Progress in Mongolia faces crucial political hurdle

Subject

The political and economic outlook for Mongolia.

Significance

The economic outlook for Mongolia is much improved under the premiership of Chimed Saikhanbileg, but the country now faces a political test to avoid reversals. Strains have already come to a head within the coalition government and elections next year will exacerbate tensions.

Impacts

• Geopolitical and regional development factors play to Mongolia's advantage.
• The coming months will decide the election and thereby set the tone for government for the following four years.
• A pro-business, pro-foreign investment outcome would lift Mongolia's fortunes.
• Narrower, inward-looking and resource nationalist ascendency would raise renewed questions about the country's economic viability.