s administrative reforms did not bring significant improvements in the public sector management and were limited by a number of structural changes in state institutions. Although there were the first attempts by the Government to separate policy coordination, regulatory and implementing functions, the question of whether the structures and functions of recently established agencies are appropriately designed to ensure efficiency and effectiveness of government operations has not been clear. At the same time, the demand for accelerating public reform with the aim to improve overall efficiency has been increased by the pressures from donor organisations.However, it should be noted that there is not sufficient justification and factual arguments developed by both the advocates and the opponents for why the country should not adopt the New Zealand model. Before making a final decision the questions such as what are the real obstacles to success of NPM in Mongolia and what are the real recipes for potential success need to be answered, in other words, there is a need to study the consequences first.It must be admitted that the task to make such a complete analysis is beyond the scope of the current work and for the time being there is very limited literature available to make a base for developing the arguments for why the country should implement NPM.Schick stresses the importance of preconditions for successfully implementing the NPM approach and claims that countries striving to uplift themselves after decades of mismanagement should not ignore these preconditions. He identifies the establishment of a formal public sector, which is based on strong civil service system and long standing habit of public managers to spend public money according to prescribed rules as one of the preconditions. In addition, he notes that if contracts and the rule of law are underdeveloped in business relations, it is highly improbable that they can be safely o...
