In this article the author tries consider a question important for economic development: what happens when formal rules and informal rules of economic behaviour are in conflict. Under such circumstances even the best, wealth creation-enhancing rules must bring about different outcomes
if introduced in the different political, economic, and socio-cultural environments. These considerations begin with the overview of possible balances and imbalances in the relationships between formal and informal rules and potential conflicts that may arise in the latter cases. The next
step is the selection of institutional characteristics that facilitate the explanation and prediction of outcomes of formal rulesŚinformal rules interactions. The third, and final, step considered in the article concerns the adjustment of rules (formal, informal, or both) over time
and possible patterns of adjustment.