(2013-2013) Kyokushuzan Noboru, a former professional sumo wrestler and current politician of the Democratic Party, said to me: "Mongolia is a fast developing and very powerful country. There is no middle class, only rich or poor, and that is a big problem." When I asked Professor Sanjaadorj Molor-Erdene why it is so difficult to photograph wealthy people in Mongolia, he told me: "Behind every great fortune lies a great crime." He must know it because he supported Mr Enkhbayar, former President and Prime Minister of Mongolia who was finally convicted for embezzlement of more than 70 million U.S. dollars. Batbilig Tungalag, a young millionaire, believes that the Mongolian parliament consists of celebrities and stars, unqualified to lead the country. Urangoo Altangerel says she completely fell in love with "Hollywood style" and that such fashionable jewelry protects her from bad energy.
Mongolia boasts one of the highest rates of economic growth in the world, driven by its recent mining boom. Economic growth soared to 17.5% of GDP in 2011 and 12.3% in 2012. Nonetheless, two-thirds of the population is poor. Also, the high unemployment rate is a negative factor that inhibits further economic development. At the same time, Mongolia's inflation rate also increased exponentially; in late 2008, year-to-year inflation had reached nearly 40%, the highest inflation rate in over a decade. Since 2010, inflation has remained above 10%. Due to severe winter weather in 2010, Mongolia also lost over a fifth of its total livestock, and meat prices doubled. The cost of living in the capital, Ulaanbaatar, continues to rise at a pace. More than 40% of the Mongolian population lives under the national poverty line.
"The vast land with its small and sparsely located population makes development difficult in administrative, economic and infrastructure-related ways. The city of Ulaanbaatar, where half of the population resides, serves as the center of political, economic and social activities. Some commentators suggest that Mongolia is more like a democratic 'city state' than a democratic country." ... "Democratically elected political representatives have considerable power to govern in Mongolia. However, civic movements claim that financially powerful oligarchs have a large say in government. There are large companies and groups that fund political parties. These groups tend to win the tenders announced by the government for large mining and infrastructure projects, and they exert influence and pressure on the government via the mass media." ... "There is widespread disappointment with the current situation, particularly corruption, power politics and a focus on profit seeking that ignores the interests of the majority of the population."