Will Mongolia Privatize Its Leading State Enterprises?

Mongolia’s state sector is again in motion, though the logic behind the latest reshuffle is murkier than the rhetoric surrounding it. Nyam-Osoryn Uchral, now both party leader and Parliament Speaker, promises a friendlier climate for private property and a slimmer state.

The prime minister who led the campaign against conglomerates, Luvsannamsrain Oyun-Erdene, exited in June. His successor, Gombojavyn Zandanshatar, preaches austerity and vows to rationalize state enterprises.

Prime Minister Gombojavyn Zandanshatar at the state-owned Erdenes Tavan Tolgoi coal mine.

Yet consolidation and cost-cutting collide with a system still run as a political franchise.

The grand plan to fold all SOEs into two holding companies remains half-finished, with Erchist Mongol absorbing most energy entities while the rest sit in a fog of recycled mandates.

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