A case study for the project ‘Capacity, Change and Performance’
A. Land, ECDPM Discussion Paper 57D, 2004. This case study explores the process through which Rwanda’s revenue collection capability was transformed from that of a moribund government department into to respected and performing organisation in just 6 years. The Rwanda Revenue Authority was established in 1997 as a semi-autonomous executive agency. With substantial financial and technical support from Dfid and driven by high level political commitment to change from Rwanda’s leadership, the authority has helped raise revenue collection from 9.5% of GDP to 13% of GDP. The case provides insights into the internal and external factors that can drive and sustain organisational transformation. This includes the critical role of leadership and vision in driving change, and of galvanising a sense of organisational purpose and loyalty among staff. ‘Soft’ capabilities have emerged that have enabled the organisation to learn to learn, to manage change and to engage the external environment. External assistance has made a critical contribution by accompanying the change process in an iterative and pragmatic manner. With time, a frank and open relationship between partners also developed.