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Mongolian government. Copper concentrate exports began in 2013 and the company
says that by 2018 the mine will account for one-third of the country's total GDP. The
hope is that this single world-class deposit will lift the whole country up by the boot-
straps.
China is a ready market for Mongolia's raw materials and the government is rapidly
trying to build up its infrastructure to deliver the goods. New rail and road links to China
are being built, and in a bid to diversify its markets, Mongolia is also planning a 1000km
railway from Ömnögov all the way to Russia (via Choibalsan).
Mongolia's political leaders seem keenly aware of the need to invest their newfound
wealth back into the country. A copper smelter, oil refinery and coal washing plants are a
few of the planned factories. A new international airport is expected to open in 2016 and
the government is also planning to build a new university and IT campus outside Ulaan-
baatar.
Democrats Sweep to Power
Mongolians went to the polls in June 2012 and gave the Democratic Party (DP) a narrow
victory over the rival Mongolian People's Party (MPP). A year later President Elbegdorj
was re-elected, giving the DP control of all top political positions until 2016.
Calling itself the 'Reform Government', the DP made some surprisingly radical (and
progressive) political decisions soon after taking office.
Ulaanbaatar Mayor E Bat-Uul kicked things off with a new traffic system in the capit-
al (banning cars from driving on certain days based on their licence-plate number).
Another popular move was a strict ban on smoking in all public areas. A provision in the
law forced vendors to stop selling cigarettes if they are located 500m from a school.
The DP has made sweeping promises to modernise Ulaanbaatar, including the redevel-
opment of ger areas and the construction of highways. Rural areas are also tapped for de-
velopment and billions in debt have been raised to pay for it all. The DP is attempting to
make these changes at the grassroots level, by putting funds in the hands of local govern-
ment to spend money on projects as they see fit.
More controversially, the president put his foot down on corruption, resulting in the
jailing of dozens of officials, from MIAT employees right up to former president N
Enkhbayar. Critics pointed out that none of the convicted felons came from the presid-
ent's own party, the DP.
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