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Linking the Formal and Informal EconomyConcepts and Policies$
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Basudeb Guha-Khasnobis, Ravi Kanbur, and Elinor Ostrom

Print publication date: 2006

Print ISBN-13: 9780199204762

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0199204764.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 18 August 2019

The global path: soft law and non-sovereigns formalizing the potency of the informal sector

The global path: soft law and non-sovereigns formalizing the potency of the informal sector

Chapter:
(p.36) 3 The global path: soft law and non-sovereigns formalizing the potency of the informal sector
Source:
Linking the Formal and Informal Economy
Author(s):

Robert K. Christensen

Publisher:
Oxford University Press
DOI:10.1093/0199204764.003.0003

The Westphalian paradigm suggests that sovereign nation-states formally constitute the only legitimate institutions of international policy creation, enactment, and enforcement. This paper seeks to highlight the policy potency of nongovernmental organizations by turning to a debate that questions the relevancy of the Westphalian paradigm. One of the most contentious points in this debate is the role and legitimacy of the various actors involved in globalization. The mechanism of ‘soft law’ is discussed, which allows non-state actors to participate — in an increasingly formalized way — in policy processes traditionally and even exclusively populated by sovereign nation states. Ostrom et al.’s Institutional Analysis and Development (IAD) framework is used to clarify the institutional implications of non-sovereigns in policy formation. Ultimately, the soft law mechanism illustrates that the informal sector is gaining access — as and through NGOs — to powerful policy networks where formal sovereignty is decreasingly relevant.

Keywords:   government structure, government scope, international law, nonprofit institutions, formal sector, informal sector, shadow economy, institutional arrangements

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