Abstract:
For generating sustainable performance in rural development programmes such as Watershed Development (WSD) programmes, institutions and specifically interaction between its formal and informal at the grassroots is very important. Conceptually, demand for interaction varies across institutions and over time and this may depend on generic and specific drivers. The supply of interaction would come through three institutional components or features: structure, processes, and governance. The outcome of interaction can be seen in terms of the achievement of different rationalities and state of natural resources. Interaction between formal and informal along with its various features was found to be relevant and very important in achievement of various rationalities and sustainable institutional performance.