Many societies must confront the possibility that greater ethnic diversity
will result in more ethnic tensions. Most approaches to ethnic identificati
on either ignore the role of the state or treat it as either a leader or a
pawn of the ruling ethnic group(s). This paper employs a rent-seeking appro
ach to ethnic conflict. It leads to several testable determinants of ethnic
conflict, as well as recommendations For decreasing it. It also allows ana
lysis of the relation between multicultural policies and such conflict.