Abstract: This paper is divided into three parts. The first part is a story about fluctuations in the balance of the relationship between impersonal and personal principles of social organization, drawing heavily on Max Weber’s interpretation of western history. The second part reviews the concept of an ‘informal economy/sector’, from its origins in discussions of the Third World urban poor to its present status as a universal feature of economy. The third part asks how the combination of the formal/informal pair may be conceived, with a view to promoting development. The paper concludes with suggestions on how partnerships between bureaucracy and the people can be made more equal.

Keywords: social organization, development, bureaucracy, democracy,