The article discusses the impact of neo-liberal governance on the development of language policy and group politics in Canada and in Wales. It outlines changes in the nature and governance of language policies in both countries and looks at their implications for group politics. It argues that the impact of neo-liberalism will depend on whether groups have access to resources or key players and on their use of existing norms and values embodied by institutions, such as the constitution or past practices. The article concludes by arguing that one cannot take for granted that neo-liberalism is either ‘bad’ or ‘good’ for group politics without studying in more detail the role of institutions in their relationship between the state and civil society.