Habitus of informality in small scale society agrifood chains - filling the knowledge gap using a socio-culturally focused value chain analysis tool

Western business management literature tells us that agrifood market systems are based on formalised (e.g. contract-based), economic and demand-driven supply and value chain approaches and that in developing economies, growth and development need to be similarly underpinned. Social sciences literature, on the other hand, recognises the existence of small-scale, informal, socio-culturally driven societies in which local livelihoods dominate. In these communities, economic growth and development are based on informality. In an era where agrifood market development in developing countries is a focus of international aid agencies, an understanding of the dichotomy of formality and informality in doing business in a socio-cultural context is critical for agencies to ensure their aid is effectively targeted. In this study, horticultural product chains in two South Pacific nations (Tonga and Solomon Islands) were studied to address the informal/formal dichotomy associated with 'doing business' in small-scale societies. A multi-methods approach was used, featuring a Hybrid Value Chain Framework (HVCF) to 'capture' socio-cultural norms that exist in these small-scale societies when dealing with food production and marketing. It was found that a strong and well developed 'habitus of informality' underpins sustainable economic systems in these communities. We conclude that being aware of, and understanding, the habitus of informality that exits in small-scale societies is essential in aid design to ensure the sustainability of aid projects past their completion.