How do you erase ethnicity? Politicians leverage on their home state and jurisdiction win elections. I believe you are suggesting Atheism as a solution to corruption, money laundering, killings, e.t.c
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Leveraging ethnicity is pretty typical in most multi-ethnic countries. They use that as a springboard to jump into national which they then use to buy perks for their home region to further solidify their hold. I don't really think there's much that can be done about that.

I don't think atheism can solve this, it's not like you can force those people to leave their religion.