This article presents the problem of governing differences as a problem of constituting a social whole out of the play of antagonistic elements like class, caste, gender, religion, etc, which is essentially a modernist political project in its normative grounding. The problem is explored here vis-à -vis the trajectories of global capitalism and the options for development (that is, the transition from an agrarian economy to an industrial one) for the smaller federal states. The experience of the Left Front Government in West Bengal, India is analysed to understand the issues at stake. The narrative presented in the article shows that questions of land ownership and freedom from oppression and bodily toil remain the fundamental political problem which determines the course and dynamics of governance of differences, particularly its egalitarian mode. This problemat also points towards the limits of agrarian modernity, which many post-colonial countries have tried to constitute.