The personalization of politics, the decline of political parties and the weakening of political institutions in large democracies are considered to produce instability and to undermine democratic... Show moreThe personalization of politics, the decline of political parties and the weakening of political institutions in large democracies are considered to produce instability and to undermine democratic governance. Yet despite having extremely informal and personalized systems with non-ideological parties, small states around the world maintain significantly higher levels of democracy and regime stability than large ones. This article addresses this paradox by offering a systematic literature review of 167 case study publications on personalization and informal politics in 46 small states. The analysis reveals that personalized relations between political elites translate into either fragmentation or power concentration, while pervasive patron–client linkages structure the interaction between citizens and politicians. Despite the obvious downsides of these dynamics for democratic governance, the small state system is functional in the sense that it fulfils the needs of both citizens and politicians, which explains why small states have succeeded in maintaining their political stability. Show less