For the sake of economic or administrative efficiency, it may seem to make sense to consolidate such services. Critics object that communities can be authoritarian and oppressive. And so they often have been. We should not tolerate communities that wish to practise child labour or female circumcision, or those that force young girls into marriage with much older men against their will. But this is where the state steps in, to protect basic rights, including free speech, assembly and so on.
Unfettered communities are no better than unfettered markets or states.
Balance is at the core of the Third Way. Like medicine, food and drink, communities, if taken in reasonable measure, are essential to the good life but, if taken to excess, can destroy it. The state retains other important functions. The Third Way involves curbing welfare costs and overcoming some of the psychological side effects that welfare generates. However, we have seen not just a lowering of safety nets, but some people being cut off welfare completely.