Informal rules are unwritten, tacit rules that define acceptable roles and activities for different individuals based on a combination of social norms, culture and historical factors. Any specific business community (or set of value chain actors) tends to adopt such rules, codes of conduct and regulations based on a combination of norms associated with these different social institutions. Understanding informal regulations is essential because they may at times present themselves in behaviours that seem apparently unproductive, but may actually serve an important purpose. Failure to understand informal rules leads to inappropriate or misguided interventions.
This guide offers tools and methods to understand informal regulation within the context of business enabling environment, including: participant observation; institutional ethnography; participatory approaches; root cause analysis; and analysis of social influencers.
The guide is particularly useful for those working in value chain development programmes, as well as those who wish to take a more holistic and nuanced approach to private sector development.