The outbreaks of social unrest which have occurred in a number of Lati
n American cities during the past decade are often attributed to a pro
blem of ungovernability: in other words, they are taken to stem from e
xcessive demands which remain unsatisfied by the democratic system. In
this article, however, they are taken to originate in a problem of go
vernance, by which we mean the form of governing: the process whereby
the State, the market and civil society combine to settle conflicts an
d share out costs and benefits. From the point of view of governance,
social conflicts erupt when changes in economic and social structures
are set against the inertia of traditional political and social struct
ures. This article explores these changes, the forms that they take in
the cities of the region and their implications as to how Latin Ameri
can cities are governed.