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The adoption of the shared prosperity goal by the World Bank in 2013 and Sustainable Development Goal 10, on inequality, by the United Nations in 2015 should strengthen the focus of development interventions and cooperation on the income growth of the bottom 40 percent of the income distribution. This paper contributes to the incipient literature on within-country allocations of development institutions and assesses the geographic targeting of World Bank projects to the bottom 40 percent. Bivariate correlations between the allocation of project funding approved over 2005–14 and the geographical distribution of the bottom 40 as measured by survey income or consumption data are complemented by regressions with population and other potential factors affecting the within-country allocations as controls. The correlation analysis shows that, of the 58 countries in the sample, 41 exhibit a positive correlation between the shares of the bottom 40 and World Bank funding, and, in almost half of these, the correlation is above 0.5. Slightly more than a quarter of the countries, mostly in Sub-Saharan Africa, exhibit a negative correlation. The regression analysis shows that, once one controls for population, the correlation between the bottom 40 and World Bank funding switches sign and becomes significant and negative on average. This is entirely driven by Sub-Saharan Africa and not observed in the other regions. Hence, the significant and positive correlation in the estimations without controlling for population suggests that World Bank project funding is concentrated in administrative areas in which more people live (including the bottom 40) rather than in poorer administrative areas. Furthermore, capital cities receive disproportionally high shares of World Bank funding on average. [ABSTRACT FROM AUTHOR]

We use agent-based computer simulation to test the effect of environmental conditions (available biomass/carrying capacity and environmental risk) on the development of wealth inequality and patron-client herding networks in nomadic pastoral economies. Our results show that 1) wealth inequality reaches very high levels when carrying capacity is high and risk is low, and 2) patron-client contract herding networks increase in size and duration when carrying capacity is high and risk is low. We compare empirical data from the Mongol (1206–1368 CE) and Xiongnu (209 BCE– 48 CE) empires with simulation results to develop an explanatory mechanism for the apparent correlation between nomadic empire creation and positive environmental conditions. We argue that the internal dynamics of nomadic pastoral societies are sufficient to produce high degrees of inequality and hierarchical herding networks. Nomadic empires are more likely to form during key periods of increased biomass and decreased environmental risk. [ABSTRACT FROM AUTHOR]