This paper explores the convergence of neo-liberal managerialism with the neo-conservative technologies of creating ‘moral panics’ about teacher education, English language and literacy curriculum and traditional values that allegedly fail to address the issues of public safety and cultural integration in the post- September 11th world. It problematises the neo-conservative vision of managing ‘strangers’ and public risks through dominant cultural literacy. The paper counters the neo-conservative backlash with a framework that emphasizes dialogical ethics in teaching for difference and conceptualizes transcultural literacy as an alternative model of education in multicultural conditions. This model is presented both a...