It doesn't mean "liberal" in the political sense. It has a well-defined meaning (from wikipedia):
> Liberal democracy emphasizes the separation of powers, an independent judiciary, and a system of checks and balances between branches of government. Multi-party systems with at least two persistent, viable political parties are characteristic of liberal democracies.
> Liberal democracy emphasizes the separation of powers, an independent judiciary, and a system of checks and balances between branches of government. Multi-party systems with at least two persistent, viable political parties are characteristic of liberal democracies.