The paper analyses how the establishment of neoliberalism, as the new global orthodoxy, in the field of education implies a substantial subjugation and marginalisation of policies and practices informed by the values of social justice and equity. The evidence from a case study on an inclusive education policy enacted to combat social exclusion and dropout in a disadvantaged inner-city area in the south of Italy are presented. The study shows how neoliberalism is increasingly re-defining the "domains of validity, normativity and actuality" according to an economic rationale; within these domains the actors frame the problems of social exclusion and dropout and choose the solutions to address them. It is argued that the overall framework of discourses of human capital, individualisation, school improvement, performativity and standardisation impedes any contextualised, multidimensional and critical approach to social exclusion as well as the pursuing of any egalitarian outcomes, be they (re)distributional, cultural or associational outcomes. (Contains 4 tables, 1 figure and 1 note.)