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The accumulated institutional capacity of a state to deliver public services and execute long-term missions. Traditional development finance often creates dependency rather than building capability. RDF builds capability by funding training, systems, and knowledge transfer that persists beyond individual funding cycles.
A health ministry's capability includes trained staff, functioning systems, community trust, and institutional knowledge. When funding disappears, capability erodes. RDF preserves capability through multi-cycle funding.
RC-WD Section 1.2