Cultural diversity, in all its forms, is posing a profound challenge to traditional formulations of cultural policy and to our understanding of the public interests served by this policy. In most countries the artistic and cultural landscape has not evolved to reflect the realities of a changed social landscape. This rift threatens to undermine the legitimacy of cultural institutions and the public policy that supports them. The shift from homogeneity to diversity as the new social norm requires a rethinking of the processes, mechanisms and relationships necessary for democratic policy development in diverse societies.