Human Geography and Informal Institutions: Implications for Local Development in Southeast Asia and Sub-Sahara Africa

Abstract

     Although institutional arrangements have been widely studied in recent decades, relatively little attention has been paid to the spatial dimensions of informal political and economic institutions. This review article discusses these dimensions and their interactions with formal institutions. In each country, a unique mix of institutional overlap, co-existence, and marginalization can be found. Furthermore, this contribution shows that human geography shapes local-central relations. Empirical observations focusing on local economic and political developments in Southeast Asia and Sub-Sahara Africa provide the basis for three policy implications. The implications relate to: 1) the choice of nationwide policies versus spatially targeted interventions, 2) building trust in communities and the problem of persistent local disabling informal institutions, and 3) enhancing effective decentralization. In sum, expanding socioeconomic capabilities and fostering public discussion cannot be achieved without addressing the complex manifestations of local informal institutions.