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Here's an alternative, if everyone was content with their lot, they wouldn't have the inclination to blame their troubles on people of a different origin.
In this respect, I would expect that by investing strongly in an area, building infrastructure, creating jobs and opportunities, you would be reducing the chances of racial/tribal violence erupting, because people would be too busy, and too happy to engage in such nonsense.
Using economics to repress behaviour is much more difficult, you don't need a lot of money to commit genocide - those in Rwanda managed it with machetes, clubs and fire - most of which is pretty much cheap as free.
Genocide may be based on hatred, but you need a reason to hate in the first place. So, if your belly is full, you're surrounded by people you love and are secure in your home, you are much less likely to hate than if you have no money, your children are starving, and your just wife left you for your xyzedian boss up the road with the good job and the fancy car.
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