Although the Naxalite (Maoist) influence in India stretches from the north of Bihar to the south of Andhra Pradesh, their impact on the political economy of the Indian countryside

Markets for ecosystem services are being promoted across the developing world, amidst claims that the provision of economic incentives is vital to bring about resource conservation. This article argues that equity and legitimacy are also critical dimensions in the design and implementation of such markets, if social development goals beyond economic gains are to be achieved. The article examines this issue by focusing on two communities involved in a project for carbon sequestration services of forests in the state of Chiapas, Mexico.