This paper reviews the changing compositions of public expenditures on education in Mongolia during recent economic transitions. It also assesses the impact of economic transition in Mongolia. The study recommends three complementary strategies to provide a more stable resource base to finance education: (1) rationalize public expenditures on education in a variety of ways which are presented; (2) reallocate resources to strengthen basic education, reduce dropouts, improve primary science education, and invest in books and libraries; and (3) mobilize new resources by charging 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. The volume is divided into three chapters: (1) "Achievements and Reforms"; (2) "The Changing Patterns of Public Expenditures on Education"; and (3) "Strategies to Build a Stable Resource Base to Finance Education." The Annexes contain extensive charts and graphs addressing the following: (1) "Employment and Educational Attainment"; (2) "Enrollment"; (3) "Teachers"; (4) "Curriculum"; (5) "Expenditures"; (6) "Organizational Structure and Legal Framework"; and (7) "Donors' Activities in Education." (EH)