r effectively applied in the conduct of the governments business (Schick 1998:6).Whether Mongolia has these preconditions may be even questionable that some other developing countries, the public sector of which were operating under colonial systems and in which market mechanisms have been established for years. The transitional features of the public management of Mongolia mentioned earlier could serve as an explanation for why such emphasis should be made. If the New Zealend model is all about applying the best techniques of private sector management in public management, the question of whether just newly emerging private sector of Mongolia has accumulated those techniques and practices is even more doubtful.NPM is often attempted assuming that proper capacity exists, which is not always the case. The actual capacity of Mongolia to apply NPM should be thoroughly investigated, especially when it comes to managers ability decide and to have responsibility. Otherwise the reform may have a impact on the public confidence in the government operations.In Addition, as Hughes (1994: 83) claims, implementation is a real problem if there is insufficient attention paid to it. Implementation is much more costly in developing countries where a traditional model bureaucracy is not well developed and some basic preconditions are not ensured. In Mongolia, informal estimates have been made that USD 20 million are required to implement NPM reforms. This accounts only for the transitional periods from the old to the new system. Some potential donors like the Asian Development Bank and the World Bank are committed to provide technical assistance and program loans in support of the reforms. So far neither the national government nor the donor agencies have made an estimation of how much the country would benefit from the reforms.It is not meaningful to think that if USD 20 million were available to the country today, this would have an automatic impact o...
