Building markets between institutional discontinuities: Intermediation between formal and informal sectors in developing countries

ABSTRACT We explore the role of an intermediary, Palladium, in Zimbabwe as it bridges the divide between formal and informal sectors and the process through which it connects these sectors. We conduct in-depth, qualitative interviews structured around our case study of the market building activities of the Livelihoods and Food Security Program in rural Zimbabwe. Recognizing the institutional discontinuities, whereby activities in the formal and informal sectors do not necessarily connect, brings the role of intermediaries to the fore, as they attempt to bridge these divides by leveraging resources and engaging in collaborative arrangements through institutional work. This institutional intermediation is operationalized through processes of rationalization and trust building. We highlight the role of intermediation that reinforces an emergent basis for multi-stakeholder approaches to solve complex problems in Africa – involving private actors, community leaders, and the state – towards shaping ways of building more efficient markets for marginalized groups and facilitating market activity.