Britain's black community faces a serious crisis with young people becoming involved in crime
The Commons home affairs committee said the number of black men in the criminal justice system was "unacceptable".
It blamed social exclusion, absent fathers, lack of positive role models and real or perceived racial discrimination by the authorities.
Recommendations include mentoring schemes and "safe houses" for gang members wanting to escape crime.
Committee chairman John Denham said there was no evidence young black people committed more crime than other groups.
But they were more involved in certain types of crime, including robbery, drug and gun offences. They were also more likely to be the victims of violent crime.
This was a "serious crisis" for "sections of black communities and for some young people of a mixed ethnic background," the committee's report says.
Black people make up 2.7% of the UK population aged 10 to 17, but represent 8.5% of those in that age group arrested in England and Wales, the report said.
It also said black people were more likely to be "stopped and searched" by police.
And it found that three in four young black men would soon be on the national DNA database.
Previous government efforts to tackle the issue of black people and crime had made no impact, said Mr Denham.
Social exclusion was the biggest factor in young black crime, said Mr Denham, but a "lack of father involvement and...other parenting issues" also needed to be tackled.
Lacking positive male role models, many young black men look to music and films that glamorise violent lifestyles, the committee said.
The committee also suggested that "internal exclusion" for disruptive schools pupils be developed.
"Internal exclusion" involves allowing disruptive pupils to remain in school, but separated from other pupils during lessons and breaks.
It also praised mentoring schemes, which offered young black men positive role models.
Some witnesses told the committee the media was to blame for negative portrayals of young black people.
But Opinion Leader research commissioned by the MPs suggested most people rejected racial stereotypes.
Conservative home affairs spokesman James Brokenshire said: "Despite the prime minister's promises, soaring crime rates show that Tony Blair has failed to be tough on crime.
"Evidence like this demonstrates equal failure on dealing with the causes of crime."
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