We study the influence of economic inequality on co-operation and aid distribution in community-based development schemes. For this, we organized a field experiment in which community members contributed to a collective effort to attract aid. We find that devolving aid distribution to community...

The global economy is passing through a period of profound change. The immediate concern is with the financial crisis, originating in the North. The South is affected via reduced demand and lower prices for their exports, reduced private financial flows, and falling remittances. This is the...