Institutional Arrangements for Investment in Common Property Resources: Examples from India

Abstract

"Nearly half of India's productive land is under some combination of open access, state or common property resource regimes. Many of these resources are degraded and require controls on use or new investment to maintain productivity. Historically, local institutions managed these resources with a hierarchy of protection, use regulation, and development rules. A comparative study of eight different common property resource regimes illustrates some of the major determinants for more 'successful' approaches. Under low levels of external involvement, the evidence suggests that relatively autonomous village institutions are the most effective approach. If higher levels of external involvement are required for capital investment or over-riding social goals, more sophisticated institutions are required."