Informality in International Political Economy
Informality is increasingly defining outcomes in an international political economy that has previously been defined by precise treaties and large bureaucracies. Nonetheless, research in the budding area of “informality in IPE” is still nascent. This chapter brings some cohesion to the literature by discussing how soft law, informal governance, and informal intergovernmental organizations are affecting our global economy. By overviewing informality in the areas of international finance, international trade, and international economic institutions, it underscores how important bodies such as the G7, Financial Action Task Force, and Basel Committee are increasingly shaping how states interact. It underscores that informality is neither normatively better nor worse than its formal brethren, but instead that informality will have different effects on international relations. The chapter ends by highlighting ripe areas for more “informality in IPE” research going forward, including a better understanding of how topics such as block chain technologies, informal sanctions, and informal migration affect global politics. Nonetheless, a deeper investigation of these important areas will continue to be challenged by the things that define informality itself—a lack of transparency, working around the rules, and fluidity.