Under the collective system, households were paid a share of output based on the hours laboured on the communal land. The co-operatives and collectives proved inefficient due to pervasive incentive problems and rural people began to oppose the collective system (Ravallion and van de Walle, 2008). But because of constant renegotiations of quotas this policy was abandoned, resulting in a loss of confidence in public institutions (Do and Iyer, 2003).