Affluence provides means for dealing with difficult problems in relations between ethnic and regional subcultural groups by making it possible to separate them institutionally and to buy time or peace with resources. In some instances it may be possible to convert "status demands" into negotiable issues, leading to resource-based compromises. Severe macro- economic constraints, on the other hand, often preclude or make much more difficult the management of conflict between such groups through policy allocations. The distribution of resources-human as well as material-may vary with ethnic and/ or regional cultural cleavages. This has normative, distributive justice implications as well as practical policy ramifications. The raising and management of autonomy demands tend to be affected by such distributions in a manner that influences both institution design and policy allocation as responses to such demands.
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