Madame Chair, Madame Independent Expert, Ladies and Gentlemen, The central theme of this year’s Forum, the effective participation of minorities in economic life, is crucial in building and preserving cohesive and stable societies. From the work of the OSCE High Commissioner on National Minorities in a wide range of geographic and political contexts throughout the OSCE region, it is clear that marginalisation and disparity in economic status and opportunities can lead to inter-ethnic tensions. Discriminatory economic systems, unequal access to land and other resources and differences in standards of living can all result in resentment and levels of frustration that are prone to generate violence. Development can also raise economic and political expectations leading to mounting frustration when these expectations are not met. In a number of OSCE States minorities have been hit particularly hard, first by the transition to a free market economy, then by the economic crisis. Where the benefits of privatisation have tended to be exploited by the majorityaffiliated elite, these benefits have not always "trickled down" to improve the economic position of minorities. In many cases, this has led to increased differentiation along ethnic lines. Where the boundaries between economically deprived groups and minorities coincide – and where individuals ascribe their position at the bottom of society to their ethnic identity – the basis is created for mobilisation against the majority-dominated system. While economic success tends to breed loyalty to the State, there is a tendency for the economically marginalised – including minorities – to fall

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