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22 SEPTEMBER 2016

Elinor Ostrom and the solution to the tragedy of the commons

Elinor Ostrom's "research concerned the governance of common resources (also known as commons). The commons are natural resources, like land for grazing, fishing areas, forests for timber, water for the irrigation of farmland, and also more intangible resources, like knowledge, for which it is very expensive to control and fence in 'user' consumption. The problem with these types of resources, as shown in 1968 by Garrett Hardin (but Aristotle had already observed a similar phenomenon) is that they are over-exploited, or at least their care and sustainability is overlooked by users. The reason is that people behave opportunistically (like free-riders) and consider the resource they are accessing, without the possibility of being excluded, as a free resource, and they therefore maximize their private benefits but neglect, or collectivize, the costs.

Hardin coined the phrase 'tragedy of the commons' to describe this phenomenon and gave social sciences one of the most evocative metaphors after Adam Smith’s 'invisible hand'. These two metaphors are effective because they capture two essential social situations in marked contrast to one another. When social interactions are guided by an invisible hand, they reconcile individual choice and socially desirable results, whereas in the tragedy of the commons, individuals pursuing their private objectives cause disastrous consequences for themselves and others. The solution to the tragedy of the commons, before the contribution of Ostrom and her studies, was to privatize resources or, in a diametrically opposite view, to form a Leviathan state in order to manage them.

Instead, Ostrom demonstrated that, within communities, rules and institutions of non-market and not resulting from public planning can emerge from the bottom up to ensure a sustainable, shared management of resources, as well as one that is efficient from an economical point of view. Besides the village of Törbel, Ostrom shows examples of common lands in the Japanese villages of Hirano and Nagaike, the huerta irrigation mechanism between Valencia, Murcia and Alicante in Spain, and the zanjera irrigation community in the Philippines. Also, the property in the form of 'vicinale', neighborhoods, typical of regions of Italy like Emilia, the Belluno and the Ticino, are also collective institutions, although not investigated by Ostrom. The argument then has a more modern example if one notices that even the 'Wikipedia community' is a form of successful collective institution of a communal resource (knowledge)."

(Flavio Felice, Massimiliano Vatiero, 27 June 2012)

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TAGS

Adam Smith • American political economist • assets • Belluno • bottom-up organisation • collective institutions • collective interests • common pool resources (CPR) • common propertycommons • communal resource • economic governance • economic science • Elinor Ostrom • Emilia • English Industrial Revolution • exploitationfencing • Flavio Felice • Garrett Hardin • governance of common resources • Hirano • huerta irrigation mechanism • individual choice • invisible hand • Karl Polanyi • land management • Massimiliano Vatiero • Nagaike • natural resourcesopportunism • over-exploitation • political economics • political economist • political economyprivate control • privatisation • privatisation of land • public government • public planning • resource managementsocial interactionssocial situation • socially desirable results • sustainabilitysustainability thinking • Ticino • Torbel • tragedy of the commons • vicinale • Wikipedia • Wikipedia community • zanjera irrigation community

CONTRIBUTOR

Simon Perkins
22 APRIL 2012

Richard Sennett: The Architecture of Cooperation

"The theme of the lecture addresses a question: how can we design spaces in the city which encourage strangers to cooperate? To explore this question, I'll draw on research in the social sciences about cooperation, based on my book, and relate this research to current issues in urban design."

(Harvard Graduate School of Design, 28 February 2012)

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TAGS

2012Adam Smithagency of access and engagement • architecture of cooperation • autonomybelongingbordersboundariescity • city living • civic engagementclosed systemcooperationcraftwork • declarative forms of expression • declarative mode • designed spaces • deskilling • dialogicdialoguedifferent strata of society • edge condition • edgesempathyencounters between peopleengagementforms of expressionforms of human cooperation • fruitful cooperation • Harvard Graduate School of Design • Harvard Universityhegelian dialectic • kinds of skills • La Marqueta • large cities • lectureMikhail Bakhtin • mode of domination • non-placeopen-endedparticipationpowerproblem findingRichard Sennettsocial constructionismsocial exchangesocial interactionsocial issuessocial relationssocietyspace of ambiguitystranger • subjunctive forms of expression • sympathy • unclosed system • urban centreurban design

CONTRIBUTOR

Simon Perkins
09 SEPTEMBER 2005

Industrialisation: Pin Making and the Division of Labour

"To take an example, therefore, from a very trifling manufacture but one in which the division of labour has been very often taken notice of, the trade of the pin–maker; a workman not educated to this business (which the division of labour has rendered a distinct trade), nor acquainted with the use of the machinery employed in it (to the invention of which the same division of labour has probably given occasion), could scarce, perhaps, with his utmost industry make one pin in a day, and certainly could not make twenty. But in the way in which this business is now carried on, not only the whole work is a peculiar trade, but it is divided into a number of branches, of which the greater part are likewise peculiar trades. One man draws out the wire, another straightens it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head: to make the head requires two or three distinct operations to put it on, is a peculiar business, to whiten the pins another; it is even a trade by itself to put them into paper; and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which, in some manufactories, are all performed by distinct hands, though in others the same man will sometimes perform two or three of them. I have seen a small manufactory of this kind where ten men only were employed, and where some of them consequently performed two or three distinct operations. But though they were very poor, and therefore but indifferently accommodated with the necessary machinery, they could, when they exerted themselves, make among them about twelve pounds of pins in a day. There are in a pound upward of four thousand pins of a middling size. Those ten persons, therefore, could make among them upward of forty–eight thousand pins in a day. Each person, therefore, making a tenth part of forty–eight thousand pins, might be considered as making four thousand eight hundred pins in a day. But if they had all wrought separately and independently, and without any of them having been educated to this peculiar business, they certainly could not each of them have made twenty, perhaps not one pin in a day; that is, certainly not the two hundred and fortieth, perhaps not the four thousand eight hundredth part of what they are at present capable of performing, in consequence of proper division and combination of their different operations."

(Adam Smith, 1776)

Fig.1 Title: "Epinglier, Plate II (Pin Making)", Engraver: Defehrt, Designer: Goussier, Date: 1762, Medium: Original Engraving, Art of the Print (Defehrt – Diderot's Encyclopedie), [http://www.artoftheprint.com/artistpages/defehrt_epinglier_pl2.htm].

[Smith's theory of specialisation has come to dominate Western economic theory in the 200 years since it was first published.]

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TAGS

177618th centuryAdam Smithbusinessdivision of labourindustrialisationindustrymanufactories • manufacture • manufacturingmass productionpin • pin-maker • servile artsskillspecialisationtraditional process • workman
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