Published 22 November 2016
Informal institutions have profound effect on policy outcomes. Findings show that the tendency to focus on formal rules and institutions is insufficient for understanding the real incentives and constraints that underpin social and economic decisions.
Understanding informal institutions becomes more compelling in case of Nigeria, where the informal sector accounts for as much as 57.9% of the GDP.
This paper investigates sources of conflict in wet markets and how wet markets as a critical component of the informal sector in Nigeria utilize informal structures, mechanisms and processes for internal governance, especially conflict resolution outside the formal courtroom and legal channels. These institutions and their codes are based on mostly unwritten codes of conduct whose enforcement relies heavily on fiduciary relationships, networks, enlightened self-interest and other mutual reinforcing mechanisms of responsibility.
The paper finds that there are established systems of rules and decision making processes in wet markets that have evolved from traditional socio-cultural codes and practices and these indigenous governance structures have great impact on enterprise and entrepreneurship in wet markets in Nigeria.
This paper will be part of the TDM Special Issue on "Non-Legal Adjudicators in National and International Disputes" - more information: https://www.transnational-dispute-management.com/news.asp?key=1626