This article discusses how incorporation into a world-system (ancient or contemporary) can create, transform, or destroy ethnic groups. It suggests that: (1) ethnically homogeneous states have never been common; (2) ethnicity has always been fluid with respect to identity, boundaries, cultural content, and membership; (3) ethnic processes cannot be understood without careful consideration of their interstate, or world-systemic, context; (4) contemporary ethnic conflicts have contemporary roots; (5) the differences between the contemporary and ancient worlds need further study; (7) the origin of the ideal of the ethnically homogeneous state and shifts in ethnic processes in the twentieth century lack adequate explanation.
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