Since the early 1990s, language used to speak of cultural practices once thought of as "folklore" has become increasingly standardized around the term intangible heritage. Supranational intangible heritage policies promote a contradictory package that aims to preserve local identity and cultural diversity while promoting democratic values and economic development. Such efforts may contribute to the deployment of language that stresses mutual exclusivity and incommensurability, with important consequences for individual and group access to resources. This article examines these tensions with ethnographic attention to a Hungarian folk revival movement, illuminating how local histories of "heritage protection" meet with the global norm of heritage governance in complicated ways. I suggest the paradoxical predicament that both "liberal" notions of diversity and ethno-national boundaries are co-produced through a number of processes in late capitalism, most notably connected to changing relations of property and citizenship regimes.