Biculturalism is New Zealand's experience of the shift from class to identity politics and multiculturalism that has characterized a number of liberal democracies since the 1970s. Originally a progressive project committed to incorporating Maori culture into the nation's symbolic identity, biculturalism became the vehicle for separatist ethnic politics and a fundamentalist 'blood and soil' ideology under the control of an emergent neotribal elite. This article traces the shifts in biculturalism and its damaging effects on the conditions required for democracy. It argues that national identity within a universalist concept of humanity, rather than a localized and essentialized ethnic identity, is more likely to ensure the maintenance of the nation-state within the global community.