Protests over designer handbags plunged Mongolia into crisis

Protests over designer handbags plunged Mongolia into crisis

The political situation in Mongolia is becoming tense again. Protests are calling for the resignation of Prime Minister Oyun-Erdene Luvsannamsrai over his conspicuous family tradition of flaunting wealth. Over the past two weeks, young Mongolians have taken to the streets of the capital Ulaanbaatar to put pressure on the government as a confidence vote on the prime minister's government is due on Monday.

Background of the protests

The protests were sparked by viral social media posts documenting the lavish marriage proposal of the prime minister's 23-year-old son and their luxurious lifestyle. This included helicopter rides, an expensive engagement ring and designer handbags. The question of the origin of the son's wealth grew, especially since Oyun-Erdene had previously promised that he came from a non-wealthy rural family.

“With visible sources of income, their extravagant display of wealth is a resounding slap in the face to the average citizens of Mongolia,” said Amina, 28, a member of the protest group Ogtsroh Amarhan (Resignation is easy). She emphasizes that the protests are not just about social media, but also about the growing gap between the ruling elite and the population.

Cost of living and social inequality

The rising cost of living, the flood of inflation caused by the Ukraine conflict and the incessant air pollution in the capital are fueling popular discontent. "The cost of living in Mongolia has skyrocketed — many people pay almost half of their monthly income in taxes and barely have enough for food, rent or energy. Most are no longer living paycheck to paycheck — they are living loan to loan," Amina expressed.

Protesters gathered almost daily in the central Sükhbaatar Square in front of the government palace in Ulaanbaatar, demanding that Oyun-Erdene disclose his finances and resign. The Prime Minister's Office dismissed the allegations of financial irregularities as "completely baseless".

Corrupt structures and their consequences

Mongolia has struggled with endemic corruption for decades. Massive protests erupted in 2022 over a corruption scandal in which billions of dollars of coal destined for China went missing. Although analysts see no evidence of corruption by Oyun-Erdene, his son's social media posts add to the frustration of an audience long wary of misuse of public resources.

“I want a just society where ordinary people have a voice and where government officials are held accountable,” said Ariunzaya Khajidmaa, 23, a Ulaanbaatar resident who is taking part in the protests with her two-month-old baby.

The position of the Prime Minister

Oyun-Erdene is trying to preserve his coalition government as parliament, also known as the State Grand Khural, will vote on Monday to vote on confidence in his government. Both the prime minister and his son have made themselves available to Mongolia's anti-corruption agency. Oyun-Erdene said he would resign if the investigation revealed irregularities.

His Mongolian People's Party (MPP) is the largest in the 126-seat parliament, holding 68 seats. But the confidence vote is complicated by the collapse of the coalition, as the MPP kicked its junior partner, the Democratic Party, out of the coalition after some of its members supported the protesters.

Economic potential and challenges

The protests represent just “the tip of the iceberg,” emphasizes Mongolian broadcast and political analyst Jargalsaikhan Dambadarjaa, pointing to the significant economic changes in the country. Oyun-Erdene had promised to diversify the country's economy, which relies heavily on the mining industry.

Last year the coalition government announced 14 new mega-projects to boost economic growth, including cross-border rail links and a significant expansion of renewable energy. One of the main concerns of Oyun-Erdene's policy was the establishment of a national wealth fund that would redistribute the country's assets to help the people.

The danger of political instability

Mongolia has been a parliamentary democracy since the democratic revolution of 1991. But in the years since, several governments have been toppled or leaders changed. This instability leads some Mongolians to believe that President Khurelsukh Ukhnaa's powers should be expanded. Currently, the president can only serve a six-year term.

"In this mosaic, proponents of presidential power argue that Russia and China have stable one-man presidential systems. They say the parliamentary system does not work," Jargalsaikhan explained.

Analysts stress that Mongolia needs to prove it has a stable government to attract foreign investment and reduce its economic dependence on China and Russia.

“It is time for the government to listen to its citizens and take meaningful, lasting action — not just words,” Ariunzaya urged.