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

Author

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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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    File URL: http://hdl.handle.net/2077/24122
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    Cited by:

    1. Ionel Bostan & Mihaela Brindusa Tudose & Raluca Irina Clipa & Ionela Corina Chersan & Flavian Clipa, 2021. "Supreme Audit Institutions and Sustainability of Public Finance. Links and Evidence along the Economic Cycles," Sustainability, MDPI, vol. 13(17), pages 1-24, August.
    2. Huseyin Cicek & Suleyman Dikmen, 2021. "External Audit And Fiscal Transparency: An Empirical Analysis," Public administration issues, Higher School of Economics, issue 5, pages 7-26.
    3. Benjamin Chemouni, 2017. "The politics of core public sector reform in Rwanda," Global Development Institute Working Paper Series esid-088-17, GDI, The University of Manchester.
    4. Lino, André Feliciano & Azevedo, Ricardo Rocha de & Aquino, André Carlos Busanelli de & Steccolini, Ileana, 2022. "Fighting or supporting corruption? The role of public sector audit organizations in Brazil," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 83(C).
    5. Nada Azmy ElBerry & Stijn Goeminne, 2021. "Fiscal transparency, fiscal forecasting and budget credibility in developing countries," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 40(1), pages 144-161, January.

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    More about this item

    Keywords

    Institution building; Capacity constraints; Supreme audit institution; Rwanda;
    All these keywords.

    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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