E-3 Informal Institution Moramora and Distribution of Entrepreneurship in Madagascar

Buller Hall 250

This paper explains the role of informal institution called moramora or hurry slowly on the distribution of entrepreneurship in Madagascar. The moramora institution is very influential in Madagascar. It shapes Malagasy’s behavior, affects their way of doing things. It has a reward and punishment mechanism. Its origin comes from two factors: the Malagasy perception of time and the value of human relationship. These two factors are intertwined and construct the moramora institution. Using quantitative and qualitative data about entrepreneurship and bureaucratic effectiveness, this paper shows that moramora institution affects entrepreneurship through its influence on bureaucracy and interpersonal relations. It creates slow and burdensome bureaucracy, promotes absenteeism, emphasizes personal transactions and presents opportunity for corruption. Like all Malagasy people, entrepreneurs evolve around institutional context.