkhbayar of the MPRP won the presidency with 53.4% of the vote as against 19.7% mustered

22

“Mongolia”, Country Report August 2004 (London: The Economist Intelligence Unit limited, 2004),

p.30. 23

“Mongolia,” Country Report November 2004 (London: The Economist Intelligence Unit limited, 2004),

p.22. 24

Kerry Dumbaugh and Wayne M. Morrison, “Mongolia: Political and Economic Status”, CRS Report for Congress at http://digital.library.unt.edu/govdocs/crs//data/2006/upl-meta-pcc1156153190knordstr_nt104619_unt/RS21155_2006May03.pdf


by his Democracy Party rival, Mendsaikhani Enkhsaikhan. 25 The collapse was followed by days of protests in the Mongolian capital which witnessed some protesting government corruption and economic deprivation, while some accusing the MPRP of attempting to seize power for itself. 26 Finally on January 25, 2006, Miyeegombo Enkhbold, the former Ulaanbaatar Mayor and the MPRP Chairman was chosen by the Parliament as the new Prime Minister to succeed Elbegdorj. The Democratic Party was reported to have declined the MPRP’s proposal of entering what the latter called as the government of “national unity” and instead decided to function as an opposition or build an alternative “shadow government”. 27 However, nothing sort of a so-called “shadow government” is visible and it now appears that the MPRP is in full swing. As regards the issues of country’s welfare, the political crisis following dissolution of the coalition government has had no affect particularly on implementing country’s security and foreign policy objectives ahead of the next parliamentary elections due in June 2008.

Radical Changes in Security and Foreign Policies Since the overall domestic and external scenario underwent a drastic change during the democratic transition, Mongolia’s security and foreign policy objectives too figured prominently among the country’s think–tanks. 28 It was then understood that Mongolia’s national security could only be ensured by securing international guarantees “through a combination of unilateral, bilateral and multilateral measures.” 29 Consequently, in June 1994 Mongolia made radical changes in its national security and foreign policies by adopting three basic documents– National Security and Foreign Policy Concepts as well

25

Ibid.

26

Ibid.

27

See The UB Post (Ulaanbaatar), 19 January 2006.

28

For more details see Sharad K. Soni, “Mongolia’s Security Thinking and Outside World: A Reappraisal”, Bimonthly Journal on Mongolian & Tibetan Current Situation (Taipei), Vol.15, No.6, November 2006, pp.27-39.

29

p.29.

See Mongolian Defence White Paper, 1997-1998, Ministry of Defence of Mongolia, Ulaanbaatar, 1998,

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as the Military Doctrine, which were finally endorsed by the Mongolian Parliament. The overall concerns for Mongolia’s security thus aimed at achieving favourable internal and external conditions for ensuring vital national interests, which include the existence of the Mongolian people and their civilization, the country’s independence, sovereignty, territorial integrity, inviolability of State frontiers, relative economic independence, sustainable ecological development and national unity.30 Post-Soviet radical changes can sharply be witnessed in the National Security Concept, according to which Mongolia believes that the security of its existence can be ensured by strictly observing the policy of not allowing the use of the country’s territory against other States; ensuring its NuclearWeapons-Free Status at the international level and making it an important element of strengthening the country’s national security. However, Mongolia’s new status of being a Nuclear-Weapons-Free-Zone (NWFZ) is not only targeted to ensure its own security by political means but also to make a contribution to regional stability and predictability. In line with this, provisions were also made for banning the deployment and transit of foreign troops as well as nuclear weapons and other weapons of mass destruction on the Mongolian territory. Encouraged by its NWFZ status Mongolia also became a party to the Nuclear non-Proliferation Treaty (NPT) and other relevant international conventions and treaties. It now continues to receive assistance and support from various quarters in order to promote its international security and nuclear-weapon-free status. These quarters include the relevant UN bodies, the five nuclear-weapon states (P5), the Non Aligned Movement, various regional disarmament meetings etc. 31 Further, on November 20, 2000, the 55th session of the United Nations General Assembly in a resolution 55/33S on “Mongolia’s International Security and Nuclear-Weapon-Free Status” appealed

30

See Concept of National Security of Mongolia, Strategic Digest (New Delhi), Vol. 26, No. 2, February 1996, p.173.

31

See Report of the Secretary-General on Mongolia’s International Security and Nuclear-Weapon-Free Status, United Nations General Assembly, 55th Session, A/55/166 dated 20 July 2000.


to “the Member States of the Asia and Pacific region to support Mongolia’s efforts to join the relevant regional security and economic arrangements.” 32 Since then Mongolia has been moving in right direction as has been evident from the fact that while addressing the 58th Session of the UN General Assembly on September 29, 2003 the then President Bagabandi reaffirmed his country’s support to the establishment of Nuclear-Weapons-Free Zone (NWFZ) in other parts of the world. 33 Regarding Mongolia’s foreign policy there is no doubt that national interests remain the key issue in its formulation. As stipulated in the Foreign Policy Concept, Mongolia’s foreign policy priority focuses on “safeguarding of its security and vital national interests by political and diplomatic means, and creating a favourable external environment for its economic, scientific and technological development.” 34 By adopting what is termed as a “multi-pillar” foreign policy Mongolia has broadened its diplomatic outlook and the scope of its international activities. As such it now adheres to the principle of flexible priorities in foreign policy implementation with due consideration given to the changes taking place in the international environment due to globalisation. 35 One of the main characteristics of Mongolia’s foreign policy is its pragmatism, and therefore, it relies on ongoing international political reality as well as the trends of international economic development. However, Mongolia’s foreign policy aims at ensuring the security and prosperity of the country both internally and externally by “forming with influential countries in the region

32

See Resolution 55/33S of the United Nations General Assembly, 55th Session, 69th Plenary Meeting, A/RES/55/33 dated 12 January 2001.

33

See Sharad K. Soni, “Mongolia’s Security Concerns in the Post-Cold War Period,” in Mahavir Singh, ed., Building a New Asia (Delhi: Shipra Publications & Maulana Abul Kalam Azad Institute of Asian Studies, 2005), p. 286.

34

See Concept of Mongolia’s Foreign Policy, Strategic Digest (New Delhi), Vol. 26, No.2, February 1996,

p.188. 35

M. Durgersuren, “Changing Mongolia in a New Environment,” The Mongolian Journal of International Affairs (Ulaanbaatar), No.1, 1994, p.20.

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and in the world a network of relationships based on the interdependence of political, economic and other interests.” 36 In accordance with its foreign policy objectives Mongolia has already forged new relationship with global and regional powers, and is trying to muster their support especially in the efforts of economic rebuilding of the country. Besides, it has been focussing its attention towards developing political and economic cooperation with the United States, Japan, European Union especially Germany, Britain, France as well as Australia, Canada and other western countries. At the same time in order to make its presence felt in Asia, Mongolia attaches great importance towards expanding its relations with India, the Republic of Korea, Turkey, Thailand, Singapore and other ASEAN member countries. In the past few decades, Mongolia’s desire of promoting cooperation with the countries of North East Asia as well as its own integration with this region has evolved to a great extent. It is more so because the North East Asian region is being considered as a major component of the broader Asia-Pacific economic structure and a pivot of the world power equation with the increasing interaction of China, Japan, Russia and the United States. 37 Evidently, during the period of democratic reforms especially in the mid-1990s when no single nation came forward to be understood in real terms as Mongolia’s “Third Neighbour”, Ulaanbaatar’s thinking took a definite turn to forge a new relationship with North East Asia that went beyond economic ties to include political concerns. 38 The entire period of democratic transition has also witnessed a smooth sailing in Mongolia’s relations with both Russia and China on quite a new basis. It is also due to the fact that the Sino-Soviet rapprochement process resulting from Soviet President Mikhail Gorbachev’s proposals during his seminal speech at Vladivostok in July 1986 has had positive impact on the 36

Concept of Mongolia’s Foreign Policy, op cit.

37

D. Bayarkhuu, “A New World Order in the Asia-Pacific Region: A Mongolian Perspective,” World Affairs (New Delhi), Vol.3, No.4, October-December 1999, p.101.

38

Alicia Campi, “Mongolia in Northeast Asia-The New Realties”, The Mongolian Journal of Affairs (Ulaanbaatar), No.12, 2005, p.51.

International


normalisation of Mongolia-China relations particularly in the 1990s. The withdrawal of Soviet/Russian military forces stationed on the territory of Mongolia too contributed greatly not only to the normalisation of Sino-Russian as well as Sino-Mongolian relations but also led to the beginning of a new era in Mongolia’s security environment which was hitherto affected by the SinoSoviet confrontation.39 Mongolia, on its part, by the mid-1990s made it clear to both Russia and China that it should no longer be treated to be within the sphere of influence of either of the two neighbours. What one can witness is that Mongolia accords top priority to the question of relations with these two neighbouring countries and adheres to the principle of a balanced relationship with them. Even Mongolia’s foreign policy too stresses that “Mongolia will not interfere in the disputes between its two neighbouring countries unless the disputes affect Mongolia’s national interests.” 40 It further says that Mongolia “shall pursue a policy of refraining from joining any military alliance or grouping, allowing the use of its territory or air space against any other country, and the stationing of foreign troops or weapons, including nuclear or any other type of mass destruction weapons in its territory.” 41 Thus following its national security and foreign policy objectives Mongolia has been maintaining “complete equality” in its relations with Russia and China.

Equidistance in Relations with Two Immediate Neighbours It was on January 20, 1993 that the then Russian President Boris Yeltsin and Mongolian President P. Ochirbat signed a new 20-year Treaty in Moscow which marked not only the beginning of changes in Russia-Mongolian relations but also a rethinking by the two sides of their foreign policy doctrine and the liberalisation of their multilateral and bilateral relations. 42 This new 39

Sharad K. Soni, Mongolia-Russia Relations: Kiakhta to Vladivostok (Delhi: Shipra Publications, 2002),

p.227. 40

See Concept of Mongolia’s Foreign Policy, op.cit, p.189.

41

Ibid.

42

Galina Yaskina, “Russian-Mongolian Relations: Reality and Outlook”, Far Eastern Affairs, no.5, 1998,

48


Treaty replaced the Treaty of Friendship, Cooperation and Mutual Assistance concluded between the former Soviet Union and the Mongolian People’s Republic on January 15, 1966. It may be pointed out that Mongolia’s ties with Russia were all but “non existent” at one point of time soon after the collapse of the Soviet Union. 43 But Mongolia began taking serious steps toward their restoration and 1993 treaty was the result of that effort. The Treaty which was concluded on the basis of equal terms stipulated that Russia would respect Mongolia’s policy of denying foreign troops to be stationed or pass through its territory, besides making it clear that neither party would participate in any military or political alliance that would be detriment to the interests of the other. Unlike the 1966 Treaty, the 1993 Treaty was more democratic as although it envisaged wide ranging collaboration, it did not “provide for any form of military alliance and allowed both states to develop relations in accordance with their own national interests.” 44 Russia and Mongolia, reads Article 1 of the Treaty, “consider themselves as friendly nations and their relationship will be guided by the principle of respect for each other’s state sovereignty and independence, of being equally sovereign, of non-use of force, of not threatening with force, of inviolability of state frontiers, of territorial integrity, of non-interference in internal affairs; respect for fundamental human rights and liberties, for equality of rights, for the right to decide destiny on their own; and by the principle of fulfilling in good faith their obligations and cooperating as good neighbours and partners.” 45 Mongolia-Russia relations further continued as it is evident from reciprocal visits of high level officials in each other’s countries for bilateral discussions on many issues. Significantly, the visit of Mongolian President N.

p.35. 43

See, Country Study for Japan’s Official Development Assistance to Mongolia: A Committee Report, Based on the discussions and findings organised by Japan International Cooperation Agency, Tokyo, March 1997, p.40.

44

Yaskina, op.cit, p.37.

45

For the full text of “Russia-Mongolia 1993 Treaty”, see Mongolian Defence White Paper, op.cit, pp.87-

92.


Bagabandi to Russia in 1999 and the return visit by the Russian President Vladimir Putin to Mongolia in 2000 constitute yet another example of their all out efforts to cooperate on several key issues. Putin’s visit on November 13-14, 2000 resulted in signing of a 25-point memorandum of cooperation termed as Ulaanbaatar Declaration. It was a document which determined the principles of directions of extending and developing Mongolia-Russia relations in the 21st century. The declaration displayed that “in many cases both countries see eye to eye on the most important aspects of the global situation, and sets forth the willingness of Moscow and Ulaanbaatar to closely coordinate their policy in international affairs on a wide range of issues.” 46 Earlier, defence cooperation between Mongolia and Russia was initiated by concluding two agreements in 1993 i.e. “Agreement on military cooperation between the Ministry of Defence of Mongolia and the Ministry of Defence of the Russian Federation” and “Agreement on military and technical cooperation between the Governments of the Russian Federation and Mongolia.” These two agreements serve as the legal basis for defence relations and cooperation on a new basis between the two sides. 47 Another agreement on defence cooperation was concluded when the Defence Minister of Mongolia visited Russia in 1997. The agreement which was reached to organise and conduct defence cooperation on the basis of an annual plan, was considered to be “a step further towards propelling defence relations between the two neighbours to new heights.” 48 Since Russia seeks to restore its position in Mongolia as most favoured neighbour, Putin’s visit to Mongolia can be viewed as meaningful for peaceful relations and constructive cooperation between the two sides in the years ahead. This kind of relationship is very “essential for stability in the region as well as for Mongolia’s own continuing transition towards a market-oriented democracy.” 49 46

Leonid Moiseev, “Relations Between Russia and Mongolia Are Warming”, Far Eastern Affairs, No.1, January-February 2001, p.12.

47

Mongolian Defence White Paper, op.cit, p.51.

48

Ibid.

49

Severinghaus, op.cit, p.69.

50


In the economic and trade fields particularly since the year 2000, the negative downward trend of the early and mid 1990s has been diminishing and the Russian business communities have already begun to turn towards Mongolia. 50 In particular, cooperation in Mongolia’s mining sector has recently been high on the Russian agenda. It is evident from the fact that on April 13, 2007, during the visit of Sergei Kiriyenko, head of Russia’s Nuclear Power Agency, the two countries signed an agreement on bilateral cooperation to mine uranium deposits in Mongolia. 51 Similarly, during a May 13-17, 2007 visit, Sergei Mironov, Russian Federation Council Speaker, explored the possibility of other mining deals, particularly the development of Mongolian coal deposits. However, apart from uranium and coal, Russians are also interested in projects involving Mongolia’s substantial copper, silver and gold reserves. On April 26, 2007, expansion of economic and trade ties between the two sides was pledged at a meeting of the bilateral sub-commission on regional and cross-border cooperation held in Irkutsk. The meeting decided to raise bilateral trade turnover as high as 700 million US dollars, which would register almost a nine-fold increase over trade turnover in 2000 and more than 100 per cent increase over the 2006 trade level. 52 As regards Mongolia-China relations, following the establishment of a multi-party political system in Mongolia in 1990, the new Mongolian President P. Ochirbat soon visited China for the Sino-Mongolian summit. Ochirbat’s visit was a historic milestone in Mongolia’s difficult relationship with China. But it was in 1994 that the two sides put a seal on their commitments towards restoration of normalized relations when a new Treaty of Friendship and Cooperation was signed on quite a new basis during Chinese Premier Li Peng’s visit to Mongolia. According to Article 1 of the Treaty, Mongolia and China

50 51

52

Moiseev, op.cit, p.11. Sergei Blagov, “Russia Presses for Stronger ties with Mongolia”, at http://www.eurasianet.org/departments/insight/articles/eav053007a_pr.shtml Ibid.


made commitments to “develop their good neighbourly relations and cooperation on a basis of mutual respect for each other’s independence, sovereignty, and territorial integrity, for the principle of mutual non-attack, non-interference in internal affairs, for equality of rights, for mutual advantages, and for peaceful co-existence.” 53 The two sides also agreed to “sustainably develop an equal and mutually advantageous cooperation on a long-term basis in the political, economic, trade, cultural, educational, scientific-technological, health, environmental protection, road and transport, and telecommunications fields.” But the most important clause of this Treaty was their understanding that neither of them “will take part in any militarypolitical alliance directed against each other and will not conclude any treaty and agreement with a third country that may adversely affect the state sovereignty and security of the other Party.” Mongolia and China also decided that they will not “allow a third country to use its territory which may adversely affect the state sovereignty and security of the other Party.” Further, the 1997 visits to Ulaanbaatar by Chinese Foreign Minister Qian Qichen and former National People’s Congress head Qiao Shi were described as the “biggest event in Mongolian-Chinese history.” In the following year the visit of the Mongolian President to China witnessed the issuing of a Joint Declaration by the two countries confirming the principles and spirits of the 1994 Treaty. A landmark event in the post-cold war period of Sino-Mongolian relations was marked by a return visit of Chinese President Jiang Zemin to Mongolia in July 1999. China is also the lifeline connecting Mongolia with the Pacific region, through the port of Tianjin. It signifies that China now respects Mongolia’s independence and sovereignty besides carrying out mutually beneficial cooperation in political and economic spheres. In 2001, an economic agreement was concluded in Beijing between China and Mongolia which guaranteed that the former will become not only Mongolia’s most important trading partner, but also remain its largest direct foreign investor. 53

95.

For the full text of “China-Mongolia 1994 Treaty”, see Mongolian Defence White Paper, op.cit, pp.93-

52


In fact, China became Mongolia’s largest trade partner in 1999, when the trade volume between the two sides reached 263 million US dollars respectively. Since then there has been significant growth in the succeeding years. A sharp growth in the volume of trade between the two sides was recorded in 2003, when it reached 440 million dollars, a growth of 21 per cent over 2002. It grew further in 2004 by a record 57.7 per cent to total 694 million dollars. And in 2005 it reached 860 million dollars, an increase of 24 per cent over the previous year. 54 According to the Chinese Foreign Ministry sources, bilateral trade between the two sides hit 1.13 billion dollars in the first nine months of 2006, an increase by 88.8 per cent over the same period last year. 55 With bilateral trade already booming, Chinese-backed private sector investment increased dramatically. As of October 2000, a total of 512 Chinese companies made their capital investments in Mongolia with large amounts going to animal husbandry, agriculture and service sector. According to another estimate, between 1990 and 2003, out of 3,042 foreign companies from 73 countries, 56 1,059 Chinese companies invested 379.01 million US dollars, accounting for 40 per cent of the total foreign investments in Mongolia. 57 By the end of 2004, over 1,640 Chinese-invested enterprises were registered in Mongolia which made a total investment of 460 million US dollars, with greatest amount going for the development of mineral resources. 58 With 40 per cent of Mongolia’s exports going to China, Beijing seems to be filling up

54

See Zhong Guo Dui Wai Jing Ji Tong Ji Nian Jian [China Foreign Economic Statistical Yearbook]-from 2000 to 2005. For 2005 figure see Zhongguo waijiao [China’s Foreign Affairs], 2006.

55

People’s Daily Online at http://english.people.com.cn//200611/22/eng20061122_323936.html

56

D. Nachin, “Foreign Direct Investment: Trends in the World and in Mongolia”, in Yukiyasu Arai, ed., Internal and External Factors on Economic Cooperation and Development in Mongolia and Northeast Asia, Ulaanbaatar, 2005, p. 25.

57

Nalin, Zhong meng jing mao guan xi xian zhuang ji shuang fang zai kuang chan ling yu de he zuo [Economic and Trade Cooperation between China and Mongolia: Cooperation in Mining Sector], Dang dai ya tai [Contemporary Asia-Pacific Studies], Beijing, No.10, 2004. p. 39.

58

See “Neighboring China, Mongolia keen on enhancing relations”, at http://english.people.com.cn/200511/30/eng20051130_224499.html


Mongolia’s economic and strategic vacuum created by the collapse of the erstwhile Soviet Union. What is significant to be noted here is that drastic changes in the SinoSoviet/Russian relations as well as the political and economic transformations in both the Russian Federation and People’s Republic of China beginning in the 1990s created a brand new environment to ensure Mongolia’s security positively. Both China and Russia have agreed not to use or threaten to use force against each other, or use of territory, water and air space of a third country particularly Mongolia for this purpose. This offers a powerful thrust to altering the security environment of Mongolia. Even a Sino-Russian 20-year term agreement signed in Moscow in July 2001 provides assurances to each other that “China will not attempt to take Mongolia outright during this period, but will instead limit herself to economic penetration.” 59 Mongolia’s policy now continues to be abstaining from stationing any foreign troops, allowing them to transit its territory, or joining any military alliance. This is a striking manifestation of the importance Mongolia attaches to keep equidistance in maintaining friendly relations with its two major neighbours – Russia and China. On their part both Russia and China respect the territorial integrity of Mongolia. It is more so due to the initiatives taken by Russia and China to settle the border demarcation issues. However, due to its geographical disadvantage of being land-locked any future external threat to Mongolia’s security could be related directly or indirectly with either or both of its two neighbours. This may be viewed as one of the biggest challenges Mongolia could potentially face in the future. Even though close connection between Russia-China and Mongolia-China relations would continue to be a part of the new international order particularly in North East Asia which has provided Mongolia a new regional identity.

Conclusion 59

See Bruce A. Elleman and Sarah C.M. Paine, “Security Pact with Russia Bolsters China’s Power,” International Herald Tribune, 6 August 2001.

54


Mongolia’s internal and external situation since the beginning of its democratic transition points to Ulaanbaatar’s continuing efforts to readjust itself with the new geo-strategic situation emerged out of the dissolution of the erstwhile Soviet Union and the end of the Cold War. Although democratic transition in the country has been showing positive results, it doesn’t look to be an ending task at least at the moment. For realization of much of its domestic and foreign policy objectives, especially in the political and economic fields, depend on how they are able to meet the needs of its immediate national interests as well as security concerns. At the domestic level, looking at the results of the previous Parliamentary elections, it becomes clear that it is the voters’ power which is crucial in deciding not only the fate of the political leaders and the parties but the country’s destiny as well. And hence, both the MPRP as well as the Democrats will have to give their best to ensure political stability in the country that could contribute positively to the development of economy. At the external level, relations with the outside world have significant roles to play. Despite the fact that in the past particularly in the last decade or so Mongolia has broadened its presence in the world by strengthening its bilateral and multilateral ties, relations with Russia and China are still of paramount importance. Furthermore, considering the fact that the non-aligned and non-nuclear policy of Mongolia is now being respected by both Russia and China, it would also prove to be beneficial for all the three nations if a trilateral framework is formed. The emerging equation among the three nations provides great opportunity for Mongolia to become a bridge of close cooperation between its two neighbours. In sum, whatever success Mongolia has achieved or may achieve at its domestic and foreign policies ahead of 2008 parliamentary elections one thing is clear that democracy has been very successful in the political realm, but on the economic front, Mongolia will have to continue its struggle for years, if not decades. On its part, even the MPRP realizes that there is no turning back, while democratic parties are preparing to woo voters once again. However, the real test for all the political parties is going to take place very soon in less than


one year when Mongolian people go to exercise their franchise in general elections. Until then it remains to be seen who will next take over the charge of ruling the country and facing the challenges of democratisation and economic well being.