It has been a year since the United Democratic Front government took offi ce in Kerala. During this period communal forces have exercised their infl uence in government formation, and caste and sectarian mobilisation has grown. One could surmise from the policy orientation of the state government over the past year that the ascending classes now have a decisive infl uence over the agenda of development projects. While taking crucial decisions on investment priorities, the government is playing to the gallery of public opinion, which, in turn, has been taken over by special interest groups.