The Four Levels of Institutional Analysis of Evolution of Joint Forest Management (JFM) in India: A New Institutional Economics (NIE) Approach

Abstract

"This paper makes an attempt to analyze the evolution of the Joint Forest Management (JFM) institution in India in the light of the New Institutional Economics. To structure the analysis and shed light on different sources of persistent problems related to JFM, the paper uses the four levels of institutional analysis framework developed by Williamson. The First Level emphasizes embeddedness of an institution and highlights conflicts between informal institutions in Indian forest management and formal rules institutions under JFM. In the second level of institutional analysis, the institutional environment (formal rules of the game) is discussed. In particular, it is argued that the shift from state to co- management is a step in the right direction given the realities encountered in India. The incomplete and often incoherent transfer of specific rights from the state to local communities is, however, an important source of incentive problems on the part of communities. The third level of institutional analysis deals with the governance of contractual relations (play of the game). Here, the distribution of rights and responsibilities between forest department and communities, as well as within communities is discussed at a more disaggregate level, using transaction cost economics. A more elaborate discussion of the rule setting process within JFM institutions is also presented. The fourth level of institutional analysis focuses on issues related to incentive structures, individual participation, and rule compliance among the different stakeholders in JFM institutions."