Racism that is inherently allowed in a system, usually governmental. A good example is the old Jim Crow system of the early 20th century American South: In many areas, the rules for voting were rigged so that only whites could vote, although this was not specifically defined.

A literacy requirement, for example, could exclude more blacks than whites, and if the actual literacy test was administered by a good ol'boy, then the percentage of blacks that passed the test quickly approached zero.

I have been told of another example in place today in Israel: Many banks will give a discount on loans for past Military service. Since all Jews must serve in the military, and all Muslims are forbidden from serving, the effect is to hinder Muslim economic development.

Note that in both cases, the rules themselves are not racist. Instead, it is the context of the system that creates an unequal effect.

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