What do institutions refer to in a political context?

In a political context, institutions refer to the established rules of behaviour that shape interactions and functions within politics and commerce. This encompasses both formal and informal practices, norms, and conventions that govern political activities and economic exchanges. Institutions provide the framework within which political actors operate, influencing their decisions, interactions, and ultimately the outcomes of political processes.

The idea of institutions includes not just laws or formal regulations (which might be misconstrued as being solely what is referred to in politics) but also societal norms and expectations that guide behaviour. This perspective recognizes the complexity of political systems and the importance of various unwritten rules that contribute to the overall structure and functioning of governance and commerce. This holistic understanding emphasizes the multifaceted nature of institutions in maintaining order, providing stability, and guiding behaviour in a political landscape.