Institutional Transformation and Planning: From Institutionalization Theory to Institutional Design

Abstract

For planners, institutional transformation is important in two ways. From the positive aspect they need to know their institutional environment: institutionalization theory can help. Three 'schools' of institutionalization theory are presented: 'Historical', 'Rational Choice' and 'Sociological Institutionalism'. The normative aspect of institutional transformation is institutional design: planning often demands this. Institutional design is defined and described: what is it, where is it done, and who does it. The article identifies the institutional-agent interactions that are the media and tools of institutional design, and reviews some of the knowledge base for institutional design practice under the headings of governance, coordination, and agency.