Elinor Ostrom: proving the effectiveness of collective action in management (the Noble Prize in Economics in 2009 “for research in the field of economic organization”)

Abstract

The article substantiates Elinor Ostrom’s contribution to the theory of collective management of property. The author outlines solutions to problems of the most optimal use of scarce natural resources and their economically relevant preservation in a long-term perspective. The research paper affirms the idea that it is not only the government who can solve the problem of efficient use of resources for public purposes. It is proved that collective decisions can be made in the management of resources, under which the latter are maintained in good conditions while being used for general public. The most accepted models (‘the tragedy of the commons’, ‘the prisoner’s dilemma’, ‘the logic of collective action’) are examined. The above- mentioned models are frequently used as tools to study cases of economic policy-making in allocating scarce resources for public purposes, and as a concept for analyzing problems of individuals who seek to achieve collective benefits. It is emphasized that there is a need for a balanced application of the above models as metaphors, which substitute solid foundations of the economic policy, since the limitations suggested for easing the analysis are accepted without reservation as permanent empirical requirements that remain as such until adjustments are made by the government. Special emphasis is placed on the importance of developing the theory of human organization based on realistic assessments of human possibilities and limitations that arise when a number of various situations related to using public goods are to be resolved. It is stressed that the empirically supported theories of human organization as an important component of study on economic policy are able to complement the solutions with estimates of the most likely effect of using many ways of organizing human activities. It is concluded that E. Ostrom’s experimental research in the field of natural resources management can be used to solve large-scale range of issues related to the production of public goods.