This work provides a systematic assessment and evaluation of the modernization of the British Labour Party in light of its landslide victory in 1997. It also represents an attempt to locate Labour’s modernization in terms of the distincitive political economy of contemporary British capitalism and the impact of globalization, the evolution and transformation of the British State in the post-war period, the legacy of Thatcherism, and the specifics of electoral strategy and competition in contemporary Britain. In doing so, it provides an interdisciplinary account of Labour’s modernization and the strategic terrain within which this has been played out, as well as, an assessment of the strategic alternatives available to a New Labour administration in an era of globalization and an evaluation of the prospects for a decisive break with the Thatcher/Major legacy.