Social Recontracting

Abstract

Elinor Ostrom is known for her defense of polycentric systems of governance and her critique of centralized, one-size-fits-all solutions. Ostrom argues throughout her oeuvre that agents on the ground are better situated to identify and develop solutions to a wide variety of collective action problems. Her work underwrites a sound presumption against centralizing governance in large bodies. However, she also argues that, under certain conditions, smaller jurisdictions can contract into larger political arrangements to deal with large scale spillovers or public goods or to address equity considerations. This essay argues that there are underappreciated problems in scaling up, due to potential changes in biophysical conditions, technology, preferences, and knowledge, as well as the possibility of endogenous rent-seeking. Once jurisdictions contract up, they may not be able to reclaim authority when political bonds are no longer advantageous.