The main concernin this article is to study the question of democracy in contemporanymulticultural societies from a libertarian perspective, which is one of theleading debates of recent political theory. In this context, I doconsider the relevant concepts such as "cultural diversity",''pluralism'5 and "multiculturalism" and œy fo evaluatethe compatibility of the idealsenshrined in these concepts with a libertarian and democraticsocio-political project. One aspect of this article is to discuss the value of theideas of institutional rivalry and federalism with regard to search for anydemocratic solution of contemporary multicultural societies, Indeed, my basicargument is that for today's liberal democracies in which different ethnic,religious and cultural identities, several ideoloöcal groups and communitiestogether by "perverse" sexual choices are living side by side, a libertarian project able toaccommodate a peaceful coexistence is the "competitive federalism" model based on rivalrybetween cultural, social and political institutions.