News Analysis: Mongolian president's reelection seen as good for continued growth

ULAN BATOR, June 29 (Xinhua) -- With the reelection of President Tsakhia Elbegdorj, Mongolia is expected to remain stable and its economy to maintain a steady pace of growth.

Nominated by the ruling Democratic Party, Elbegdorj won a second four-year term by garnering 50.23 percent of the vote in Wednesday's election, according to the General Election Commission.

Analysts here say that Mongolians cast their votes in favor of political stability by backing the president, and that the country will usher in a new period of development due to his reelection.

ANTI-CORRUPTION

In his previous tenure, Elbegdorj put a lot of efforts into tackling corruption, resulting in the prosecution of some politicians and senior officials and winning public approval.

In Elbegdorj's view, Mongolia does not lack resources but needs a sound legal environment, so bold and resolute reforms should be carried out in the country.

Under this initiative, Mongolia held a national conference on judicial reform in May, calling for the transition from "the rule of men" to the "rule of law" and the establishment of a fair legal environment.

Analysts said it was important for Mongolia to maintain political stability and policy continuity.

Since the beginning of this year, lawmakers of the opposition Mongolian People's Party repeatedly requested the dismissal of the country's prime minister, resulting in temporary political instability in Mongolia.

Analysts said Elbegdorj would work with the ruling party after his reelection to provide a strong basis for Mongolia to grasp an opportunity for economic development and boost growth.

WEALTH DISTRIBUTION

Mongolia's vast mineral deposits and resource development projects have brought considerable fiscal revenues to the country, making wealth distribution a focus of the presidential campaign.

The country has a population of more than 2.8 million, 40 percent of whom still live in poverty. Some Mongolians argue that most people have not benefitted from the resources-led foreign investment boom.

The presidential election and Mongolia's future political situation have drawn world attention, as any changes to economic and foreign investment policies will affect foreign investors' interests.

Analysts said the country's changeable investment environment had posed a challenge for foreign investors.

In 2012, the Mongolian parliament passed a law on investment in some strategic sectors, which dealt a heavy blow to foreign investors' confidence.

Although the law was amended earlier this year, uncertainty over the country's investment climate remains.

Nevertheless, analysts said, Elbegdorj's reelection could guarantee the continuity of a series of economic policies aimed at attracting foreign investment.

MONGOLIA-CHINA COOPERATION

Elbegdorj has attached great importance to the development of the strategic partnership with China.

Both countries, which have entered a historic period of political, economic and social development, are advancing rapidly.

As neighbors, China and Mongolia have transport links and complementary development structures, which lay a solid foundation for their cooperation.

Wang Xiaolong, Chinese ambassador to Mongolia, voiced his belief that, if the two countries make good use of these advantages to push forward their strategic partnership, strengthen mutual trust, boost mutually beneficial cooperation, and deepen the friendship between the two peoples, bilateral relations will continuously improve.

Analysts said that, thanks to the high economic complementarity of Mongolia and China, the two countries' cooperation is mutually beneficial, especially in large-scale economic and trade projects.

China's rapid development is an important opportunity for Mongolia, they said, adding that Mongolia should think seriously about how to further increase the two countries' common interests and learn from China's experience to launch a new stage of development.

Editor: Hou Qiang

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