Mongolia: Financing Education During Economic Transition

This paper reviews the changing compositions of public expenditures on education in Mongolia during economic transition, assesses the impact of economic transition in Mongolia, and recommends three complementary strategies to provide a more stable resource base to finance education: (a) rationalize public expenditures on education by reducing stipends and food subsidies, reducing noninstructional staff, increasing student-to-teacher ratios, converting technical and specialized schools into community colleges, and exploring appropriate technologies; (b) reallocate resources to strengthen basic education, reduce dropouts, improve primary science education, and invest in books and libraries; and (c) mobilize new resources by changing tuition fees at all post-secondary levels, by charging realistic interest rates on student loans, by providing a conducive environment for private schools, and by using foreign assistance.