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Sociology of Institutions - Lecture Notes
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Sociology of Institutions Year 1, Semester 2 Olav Velthuis
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SOCIOLOGY OF INSTITUTIONS – Lecture 1 02/04/2018Introduction
Main aim of this course: a better, richer and deeper understanding of the current state of
key societal institutions and organizations, given the seemingly widespread discontent
about them and the rise of populism. Are we witnessing a deep institutional crisis?
1990s: era of booming economy, internet, innovations; a time that brought deep optimism.
Late 2000s rise of populism: dissatisfaction with institutions. What do they want to change
in society? Which institutions and organizations are questioned?
• Representative democracy (Zielonka). They want more direct democracy with
consequently more referendums.
• Independence and authority of non-majoritarian (not appointed by the majority
vote) institutions: judiciary system, media, education, central banks. These
institutions and organizations are accused of being too leftists.
• Market vs government (Judt):
o Backlash of neoliberal economic policies: economic elites profiting from
these neoliberal policies, becoming richer and richer. Financial crisis of 2008.
o Confusion about what the tasks are of the government, what can be left to
the market and what responsibilities are of citizens.
o Decline of (protective) welfare state.
• European Union and other international organizations (Zielonka)
It is not self-evident how to make sense of discontent
All the statistics are looking really good: people are getting healthier, living longer, safer
lives. Even if mankind is doing extremely well objectively and the notion of progress is
globally shared, people are still feeling discontent. If you look at the reasons of the rise of
populism, there is a heterogeneity of explanations of this discontent: economic, political or
cultural roots.
Bellum omnium contra omnes – Hobbes
Hobbes talked about a natural state of men, before entering society, which is characterized
by “a war of all men against all men.” We need all kinds of societal structures that prevent
us in engaging in this war and instead cooperate. Societal structures (institutions and
organizations) regulate the behavior of citizens, provide a safety net, engage with
distributive issues and by doing so contribute to societal order and stability.
Institutions
“The formal and informal rules which regulate our behavior to a lesser or greater extent, or
in other words, society’s rules of the game”
- Formal institutions: codified, usually official sanctions in case of violation,
organization(s) dedicated to maintaining the institution. Like the judiciary system
(law and order).
- Informal institutions: non-codified, maintenance through informal social control.
Like table manners. Even if it is informal, it doesn’t mean that it is not powerful.
,Organizations
“Associations between people who are pursuing common goals”
Like trade unions, ONG, schools, churches, political parties.
- Formal organizations: legal persons
- Informal organizations: not anchored in the law and therefore there is no legal
person. Often fluid. But: family. It is a group of people that get together. An example
is feminism, informal club, network and other social movements
Formal Organizations
• Government: public bodies like the state, provinces and municipalities
• Market: private bodies with profit motive like corporations, private limited
companies
• Civil society; private bodies without profit motive like associations, foundations and
cooperations
Three sources of discontent
1. Cultural revolts of the sixties: students and workers protests
2. Post-1980s neoliberal policies
3. Post-1990s globalization and migration; after the fall of the Berlin wall
, SOCIOLOGY OF INSTITUTIONS – Lecture 2 04/04/2018
Path dependence & change
How can we explain continuity and change in the organization of society?
Organizations and institutions are difficult to change because paths which have been
selected, often coincidentally, in the past, are hard to divert from in the present. Once a
path is chosen, societies are forced to continue it. For instance, the keyboard layout:
nobody was willing to change the QWERTY keyboard layout after switching to computers
although it isn’t the most efficient layout.
Path dependence: a more or less contingent event in the past sets in motion a chain of
events which are causally linked since each event co-determines the next one and as a
result the institution is constantly being reproduced.
Mahoney, path-dependence:
Four reproduction mechanisms:
1. Utilitarian (economic perspective): reproduction through rational cost-benefit analysis
by actors involved in the institution. For example, centralized vs decentralized energy
production: we are now in a position to go back to decentralized energy production due
to solar panels, yet, we still have centralized infrastructures. Another example would be
the slow rise of electric cars.
2. Functional (systemic perspective): reproduction because of function of institution in
wider system
3. Legitimation (normative perspective): reproduction because of normative perception or
legitimacy of an institution. For example, the Black Pete debate and the entitlement to
welfare state in the 1980s.
4. Power: reproduction because it is supported by elite groups in society. E.g. power of
labor unions in the Netherlands (until 1980s).
Path dependence
Because of path dependence, the organizations and institutions which societies are in need
of or which fit them best, may not automatically be established.
Path dependence can explain why small events in the past can have dramatic consequences
for the future. It can also explain why we get stuck with institutions that don’t work very
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