ABSTRACT
In this chapter, I lay out my main theory of inter-ethnic cooperation and conflict in counterbalanced countries. I will argue that stability rests on a difficult equilibrium that balances the political security of a moderate indigenous elite, while at the same time providing for some degree of inclusion for members of the economically dominant group. The extent to which this stability can be maintained is contingent on how political and economic institutions can reduce the credibility of outbidding claims by more extreme elements of the politically dominant indigenous community, the ethnic community most likely to initiate ethnic violence. Specifically, I look at two main classes of explanatory variables: constitutional rules about the structure of government, and economic policies that redistribute wealth. Momentarily, I will explain how specific alignments of these variables inform the likelihood of conflict or cooperation.
