ABSTRACT
Changes in the economic structure have been followed by institutional changes in the realm of politics and administration, for example the redrawing of municipal boundaries, rearrangement of competences between different levels of government, and introduction of new public management tools. These institutional changes can be described as a shift from local government towards urban governance. The case of Johannesburg is highly illustrative for the institutional reform of urban governance. Public officials are increasingly needed as moderators enabling smooth cooperation between diverse actors. The Johannesburg case is an example of a strong public response, with a small number of decision-makers who make a coordinated effort to implement a coherent strategy. The case of Sao Paulo is very different. In Sao Paulo, the reactivation of city districts combined with Participatory Budgeting aims to improve the public capacity to solve local problems. Local government in its traditional appearance vanishes new forms of urban governance emerge.
