The evaluation offers lessons regarding the need to properly adapt the scope and time frame of reforms to institutional capacity and to sequence reforms. Budget reform should be regarded as an evolving process and should focus on a more limited set of reforms that are within the reach of government institutions. Organisation for Economic Co-operation and Development (OECD)-type budget systems in developing countries and emerging markets must be based on a solid platform of financial management (the micro basis of broader budget system reform) within Ministry of Finance (MOF), line ministries, and other government agencies. In Mongolia as well as many other developing countries, this aspect of public financial management (PFM) reform has proved to be particularly problematic. Reforming PFM systems is a long-term process, for which a time frame of 15-25 years is often considered realistic.
Second Phase of the Governance Reform Program