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We examine a very inexpensive program in Mexico that involves parents directly in the management of schools located in disadvantaged rural communities. The program, known as AGE, finances parent associations and motivates parental participation by involving them in the management of primary school grants. We find that AGE reduced grade failure by 7.4% and grade repetition by 5.5% in grades 1 through 3. However, while AGE was effective in poor communities, it had no effect in extremely poor communities.