Institutions and macrodevelopments

[Extract] Natural resource use is influenced by many factors, but institutions, the rules or norms developed by shared perceptions of a group about appropriate behaviour, are a critical driver of pastoral land use. In turn, resource use impacts upon both environmental conditions and resource user livelihoods, meaning that institutions are a critical mediator of both. To set the context, broad differences and similarities in resource characteristics of Inner Mongolia and Mongolia are described. The ways in which these characteristics drive the formation of institutions that govern grassland use follows, leaving detailed spatial and temporal aspects of these characteristics to later chapters. An overview of important informal and formal institutions related to natural resource use on grasslands is provided, including an examination of potential transaction costs associated with institutions. The chapter concludes by emphasising important recent macrodevelopments impacting upon grasslands. Analysing the ways in which formal and informal institutions and macrodevelopments interact provides useful insights on their impact on natural resource use and herder livelihoods