Cooperation and the Management of Local Common Resources in Remote Rural Communities: Evidence From Odisha, India

IFPRI Discussion Paper 1940, 2020

50 Pages Posted: 28 Jul 2020

See all articles by Patrick S. Ward

Patrick S. Ward

Duke Kunshan University

Muzna Fatima Alvi

International Food Policy Research Institute (IFPRI)

Simrin Makhija

International Food Policy Research Institute (IFPRI)

Date Written: June 30, 2020

Abstract

It is widely recognized that local management of common pool resources can be more efficient and more effective than private markets or top-down government management, especially in remote rural communities in which the institutions necessary for the enforcement of centrally-imposed regulations may be weak or prone to elite capture. In this paper, we explore the propensity for cooperation in the management of local common resources by introducing a variant of a public goods game among remote rural communities in the state of Odisha, in eastern India. We explore various patterns of cooperation, including free riding behavior, unconditional cooperation (altruism), and conditional cooperation, in which individuals' propensity toward cooperation is tied to their beliefs about the level of cooperation among their peers. We find that a significant portion of our sample fall into this latter category, but also that their expectations about the level of contributions among their peers is somewhat malleable, and beneficial activities from external actors such as NGOs can foster increased social cohesion which increases both the level of these expectations and the manner in which these expectations are translated into subsequent cooperative behavior. We also find that cooperation is somewhat fragile, with group heterogeneity and risk in the returns to cooperative behavior posing a threat to the stability of the cooperative system.

Keywords: INDIA, SOUTH ASIA, ASIA, rural areas, resources, cooperation, nongovernmental organizations, risk, governance, local public goods, local common resources, experimental games, voluntary contribution mechanism

Suggested Citation

Ward, Patrick S. and Alvi, Muzna Fatima and Makhija, Simrin, Cooperation and the Management of Local Common Resources in Remote Rural Communities: Evidence From Odisha, India (June 30, 2020). IFPRI Discussion Paper 1940, 2020, Available at SSRN: https://ssrn.com/abstract=3641600

Patrick S. Ward (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, Jiangsu 215316
China

Muzna Fatima Alvi

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street, NW
Washington, DC 20006
United States

Simrin Makhija

International Food Policy Research Institute (IFPRI) ( email )

2033 K Street, NW
Washington, DC 20006
United States

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