Informal institutions — family and kinship structures,traditions, and social norms — not only matter for development, but they are often decisive factors in shaping policy outcomes in environments of weak states and poor governance structures. Based on concrete examples in the areas of...

The informal sector deprives states of revenues and workers of social protection. It also, however, frequently constitutes the most dynamic part of the economy and creates massive employment. Informal employment is ubiquitous and growing. The financial crisis that began in 2008 has made the...