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In this article, we offer a critical analysis of governance arrangements looking at the evolution of the Italian local welfare system over a time period of more than 40 years. The broad idea of a shift “from government to governance” is questioned. The nonprofit organizations had a vital role in the foundation of the Italian local welfare system. However, their participation in the governance arenas of today is often illusionary. This has practical consequences, as innovation in the welfare domain needs authentic public–private partnerships, and genuine participation of the nonprofits at all levels of social and political action.
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