adequate financial and technical resources to undertake public administration reforms. As a result public administration lags behind other sectors and is often criticised for being an obstacle to reforms in other sectors. This characterises the current situation in Mongolia.Despite the profound political and socio-economical changes, which have taken place in Mongolia since 1990, public administration remained the same until recently. The organisation and activities of all levels of the former public management institutions were no longer appropriate for attaining the goals of the reforms in all spheres of economic and political life. This finds its expression in the weakening of the prestige of all state institutions, their inefficient and non-operational activities, and also the ineffectiveness of Mongolian legislation and decisions of public and management institutions.The lack of public administrative mechanisms able to replace the party-centred system at the initial stage of the transition period led to a weakening of Governments leadership and regulating activities. For instance, national capacity has been reduced in the areas of policy and planning due to the abolishment of planning mechanisms as part of the discontinuation of central planning. However, market economy policy and planning mechanisms have not yet replaced the previous systems. It is wrong to presume that a free market will develop overnight if central planning is eliminated and the market freed. Scrapping the central planning system is obviously a necessary step toward the evolution of a market economy, but unless existing institutions can readily be converted to facilitate production and distribution under market conditions, the transition process will be difficult and lengthy (Rana 1995:1168).PUBLIC ADMINISTRATION REFORM PROCESS IN MONGOLIAThe Government of Mongolia is currently engaged in major public sector reforms intended to complement the increasingly marke...
