“…Alongside the debates on governance as networks, political economists focusing on Europe argued that local government and social forms of organizations were starting to transform in response to broader structural changes such as the globalization of the economy (in particular the unrestricted movement of capital and governments' difficulty in regulating it —Touraine, 2001; Held, 2005), the shift away from the welfare state (associated with neoliberalism in Europe —Brenner and Theodore, 2002; Jessop, 2002), and the restructuring of the nation‐state and its effects upon supranational and subnational scales (Bache and Flinders, 2004). It is at the subnational scale that an emphasis on the principle of subsidiarity and arguments in favour of decentralization and direct participation have been developed (Denters and Rose, 2005). Many of these structural changes identified in Europe coincide with those encountered by Latin American countries.…”