LAUSR

ABSTRACT This article analyses how policies to foster social cohesion within diverse and unequal urban contexts are affected by New Public Management and austerity policies. Based on the analysis of a handful of governance arrangements in three cities that differ in their institutional structure and diversity policy approaches (Copenhagen, Leipzig and Milan), it is shown that negative effects are quite widespread yet cushioned by a strong welfare state structure, solid local government and high priority given to the recognition of diversity. Nevertheless, the shift towards the application of market logic to social work reduces innovative potential, increases efforts spent on procedures and weakens public coordination.