Cash Transfers Increase Trust in Local Government

52 Pages Posted: 14 Feb 2018 Last revised: 8 Sep 2018

See all articles by David Evans

David Evans

World Bank

Brian Holtemeyer

International Food Policy Research Institute (IFPRI)

Katrina Kosec

International Food Policy Research Institute (IFPRI)

Date Written: February 12, 2018

Abstract

How does a locally-managed conditional cash transfer program impact trust in government? On the one hand, delivering monetary benefits and increasing interactions with government officials (elected and appointed) may increase trust. On the other hand, it can be difficult for citizens to know to whom to attribute a program and reward with greater trust. Further, imposing paternalistic conditions, and possibly prompting citizens to experience feelings of social stigma or guilt could reduce trust. This study answers this question by exploiting the randomized introduction of a locally-managed transfer program in Tanzania in 2010, which included popular election of community management committees to run the program. The analysis reveals that cash transfers can significantly increase trust in leaders. This effect is driven by large increases in trust in elected leaders as opposed to appointed bureaucrats. Perceptions of government responsiveness to citizens' concerns and honesty of leaders also rise, and these improvements are largest where there are more village meetings at baseline. One of the central roles of village meetings is to receive and share information with village residents, providing some evidence on the value of a high-information environment for generating trust in government. The study also finds that records from school and health committees are more readily available in treatment villages. Notably, while stated willingness of citizens to participate in community development projects rises, actual participation in projects and the likelihood of voting do not. Overall, the results suggest little reason to worry that local management of a conditional cash transfer program reduces trust in government or the quality of governance?especially in high-information contexts.

Keywords: Disability, Access of Poor to Social Services, Economic Assistance, Services & Transfers to Poor, Health Care Services Industry, Social Protections & Assistance, Educational Sciences, Inequality

Suggested Citation

Evans, David and Holtemeyer, Brian and Kosec, Katrina, Cash Transfers Increase Trust in Local Government (February 12, 2018). World Bank Policy Research Working Paper No. 8333, Available at SSRN: https://ssrn.com/abstract=3122822

David Evans (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Brian Holtemeyer

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Katrina Kosec

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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