The role of institutions

Institutions are established systems, rules, and organizations that organize society and help ensure stability, fairness, and order. They include government bodies, educational systems, legal frameworks, and financial organizations. Their role is to create guidelines for how people interact, make decisions, and resolve disputes. By doing so, institutions provide predictability, protect rights, encourage cooperation, and support economic and social development. Essentially, they shape our daily lives by setting standards and structures that enable society to function smoothly and fairly over time.