This is particularly the case for those pertaining to poverty reduction and sustainable development which now include concepts of governance and transparency. Institutional development deals with the changes in institutional roles, behaviour and linkages. Institutional strengthening is concerned with implementing changes in individual institutions. Management of change deals with transitional structures and support to achieve the objectives of institutional reform. Diversity of institutions Institutions exist in many different forms.
Formal institutions play a vital role in determining whether projects are successful.
NG0s are often regarded as formal institutions working with informal organisations, as advocates of poor people's needs. However, it is the behaviour of communities, and their non-formal alliances and social systems, that determines the success of local management of natural resources, either with the support of, or despite, formal institutions. Informal institutions include kinship, caste, and occupational groups. These influence individual behaviour and practices. The legal and policy framework forms the final component, defining how individual institutions operate and the relationships linking formal and informal institutions.