This chapter examines how the relationship between economic exclusion, inequality, conflict and violence shape the goal of establishing shared societies. The chapter discusses how this impact is largely determined by the emergence and organisation of social and political institutions in areas of violent conflict. Two areas of institutional change are central to understanding the relationship between armed conflict and shared societies. The first is the change caused by armed conflict on social interactions and norms of trust and cooperation. The second is the influence exercised by informal mediators, informal service providers and informal systems of governance – often controlled by non-state armed actors – that emerge from processes of violence and are prevalent in areas of armed conflict. These forms of institutional transformation are central to understanding how societies may be able to restrict the use of violence as a strategic way of resolving social conflicts and how to transition from violence-ridden to shared societies.