There is growing concern that citizens around the world have declining trust in institutions such as public health agencies, private corporations, scientists, or vaccine manufacturers. This column focuses on a family planning campaign in Peru to examine how government actions in the implementation of public programmes can shape trust in institutions and thus affect demand for public services and welfare outcomes. After the public disclosure of alleged forced sterilisations, municipalities with more victims exhibited a steep decline in public health services and lower levels of trust in public institutions. The findings show how policy implementation failures can break down the social contract between citizens and their government.