The debate over multiculturalism in liberal societies has focussed on the relationship between cultural membership, individual identity, and individual rights and freedoms. But the discourse of cultural recognition, both indigenous and polyethnic, should also be examined for the ways in which it is deployed by states to further their domestic and foreign policy agendas. Analysis of the discourse around multiculturalism and biculturalism in Australia and New Zealand shows that diversity has been promoted to niche market national industries in a global market, and to reinforce neoliberal economic policies, through encouraging voluntary association, and the devolution of service provision from the state to civil society organizations. Cultural rights are promoted as alternatives to substantial economic redistribution, and to the transfer of ownership to indigenous groups of natural resources. Finally, traditional cultural values of community, belonging and solidarity supply values absent from neoliberal disc...