The institutional and demographic factors that may lead to the persistence of such social inequalities include economics and politics. As such, the question of how the political and economic factors are related to the social aspect play a great role in enhancing social inequality (Ferguson 15). In this respect, how do political institutions play a role in creating social and economic inequalities? Mainly, they are as a result of the creation of false homogeneity. The results obliterate the idea that the social phenomenon occurs due to political conflicts and the fact that different actors with varied power resources are involved in the negotiations. The social phenomenon goes through processes that are not bound to the institutions and occur within units of state administration (Ferguson 26).
In essence, social inequalities can be linked to the operations of the central government in addition to the social and political actors. The linkage is because individual such as politicians and other state governors gain from resisted democratization. Additionally, the politicians are always in need of autocracies where they will apply technology and trade for their privileges (Ferguson