The Future of the Commons

by Elinor Ostrom

Traditional economic models of how to manage environmental problems relating to renewable natural resources, such as fisheries, have tended to recommend either government regulation or privatisation and the explicit definition of property rights. These traditional models ignore the practical reality of natural resource management. Many communities are able to spontaneously develop their own approaches to managing such common-pool resources. In the words of Mark '[Professor Ostrom's] book Governing the Commons is a superb testament to the understanding that can be gained when economists observe in close-up detail how people craft arrangements to solve problems in ways often beyond the imagination of textbook theorists.' In particular, communities are often able to find stable and effective ways to define the boundaries of a common-pool resource, define the rules for its use and effectively enforce those rules. The effective management of a natural resource often requires 'polycentric' systems of governance where various entities have some role in the process. Government may play a role in some circumstances, perhaps by providing information to resource users or by assisting enforcement processes through court systems. Elinor Ostrom's work in this field, for which she won the Nobel Prize in economics in 2009, was grounded in the detailed empirical study of how communities managed common-pool resources in practice. It is essential that we avoid the 'panacea problem'. There is no correct way to manage common-pool resources that will always be effective. Different ways of managing resources will be appropriate in different contexts - for example within different cultures or where there are different physical characteristics of a natural resource. Nevertheless, there are principles that we can draw from the detailed study of the salient features of different cases to help us understand how different common-pool resources might be best managed; which rules systems and systems of organisation have the best chance of success or failure; and so on. Elinor Ostrom's approach has been praised by the left, who often see it as being opposed to free-market privatisation initiatives. In fact, her approach sits firmly within the classical liberal tradition of political economy. She observes communities freely choosing their own mechanisms to manage natural resource problems without government coercion or planning. In developing a viable approach to the management of the commons, it is important, among other things, that a resource can be clearly defined and that the rules governing the use of the resource are adapted to local conditions. This suggests that rules imposed from outside, such as by government agencies, are unlikely to be successful. There are important areas of natural resource management where Elinor Ostrom's ideas should be adopted to avoid environmental catastrophe. Perhaps the most obvious example relevant to the UK is in European Union fisheries policy. Here, there is one centralised model for the management of the resource that is applied right across the European Union, ignoring all the evidence about the failure of that approach.

Genres: Economics, Nonfiction, Politics, Society, Social Justice, Philosophy

107 pages, Paperback

First published November 1, 2012

About the author

Elinor Ostrom won the 2009 Nobel Prize in Economics.

Reviews

[Karel Baloun · Rating 3 out of 5]

Everyone should know Elinor Ostrom, the only woman ever awarded the Nobel prize in economics, and her work on explaining local community sharing of resources and "co-production". Tarko in Chapter effectively and clearly summarizes her work, and we are privileged to hear Ostrom's voice in Ch 3. Christina Chang's short look at peasant farmers in Peru is meaningful.

However, you would be better off choosing a different book to learn about Ostrom, because regrettably the IEA hijacked her life work to argue against government control of public resources and how her work shows markets work better. That's Chapter one, and anyone who reads only that will be misled, and it colors how the later chapters are digested. I don't know Ostrom, but I believe she'd be disappointed.

Ostrom showed that classical models were too simplistic and with many deep case studies, she clearly earned a prize more women and alternative viewpoints should have received. Again we see good research just being used to serve the existing power structure, for which i often disdain economics.

Ostrom does insist that the best resource sharing schemes will be local and polycentric, but does not believe that those will naturally appear without authority or cultural history, and certainly doesn't believe private or corporate ownership alone ensures any positive outcome.

[Jan Höglund · Rating 1 out of 5]

Please, note that the book cover is misleading! Elinor Ostrom is NOT the author of this book. Ostrom is just one of four contributors: Mark Pennington (26 pages), Vlad Tarko (19 pages), Elinor Ostrom (15 pages), and Christina Chang (8 pages). I am primarily interested in what Elinor Ostrom has to say and not what others have to say about her research.

[Edu Vias · Rating 3 out of 5]

Recomendado por algún texto / podcast / internet / no recuerdo - Es un ensayo cortito sobre teoría económica, que ingenuamente esperaba entender mejor. Habla sobre cómo tratar los recursos naturales de una manera más comunitaria, local, etc para así poder asegurar su sostenibilidad y toda la vaina. Sin embargo parece necesario algo de background en la materia, como quizás haber leído el Governing the Commons de la misma autora. He de decir también que, aunque he entendió poco, no me ha parecido un discurso tan revolucionario como esperaba.

[Gavin · Rating 4 out of 5]

Governing the Commons had a profound effect on my worldview.

The first part of the Future of the Commons provides a sort of summary of the larger work, but without the anecdotal examples that were the meat of that oeuvre.

The illustrative model, the Institutional Analysis and Development (IAD) framework is an interesting addition, as are Ostrom's summary of challenges and the Q&A session.

However, part of me thinks the best summary is that nature helps us decide what works over time, and those governing institutions best able to adapt and work together will tend to be the longest lived.

[Errol Thompson · Rating 3 out of 5]

Ostrom's research identifies some great principles for managing the commons and I am keen to look at these as part of establishing sustainable communities. The chapters are written by different authors and although some clearly describe Ostrom's work, others are not of such quality.

[Faisal Shabbir · Rating 4 out of 5]

One law fits all does not work and has never worked. A lot of painstaking research and case studying will tell you polycentric approach is a necessity.

Well written book on the future of the commons.

[Havi Murungi]

Seminal.

[Ming · Rating 3 out of 5]

I've not read this cover to cover but I've read most of it. All in all, the first essays provide a nice clear presentation of Ostrom's views and some of the intuition behind them. The Q&A section with Ostrom at the back of the book was okay. Pretty useful if you just want a quick dip into Ostrom's analysis on the applicability of polycentrism and CPR self-governance.