This paper looks at the institutions of market and democracy from the perspective of diversity. It is argued in the paper that if in a society there are communities whose command over pecuniary wealth is low, but which have other forms of wealth, a system which is essentially that of injurers...

This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions...