Monday, December 15, 2014

Tragedy of the Commons

The article "Can Free Market Economies Boost Amazonian Land Rights?" describes the issues that indigenous communities are having with commercial fishermen who steal their food. Since the resources have no designated owner, people are free to take as much as they want; the "Tragedy of the Commons" describes this phenomenon, where it is both rational to take as much of the resource as you want and irrational to drain the source of food. To solve this issue, Hernando de Soto suggests giving property rights to the indigenous people, but some people worry that private ownership would make them liable to being bought out by big businesses.

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Another example: Indonesian Reef Fish

This article talks about another common access resource: Indonesia's reef fish, which are quickly becoming less and less abundant because of the high demand from South China and Hong Kong, at a rate of 30% per year. This is irrational, since the fishermen's usage of unconventional farming methods is setting them up for starvation in the future. Organizations are trying to educate fishermen, but it seems without proper government manage or property rights, the Indonesian reef fish is doomed for extinction.