Abstract

Governance is required to manage risks that occur in the course of urban development, but it can also become a source of risk. For this reason, sustainable urban development presupposes knowledge on governance-driven risks. In gathering such knowledge, this chapter combines empirical material, research results and conceptual considerations from different sources: firstly, the findings we obtained from an empirical study of stakeholders in Santiago; secondly, observations we made on how the governance matters of decentralization, privatization, participation and informality actually fall into place in Santiago; thirdly, our reflections on the key tasks in various urban policy fields. In sum, as crucial sources of – governance-driven – risks, we can identify the extensive power of the private sector and clientelism, over-centralization and coordination deficits, the predominance of technocratic and neoliberal thinking, and low civil society engagement. Finally, we come up with recommendations on how to deal with these risks. They include an increase in private sector regulations, facilitation of multi-level governance strategies, empowerment of civil society and transformation of the political culture in Chile.