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Cultural diversity, in all its forms, poses a challenge to traditional cultural policy. This report discusses the issues of citizenship and the nature of democratic public policy in culturally diverse societies. It takes a comparative international perspective, and focuses on ethnic-based cultural differences. The report considers five policy contexts which have a significant bearing on the general direction of cultural policy, and identifies four principles of cultural entitlements based on heterogeneity. It recommends a number of steps that the Council of Europe and its member states should take in order to further promote cultural diversity.