EP: 7 - Does Diversity and Democracy Mix?

Governing is hard but leading a diverse nation is even harder. More homogeneous democracies often have greater levels of social welfare (e.g. Sweden, Switzerland)  Can anything be done about the discomfort some people will feel in diverse settings? Do  diverse societies invite or create divisions that lead to scapegoating, which prevents underlying problems from being acknowledged and/or solved? Or does division and scapegoating always exist?