“Public Administration Reform Experiences in

Mongolia: NPM in Practice? “

L. Tur-Od, Governance SpecialistUNDP CO

UNDP’s Global Practice Meeting on ‘Public Administration Reform’

Bratislava, Slovakia19-22 April 2004

UNDP’s Governance Setting in Mongolia

The Best: On the right track towards democracy

The Good: Relatively high level of political freedom, press

freedom and participation The Bad:

Less impressive performance in the rule of law, government effectiveness and accountability

The Ugly: Poorly performed in combating corruption

among public officials UNDP GHDR 2002

UNDP‘s Support to PAR/Governance Reforms

1993-1996 Management Development

Programme (MDP) 1997-2000

Governance & Economic Transition (GET) Programme

2002-2006 Democratic Governance

(DG) Thematic Area

(I) ‘Management Development Programme:

PA & CS Reform’ 1993-1997

Policies, legislation & strategic documents: ‘Policy Paper on Govt. reform processes’ Civil Service Laws & Regulations Business plans & new structures for ministries Personnel Management Handbook

Implementation & Institution-building: Civil Service Council & Sub-Councils estbd. First entrance exams for civil service National Audit Office estbd. Ministries from 16 to 9 & appt. of State Secretaries Govt. common service system estbd.

(I) UNDP Support to MDP’s PA & CS Reform Component

UNDP: “Management Development Policy &

Programme Support” [MON/94/101- US$1,200,000]

“Public Administration & Civil Service Reform” [MON/94/102-US$500,000]

Others: SIDA-”Civil Service Training & Consultancy”

[US$800,000] UK -”Job Classifications” [US$ 350,00] NZ –”Government Restructuring” [US$350,00]

(II) ‘Initial Phase of NPM/GRP-I’ 1997-2002

Public Sector reform strategies Comprehensive Program of Governance Reform (GRP)

[1999-2009] Public Sector Management & Finance Law (PSML) [Final

draft 1998, adopted June 2002] GRP-I Implementation

Formulation of Strategic Business Plans (SBPs) & Financial Statements

Preparation of output-based budget estimates Formulation of adherence to Performance Contracts Merit-based recruitment & promotion procedures Specification of outputs of each agency, incl. description,

quantity, quality & cost

(II) ‘Donors/UNDP Support to Initial Phase’

UNDP: Capacity Building of Governing Institutions

[MON/97/123-US500,000] Decentralization & Local Governance Support Support to Transparency & Accountability

ADB & Others: ADB Loan [US$ 25 million] and TA [US$ 1,1

million] for GRP-I SIDA/SIPU-Civil Service Training & Consultancy

Phase II

(III) “Second Phase of NPM/GRP-II’

2003-present

PSML coverage & framework: Clearly delineate Strategic priorities through SBPs; Formulate, adopt & execute Budget based on accrual-

accounting principles; Adopt Output-based budgeting, management, & overall

reporting and delegation to chief-executives; Integrate recurrent & capital budgetary needs in

medium-term framework, formulate proper appropriation estimates in each year;

Prepare annual & forecast financial statements on accrual basis;

Adopt transparent merit-based employment policies and performance-based career progression.

(III) ‘Donors/UNDP Support to Second Phase’

UNDP: Good Governance for Human Security [MON/00/103-

US500,000] Parliament Strengthening for Democratic Governance

[MON/01/102- US$ 700,000] National Integrity System Enhancement [MON/03/101 –

US$ 750,000]

ADB & Others: ADB Loan [US$ 13,5 million] and TAs [US$ 2 million] for

GRP-Phase II SIDA/SIPU-Civil Service Training & Consultancy Phase II

Preliminary Lessons Learned from PAR

Experiences Some lessons globally: It took the UK and New Zealand many decades

to reach the stage of the NPM NPM approach can reinforce social exclusion,

regardless of its rhetoric of… Some lessons from Mongolia:

One who pays the piper calls the tune Cultural, ethics & human aspects of NPM needs

to be attended Overall lesson: It is better to do right things badly than wrong

things well

Implications for UNDP-Mongolia Country Office?

UNDP’s PAR/Governance

Portfolio:

Still in transition to find its niche among key donors,

particularly with ADB & WB

Needs consolidation through projects on institution-

building & policy frameworks

Seeking further collaboration with national & international

partners on PAR