institucijoms

Institutions are enduring structures that guide social behavior, coordinate collective action, and support the delivery of public goods and services. In Lithuanian, the word institucijoms is the dative plural form of institucija, used to mean “to the institutions” or “for the institutions.”

Institutions are typically categorized as formal or informal. Formal institutions comprise official bodies such as legislatures, courts, ministries, regulatory agencies, schools, and banks, as well as the laws and constitutions that define their powers. Informal institutions consist of shared norms, conventions, and professional practices that influence behavior even without legal backing.

Functions of institutions include providing predictability, reducing transaction costs, protecting rights, resolving disputes, and organizing the provision of public and private goods. They create incentives for investment, innovation, and cooperation, while also shaping social inclusion and accountability. Institutions thus play a central role in governance, economic development, and social welfare.

Institutions evolve over time, affected by political change, economic development, and cultural factors. They may be reformed to improve efficiency, reduce corruption, or adapt to new technologies. Comparative study of institutions seeks to understand why some systems foster stable growth and broad participation, while others produce fragility or exclusion.

Examples of institutional change in modern history include the expansion of democratic governance, the development of independent judiciaries, and the creation of regulatory frameworks for markets and welfare states. In many countries, strengthening institutions remains a central objective of public policy and international development initiatives.