Understanding why inequality is so great and has persevered for centuries in a number of Latin American countries requires tools that go beyond economics. Inequality between indigenous groups and others has been particularly harsh and persistent. This book applies a truly interdisciplinary approach to the specific case of Peru, seeking out the dynamics of the interactions between the society, the polity, the geography and the economy. Ethnic discrimination and prejudice emerge as central themes, explored through people's own perceptions and life experiences. The book attempts to extend the boundaries of our understanding and contributes to the growing interest in ethnicity and conflict by developing and exploring the interactions between institutions and the inequalities between groups.