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Institution building with limited resources: Establishing a supreme audit institution in Rwanda

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  • Isaksson, Ann-Sofie

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bigsten, Arne

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

This study is about institution building with limited resources. Through a case study of the establishment of a supreme audit institution (SAI) in Rwanda, we examine the tensions between institutional first-best benchmarks and local operational constraints in a developing country institution-building process. More specifically, our aim is to investigate the potential tradeoffs between the programmatic ideal of SAI independence and operational constraints in terms of staff capacity in the development of a supreme audit oversight function in Rwanda. Drawing on data from document studies and key informant interviews, the empirical results suggest that capacity constraints – within the institution as well as among its major stakeholders – negatively affect important aspects of SAI functional independence, but also that there are arguments for compromising the programmatic ideal of SAI independence in order to effectively tackle operational constraints in terms of staff capacity.

Suggested Citation

  • Isaksson, Ann-Sofie & Bigsten, Arne, 2011. "Institution building with limited resources: Establishing a supreme audit institution in Rwanda," Working Papers in Economics 481, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0481
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    More about this item

    Keywords

    Institution building; Capacity constraints; Supreme audit institution; Rwanda;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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