Wakker and Sarin (1997). Rothstein and Uslaner (2005) argue that many developing countries are trapped in a vicious circle of inequality and distrust, with dysfunctional institutions. High levels of inequality lead to low er levels of trust in institutions and thus to policies that can do little to narrow social gaps and create a greater sense of trust, well-being and equality, exacerbating tensions between groups and eroding the possibility of implementing policies based on the notion that different groups have a shared destiny.