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A look at contextual factors that affect the quality of implementation RAND Europe is a not-for-profit organisation whose mission is to help improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors. This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit the Institute for Fiscal Studies assessed the effectiveness of conditional cash transfer programmes (CCTs) in low-and middle-income countries. By analysing the impact of external conditions on CCTs at both the institutional and household level we aim to address some of the gaps in our understanding of the effectiveness of CCTs, and therefore to contribute to more efficient government programmes to alleviate short-and long-term poverty. CCTs have been extensively evaluated, but important questions remain unanswered. CCTs produce extremely varied results in different contexts. We need to understand how this variety is explained by for instance environmental factors, the availability of health and education services, and individual background variables. We need also to understand the mechanisms by which CCTs secure the results they do. Without this knowledge we cannot determine whether CCTs are likely to alleviate poverty effectively in the current economic climate. This report is the second in a series and looks in more detail at the relationship between the capacity of municipalities and support services involved in the delivery of the programme and the outcomes of Bolsa Familia, the largest CCT in Brazil. It tries to establish which factors are associated with more effective implementation. This report is directly relevant for policymakers and those involved in the administration and design of CCTs.

Managing the Principal Agent Problem in Bolsa Familia: A look at contextual factors that affect the quality of implementation