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In the 1996 elections, the Democratic Union was victorious, narrowly defeating the ex-communist People's Revolutionary Party . This was the first time since 1921 that the People's Revolutionary Party had not been in power. Mendsayhany Enkhsaikhan , manager of the elections campaign of the Democratic Union, became Prime Minister in 1996 and Tsakhiagiyn Elbegdorj , leader of the Democratic Union, became Prime Minister Of Mongolia in 1998.

The Democratic Union no longer exists, having been effectively replaced by the Motherland Democratic Coalition .