n the structure, efficiency and vision of the public administration and sustainability of reforms. NPM requires good planning and a very good estimate of the real capacities to implement it and a good program of assistance or training to build these capacities. To some extent, the donors commitments are influenced by their willingness to show at least ane developing or transitional country, where the NPM model will successfully work and it has been encouraged by the interest of the current Government of Mongolia in the model. The major donors are often quick to sell a model that is pre-packaged without carefully looking at the implementation side of it.Public management reform is a difficult process to define and implement in general. In the developing countries problems of inefficiency, culture impact, political pressure and other factors such as corruption and a lack of competitiveness and sophisticated markets render this task even more difficult.Reform programs should have a long-term perspective and be free from political ambitions that could negatively affect their long-term effects and objectives. As there has always been a tendency for the public sector reforms to be donor driven, it is much more desirable to develop a Mongolian version of reform that satisfies the needs of the country and its administrative environment and reality, which may or may not be NPM. The conclusion to be made here is that sooner or later the country should move towards some forms of NPM. However, rather than taking such an extreme and prompt action to immediately adopt the most advanced model of it, the focus should be on capacity building to ensure necessary pre-conditions have been established for its future successful implementation....