System Of Governance Of Common Pool Resources

The common-pool resources refer to the goods with both excludability and rivalry. They are. the common resources commonly shared by people as a whole system but shared privately as specific units. In practice, the common-pool resources are always the least concerned and have to constantly face a series of problems such as over-exploitation, deterioration of the system, exhaustion of the resources, and loss in efficiency of exploitation, which fall into two main points: First, the problem of occupation, that is, how to distribute the resources into fixed amounts over fixed periods of time. Second, the problem of supply, i.e. the equilibrium storage in the flow of the resources and the productivity of them.As solutions to the problems, many plans and theories are developed, with the following as the three main theories: the market theory, the government theory, and the spontaneous organizations and self-governing theory.The market theory emphasizes the function of the market in solving the problems in the common-pool resources. It holds that where there are commonly shared resources, private ownership is to be adopted. But the characteristics of the common-pool resources and the difficulties in fulfilling the required conditions for the normal function of the market may lead to a market failure as well.The government theory emphasizes the importance of government intervention. Market failure offers opportunities and reasons for government intervention, which will show its power by various means. However, market failure is a necessary but not an ample condition for government intervention. Factors such as incomplete information, defects of the government-decision system may also lead to a' government failure.The spontaneous organizations and self-governing theory is actually adevelopment of the previous two theories. It suggests the hard problems facing the governing of the common-pool resources as well as different levels of analysis. Out of a large amount of authentic proof, the theory comes up with some designing principles for the institutions of self-governing of the common-pool resources. With some described requirements difficult to fulfill, this theory is not perfect in practice, either. On the basis of these theories, this thesis adds some new thoughts, suggesting some basic principles on self-governing of the common-pool resources and some policy proposals for China's practice in this aspect.