Skip to comments.Sveriges Riksbank Prize (Nobel 2009):One For Economics, The Other For A Political Scientist?
Posted on 10/15/2009 5:19:21 PM PDT by luckybogey
Nobel economists work on common ownership shows that markets, not distant governments, manage things better. For the first time, the Nobel economics prize has gone to a woman, Elinor Ostrom of Indiana University. She shares it with colleague Oliver Williamson.
One of the things the pair studied, for example, was the case of the Maine lobster fishing families, who brought in their own system of tradeable quotas. It meant that market principles were brought to bear on the exploitation and protection of this natural resource. Icelands trawler industry also derived great benefit from the system of individual transferable quotas designed by my free-market friend Hannes Gissuarson.
Of course, the BBC and friends will stress that the new laureates also say that commons resources dont need to be privatized to be well managed. That is true. But at the moment, many commons resources are squarely in the hands of governments meaning bureaucrats who are very far removed from the actual concerns of the users and local residents, and wouldnt know a market principle if it bit them. If privatization merely hands the resource to some new absentee landlord, it will do not good at all.
But privatization can be a good way to get the resources out of these bureaucratic hands, and into the hands of those who care about them and if the right incentives are put in place will protect and manage them...
There may be implications in this for all sorts of other areas such as whether we can simply let people who own historic houses get on and care for them in their own way, or whether every new window pane has to be approved by English Heritage or some other quango...
(Excerpt) Read more at luckybogey.wordpress.com ...
Elinor Ostrom delivering a lecture at Indiana University, Bloomington, July 2008 Photo: Courtesy of Indiana University
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.