Complex sentence: This contrasts with a policy to allow "discrete and insular minorities" to form and retain their individual identities which may be seen as a question of equality: should a modern state be aiming for equality between its citizens or an equality between groups ?
Split into simpler sentences: This contrasts with a policy to allow "discrete and insular minorities" to form and retain their individual identities. A different way of defining the question is as one of equality: should a modern state be aiming for equality between its citizens or an equality between groups?