Abstract
The third sector, traditionally considered in the Italian welfare state as a residual actor of social policies, has increasingly engaged itself in various types of partnerships and collaborative planning processes with the local authority in recent years. In the rhetoric of welfare reform, third sector organizations play an important role, for they contribute to regenerating local democracy, stimulating communities, and fighting social exclusion. The article examines 12 local area plans, which have been realized in eight regions of Italy since 2000, by relying on empirical data and interviews. The article concludes that the so-called co-governance of local welfare can produce very different levels of democratization and improvement of social programs. In some areas, it may be that valorizing the third sector can effectively renew social policies, while in others the exact reverse may happen. The article offers an analysis of the main factors that influenced this result.