Most contemporary analysts explain ethnic identity as a socially roote
d phenomenon which can be catalyzed by changes in both economic and po
litical conditions. Taking the 1982 debt crisis as a main triggering e
vent, this article analyzes the relationship between economic adjustme
nt and increasing levels of indigenous mobilization in Latin America.
Through a comparison of the Bolivian, Peruvian, and Mexican cases, the
analysis reveals wide variation in the types and levels of ethnic con
flict in the region. Explanations for these differences center on the
timing and content of economic adjustment policies, and on the institu
tional opportunities available for expressing and channeling economic
and political demands. The article concludes that political and econom
ic liberalization are likely to clash when shrinking the state also re
moves channels for popular participation; moreover, when those that be
ar most of the adjustment burden are also challengers to national iden
tity, states ignore this challenge at their peril.