In this article, I consider the extent to which the changing dynamics of state regulation may help to explain some of the systemic and structural obstacles confronting equality rights claimants. First, we have witnessed a significant restructuring of the post-war social welfare state, partially supplanted by neo-liberal policies over the past two decades, Neo-liberal government policies challenge the more egalitarian redistributive ethos of an earlier era and are less conducive to the promotion of substantive equality. Secondly, there continues to be considerable institutional resistance to the implementation of human rights norms, due to factors both external (i.e., socio-economic forces, globalization) and internal to societal institutions. These obstacles reveal that formal law reform is not a panacea for remedying social problems and inequities. The intersection between law and social transformation is much more complex than an instrumentalist vision of law would suggest. What should we do in the face of these obstacles?