Ethnicity and Development

This article examines whether ethnicity, or more specifically ethnic diversity, undermines development. After explaining the nature of ethnicity, ethnic identity, and ethnic groups, it considers whether public goods are less likely to be provided in more ethnically politicized areas and whether ethnic politics leads governments to adopt economically unproductive policies. It also investigates the relationship between neo-patrimonialism, winner-takes-all politics, and development policy. More specifically, the article evaluates the possibility that the politicization of identities and poor economic performance are both manifestations of weak institutions and strong social structures. Finally, it analyzes how ethnicity can best be managed and suggests that communal identities can be disentangled from development by making political institutions inclusive and promoting social interaction between different communities.