Bloomberg Businessweek USA 09.30.2019

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electricity,sowehavetocooperateclosely,”hesaid.There’s
alsolongstandingaffectionforRussiaamongMongoliansof
Battulga’sgeneration,forwhomeliteeducationgenerally
meantstudyingintheUSSR.“RussiaandMongolia,”Battulga
said,“arecloselybonded.”
PreviousMongolianleadersconcentratedonwooingthe
U.S.,notablybysendingtroopstoAfghanistanandIraq.(The
country’sfirstarmedforaytothoselands,incidentally,wasthe
1258 sackingofBaghdadbyGenghis’sgrandsonHulaguKhan,
whosehorderolledthecity’srulerina carpetandtrampledhim
todeath.)TieswithWashingtonarethelinchpinofthe“third
neighborpolicy,”a long-runningMongolianefforttoguarantee
autonomybycultivatingrelationshipsbeyondRussiaandChina.
U.S.officialshavelatelybeenworkingtokeepMongoliain
theWest’stent.Then-NationalSecurityAdviserJohnBolton
traveledthereinlateJune,quicklyfollowedbySecretaryof
DefenseMarkEsper.TrumphasalsowelcomedBattulgatothe
WhiteHouse,a visittheMongolianpresidentcommemorated
bysymbolicallygiftinga horsenamedVictorytoTrump’steen-
agesonBarron.(ThehorseremainedinMongolia.)Battulga
andotherslament,however,thatCongresshasn’tpassedthe
MongoliaThirdNeighborTradeAct,a billthatwouldremove
dutiesonsomeMongolianimports.
Tothepeopleresponsibleforsellinginternationalbusinesses
onMongolia,democracyremainsa keycompetitiveadvantage.
SumiyabazarDolgorsuren,theministerofmining,saysthatfor
foreigninvestors,“Ithinkit’sbettertoreachanagreementwith
a systemthatcanactuallycleanitselfupandrightitswrongs.”

MANYOFTHEPEOPLEBATTULGASAYSHEWANTSTOHELP
liveinthegerdistricts,hometomorethanhalfofUlaanbaatar’s
roughly1.5 millionresidents.Thedistricts’existenceowesto
twopeculiarities,oneculturalandtheotherlegal.Mongolians
werelargelynomadicwellintothe20th century,andproperty
ownershipwasn’treallyrelevant;therewasplentyoflandtogo
around.Eagertobuilda moremodernmarket,post-Communist
lawmakerscreateda systemallowingeveryMongoliantoget
a plotoflandforfree—700squaremetersinUlaanbaataror
asmuchas5,000inruralareas.Sincemostpropertynomi-
nallybelongedtothestate,therewerefewprivatelandowners

toobject.Oneunintendedconsequenceoftheprovisionwas
that,witheconomicopportunityconcentratedinthelargest
city,manynomadicfamiliesclaimeda patchoflandonitsout-
skirtsandneverleft.Fewmadeenoughmoneytomoveupthe
housingladder,leavingUlaanbaatarringedwiththousandsof
gers—traditionaltentlikesheltersusedbynomadsforcenturies.
Ona grayafternoonina gerdistrictthatascendsthefoot-
hillsnorthofthecitycenter,it wasn’thardtoseewhymany
residentssupporteda leaderclaiminghecouldbreakthedomi-
nanceofthewealthy.Whitegerslinedbothsidesofa rutteddirt
track,separatedfromoneanotherbyshortwoodenstockades.
Nexttoeachresidencewasa tinyouthouse,a particularincon-
venienceina countrywheretemperaturescanplungebelow
–30C.Peekingoutabovethetentsweresmallchimneysforvent-
ingsmokefromcoalstoves.Theaveragegerburnsbetween
threeandfourtonseverywinterforwarmth,themainreason
Ulaanbaatarhassomeoftheworld’sworstairpollution.
Totheleesideofa smallhillwasanangularone-storystruc-
ture,constructedwitha skeletonofblondwoodandcladin
translucentpolycarbonatepanels.Thebuildingis a makeshift
communitycenter,oneofseveralattemptsmadebya localnon-
profitcalledGerHub,withhelpfromdesignersattheUniversity
ofHongKong,toimprovethedistricts.Despitepromisesbysuc-
cessivegenerationsofpoliticians,nooneelsehasdoneit.“The
governmenthassortoffrozen,”saidBadruunGardi,GerHub’s
founder.Evenattheheightoftheminingboom,“therewas
thislargeportionofthecountrythatwasn’tbenefiting,andin
somewayspeople’slivesweregettingworse.”
Youdon’thavetogofarinUlaanbaatar,though,tofind
peoplewhoseliveshaveimproveddramaticallyundermarket
democracy.A largecohortofyoung,tech-savvyMongolians,
manyofwhomhavestudiedorworkedintheWest,nowform
a genuinemiddleclass.Themainstreammediais vibrant,with
dozensofpapersandTVchannels,whileTwitterandFacebook
buzzwithpassionatepoliticaldebate.AndwhenMongolians
aredissatisfiedwiththeirleaders,theycananddotaketothe
streets,fillingthecentralsquarenomattertheweather.
EvenpeoplewhohelpedbringaboutMongolia’stransition
tocapitalismexpressamazementathowfarthecountryhas
come.JargalsaikhanDambadarjaaandBoldLuvsanvandanwere
pro-democracyactivistsin1990,narrowlyescapingarrestafter
theyposteredUlaanbaatar’smaindrag. Nowthey’repartofthe
establishment:Jargalsaikhanrunsa respectedthinktank,while
Boldsitsinparliamentandleadsa politicalparty.
SittingintherestaurantoftheCommunist-eraUlaanbaatar
Hotel,theyremarkedonMongolia’suniquelyindependentpath.
BothmenshareBattulga’sstatedinterestinseeingprosperity
sharedbroadlywithinthecurrentsystem.“Whena veryfew
peoplebecometrulyrich,”Jargalsaikhansaid,“andthemasses
getpennies,noteventoilets,thatmakespeopleunhappy.”They
werenonethelessdeeplyconcernedaboutMongolia’sdirection.
“What’shappeninginHungaryandPoland,similarthingsare
tryingtobehappeninghere,”Jargalsaikhansaid.
“NobodywantsMongoliatokeepdemocracy,”Boldchimed
in,alludingtothecountry’sneighbors.“I’mnotevensureabout
Westerncountries.Dealingwitha dictatoris mucheasier.”

AgerdistrictinUlaanbaatar

September 30, 2019

INJINAASH BOR

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