Two themes of particular significance in the changing world of local government are examined: the growing pressures to incorporate participatory and direct forms of democracy into local government; and the varied use of a complex structure of nongovernmental organisations as part of local governance. Two main forms of democracy with participation are discussed: direct democracy and participatory democracy. Differences between them are explained and the demands for them in transitional and established democracies are described. The different ways in which ‘third sector’ bodies are involved in local governance are explored and their contribution to local democratisation assessed. Innovations in participation and the involvement of the third sector can revitalise local democracy.

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