Abstract:
The purpose of this study was to assess the impact of performance contracts on socio-economic development of Rwanda in general and that of Ngororero District, Kabaya and Kavumu Sectors in particular. The specific objectives of this work were to determine the extent to which people understand the pillars of the major aspects of performance contracts, to find out the socio-economic development impact of performance contracts in Kabaya and Kavumu Sectors, and to identify the factors inhibiting the implementation of performance contracts. The study adopted the quantitative research methodology employing a cross sectional research design too. Results of this work are mainly based on the data collected by questionnaires and the total number of respondents was 57 respondents. Data was presented in the tables with percentages. Data analysis was based on descriptive study and researcher tabulated the responses. The findings of the study revealed that Kabaya sector performed better than Kavumu sector. The researcher suggests that, Government should improve performance contracts implementation in terms of communication, creation of people‟s awareness, those people who perform excellently should be rewarded, the institution should set goals that are realistic and achievable for employees, people should be involved in preparation of contracts terms and lastly the government should increase funding to accelerate socio- economic development, counter verification mechanisms to reported achievements need improving, lower administrative entities that are said to generate data may not have records, with reporting between village and cell largely oral in nature. As such, many achievements are undocumented, so, overall record keeping (reporting and filing) system need strengthening, monitoring and evaluation as it is largely not based on standard tools for measuring progress. So, there is a need to cope with standard and there should be improved consultations to increase effectiveness of existing channels for enhanced penetration of performance contracts, strengthen monitoring and evaluation frameworks (tools, baselines, indicators, time bounded reviews, reporting, etc.) At the central and local government levels for the performance contracts and reporting should not be claimed by more than one entity unless clear division of responsibility is clearly defined.)
