Improve or deteriorate.
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Rashid looses and then regains his power of storytelling through Haroun’s adventure. Rashid relates the entire story of Haroun’s journey to Kahani, including the parts that he did not personally witness. As he talks about Chup and the people’s unrest there, the crowd begins to turn on Mr. Buttoo. By the time the story is over, Buttoo realizes his time is up in the Valley of K and he retreats, never to be seen again. Rashid and Haroun head back to their home, even though they were not paid.
Haroun,the protagonist,changes the most in the story.He does so to show the main themes of the story. For instance,through the visit to Kahani,he changes from a skeptical and closed-minded boy,into an eventually mature open-minded boy,with all sorts of values. Through his anagnorisis of the Moon Kahani,he learns new things(The themes,i.e:Importance of story,Relativity of truth etc).The perepeteia Haroun eventually undergoes, when he volunteers to spy against Khattam-Shud,show he has fully developed into a brave,matured thinking boy.
TL;DR: Haroun;From closed-minded and skeptical boy-->Matured-thinking open-minded young man
Months of reading & analysing Haroun & The Sea of Stories