INR 2002 Lecture 11: Lecture 11
Document Summary
A set of rules that are known and shared that structure interactions between actors. Can be formal (wto, imf, un) or informal (norms) Formal; international monetary fund, world trade organization, etc. Institutions vary in their goals and rules, but generally serve to facilitate cooperation among their members. Cooperation can flounder if there are incentives to defect, a large number of actors, nonrepeated interactions, and imperfect information; institutions can provide solutions to these problems. Largely exist to help cooperative efforts limit incentives to defect, provide information, etc. Actors first create and comply with the rules embodied in institutions to facilitate cooperation. Set and clarify standards of behavior, verify compliance with agreements, reduce costs of joint decision making, resolve disputes. Primary way that institutions promote cooperation is through enforcement, or the imposing of punishments on actors who fail to cooperate. Institutions at international level generally lack the capacity to impose punishments on states.
