Wednesday, August 29, 2012

Habemus Governementam


Hi all

After almost 2 months of Negotiation, a new government was named in Mongolia.
Why was it so long? Several reasons. Actually no party managed to get the full majority at the parliament. Negotiations were necessary. The right party (DP) was ahead and could conclude an agreement with either the left party (MPP) which arrived second or the far left party (MPRP-MNDP) which arrived third.
A coalition between DP and MPP was in place until last January when it broke down, principally for electoral reasons.
So DP negotiated with the MPRP to form a government. Despite what you could think the main discussions were not about ideas or the program of the government, but rather on how to satisfy all egos in both parties.
One major element was also the trial of the ex-president, leader of the far left, for corruption charges, which was almost a deal breaker. If he had not been condemned to 4 years in jail, he would probably have been vice prime-minister.
Another one is all the factions in DP which have to be represented. Lots of particular interests and internal fights have forced the prime minister (head of DP but without lot of support) to appoint lots of big personalities in the government.
Eventually MPRP-MNDP got a reduced finance ministry, the ministry of energy and the ministry of health.
Let’s hope that the government will be able to give full efficiency soon as they will have major issues to tackle in the next few months.
Also to note the presence of many DP members favorable to a renegotiation of the agreement with Rio Tinto over the exploitation of the biggest mine of the country Oyu Tolgoï.
This affair is a little bit a drama in Mongolia, as the agreement took years to be negotiated, and is put again in the table every few months.
Many foreign investors have been discouraged to invest in Mongolia, considering the government as unreliable.

Next time, a more pastoral topic with pictures of the Mongolian countryside.

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