Mongolia's Shrinking Civic Space: Navigating Challenges in a Developing Democracy

By Mungunkhishig Batbaatar & Sarah Prunier-Duparge

The Issue: An Eroding Civic Landscape

Since the peaceful democratic revolution in 1990, Mongolia has witnessed a flourishing of civil society. Over 31,000 CSOs are registered in the country as per Registry System of the National Statistics Office. while only about 7480 of these organizations are active as of 2023 December. This stark disparity underscores the challenges facing civil society today.

Some of the challenges contributing to this decline, and further outlined in the report “Civil Society Engagement in Policy Dialogue” published by People in Need, include:

• 1. Restrictive Legal Frameworks: The legal environment in Mongolia has not evolved to meet the development needs of CSOs. The primary legislation—the Constitution (1992), the NGO Law (1997), the Civil Code (2002), and the Law on State Registration of Legal Entities (2015)—remains outdated. Proposed new laws, such as the Law on the Legal Status of the Federation and the Law on the Legal Status of the Foundation, threaten to further restrict CSO activities by imposing stringent reporting requirements and categorizing organizations in ways that could suppress independent operations. According to the report, 65% of CSOs surveyed expressed dissatisfaction with the government's support, and 45% perceived the legal environment as unfavorable.
• 2. Limited Funding and Resources: CSOs face significant hurdles in securing financial support. The report highlights that only 55% of proposals submitted to donor organizations receive funding.
• 3. Urban-Rural Disparities: Over 80% of CSOs are based in the capital, Ulaanbaatar, leaving rural areas underserved. This concentration exacerbates regional inequalities and limits the reach of civil society initiatives.
• 4. Erosion of Trust and Collaboration: An online survey conducted by People in Need (PIN) Mongolia revealed that 40% of CSOs rated the trust between themselves and government agencies as very poor. Additionally, 48% of respondents regarded access to information on local agendas and government policies as deplorable.
• 5. Shrinking Civic Space: In 2023, Civicus, an international organization monitoring civic freedoms, labeled Mongolia as having a "narrowed" civic space. Such a classification reflects increasing violations of citizens' fundamental rights to freedom of expression and information.
• 6. Political Barriers: The high turnover of government officials, often triggered by elections, disrupts stability and hampers CSOs' effective communication with authorities.
• 7. Lack of Feedback Mechanisms: The report notes that government institutions often simulate engagement with CSOs but inadequately incorporate their inputs. Written feedback is the predominant mode of communication, yet capacities among CSOs to provide such feedback vary.

Legislative Challenges and the ICNL Report

A significant contributor to the shrinking civic space is the legislative environment governing CSOs. In 2021, the Mongolian government introduced draft laws on the Legal Status of Associations and the Legal Status of Foundations. The International Center for Not-for-Profit Law (ICNL) analyzed these drafts and identified several concerns:

• Excessive Restrictions on Establishment: The draft laws imposed stringent eligibility criteria for founders, limiting the right to establish associations to individuals over 18 without tax arrears. This violates international standards that uphold the freedom of association for all, including minors.
• Overregulation of Internal Governance: The laws mandated detailed and rigid internal structures, such as requiring every association to have both a board of directors and a supervisory committee. This "one size fits all" approach places unnecessary burdens on smaller organizations.
• Burdensome Reporting Requirements: Any association or foundation engaging in public benefit activities, regardless of size or scope, was required to submit extensive operational and financial reports. This could overwhelm smaller CSOs with limited resources.
• Constraints on Economic Activities: The drafts limited the ability of CSOs to engage in economic activities to only 20% of their total activities. Such restrictions threaten the financial independence and sustainability of organizations that rely on income-generating activities to support their missions.
• Ambiguities in Public Benefit Definitions: The laws lacked clear criteria for recognizing public benefit organizations, creating uncertainties that could be exploited to suppress independent CSOs.

In 2022, following successful advocacy and a boycott by CSOs, these draft laws were shelved. However, the issue resurfaced when, on September 5, 2024, the Mongolian government established a new working group to draft updated versions of these laws. The intent and direction of this working group, as well as the stance of the current parliament formed last summer, remain unclear. This development has reignited concerns among CSOs about potential legislative constraints that could further erode civic space.

Moreover, these concerns are further exacerbated by Mongolia's ongoing digital transition, which profoundly affects civil society space. As the country embraces digital technologies and online platforms become increasingly central to civic engagement and the operation of NGOs, the regulatory framework must adapt to protect the freedoms of association and expression in the digital realm. The draft laws, however, do not sufficiently address the challenges posed by this digital shift, potentially leading to heightened restrictions and uncertainties for civil society activities conducted online.

Digital Hurdles in the Age of Connectivity

When it comes to preserving and even strengthening civil society in Mongolia, the country’s digital transformation offers both opportunities and obstacles. On one hand, initiatives like e-Mongolia aim to digitize government services, potentially increasing transparency and citizen participation. On the other hand, barriers persist as internet access remains costly, and connectivity is limited in rural areas. Beyond economic and infrastructural digital hurdles, other issues including digital literacy, proliferation of misinformation and online harassment, and the digital exclusion of marginalized groups such as the elderly people and people with disabilities also contribute to an underutilized digital space for civil society.

Digital advancement should be leveraged to enhance inclusivity. Rather than allowing technology to widen existing gaps, deliberate efforts must be made to improve digital literacy, especially among marginalized communities.

A Call for Inclusive Governance – What Can Be Done?

Democracy thrives on open dialogue, transparency, and the active participation of its citizens. Mongolia's current trajectory threatens these core principles. Suppressing CSOs undermines the checks and balances essential for accountable governance.

The government should view civil society not as an adversary but as a partner in nation-building. CSOs offer grassroots insights, hold authorities accountable, and provide services that complement governmental efforts. By restricting them, the state alienates a vital ally in its development agenda.

Recommended Actions

• 1. Rethink Restrictive Legislation: The proposed laws affecting CSOs require reevaluation. Lawmakers should engage with civil society representatives to draft legislation that supports transparency without stifling independence. Safeguards against excessive governmental oversight are essential to maintain a healthy civic environment.
• 2. Foster Genuine Dialogue: Establish formal platforms for regular interaction between the government and CSOs. This could take the form of advisory councils or joint working groups focused on key policy areas. Such engagement would build trust and ensure that diverse perspectives inform decision-making processes.
• 3. Invest in Digital Infrastructure and Education: Close the digital divide by subsidizing internet access in underserved regions and providing grants to CSOs for digital capacity building. Enhancing cybersecurity training and resources will protect organizations from threats and enable them to participate fully in digital governance initiatives.
• 4. Strengthen Support for CSOs: Both international donors and the Mongolian government should increase funding for capacity-building programs. This includes training in project management, advocacy, and digital skills. Special attention should be given to supporting CSOs in rural areas, where resources are most limited.

Mongolia stands at a crossroads. The decisions made today regarding civil society and digital inclusion will shape the nation's democratic health for years to come. Embracing a collaborative approach with CSOs, ensuring legislation empowers rather than restricts, and investing in digital infrastructure are not just policy choices—they are necessities for a thriving democracy.

By addressing these challenges head-on, Mongolia can reinforce its commitment to democratic principles and ensure that the voices of all its citizens contribute to shaping the nation's future.

Mungunkhishig “Mushi” Batbaatar is a seasoned development professional with over 10 years of experience in development policies, human rights, and communication activities. He holds master's degree in Development Policies and Practices and has been instrumental in leading international projects across Mongolia.

Sarah Prunier-Duparge is People in Need’s Civil Society and Inclusive Governance Strategy Lead, responsible for the organization’s global programming in the sector. Sarah has been working in the humanitarian and development sphere for the past 20 years and specializes in civil society development and citizen engagement.