POLS 3670 Lecture Notes - Lecture 6: Embezzlement, Sub-Saharan Africa, Cronyism

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Institutions: rules that structure social interaction by constraining and enabling actors" behaviour. Informal institution: socially shared, unwritten rules, that are created and communicated outside of officially sanctioned channels. Informal institutions have an impact on policy-making process. May be some type of sanction for not complying with an informal institution. Ex: tipping is an information institution (you have to pay for your meal, you. Lots of research is done on formal institutions, but policy is produced by scholar in the us and europe. Dysfunctional, they undermine formal rules and democratic institutions. Functional, they provide solutions where formal institutions are weak and ineffective. Accommodate formal institutions by altering the effects of formal rules without directly violating them. Compete with formal institutions by creating alternative ones. Substitute for formal institutions by achieving results that the formal rules cannot. Chile, for ex has a strong set of institutions, as well as a strong legislature.

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