Abstract
This article shows a novel facet in the complex relation between multiculturalism, the state and the market. Contrary to conventional theories in political science, sociology and anthropology, it shows that it is not just the success, but also the failure of the state and the market to commoditise nature and turn it into property that can actually help to foster ethnic identity. While state-driven market incentives to expand the agricultural frontier in Colombia during the 1960s and 1970s failed, they did help to foster differentiated indigenous identities and organisations, which converged around the revival of long-forgotten nineteenth century indigenous laws and other political opportunities to reclaim lands that had been taken away from them. Moreover, this article also shows that during a period of institutional openness in the late 1980s and early 1990s, the political emergence of indigenous identities became an important component of Colombia’s state-building processes by helping this country to maintain its territorial integrity through a model of delegated indigenous governance.