This is a big debate at the moment.
Wiki and not clear cut.
A wiki debate, I think I will pass.
Race obviously does exist, to say other wise is nonsense. Stereotypes do not suddenly appear "out of nothing." They are based on a persons experiences with other people of certain races, social classes, or whatever else. Our brains generalise based on the experiences and past encounters we have had with each group.
If I get burned every time I put my hand in a fire, then it does not make sense for me to continue putting my hand in fires. In the same way, if I have observed certain races acting a certain way, then it only stands to reason that other members of that race also act in the same way. Thus a stereotype of that certain race is formed.
If we ignore our stereotypes then we are ignoring our own experiences and choosing ignorance over knowledge, a recipe destined for failure. No one would expect you to put your hand back in a fire after being burned dozens of times, yet for when it comes to the politically correct, multiculti bible of race relations, we are told to throw away all our experiences, no matter what the cost. We see the result of this brainwashing every day in the crime reports when yet another European is *victimised because they have chosen to ignore their stereotypes about certain races.
*As per usual, I have links galore to back up my claims ;}