Violent conflict and social transformation: An institutionalist approach to the role of informal economic networks

This article seeks to add to the debate on the role of informal economic networks in violent conflict. It argues that social transformations arising from conflict can be either productive or destructive, depending on the particular institutions embedded in social networks. It also emphasizes how the historical relationship of informal networks to the state shapes the institutional content of informal networks. Two case studies are used to exemplify these contrasting cases. In Somalia, customary institutions of trust and reciprocity were preserved during conflict, and contributed to economic coordination and conflict mediation. In Sierra Leone, the intrusion of patrimonial networks into community life contributed to the development of youth networks based on social misconduct and opportunism, causing social collapse.