DirectDemocracyS

The global new democracy movement

MONGOLIA

Political, economic, financial, and social programs

2025–2035

Criticism, innovation, and solutions

True Democracy • Citizen Power • Sustainable Future

public.directdemocracys.org

INTRODUCTION: WHY DIRECTDEMOCRACY FOR MONGOLIA?

Mongolia is a country with a unique combination of natural resources, a harsh climate, and a nomadic culture. However, despite the introduction of parliamentary democracy since 1990, the power-sharing system of the two major parties (the Mongolian People’s Party and the Democratic Party) has deprived citizens of real decision-making power. Mining wealth is concentrated in the hands of a few, and poverty is not reduced. DirectDemocracyS (DDS) offers the opportunity, the means, and a specific program to change all this.

This document: (1) critically analyzes the current political, economic, and social realities of Mongolia, and (2) proposes a detailed and feasible program of citizen empowerment based on the principles of DDS. Our approach is based on logic, common sense, research, reality, truth, and mutual respect.

 

ONE. CRITICAL CONCLUSION OF THE CURRENT SITUATION IN MONGOLIA

1.1 The corruption of the political system

In the parliamentary elections held on June 28, 2024, the MPP won 68 out of 126 seats. However, this victory did not stop the large-scale protest movement that broke out in May 2025. Why? Because electoral victories do not bring real changes in the lives of citizens.

Parliamentary seat (MPP)	68 / 126 (53.9%)
Parliamentary seat (DP)	42 / 126 (33.3%)
Election turnout	69.3%
Corruption Perceptions Index (Transparency International)	116 / 180th floor
What 70% of citizens consider a 'big problem'	Corruption
The main demands of the 2025 protests	Prime Minister's resignation and fight against corruption

The protests that began on May 14, 2025, led to the resignation of Prime Minister Luvsannamsrayn Oyun-Erdeni. More than 59,000 citizens signed a petition and hundreds of thousands took to the streets. It is a sign of the deep crisis of the current system.

DDS rating: Mongolia's current system is a democracy in disguise: citizens appear to have power only at the moment of an election, but are left in the hands of politicians for 4-5 years until the next election. DDS proposes a new system that will ensure that citizens have continuous decision-making power in the interim.

1.2 Weaknesses in the economic structure

Mongolia’s economy is one of the most fragile in the world. Mining accounts for 25-33 percent of GDP and 80-90 percent of exports. Of these, 82 percent go to China. This means that there is an excessive dependence on one supplier, one buyer, and one product.

Nominal GDP in 2024	23.6 billion US dollars
GDP growth (2024)	5-6.8%
GDP per capita	$5,796 (below the world average)
Poverty rate (2022)	27.1% (900,000 people)
China's share in exports	82.6%
Share of mining exports	80-90%
Inflation (2024)	Around the bank's 6% target
Youth unemployment	16.8% (2018 census)

Mongolia's entry into the upper-middle-income category in 2024 may seem like progress, but the reality is different: 900,000 people live below the poverty line, income inequality continues to grow, and the profits from mining remain concentrated in the hands of a few.

Real-life example — Oyu Tolgoi's situation: The Oyu Tolgoi copper-gold mine is one of the largest in the world. But why is Mongolia’s poverty rate not decreasing when Erdenes Mongol, the Mongolian state-owned company that owns a 34% stake in the mine, should be making hundreds of millions of dollars in profits each year? The remaining 66% is owned by Rio Tinto. Infrastructure costs, operating costs, taxes, distribution — everything is decided by a foreign company. Mongolia does not have full control over its own resources. The DDS approach requires citizens to be fully informed about these conditions and to decide in a transparent referendum.

1.3 Acute social problems

Mongolia's social problems can be divided into three areas: environmental disasters, urban-rural inequality, and lack of access to health and education.

1.3.1 Environment: Dzud, air pollution

• In the first half of 2024, 8.1 million head of livestock were killed — double the number in all of 2023.
• Ulaanbaatar is one of the most polluted capital cities in the world.
• The ger district, heated by coal stoves, makes up about 60% of the city.
• Climate change is increasing the frequency and intensity of droughts.

1.3.2 Urban-rural differences

• While more than 50 percent of the population lives in Ulaanbaatar, local residents lack access to basic services.
• Herders are among the most vulnerable groups: poverty, market instability, and lack of resources.
• Rural areas lack healthcare facilities, internet access, and transportation.

1.3.3 Corruption — a cancer in the system

Mongolia ranks 116th out of 180 countries in Transparency International's Corruption Perceptions Index. 70% of citizens consider corruption a 'major problem', undermining trust in the system. The 2022 coal theft scandal, the 2025 Prime Minister's family expenses scandal — these are not just individual problems, but manifestations of systemic dysfunction.

 

TWO. DIRECTDEMOCRACY'S SOLUTION: GENUINE CITIZEN CONTROL

2.1 What is DDS?

DirectDemocracyS (DDS) is a global political movement based on the principles of shared ownership, shared governance, and direct democracy. We share knowledge and information in 56 languages and publish hundreds of articles. DDS is not a short-term democracy, but a participatory, technology-enabled, and corruption-free governance system.

Basic principles of DDS:

1. Every citizen will be involved in the decision-making process continuously — not just on election day.
2. The wealth and power of Mongolia's territory are in the hands of the eternal Mongolian people.
3. All decisions are transparent, monitored, and recorded.
4. Specialist groups bring specific knowledge to each field.
5. Artificial intelligence (ddsAI, allddsAI) will convey information in a complete, accurate, concise, and independent manner.
6. Our platform protects against money laundering and the influence of mass media.

2.2 Fractal micro-group model: 1→5→25→125→625

The organization of DDS is based on a fractal micro-group system. Implementing this model for Mongolia's 3.5 million population looks like this:

Primary small group	5 citizens — from one local committee
Next layer	5 groups = 25 people — at the soum/district level
Third layer	25 groups = 125 people — at the provincial level
Fourth layer	625 people — regionally
Total coverage	All 21 provinces of Mongolia and 9 districts of Ulaanbaatar

Each subgroup discusses the selected issue and submits its proposals to the platform. The upper-level groups summarize the conclusions of the lower-level groups and make decisions. In this way, information flows 'bottom-up' and decisions reflect the true will of the citizens.

Real-life example — How does it apply to herders in the Gobi region? In the current system, Gobi herders can only express their opinions after 4 years. In DDS, they will now have a say in winter preparation issues, receive advice from an expert group, and participate in developing policies that will be implemented at the aimag level. Artificial intelligence will provide understandable information in all Mongolian dialects.

 

THREE. CITIZEN CONTROL OF STATE WEALTH — A MONGOLIA SOLUTION

3.1 Problem definition

Article 6 of the Mongolian Constitution states that land and minerals are the property of the people. However, in reality, the profits from large mining deposits are distributed in a manner that is not understandable and does not explain to the public. The average Mongolian citizen does not know how the revenues from large deposits such as Oyu Tolgoi and Tavan Tolgoi are spent.

3.2 DDS Solution: Citizens' Wealth Fund

The DDS will propose the establishment of a 'Mongolian Citizens' Wealth Fund' (MCWF). It would be modeled after the Norwegian Petroleum Fund, but would be controlled by the DDS's direct democratic mechanisms:

7. All mining contracts are transparent and publicly available.
8. At least 30 percent of the terms of the agreement will be approved by a public vote.
9. ddsAI will monitor the distribution of profits and produce reports that are understandable to all citizens.
10. A 'Citizen's Share Profit' system will be introduced, in which a certain percentage of annual profits will be distributed equally.
11. Key investment decisions (new contracts, foreign cooperation) will be decided by referendum.

Model results (Norway)	The world's largest population fund: $1.7 trillion
Possible implementation in Mongolia	40% of the combined annual profit of Oyu Tolgoi + Tavan Tolgoi = MIBS
Civilian Profit (hypothesis)	$150-300 per citizen per year
Control mechanism	DDS platform + ddsAI audit + citizen group

Actual mechanisms for combating corruption: In the current system, one prime minister, one minister, and one contract document are enough. In DDS, any contract will go through multiple layers of control: expert group opinion → ddsAI verification → citizens’ referendum → transparent publication. In order to commit corruption, one person would have to blind the eyes of thousands of people — this is practically impossible.

 

FOUR. ECONOMIC PROGRAM — THE PATH TO MULTILATERAL DEVELOPMENT

4.1 Exit from mining

Mongolia is currently a 'single-product' country. Dependence on exports of a single product leads to over-dependence on a single country (China). DDS will propose investments in the following five pillars:

4.1.1 Energy transition

Mongolia has an average of 257 sunny days per year — a strong energy potential. Currently, Mongolia relies heavily on coal-fired power. Under the DDS program:

• Increase solar and wind energy capacity to 30% by 2030.
• Step-by-step conversion of coal-fired stoves in Ger District to a system supported by thermal tablets or solar panels.
• Set a goal to reduce air pollution in Ulaanbaatar by 40% by 2030.
• Deploy energy backup systems locally and reduce dependence on two neighbors.

4.1.2 Agricultural reform

Agriculture accounts for 31 percent of Mongolia’s workforce. The 8.1 million livestock deaths in the first half of 2024 due to drought are not just a natural disaster — they are a result of a lack of preparation, insurance, and policy.

• Using digital records of herders and satellite sensors to predict weather conditions, estimate livestock numbers, and estimate optimal migration routes.
• Reform the livestock insurance system through a combined model with citizen participation and government support.
• Support organic farming and greenhouse farming — Create a special Mongolian food brand.
• Cashmere, wool, leather — processing traditional products while retaining the added value.

4.1.3 Knowledge economy and technology

• IT Park, Innovation Institute — a free zone open to the world in Ulaanbaatar.
• Supporting young Mongolian programmers to enter the international market.
• Integrate ddsAI and allddsAI technologies with the Mongolian government's transparency system.
• Developing the Mongolian language technology and content industry.

4.1.4 Tourism — Authentic Experience Brand

Mongolia is the world's largest free-range country and has a unique nomadic culture. However, tourism revenue is not reaching its potential.

• Developing global eco-tourism under the 'True Mongolia' brand.
• Establish a joint tourism cooperative between local herders and provincial citizens.
• Support international academic tourism to study Genghis Khan and medieval cultural heritage.

4.1.5 Manufacturing

Mongolia exports copper and coal to its neighbors without processing them. This shows that it is a 'raw material economy', or at the lowest level of added value.

• Copper cables and electronic components must be manufactured in Mongolia.
• Implement a Coal to Liquid (CTL) pilot project.
• Building a rare earth metal processing plant is important for the world in the near future.

 

FIVE. FINANCIAL PROGRAM — SUSTAINABLE BUDGET AND CITIZEN OVERSIGHT

5.1 Current financial reality

Mongolia's financial system is heavily dependent on mining revenues, and uses a lot of undeveloped terminology. In this situation, it is impossible to sustainably finance social needs in the long term.

Consolidated budget deficit (2025 forecast)	-576 million USD
Public debt (percentage)	About 60% of GDP
Inflation	About 6%
Main risks	Fragility of mining structures, weather effects, geopolitics

5.2 DDS Financial Solutions

5.2.1 Fair tax system

12. Increase progressive taxes on wealthy individuals and corporations — to ease the burden on low-income citizens.
13. Verify mining companies' profit reports with ddsAI and close the door to tax evasion.
14. Make personal income tax proportional to income and exempt high-income groups.
15. Make the VAT refund system transparent and digital.

5.2.2 Citizen oversight of public spending

On the DDS digital platform, citizens will be able to see and monitor all Mongolian government spending in real time. This is technically feasible, and ddsAI will automatically identify irregularities and discrepancies and report them to citizens.

• Budget revenues and expenditures — recording on blockchain technology.
• Prohibit spending more than 1 billion tugriks in private tenders without public support.
• The audit report will be published at the provincial level and discussed by local micro-groups.

5.2.3 Mongolian People's Wealth Fund (MPWF) — Implementation Steps

1st year	Establishing a legal framework, integrating it into the ddsAI platform, and testing it in pilot provinces
2nd-3rd year	Review each mining contract individually and approve procedures for transferring it to the MIBS
4th-5th year	First annual dividend distribution — target $150+ per citizen
Years 6-10	The size of the fund will grow steadily and finance social insurance, pensions, and education.

 

SIX. SOCIAL PROGRAM — TRUE EQUALITY

6.1 Education — DDS's Most Important Investment

Education is not just about schoolwork — it is the foundation for citizens' decision-making skills. The goal of DDS's educational program is to create informed, critical-thinking citizens.

16. Ensure access to quality education for all children — closing the urban-rural divide.
17. Double teacher salaries and training — attract the best professionals to education.
18. Mongolian language digital content — development of all course materials in Mongolian through ddsAI.
19. Internet and computer access for local children: connecting remote areas using satellite internet.
20. Introduce a flexible education system for the children of nomadic herders.

6.2 Health system

Mongolia's healthcare system is not reaching the entire population equally. There is a shortage of doctors and medical equipment in rural areas.

• Establish a 'citizen health center' in each province to provide free health services to low-income citizens.
• Integrate telemedicine systems with ddsAI to enable herders to receive consultations digitally.
• City policies aimed at reducing respiratory diseases related to air pollution.
• Establish a mobile first aid unit that can immediately reach herders in times of disaster.

6.3 Gender equality

The Mongolian electoral law's 'power bag' system (30:70 gender ratio) is correct in principle. But it should be measured in terms of quality, not percentage. DDS will make women's participation real, not formal:

• Maintain gender balance in each subgroup.
• A loan and support fund dedicated to increasing women's economic participation.
• Digital reporting system to combat domestic violence.

 

SEVEN. ENVIRONMENTAL PROGRAM — MONGOLIA TERRITORY PROTECTION

7.1 Combating Dzud — A Systems Approach

The drought is not just a weather phenomenon — it is a test of government preparedness. The 8.1 million livestock deaths in 2024 were a loss that could have been mitigated by a prepared government.

21. Digital census system using satellite sensors for herders — real-time livestock count and location.
22. Dzud Early Warning System — uses climate modeling with ddsAI.
23. Optimal migration routes — artificial intelligence calculates pasture quality, snow and water levels.
24. A new livestock insurance system — a triangular partnership between government, civil society, and the private sector.
25. Prepare food and medicine reserves in advance in each province and keep them under the control of citizens.

7.2 Air Pollution — Ulaanbaatar's Solution

Citizens know the cause of Ulaanbaatar's air pollution: coal stoves in the Ger district. But neither the government's 'banned' coal nor the new briquettes have been a real solution for citizens.

• A 10-year program to install solar panel systems in every household in the Ger district — funded by the Ministry of Education and Science.
• Increase the construction of social housing and move herders from the ger district environment to insulated housing.
• Expanding the electric train system for public transport — learning from the experiences of China and Europe.

 

EIGHT. GEOPOLITIC STABILITY — OVERCOMING THE RUSSIAN AND CHINESE DIFFICULTIES

8.1 Reality analysis

Mongolia has two giant neighbors — China and Russia. 82 percent of its exports go to China. Most of its energy imports come from Russia. This is a very risky situation for its independence.

8.2 Geopolitical principles of DDS

DDS adheres to the practical principle of 'deciding what citizens need' for Mongolia. In terms of geopolitics, DDS proposes the following principles:

26. Export diversification — Reduce the share of exports to China to 65% by 2030, and expand into new markets such as Europe, Japan, South Korea, and the United States.
27. Energy independence — increase domestic solar and wind power and reduce dependence on Russia by 30% by 2030.
28. Third Neighborhood Partnership — Deepening strategic cooperation with 'third neighbor' countries such as the United States, Japan, Korea, and Germany.
29. Mongolia's voice internationally — to directly convey the position of Mongolian citizens to international forums through the DDS platform.
30. All foreign treaties will be concluded after the consent of the citizens — review of old related treaties.

 

EU. IMPLEMENTING DIRECTDEMOCRACY IN MONGOLIA — STEP BY STEP

9.1 Implementation Calendar

Phase 1 (Year 1)	DDS to be operational in Mongolian. Initial micro-groups to be established in Ulaanbaatar. ddsAI to have Mongolian language support.
Stage 2 (2nd-3rd year)	Pilot groups will be established in each of the 21 aimags. Legalization of the Civil Wealth Fund. Information campaign in the media and social networks.
Stage 3 (3rd-5th year)	Participate in local elections — DDS candidates win in several provinces. Introduce DDS principles into parliamentary debates.
Stage 4 (5-10 years)	Become the main political force in Mongolia and exercise the right of citizens to make real decisions.

9.2 allddsAI — Mongolian Language Artificial Intelligence Democratization

DDS's allddsAI system is not just a technique — it is a new tool for democracy. For Mongolia:

• Mongolian language, both Cyrillic and Latin script versions are supported.
• Understand the dialects and expressions of the Mongolian highlands.
• Explain legislation, contracts, and voting materials in simple, understandable language.
• Verify the source of any information and identify false information and propaganda.
• Every citizen will understand the terminology and vote — better than the current electoral system, which makes people vote for things they don't know.

Example usage: A Mongolian herder's wife is about to vote on a mining contract that expires in ten years. allddsAI will translate the 200-page content of the contract into understandable Mongolian language in 3 minutes, summarizing the benefits, costs, and risks. The herder will vote with that knowledge.

 

TEN. CONCLUSION — THE BEGINNING OF A NEW ERA IN MONGOLIA

Mongolia has a rich territory, a courageous history, and talented citizens. But the current political system is failing to fully utilize this potential. The 2025 rally is the voice of the people — they want change.

DirectDemocracyS will offer the following:

• The wealth of Mongolia's territory belongs to the Mongolian people forever.
• The right to make decisions is retained by every citizen, not just during elections.
• Corruption will be eliminated by system design — checkpoints will be added.
• Mongolia will move away from dependence on a single product and develop in many sectors.
• Environmental protection is not the enemy of economic development — it is a partner.
• Every Mongolian citizen, urban and nomadic, has a real stake.

This program is not just a policy — it is a way to put real power in the hands of the citizens. DDS believes in Mongolia, and in the intelligence, courage, and collective strength of the Mongolian people.

"Real power in the hands of every Mongolian citizen — this is the promise of DDS."

DirectDemocracyS | public.directdemocracys.org | 2025