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...

"Informality" is a term used to describe the collection of firms, workers, and activities that operate outside the legal and regulatory systems. It is widespread in the majority of developing countries-in a typical developing economy, the informal sector produces about 35 percent of gross...