Abstract
Drawing on evidence from the competition for public spaces between street vendors and the authorities in Georgia our contribution through this article is twofold. First, we provide empirical evidence showing the diverse role of informality in a series of settings, and its capacity to influence decision and policy making. Second, we explore the relationship between informality and power (and in particular the policy-making process) to go beyond a legality-illegality binary. Our goal is to show the influence that informality has on governance at the local but also national level. In particular, by mapping the various sources and expressions of power, informality is shown and conceptualized as a space where formal institutions and citizens (or informal institutions) compete for power, where certain aspects and mechanisms that regulate public life in a given area are played out. The importance of such a space of informal negotiation is shown to be vital in contexts where none of the two ideal types of social responses to policy problems-exit or voice options-are available.
