New Public ManagementPublic sector reforms adopted in several countries such as USA, UK and New Zealand in the last fifteen years and characterized by efficiency drives, performance management, outsourcing, market-like mechanisms, and agency status have become known as New Public Management or NPM. The idea that NPM represents a paradigm shift from the old traditional model of administration has been promoted by a notable degree of consensus among the political leadership of various countries and is presented today as the main tool for public sector management reforms . Elements of NPM have been implemented in different forms in different countries depending on the historical nature of public sector bureaucracy and management and reform objectives. For example, in the Scandinavian countries, greater emphasis has been placed on performance management, while in New Zealand, the United Kingdom and the United States, greater emphasis has been placed on market mechanisms, public service contracting and systematic approaches to improving the quality of service. The long-term benefits of these reforms have not been empirically validated. However, major donors agree that what developing countries need to do to improve public sector management is to sweep away the traditional public administration paradigm that underpins their bureaucracies and introduce new public management (Turner and Hulme 1997: 230). Mongolia has not escaped this trend. The Mongolian government is preparing to introduce public administration reforms based on the New Zealand experience of the contractual relationship between resources used and products purchased. However, there is a question mark over Mongolia's ability to implement such reforms, and the foundation for future successful implementation has been established. Bibliography: BIBLIOGRAPHY International Monetary Fund, 1997. Enhanced Structural Adjustment Tool: Policy Framework Paper, 1997-2000, Washington, D.C. Hesse, J., 1993. Administrative Transformation in Central and Eastern Europe: Towards Public Sector Reform in Post-Communist Societies. Cambridge, MA.Hughes, O.E., 1994. Public Management and Administration, Macmillan, London.Rana, P., 1995. "Reform Strategies in Transition Economies: Lessons from Asia", World Development, Volume 23(7): 1157-1169Schick, A., 1998. Why most developing countries shouldn't try New Zealand's reforms, Prem seminar series, Public Sector Group, World Bank. Turner, M. and Hulme, D., 1997. Governance, Administration and Development: Making the State Work, Macmillan, London.