recommended applying the New Zealand model for public administration reform in Mongolia. Apparently it has been a serious challenge for the Government of Mongolia.This can be noted by the Cabinet decision of March 1997 to transfer functions for formulating strategies for public administration reforms from the Cabinet Secretariat to the Ministry of Finance. Accordingly the Ministry of Finance has formed a Public Administration Reform team. The team was assisted by two missions from New Zealand visited Mongolia in March and May 1997 as a response to the request from the Government of Mongolia for technical assistance on public administration reform. The purpose of the two missions was to evaluate the current situation and design a new strategy for public administration reform in Mongolia.The new strategy is aimed at reorienting the public administration reform program undertaken by the previous government in line with the needs to improve the efficiency of government operations and public expenditure management and increase financial control and managerial accountability. Recommendations of the consultants and the new strategy are greatly focused on adopting all the possible elements of the New Zealand model including output specification, budgeting, contracting, performance agreements, and agency status.One centrepiece of the reforms is the new Public Sector Management and Finance Act, which was submitted for Parliament debates in November 1997. The bill defines the functions, powers, performance specifications and channels of accountability for the full array of government institutions, including the cabinet, ministries, agencies, state-owned enterprises, parliamentary bodies and so on. However, the bill was not complete as a legal document, failed to conceptualise the modern approaches to public sector management into their Mongolian context, briefly it was a foreign law written by foreigners. Thus major amendments were required to im...
