In this essay, Chaya Herman explores the interaction between two powerful global dynamics that have affected educational institutions and society at large: one is neoliberalism, with its attendant notions of marketization and managerialism; the other is the resurgence of ethnic and religious, often fundamentalist, communities in the search for identity. The essay is based on a larger research project that explores the profound effects of the ideological and managerial restructuring process in Johannesburg's Jewish community schools, the broader context for which has been South Africa's transformation to democracy. Herman suggests that these two dynamics are synergetic forces and that their accumulated effect has the power to shift the discourse of the community toward ghettoization and toward the creation of a homogenous community founded on a narrowly defined common identity.