Informal institutions : the world’s open secrets

Abstract

Informal institutions shape regimes, elite decision-making and citizen behaviour. Politics – in the formal sense – would not work if informal institutions did not exist. But what are informal institutions? Identifying them turns out to be a complicated task. Compared to formal institutions, such as parliaments, parties, elections or constitutions, informal institutions are not coded in writing. Nevertheless, constitutions, party charters, party manifestos and electoral rules are not alone in structuring people’s behaviour. Individuals perpetuate unofficial widely known patterns that also organize behaviour. These collective norms and practices generate informal institutions. Because they are unofficial and unwritten, informal institutions have a less concrete and therefore less readily observable existence. That makes them harder to study. This chapter discusses the benefits and the risks of informal institutions from the perspective of their inherent tensions with formal institutions, their efficiency and their role for democracy. I continue with an overview of how formal and informal institutions interact. The second part looks at the informal institutions from the perspective of efficiency. The third investigates their nuanced role for democracy. The conclusion follows.