SUMMARY
This article recasts debates about the extent and causes of ethnic con?ict within the world-system framework. Ethni?cation and indigenism are inherent structural contradictions of the modern world-system, and there is the highest incidence of ethnic resistance at the peak of a hegemons ascendancy. Consequently, there has not been a dramatic increase in ethnic con?ict since the end of the Cold War. However, ethnic mobilizations pose an increased challenge to the continued functioning of the world-system during the current age of transition. Ethnic mobilizations erode the capitalist civilizational project and increase costs to the system in ways that exacerbate the growing pro?t squeeze. I identify ?ve ways in which the counter-hegemonic mobilizations of ethnic minorities are costly to the world-system and can push it toward bifurcation and transformation.