The decade of the 90’s has seen a great reform agenda for the finance and management of
higher education institutions. In some countries the financial problems are moderate, but
in other countries they have grown to crisis proportion.
With the Government and political leaders who are enthusiastic about the role of higher
education for economic growth and individual prosperity, publicly funded universities
and colleges of Mongolia are experiencing shrinking spending for higher education. This
is the current fiscal reality of the country caused by decline in tax-based revenue or
difficulties with tax collection. Competing public needs such as poverty, public health,
primary education and others are in higher priorities than higher education. In light of
these factors, Mongolian state universities and colleges have to supplement government
funding with other sources.
This paper provides a description of the higher education in Mongolia in an effort to
identify important financial issues and concerns while comparing with international
experience and tries to attract attention of policy makers for better alternatives of
financing state universities and colleges.
The first two chapters outline the social, political and economic context and historical
background of higher education in Mongolia, outlining general patterns of change as well
as the more recent policy decisions that have affected its development.
In the following two chapters information is provided about state and private higher
education institutions, student enrolment, financing patterns of state universities/colleges
along with analyses of system efficiency, equity and access and quality and relevance.
Three options for improving efficiency of the Government funding policy are given in
Chapter Five: those are introducing a mixed funding mechanism (performance-based and
lump sum), changing National Student Loan and Grants System and possible treatments
to state universities/colleges.