The practice of treating equal people unequally and not letting them have the same opportunities to compete for social and economic rewards is called: integration demoralization nationality discrimination

This is a discrimination! Discrimination generally is the unfair unequal treatment of people.
Integration would rather be similar to the "opposite" of this: it's the process of including all people into the group and letting them be treated with respect

Demoralisation is the process of loosing morals.

Where are the choices?