ABSTRACT
The new modes of urban policy are often placed under the heading of urban governance. Fighting social exclusion, preventing social fragmentation, and promoting social cohesion may be as important as attracting new employment opportunities to the cities. This chapter discusses the identification of theoretical and empirical relations between social fragmentation, social exclusion and urban governance. It discusses the conceptual relationship between social differentiation, social inequality, social fragmentation, and social exclusion. The housing policy and institutions at local level, including urban governance, are of decisive importance for segregation. Non-elected interest organizations have had a substantial impact on the formulation of strategic goals as well as on the detailed formulation of policies and actions taken. The most important condition is the reorganization of urban administrative and political structures, which include territorial institutions.
