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Many academic observers would argue that we have witnessed a shift from government to governance over the past decenniums, reflected in “softer” and more indirect steering mechanisms. Governance also involves more interaction between public authorities and other social actors. Still, from a distance, the discussion seems rather confusing, in that different meanings of the concept of governance are used in the literature. According a few European scholars, the term governance basically refers to “new” ideas related to the involvement of society in the process of governing. According to some American specialists, on the other hand, the term retains much of its original steering conception. To overcome this conceptual challenge, one may understand governance as consisting of four activities:

  • the process of articulating common priorities,
  • the process of bringing coherence to these priorities,
  • the process of and capacity for steering, and
  • the processes of establishing some form of accountability.

Based on this perspective, this entry explains the characteristics of informal governance and the different forms it takes and discusses how informal governance may be evaluated in terms of effectiveness and democracy.

Governance can assume many different forms and can be classified along different dimensions. Focusing on the extent of formality, one can argue that governance is formal when the production of authoritative decisions and actions takes place in a single hierarchical structure, such as a democratically elected legislative assembly and government.

Moving to the opposite pole, informal governance means that the production of public values arises from the interaction of a plethora of public and private and collective and individual actors. The mechanisms in use depend, moreover, to some extent on the cooperation of the involved nongovernmental actors. Informal governance means that participation in the decision-making process is not yet or cannot in fact be codified and publicly enforced. But it may also mean that a certain group of decision makers agree informally to advocate or enact particular policies, while still acting in formal decision-making contexts.

Informal governance is not new, nor should it be associated with specific institutions or levels of government. Governments have been engaged in informal governance since time immemorial, and informal governance can be found in institutions such as the European Union (EU), as in national, regional, and local policy processes.

Why Informal Governance?

Although not new, governments have come to rely more heavily on informal governance. Many reasons exist for this shift toward informality. One is the declining trust in, and respect for, government in many countries. As most formal instruments of governance rely on a government's legitimate authority to be effective, the waning of legitimacy makes traditional instruments less certain. Likewise, governments have experienced direct mechanisms as costly and inefficient, compared with the use of the private sector as partners in implementation. Governments are seldom the sole proprietors of expert knowledge, often needing to rely on other institutions' expert knowledge, and a wide range of stakeholders wish to participate in the policy process. Ideological changes toward “new public management” and a “network society” have also stressed the need to move away from direct government involvement to more indirect forms of governing and informal governance.

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