PDF- Connecting local governance to globalization in the context of knowledge economy is a recent global trend. Since the 1980s, major developed countries around the world have been steering toward reform initiatives such as decentralization management for the central government, privatization of public services, streamlining of public sector organization and administration, and fiscal management reform. Following the beginning of democratic transition in 1990, Mongolia has introduced its fourth Constitution and has been going all-out in pushing for local governance reform, especially in the area of gradual delegation of central power to local governments. This paper aims to explore factors involved in the enhancement of global competitiveness for Mongolia’s local governments. In addition to providing an account of the transformation of Mongolia’s local governments, this paper also offers an introduction to the current situation and challenges of local governance in Mongolia. This paper is concluded with strategies which might be helpful in ensuring sustainable development of local governance in Mongolia.
