The objective of this report is toidentify specific steps that the Government of Mongolia cantake over the next three years to improve the performance ofthe civil service. Civil service reform impacts both theinvestment climate and the development of a robust privatesector, and sustained improvements in service delivery. Thisreport aims to capitalize on this window of opportunity andprovide advice on what should be the key strategic reformpriorities for the Government. The report identifies threekey areas of reform for the Government. First, the civilservice grading and compensation system requires significantchanges in order to be able to attract and retain highcaliber staff. Second, Mongolia needs to move in a phasedmanner towards centralized payroll administration in orderto enhance establishment and expenditure controls. Third,the personnel management regime needs to be improved as itpresently does not fully protect civil servants from unduepolitical interference, there is a lack of clarity over theprecise recruitment modalities for the senior administrativecivil service positions, and limited horizontal mobilitythat negatively impacts career development. The reportspecifies a number of immediate steps that can be taken toresolve these issues.