Elinor Ostrom

Definition

Elinor Ostrom was a pioneering political economist known for her work on the governance of common-pool resources and her critique of the traditional views regarding collective action. Her research demonstrated how local communities can successfully manage resources without centralized control or privatization, highlighting the importance of institutional diversity and adaptive governance in economic development.

5 Must Know Facts For Your Next Test

1. Elinor Ostrom was awarded the Nobel Prize in Economic Sciences in 2009, becoming the first woman to receive this honor for her contributions to economic theory.
2. Her influential book 'Governing the Commons' (1990) presented case studies showing how communities around the world successfully manage common-pool resources.
3. Ostrom identified eight design principles for sustainable management of common-pool resources, including clearly defined boundaries and collective-choice arrangements.
4. She emphasized that local knowledge and community engagement are crucial for effective resource management, countering the belief that only top-down approaches or privatization work.
5. Ostrom's work laid the foundation for understanding the importance of institutional arrangements and cooperative behavior in achieving sustainable development.

Review Questions

• How did Elinor Ostrom's research challenge traditional views on the management of common-pool resources?
  • Elinor Ostrom's research challenged traditional views by demonstrating that local communities are capable of effectively managing common-pool resources without resorting to privatization or centralized control. Through her case studies, she showed that communities could develop their own rules and institutions that are tailored to their specific contexts. This contrasted with the prevailing 'tragedy of the commons' narrative, which suggested that individuals acting in their self-interest would inevitably overuse shared resources.
• What are the eight design principles identified by Ostrom for sustainable management of common-pool resources, and why are they significant?
  • Ostrom identified eight design principles crucial for sustainable management: clearly defined boundaries, collective-choice arrangements, effective monitoring, graduated sanctions, conflict-resolution mechanisms, minimal recognition of rights to organize, nested enterprises, and effective leadership. These principles are significant because they provide a framework for understanding how communities can establish governance structures that foster cooperation and prevent resource depletion. They highlight that successful resource management often relies on local conditions rather than universal solutions.
• Analyze how Elinor Ostrom's concept of polycentric governance contributes to modern economic development strategies.
  • Elinor Ostrom's concept of polycentric governance contributes significantly to modern economic development strategies by promoting a decentralized approach that encourages multiple authorities to collaborate in managing resources. This allows for flexibility and responsiveness to local needs and conditions, which is essential in complex socio-economic environments. By integrating local knowledge and fostering cooperation among stakeholders, polycentric governance can lead to more sustainable outcomes and enhance community resilience, making it a vital component in addressing today's global challenges.

Related terms

Common-Pool Resources: Natural or man-made resources where one person's use subtracts from another's use, and where it is difficult to exclude individuals from using the resource.

Polycentric Governance: A governance system characterized by multiple, overlapping authorities that can manage resources in a more flexible and responsive way compared to centralized governance.

Collective Action: Action taken by a group of individuals to achieve a common goal, often in the context of managing shared resources.