Abstract
This article considers the modernisation of education governance as implemented by the New Labour governments of the United Kingdom since 1997. The discussion focuses on the apparent contradiction between those elements of modernisation that require the measurement and management of performance; and those that promote greater fairness and responsiveness. It is argued that tensions between these elements of policy are resolved by New Labour policy makers through the use of ideas derived from social capital theory. Modernisation uses these ideas in pursuit of a transformation of politics that enhances governability by making beliefs and feelings quantifiable, and by equating social relations with capital accumulation. The article concludes with a consideration of the problems encountered in the operationalisation of the modernisation project in the United Kingdom's Education Action Zones, where business was encouraged to play a major role in building new networks and social relations.