New Public ManagementPublic sector reforms adopted in a number of countries such as the United States, the United Kingdom and New Zealand over the last fifteen years and characterized by units of Efficiency, performance management, subcontracting, market-type mechanisms, and agency status are now known as New Public Management or NPM. The emergence of NPM as a paradigm shift from the old traditional model of administration was fostered by a remarkable degree of consensus among political leaders in various countries and is presented today as the major tool of reforms of public sector management. Elements of NPM have been implemented in various forms in different countries depending on the historical nature of their bureaucracy and their public sector management and reform objectives. For example, there has been more emphasis on performance management in Scandinavian countries, while greater emphasis has been placed on market-type mechanisms, public service contracting and systematic approaches to improving quality services in New Zealand, the United Kingdom and the United States. The long-term benefits of these reforms have not been empirically validated. Nonetheless, 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 a 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 New Zealand's experience of contractual relationship between resources used and products purchased. However, there is a question mark over Mongolia's ability to implement such reforms and the conditions necessary for its future successful implementation. Bibliography: BIBLIOGRAPHYS International Monetary Fund, 1997. Facility: Policy Framework Paper, 1997 -2000, Washington, DCHesse, J., 1993. Administrative transformation in Central and Eastern Europe: towards public sector reform in post-communist societies. Cambridge, MA. Hughes, OE, 1994. Public Management and Administration, Macmillan, London. Rana, P., 1995. “Reform strategies in transition economies: lessons from Asia”, World Development, Volume 23(7): 1157-1169 Schick, A., 1998. Why most developing countries do not Should Not Try New Zealand Reforms, Prem Seminar Series, Public Sector Group, World Bank. Turner, M. and Hulme, D., 1997. Governance, Administration and Development: Creating the Work State, Macmillan, London.