Managing Common Properties: Some Issues in Institutional Design

Abstract

"Designing institutions that co-ordinate expectations of different classes of rural producers in a manner in which income disparities are reduced; common property is better managed and infact rejuvenated (if possible); and redundancy for coping with uncertain contingencies are continually created; is indeed a tremendous challenge. Three major issues are discussed here. The concept of scarcity and its consequent effects on different classes are presented to answer the question: Who should bear what part of the loss for how long when supply of a basic resource is reduced. The unfortunate aspect of institutional innovations triggered by market forces is that they pass on the greatest part of burden on those who have least capacity of shoulder."