Friday, October 16, 2009

Elionor Ostrom- Nobel price in economy

For the first time a woman gets the Nobel price in economy and its Elionor Otrom, out from the Univeristy courses and into the debate! Elionor Ostrom wrote the book Governing the Commons, 1990.

Elionor Ostrom theories that focusing on how to share and think in long-enduring in a good way can be summary in eight principles;

First principle is that you have to have clearly defined boundaries that must be able to exclude other from access and appropriation rights. Without defining the boundaries of the common pool resources the efforts will be reaped by others who have not contributed to this efforts. Some rules that limiting the appropriation and/or mandating provision is needed. For example; a forest was divided in three parts; for protection, using for villagers and using for companies. Different rules for different parts.

Second principle; the rules have to congruence between appropriation and local conditions. Each society have their own rules that is needed for their systems.

Third is the principles of collective-choice arrangements. Most of the individuals affected by the operational rules can participate in modifying the operational rules.

To do this the forth principles of monitoring is needed. Monitors are accountable to appropriators or are the appropriators. Who will monitoring the monitors? For exampe can a guard monitors the actions of the villagers. The activities of the guard are monitored by the executive committee of the forest council, this committee is itself monitored by the villages.

The fifth principles is about the graduate sanctions, the appropriators who violate operational rules are likely to assessed graduated sanctions by other appropriators, by officials accountable to these appropriations or by both. Then appropriators have made contingent self-commitments, they are then motivated to monitor other people´s behavior and in order to assure themselves that other are following the rules most of the time. For example the villages have to pay a fine if the break a rule, from the beginning the sanctions where there from the state, now its the local people and that works much better. The local people know what people are doing in the forest (if they use it or if they sell it) and therefore is the system self-organizing. People don't take to much cause they know about the monitoring.

The sixth principles is about the conflict-resolution mechanisms that means that if individuals are going to follow the rules over a long period of time, there must me some mechanism for discussing and resolving what constitutes an infraction.

The seventh principle is about minimal recognition of rights to organize so appropriations can enforce the rules by themselves; external governmental authorities does not challange local institutions and their devise.

The eight principle is about the nested enterprises, appropriation, provision, monitoring, enforcement, conflict resolution and governance activities are organized in multiple layers of nested enterprises. An empty space for rules at other levels, will produce an incomplete system that may not endure over a long time.

Let's hope from now that these principles can be used, a little bit more, more more!

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