On the viability of potentially divided multi-ethnic states

This paper examines the viability of inter-ethnic co-operation from the perspective afforded by the economic approach to institutional analysis. Four factors are seen to affect viability namely, the relative strength of each ethnic group in the non co-operative setting, the perceived fairness of the terms of co-operation, the continuing influence of informal rules which may be inimical to co-operation and finally, the judicial enforcement and legislative maintenance of the terms of co-operation. The discussion generates a number of insights into the desirable nature of the institutions of potentially divided multi-ethnic states