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This text is a manifesto for building on diverse cultural strengths in international development. Gently but firmly, it demonstrates how and why cultural studies and anthropology have fallen short in application and, arguably, in terms of social science.

Simple models are used to describe three kinds of racism: (1) irrational racism, bigotry which hurts both parties; (2) 'economically rational irra tional racism', where a stable, non-optimal, racist equilibrium exists in a community where no one is an irrational racist; and (3) 'fully rational racism', where past injustices have led to present inequalities between the races, and neither the 'rationality' of profit maximization nor of Ameri can political principles can avoid racist results. Examples from housing, education, and militant groups are given to illustrate the paradox of fully rational racism for the policy maker. Locating racism solely in the irrational neglects the more fundamental problem of institutionalized racism.

Simple models are used to describe 3 kinds of racism: (1) irrational racism, or bigotry which hurts both whites & blacks, economically & in other ways, (2) "economically rational irrational racism," where a stable, nonoptimal, racist equilibrium exists in a community where no one is an irrational racist but believes other members of the community are, & (3) "fully rational racism," where past injustices have led to present inequalities between the races, & neither the 'rationality' of profit maximization nor of American political principles can avoid racist results. Examples from housing, education, & militant groups are given to illustrate the paradox (between the principles of individual liberty & equality of opportunity) of fully rational racism for the policy maker. Locating racism solely in the irrational neglects the more fundamental problem of institutionalized racism. 5 Figures. Modified Author's Summary.

A regression model for determining the impact of social policy variables on examination scores in 208 secondary schools in Karachi, Pakistan, is constructed to illustrate developmental & interpretative issues in the use of such models. Statistical issues are identified by testing the science score predictor variables (teachers' average salary, gender division, private vs public schools, & SES, in that order) against those for humanities (SES first, followed by gender & salary). Distinctions between statistical & policy questions are recognized, & limitations in interpreting regression-based results are emphasized. 6 Tables, 1 Figures. Modified HA.