Assessing Mongolia's Education Loan and Grant Programs: Funding Process, Challenges, and Impact of the Education Loan Fund

Abstract

This research delves into the intricate issues within the implementation of Mongolia's Education Loan Fund. The primary focus is to investigate the factors that facilitate opportunities for problems within this fund. The main objective of the investigation or research is to identify and understand the conditions, elements, or influences that make it easier for illegal activities to take place within a specific fund. To guide the exploration, the study employs Klitgaard's formula Corruption = Monopoly + Discretion - Transparency - Accountability as an analytical framework, which highlights the critical role of systemic factors.1 The research question driving this study is What are the factors contributing to opportunities for corruption in the implementation of Mongolia's Education Loan Fund? A mixed-method approach is adopted to answer this question comprehensively, combining e-survey and interview. The study gathers primary data from e-survey, expert interviews, and focus group interviews. The secondary data comes from international development organizations such as the World Bank, IMF, UNODC and government websites etc. Using the qualitative data, the study utilizes the triangulation method to extract results. Furthermore, the study analyzes real cases within the Education Loan Fund, highlighting the presence of institutional weaknesses, lack of transparency, nepotism, and systemic problems. Through a detailed examination of these cases and research, the study aims to shed light on individuals pursuing higher education who aim to contribute to the creation of an ethical society. By linking the research question, the Robert Klitgaard’s formula, e-survey, interview and real-life cases, the expected outcomes of this research includes identifying factors, clarifying challenges, exploring impacts, and offering evidence-based recommendations for risk mitigation in Mongolia's Education Loan Fund implementation.