"We find that the mistargeting of a cash transfer program in Indonesia is significantly associated with increases in crime and declines in social capital within communities. Hence poorly administered transfer programs have a potentially large negative downside that extends beyond the pure financial costs that have been the focus of the literature to date."A new paper by Lisa Cameron and Manisha Shah (ungated). A similar point made by my colleagues Ian and Nils a few years ago based on some qualitative fieldwork.
Cameron and Shah conclude that:
"This study underscores the importance of targeting programs in a way that is acceptable to the a ffected communities. Program acceptance can be enhanced by improving targeting accuracy and by transparent communication of this mechanism and the program's aims to the general population."