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The authors are concerned that a remaining refuge of substantive democracy in America, the public sector, is in danger of abandoning it in favor of the market model of management. They argue that contemporary American democracy is confined to a shrunken procedural remnant of its earlier substantive form. The classical republican model of citizen involvement faded with the rise of liberal capitalist society in the late nineteenth and early twentieth centuries. Capitalism and democracy coexist in a society emphasizing procedural protection of individual liberties rather than substantive questions of individual development. Today's market model of government in the form of New Public Management goes beyond earlier “reforms,” threatening to eliminate democracy as a guiding principle in public-sector management. The authors discuss the usefulness of a collaborative model of administrative practice in preserving the value of democracy in public administration.