INSTITUTIONALISM

Institutionalism- in the social sciences, an

approach that emphasizes the role
of institutions. The institutional approach
can be understood as a subject matter, as a
method, and as a theory.
 Institutionalism as a subject matter, the study of
political institutions is central to the identity of the
discipline of political science.
 Institutionalism as method, the traditional or classic
institutional approach is “descriptive, inductive, formal-
legal, and historical-comparative”.
 Institutionalism as a theory, the traditional or classic
institutional approach does not only make statements
about the causes and consequences of political
institutions.
Proponent of Institutionalism

Thorstein Veblen laid the

foundation for the
perspective of institutional
economics(institutionalism)
with his criticism of
traditional static economic
theory.
 INSTITUTIONS

According to Samuel P. Huntington, institutions are "stable,

valued, recurring patterns of behavior". Further, institutions
can refer to mechanisms of social order, which govern
the behavior of a set of individuals within a given
community. Moreover, institutions are identified with a social
purpose, transcending individuals and intentions by mediating
the rules that govern living behavior.
 Institutionalism as a method
Descriptive-inductive
 Descriptive because it employs the techniques of historian and explores
specific events, eras, people, and institutions.
 Inductive because inferences are drawn from repeated observations.
 Formal-legal
 Formal because it involves the study of formal government organizations.
 Legal because it includes the study of public law.
 Historical-comparative
 Institutions can be understood by those who know other systems of
government
Old and New Institutionalism
Traditional Institutionalism
is an approach to the study of politics that
focuses on formal institutions of government.
It systematically describes and analyzes
phenomena that have occurred in the past and
explain contemporary political phenomena
with reference to past events.
New Institutionalism
is a methodological approach in the study of
political science, economics, organizational behavior, and
sociology in the United States that explores how
institutional structures, rules, norms, and
cultures constrain the choices and actions of individuals
when they are part of a political institution. New
institutionalism is a social theory that focuses
on developing a sociological view of institutions, the way
they interact and the effects of institutions on society.
New Institutionalism is divided into:

• Normative Institutionalism- argues that political

institutions influence actor’s behavior by shaping
their values, norms, interest, identities, and beliefs.
Hence ‘normative’ refers to a concern with norms
and values as explanatory variables. It predicts that
the norms and formal rules of institutions will
shape the actions of those acting within them.
Historical Institutionalism
Argues that individuals act accordingly to their cultural
rules and norms and their respective self-interest. It is
concerned about the persistence of organization after
they are formed. It also argues for the historical
analysis of institutions by adapting the concept of
path of dependency. Institutions are regarded as
somewhat stable and rigid for reforms and
environmental changes.
• Rational Choice Institutionalism- denies that
institutional factors produce behavior
or shape individuals’ preferences. Rational choice
institutionalism draws heavily from rational choice theory but
is not identical to it. Proponents argue that political actors'
rational choices are constrained (called "bounded rationality").
These bounds are accepted as individuals realize their goals
can be best achieved through institutions. In other words,
institutions are systems of rules and inducements to behavior
in which individuals attempt to maximize their own benefit.
 Traditional vs New Institutionalism:
Traditional Institutionalism New Institutionalism
Elements analysis is based on institutions. Elements analysis is based on abstract individual.

Method of other human Sciences (law, political, Methods of neoclassical economic (the methods
sociology, etc.) Organic and evolutionary of microeconomics and game theory).
approaches. Equilibrium and optimization approaches,
The main focus is on collective action. The main focus is on independent individual.

Deductive in nature. Inductive in nature.

The main role of institutions is to shape the The main role of institutions is to give outer
preferences of individuals themselves. limits for individuals (the selection conditions,
limitations and information).
Beginning in the 19th and 20th Century. Beginning in the 21st Century.

The founders are John Dewey, Thorstein The founders are Ronald Coase, Gary Becker,
Veblen, John Commons, and Wesley Mitchell Douglass North, and John Buchanan.
Weaknesses of Institutionalism
 Critics to the classical approach or traditional approach attack the approach’s limitation
both in terms of scope and method.
 Roy Macridis, a comparativist in political science, critiques the approach’s subject matter
and method while focusing on the study of comparative government. He claims
that, comparative government was excessively formalistic in its approach to political
institutions.
 The historical methods and legal analysis of the classic institutional approach are
inadequate.
 David Easton found the classical institutional approach wanting on two grounds:
 First, the analysis of law and institutions could not explain policy or power because it
did not cover all the relevant variables.
 Second, hyper factualism or reverence for the fact meant that political scientists
suffered from theoretical malnutrition.