City
Governance

Governance includes government but refers to a wider domain of social control functions implemented by many actors including non-governmental organizations. The impact of globalization and the role of multinational corporations in local governments worldwide, has led to a shift in perspective on urban governance, away from the "urban regime theory" in which a coalition of local interests functionally govern, toward a theory of outside economic control, widely associated in academics with the philosophy of neoliberalism. In the neoliberal model of governance, public utilities are privatized, the industry is deregulated, and corporations gain the status of governing actors—as indicated by the power they wield in public-private partnerships and over business improvement districts, and in the expectation of self-regulation through corporate social responsibility. The biggest investors and real estate developers act as the city's de facto urban planners.

The related concept of good governance places more emphasis on the state, with the purpose of assessing urban governments for their suitability for development assistance. The concepts of governance and good governance are especially invoked in emergent megacities, where international organizations consider existing governments inadequate for their large populations.
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