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Despite the earlier purges and pressure from Stalin, Genden managed to align himself favorably with the Soviet leader for a time. Named Prime Minister in 1932, he initiated the "New Turn" economic plan, easing certain restrictions and improving Mongolia's economic conditions. His popularity surged as the economy stabilized, much to the satisfaction of the Mongolian populace.
However, rising tensions began to surface. After a scandal involving accusations of conspiracy within the party, which specifically targeted the Buryat ethnic group, Genden found himself navigating a treacherous political landscape increasingly dominated by Soviet influence.