This book explores the psychology and the development of racial identity. The book makes the following suggestions: for people of color, the development of a constructive racial identity means being able to resist the bombardment of negative stereotypes and to think of a history of resistance and empowerment rather than one of passive victimization; for white people, racial development must begin with the abandonment of individual racism and the recognition of and opposition to institutional racism. The racial identity development of other people of color, Latinos, American Indians, and Asians, is also discussed. In considering why black students sit together in the cafeteria, the formation of racial identity is explored with real-life examples. The first part of the book discusses racism and the complexity of identity. The second part contains chapters on understanding blackness in a white social context, from early childhood through adolescence and adulthood. The third part considers understanding whiteness in a white context, Affirmative Action, and the development of a white identity. Part 4 explores critical issues for Latinos, American Indians and Asian Pacific Americans, and identity development in multiracial families. Part 5 talks about the necessity of cross-racial dialogue. An appendix contains a guide to resources for learning about racism. (Contains 193 references.) (SLD)