Social Incentives, Delivery Agents and the Effectiveness of Development Interventions

Abstract

There has been a rise in the use of the local delivery model for development interventions, where local agents are hired as intermediaries to target benefits to potential beneficiaries. We study this model in the context of a standard agricultural extension intervention in Uganda. We document a trade-off between coverage and targeting: delivery agents treat more farmers when they have a greater number of social ties, but they are significantly more likely to target their nonpoor ties. We conclude by discussing the implications of our findings for the design of the local delivery model for antipoverty interventions.