elinor ostrom

elinor ostrom

[image links to her 2009 lecture (video) for nobel prize]

7 min – a mixed (large and small) was the best.. and we found that complexity is not the same as chaos

15 min – when i did my dissertation i didn’t understand i was studying the commons

17 min – if there is not good way to communicate.. overuse/overharvest of resources.. using resource and property for same thing not good..

25 min – learning to trust..

trust

we should not be recommending panaceas.. and we should not be rejecting complexity.. but rather learn to live with it.

antifragile ness

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shared by Rob on twitter (article from 2010):

http://www.shareable.net/blog/no-panaceas-elinor-ostrom-talks-with-fran-korten

..he was addressing a problem of considerable significance that we need to take seriously. It’s just that he went too far. He said people could never manage the commons well.

not sure what is meant by shame taking a role in this..

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I’m not against government. I’m just against the idea that it’s got to be some bureaucracy that figures everything out for people.

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To manage common property you need to create boundaries for an area at a size similar to the problem the people are trying to cope with. But it doesn’t need to be a formal jurisdiction. Sometimes public officials don’t even know that the local people have come to some agreements. It may not be in the courts, or even written down. That is why sometimes public authorities wipe out what local people have spent years creating.

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wikipedia small

 

 

 

 

 

ElinorLinOstrom (born Elinor Claire Awan; August 7, 1933 – June 12, 2012) was an Americanpolitical economist whose work was associated with the New Institutional Economics and the resurgence of political economy. In 2009, she shared the Nobel Memorial Prize in Economic Sciences with Oliver E. Williamson for “her analysis of economic governance, especially the commons”. To date, she remains the only woman to win The Prize in Economics.

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Her work emphasized the multifaceted nature of human–ecosystem interaction and argues against any singular “panacea” for individual social-ecological system problems.

Design principles for Common Pool Resource (CPR) institutions

Ostrom identified eight “design principles” of stable local common pool resource management:

  1. Clearly defined boundaries (effective exclusion of external un-entitled parties);
  2. Rules regarding the appropriation and provision of common resources that are adapted to local conditions;
  3. Collective-choice arrangements that allow most resource appropriators to participate in the decision-making process;
  4. Effective monitoring by monitors who are part of or accountable to the appropriators;
  5. A scale of graduated sanctions for resource appropriators who violate community rules;
  6. Mechanisms of conflict resolution that are cheap and of easy access;
  7. Self-determination of the community recognized by higher-level authorities; and
  8. In the case of larger common-pool resources, organization in the form of multiple layers of nested enterprises, with small local CPRs at the base level.

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In 2009, Ostrom became the first woman to receive the prestigious Nobel Memorial Prize in Economic Sciences. The Royal Swedish Academy of Sciences cited Ostrom “for her analysis of economic governance”, saying her work had demonstrated how common property could be successfully managed by groups using it. Ostrom and Oliver E. Williamson shared the 10-million Swedish kronor (£910,000; $1.44 million) prize for their separate work in economic governance.

The Royal Swedish Academy of Sciences said Ostrom’s “research brought this topic from the fringe to the forefront of scientific attention…by showing how common resources – forests, fisheries, oil fields or grazing lands – can be managed successfully by the people who use them rather than by governments or private companies”. Ostrom’s work in this regard challenged conventional wisdom, showing that common resources can be successfully managed without government regulation or privatization.

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share via John:

http://evonomics.com/the-search-for-a-better-economics-part-ii-of-my-journey/

J.R.R. Tolkien’s Lord of the Rings trilogy is a meditation on the corrupting influence of power. I felt like Frodo making his way towards Mordor in my effort to understand economic theory, but the person who came closest to playing a Frodo-like role in the recent history of economic thinking is Elinor Ostrom.

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Unbeknownst to her, Lin had stumbled upon a radically different configuration of ideas than the mathematical empire dominating economic theory. The mathematical empire was founded on the assumption that self-interest automatically leads to collective wellbeing. Lin’s work was founded upon a stubborn fact of life: self-interest often leads to the overexploitation of resources and other problems that make life worse for everyone, not better. When everyone was allowed to suck as much water out of the ground as they pleased, there was no invisible hand to rescue the situation.

and no real freedom to keep them from it.. from hearing the voice inside… telling them they had enough.. we haven’t yet given that scenario a chance.

The temptation to free-ride makes public goods difficult to maintain, as the ecologist Garrett Hardin observed in a famous paper titled “The Tragedy of the Commons” published in the journalScience in 1968. It was still a backwater subject in political science when Lin started working on it, as strange as that might seem today.

tragedy of commons

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Lin’s police work continued to explore the new intellectual territory that she had discovered previously with her work on water regulation, which emphasized the importance of decentralization and emergence but in a way that required richly structured interactions at the local level. ..,,Lin was pioneering the art and science of managing the process of cultural evolution without ever using the E-word.

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Her database included 100 case studies of farmer’s associations in the tiny nation of Nepal alone, each managing their irrigation systems in their own way. Nevertheless, she was able to show that the diverse solutions reflected a smaller number of design principles, which she articulated in her most influential work, titled Governing the Commons: The Evolution of Institutions for Collective Action, published in 1990…….her use of the E-word in the title primarily reflected her own extensive experience studying how groups of people adapt to the challenges of their respective environments in the real world.

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Here are the eight ingredients that enable groups to effectively manage their affairs (in my own words), which I like to call Lin Ostrom’s recipe for success.

same as design principles above from wikipedia

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Steve Levitt was right about the import of the Nobel Prize going to Lin Ostrom. It signaled that something was rotten about the mathematical empire and that a new paradigm needs to begin from a different starting point. But what would the new paradigm look like and what would be its theoretical foundation?

a nother way

for (blank)’s sake

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commons

commons transition

cooperatives 

money ness

money less

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feb 2016 – the woman who save econ from disaster – same as above.. re read

http://evonomics.com/the-woman-who-saved-economics-from-disaster/

When she told her husband that she wanted to get her PhD, he found this unacceptable and they soon divorced. She recalls this without bitterness, adding that she also found the life of a corporate lawyer’s wife unappealing. She physically shuddered when she recalled the parties that she had to attend, with all the men in one room and all the wives in another.

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Lin studied the process whereby the various stakeholders negotiated a workable set of rules without requiring government intervention. It was a success story that she called public entrepreneurship.

Unbeknownst to her, Lin had stumbled upon a radically different configuration of ideas than the mathematical empire dominating economic theory. The mathematical empire was founded on the assumption that self-interest automatically leads to collective wellbeing. Lin’s work was founded upon a stubborn fact of life: self-interest often leads to the overexploitation of resources and other problems that make life worse for everyone, not better. When everyone was allowed to suck as much water out of the ground as they pleased, there was no invisible hand to rescue the situation.

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local stakeholders got together and negotiated their own agreement, including rules about water use enforced by punishment. Collective wellbeing was achieved, at least roughly, and there was something emergent and self-organizing about the way it happened—but the process of negotiation bore no resemblance whatsoever to the assumptions of the mathematical empire, which even has trouble accommodating the concept of norms, as we have seen.

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Lin used her first opportunity to work intensively with a group of graduate students to focus on the subject of public goods. .. The temptation to free-ride makes public goods difficult to maintain, as the ecologist Garrett Hardin observed in a famous paper titled “The Tragedy of the Commons” published in the journalScience in 1968. …Lynn and her students spent their first semester reading the scattered literature and she expected them to choose a public good for them to collectively start studying themselves during the next semester.

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studied the social organization of police departments, using rigorous methods to show that smaller units were often better integrated with the communities that they served and more responsive to their needs.

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importance of decentralization and emergence but in a way that required richly structured interactions at the local level. The emergence emphatically did not result from individuals following only their self-regarding preferences. Sometimes it didn’t happen at all.

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Lin was pioneering the art and science of managing the process of cultural evolution without ever using the E-word.

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her most influential work, titled Governing the Commons: The Evolution of Institutions for Collective Action, published in 1990. By this time Lin had read a little bit about evolution on her own but her use of the E-word in the title primarily reflected her own extensive experience studying how groups of people adapt to the challenges of their respective environments in the real world.

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via fb share in p2p

[https://medium.com/incites/evolve-and-adapt-rapidly-cdb9df696728]

“We have never had to deal with problems of the scale facing today’s globally interconnected society. No one knows for sure what will work, so it is important to build a system that can evolve and adapt rapidly.”   — Elinor Ostrom

indeed.. ie: a nother way