Elinor Ostrom

By A Johnston - Socialism or Your Money Back, May 3, 2011

In 1968 an American biologist Garrett Hardin invented a parable to explain why, in his view, common ownership was no solution to the environmental crisis and why in fact it would make matters worse. This was sweet music to the defenders of capitalist ownership of the means of producing wealth, and Hardin’s parable was soon incorporated into the arsenal of anti-socialist arguments.

Called "The tragedy of the commons", his parable went like this: Picture a pasture open to all, assume its a pasture to which all herdsmen have free access to graze their cattle. In these circumstances, it is to be expected that each herdsman will try to keep as many cattle as possible on the commons. Such an arrangement may work reasonably satisfactorily for centuries because tribal wars, poaching and disease keep the numbers of both man and beast well below the carrying capacity of the land. Finally, however, comes the day of reckoning, that is, the day when the long desired goal of social stability becomes a reality At this point, the inherent logic of the commons remorselessly generates tragedy.

As a rational being, each herdsman seeks to maximise his gain. Explicitly or implicitly, more or less consciously, he asks "What is the utility to me of adding one more animal to my herd?" This utility has one negative and one positive component.

• 1. The positive component is a function of the increment of one animal. Since the herdsman receives all the proceeds from the sale of the additional animal, the positive utility is nearly +1.
• 2. The negative component is a function of the additional overgrazing created by one more animal. Since, however, the effects of overgrazing are shared by all the herdsmen, the negative utility for any particular decision-making herdsman is only a fraction of -1.

Adding together the component partial utilities, the rational herdsman concludes that the only sensible course for him to pursue is to add another animal to his herd. And another; and another… But this is the conclusion reached by each and every rational herdsman sharing a commons. Therein is the tragedy. Each man is locked into a system that compels him to increase his herd without limit—in a world that is limited. In the end, its carrying capacity would be exceeded, resulting in environmental degradation. Ruin is the destination towards which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in the commons bring ruin to all.

Hardin's solution to this tragedy of the commons is "mutual coercion". An appeal to conscience, he argues, is altogether futile. Mutual coercion can be effected through, as it were, enclosing the commons and instituting a system of private property which will enforce a sense of responsibility among herdsmen as to the appropriate number of cattle their land can provide for without resulting in overgrazing. Since they cannot encroach on land owned by other herdsmen, the consequences of keeping too many cattle will be exclusively borne by them. This knowledge will therefore deter them from acting irresponsibly in the first place. Governments drew from Hardin’s theorising was that in existing cases where producers had rights of access to a “common-pool resource” the solution was either to privatise the resource or to subject the producers to outside control via quotas, fines and other restrictions.