This article discusses the challenges that cultural policy in the Nordic countries faces in regard to the cultural diversity of contemporary society – not only in the shape of a variety of ethnic minorities, but also represented by the differentiation of the ethnic majority into a multiplicity of lifestyle groups. The article criticizes the predominant politico-cultural polarization on this subject where both nationalistic-monocultural and multiculturalistic positions tend to corner themselves into static and particularistic versions of identity politics – the perspective of which seems to be societal fragmentation. Consequently, an alternative, more dynamic concept of identity is presented from which – so it is argued – an adequate late modern cultural policy should take its departure, thus combining the recognition of diversity and the perspective of developing a dimension of cultural community on the level of society as a whole.