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Radicals, socialists, and anarchists have long advocated patterns of rule that do not require the capitalist state. Many of them look toward civil society as a site of free and spontaneous associations of citizens. Civil society offers them a non-statist site at which to reconcile the demands of community and individual freedom—a site they hope might be free of force and compulsion. The spread of the new governance has prompted them to distance their visions from that of the neoliberal rolling back of the state. Hence, the word governance is used by radicals to denote two distinct phenomena. They use it to describe new systems of force and compulsion associated with neoliberalism. And they use it to refer to alternative conceptions of a non-statist democratic order.

There is disagreement among radicals about whether the new governance has led to a decline in the power of the state. Some argue that the state has just altered the way in which it rules its citizens; it makes more use of bribes and incentives, threats to withdraw benefits, and moral exhortation. Others believe that the state has indeed lost power. Either way, radicals distinguish the new governance sharply from their visions of an expansion of democracy. In their view, if the power of the state has declined, the beneficiaries have been corporations; they associate the hollowing out of the state with the growing power of financial and industrial capital. Radical analyses of the new governance explore how globalization—or perhaps the myth of globalization—finds states and international organizations acting to promote the interests of capital.

Radicals typically associate their alternative visions of democratic governance with civil society, social movements, and active citizenship. Those who relate the new governance to globalization and a decline in state power often appeal to parallel shifts within civil society. They appeal to global civil society as a site of popular, democratic resistance to capital. Global civil society typically refers to nongovernmental groups such as Amnesty International, Greenpeace, and the International Labour Organization as well as less formal networks of activists and citizens. Questions can arise, of course, as to whether these groups adequately represent their members, let alone a broader community. However, radicals often respond by emphasizing the democratic potential of civil society and the public sphere. They argue that public debate constitutes one of the main avenues by which citizens can participate in collective decision making. At times, they also place great importance on the potential of public deliberation to generate a rational consensus. No matter what doubts radicals have about contemporary civil society, their visions of democracy emphasize the desirability of transferring power from the state to citizens who would not just elect a government and then act as passive spectators but rather participate continuously in the processes of governance. The association of democratic governance with participatory and deliberative processes in civil society thus arises from radicals seeking to resist state and corporate power.

These radical ideas are not just responses to the new governance; they also help to construct aspects of it. They inspire new organizations and new activities by existing social movements. At times, they influence political agreements—perhaps most notably the international regimes and norms covering human rights and the environment. Hence, social scientists interested in social movements sometimes relate them to new national and transnational forms of resistance to state and corporate power. To some extent, these social scientists again emphasize the rise of networks. However, when social scientists study the impact of neoliberal reforms on the public sector, they focus on the cooperative relations between the state and other institutionalized organizations involved in policy making and the delivery of public services. In contrast, when social scientists study social movements, they focus on the informal links between activists concerned to contest the policies and actions of corporations, states, and international organizations.

The new governance

The interest in governance derives in large part from reforms of the public sector that began in the 1980s, and new governance refers to the apparent spread of markets and networks following upon these reforms. It points to the varied ways in which the informal authority of markets and networks constituted, supplemented, and supplanted the formal authority of governments. Many people adopted a more diverse view of state authority and its relationship to civil society.

Public-sector reform occurred in two principal waves. The first wave consisted of the new public management (NPM), as advocated by neoliberals; these reforms were attempts to increase the role of markets and of corporate management techniques in the public sector. The second wave of reforms consisted of attempts to develop and manage a joined-up series of networks informed by a revived public-sector ethos. They were in part responses to the perceived consequences of the earlier reforms.

Some advocates of NPM implied that it is the single best way for all states at all times. The same can be said of some advocates of partnerships and networks. Studies of both waves of reform can imply, moreover, that change was ubiquitous. It is thus worth emphasizing at the outset both the variety and the limits of public-sector reform. Reforms varied from state to state. NPM is associated primarily with the United Kingdom and the United States as well as a few other states, notably Australia and New Zealand. Although many other developed states introduced similar reforms, they did so only selectively, and, when they did so, they often altered the content and the implementation of the reforms in accord with their institutions and traditions. Typically, developing and transitional states adopted similar reforms only under more or less overt pressure from corporations, other states, and international organizations. Public-sector reform also varied across policy sectors within any given state. For example, even in the United Kingdom and the United States, there were perilously few attempts to introduce performance-related pay or outsourcing into the higher levels of the public service, which are responsible for providing policy advice. While there have been extensive and significant reforms, bureaucratic hierarchies still perform most government functions in most states.