“…They do so for good reasons: (i) transaction costs are much lower because it is easier for a poor person to approach a well endowed neighbor, relative, or friend to help provide a good or a service than associating with other poor people to try to collectively obtain it; (ii) free-riding is not a real problem because, for instance, patrons take pride in providing a common or public good even if others do not contribute, giving them the power over others they seek; and (iii) the moral hazard is low because even if the risks tend to mount with the break-up of old community boundaries, seeking out others informally for problem solutions is less risky than relying on formal institutions to do so. Although much of the structuralist critique of the 1970s, e.g., Rodney (36), Leys (37), and Amin (38), is still valid when it comes to understanding Africa's predicament, agency matters in the local African context (39)(40)(41). Much of it amounts to coping under very difficult circumstances, but the point is that this behavior undermines formal institutions and renders them ineffective as instruments of development.…”