The interrelationship between ethnic units and a central political authority is known historically to have been crucial to the operation of complex societies. In the process of this interaction central authorities, particularly ruling elites, have created new ethnic groups, have altered the attributes which define ethnic identity, and have restructured relationships between ethnic groups (Enloe 1980:17ff.). Political authorities have two fundamental goals for the survival of their centralized power: (1) the economic exploitation of populations and resources, and (2) the protection of the integrity of the state frontiers. In achieving both these goals ethnic diversity can either facilitate or hinder elite action.

Centralized authorities can assure maximal access to populations and resources when decision making flows from the top downward, according to principles established by dominant elites. Ethnic diversity often disrupts this flow, by interposing local or regional leaders, who acquire power not through their allegiance to central hierarchies, but through positions of ethnic status. Decision making may be undertaken to reflect the needs of local populations or local elites at the expense of the state. On the other hand, under conditions of rapid territorial expansion, when large populations and/or resources are being incorporated into a single political unit, the existing lines of authority, legitimacy, and social cohesion present in ethnically distinct populations may provide central authorities with an infrastructure of political and economic networks that can be tapped to the benefit of the state. In a similar manner, the maintenance of the state's territorial integrity demands populations willing to defend that territory, and not themselves act to foster rebellion against central authority.