This Thesis will study the importance of ethnicity in a country’s public policies and economic growth. First, a number of theories that indicate a relationship between ethnic diversity and economic growth will be presented in the first chapter. Next, the correlation between ethnic diversity and economic performance will be examined further in Chapter 2 through econometric analysis. In addition, affirmative action in India, Malaysia and Sri Lanka will be discussed in detail in Chapter 3. Specifically, their actual outcomes and effectiveness will be analyzed. The goal is to see how policies that directly address ethnic issues work in reality. Finally, my thesis concludes with a brief discussion of the statistical results and implications, along with a comprehensive discussion on the problems and impact of the affirmative action policies presented in the previous chapter.
