This paper examines the discourses and practices surrounding urban governance and cultural diversity in relation to issues of economic development and labour market inclusion. The paper sets out the conceptual and political importance of an approach to the governance of cultural diversity in relation to the urban economy that is embedded within specific historic-spatial settings, and draws together wider institutional contexts with the specificities of urban spaces and places. Through examination of recent changes in the economic governance of London, a global city characterized by a rapidly growing and highly diverse population, the paper demonstrates the conflicts and contradictory tendencies evident in contemporary governance discourses and practice towards diverse populations. The analysis presented demonstrates how governance in London has developed in face of the tensions that exist between the spatially rooted costs and benefits of diversity within the urban economic development process, and the contradictions apparent within a discourse that seeks to combine notions of community cohesion and economic inclusion with neoliberal economic practice and widening levels of inequality.
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