Cracks Become More Visible Within the Ruling Party

by Amar Adiya

Julian Dierkes of the University of British Columbia, a long-time Mongolia observer, recently opined that the ruling Mongolian People's Party (MPP), which controls the supermajority in parliament, has become less cohesive, revealing internal cracks, particularly following the August cabinet reshuffle. He also debunks the widely held belief that Mongolia is becoming a one-party state, despite the MPP's complete control of the presidency, parliament, and cabinet.

In Mongolian politics, the ruling party’s infighting without specific policy agenda is nothing new. However, the ongoing 2023 budget debate has revealed significant conflict among MPP as the November budget deadline approaches.

MPP members appear to be rowdy and unorganized during the budget debate. Many MPP legislators, who are now focusing on reelection, have been harshly critical of spending cuts evidently harboring grudges towards Oyun-Erdene’s cabinet.

Oyun-Erdene urged his party's lawmakers to approve the 2023 budget as presented, without revisions, or else the economy will suffer from an inability to control inflation and deplete foreign reserves.

MP Davaasuren, a former energy minister, and MP Enkhbayar, who heads a task team investigating the state-owned Development Bank's loan problems, have emerged as the most prominent anti-government MPs from MPP.

What’s more, despite their own internal divisions and challenges, opposition Democratic Party legislators are attempting also to exploit vulnerabilities within the ruling party by leveraging the budget discussion.

Oyun-Erdene’s control over his supermajority in the parliament may appear to be eroding. But he still has key cards.

First, he must appoint one additional cabinet member in charge of border port matters. The contest for that position has begun among lawmakers, as the prime minister considers appointing someone when the 2023 budget is enacted, implying that he wants MPs to back him.

Second, Oyun-Erdene possesses greater clout. Because the five ministers for construction, health, foreign affairs, defense and culture are non-MPs, he can swap these more valuable cabinet portfolios for parliamentary support.

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