Tag: Institutional Design

  • Elinor Ostrom and the Case for Polycentric Government

    Why more than one center of political authority can sometimes govern better than one

    Imagine a large metropolitan area.

    One government manages the entire region.

    It controls roads, policing, water, schools, parks, waste, transit, housing, and environmental regulation.

    The structure looks simple.

    One territory.

    One government.

    One chain of command.

    Now imagine another city-region.

    Municipalities govern some local matters.

    A regional body manages rail transport.

    Several communities cooperate over water.

    National institutions protect basic rights.

    Other agencies handle problems that cross local boundaries.

    At first glance, the second system looks messier.

    But is it necessarily worse?

    Elinor Ostrom spent much of her career questioning the assumption that good government must always mean one dominant center.

    In 2009, she became the first woman to receive the Nobel Memorial Prize in Economic Sciences. She was especially famous for showing that shared resources do not inevitably collapse into a “tragedy of the commons.” Under some conditions, people can build durable institutions to govern shared resources themselves.

    That broader research led to an important institutional idea:

    polycentric government.

    What Does Polycentric Mean?

    The term predates Ostrom’s later work.

    In 1961, Vincent Ostrom, Charles Tiebout, and Robert Warren used the idea of a polycentric political system to describe metropolitan government with multiple formally independent centers of decision-making.

    The important word is not simply many.

    A system containing many institutions can be chaotic.

    Polycentricity asks whether those institutions can interact through stable relationships—sometimes independently, sometimes competitively, sometimes cooperatively, and sometimes through common mechanisms for resolving conflict.

    Elinor Ostrom later developed this research tradition across a much wider range of problems.

    Her Nobel lecture was titled Beyond Markets and States: Polycentric Governance of Complex Economic Systems.

    The title captures the larger point.

    We do not always have to choose between:

    the market

    and

    one centralized state.

    Human beings can create institutions at different scales.

    A Groundwater Basin in Southern California

    One of Ostrom’s earliest major research projects concerned groundwater in Southern California.

    Her 1965 doctoral dissertation studied the West Coastal Basin, where groundwater overuse and saltwater intrusion threatened the resource.

    The response was not simply to create one new central authority.

    Water users formed associations.

    Courts helped redefine and allocate pumping rights.

    Special districts were created.

    Public agencies coordinated groundwater replenishment and protection against saltwater intrusion.

    Different institutions handled different parts of the problem.

    The basin did not fit neatly into one institutional box.

    The problem required cooperation, adjudication, monitoring, and collective investment.

    The solution emerged through several connected institutions rather than one all-purpose authority.

    This is an early example of the intuition that became central to Ostrom’s work:

    complex problems may require several centers of authority working together.

    Different Problems Need Different Scales

    Centralization has an obvious appeal.

    If several governments deal with one metropolitan area, why not merge them?

    Sometimes that is exactly what should happen.

    But a neighborhood park, a regional railway, and a watershed do not necessarily need the same governing area.

    Some functions depend heavily on local knowledge.

    Others benefit from scale.

    Some cross political boundaries.

    The question is not how to eliminate overlapping authority.

    It is:

    Which arrangement fits this particular problem?

    What Ostrom Learned from Policing

    Metropolitan policing provided another important test.

    In the 1970s, Ostrom and her colleagues studied police services at a time when consolidation was often assumed to be more efficient.

    Their findings complicated that assumption.

    Routine police services did not necessarily improve simply because departments became larger.

    Smaller providers could sometimes perform effectively where local knowledge and proximity mattered.

    At the same time, specialized functions—such as laboratories, communications, training, and other technical services—could benefit from larger-scale organization.

    The lesson was not that small government is always better.

    It was more precise:

    some functions benefit from scale, while others do not.

    Many Centers Does Not Mean No Order

    The word polycentric can sound like a polite word for fragmentation.

    That is not the idea.

    A collection of governments that cannot coordinate, cannot resolve conflicts, duplicate everything, and hide responsibility from residents may perform badly.

    Polycentricity works only if the centers form a system.

    They may cooperate.

    They may contract with one another.

    They may compete in some areas.

    They may share information.

    They may use courts or other common mechanisms to resolve disputes.

    In Governing the Commons, Ostrom identified nested enterprises as one design principle for larger common-pool resource systems: governance can be organized in several connected layers rather than through one flat authority.

    Multiple levels do not have to mean disorder.

    Polycentricity is not the absence of structure.

    It is a different structure.

    From Polycentricity to the World Citizen Framework

    In “Why Territory Still Matters in a World Citizen Society,” I argued that some public authority must remain territorially grounded.

    Polycentric government asks a different question:

    Must all public functions belong to the same center of authority?

    The World Citizen framework answers no.

    A territorial community can govern local matters while regional, rights-protecting, environmental, or security institutions exercise defined powers in other domains.

    The key distinction is between functional authority and general supremacy.

    A common institution may need binding power within its assigned function without acquiring authority over everything else.

    A regional transport authority can govern a metropolitan railway without governing local schools.

    A common rights tribunal can bind political communities on protected rights without deciding their local budgets.

    An environmental institution can regulate a shared river without becoming the general government of every community along it.

    For the World Citizen framework, this adds a constitutional condition to polycentricity:

    powers must remain bounded.

    The aim is:

    strong institutions with bounded mandates.

    Polycentricity Creates a Democratic Problem Too

    There is a serious objection.

    If many institutions govern different functions, how does an ordinary resident know who is responsible?

    Suppose a rail project fails.

    Was the problem caused by the city?

    The regional transport authority?

    The national government?

    A funding body?

    A regulator?

    Complexity can weaken democracy if responsibility becomes impossible to trace.

    People cannot exercise meaningful political voice if they do not know which institution made a decision.

    A polycentric order therefore requires unusually strong transparency.

    Residents need to know who makes the rule, who funds the service, who delivers it, who reviews the decision, and who can change the allocation of power.

    And Ostrom’s work does not imply that more centers are always better.

    Institutional arrangements still have to be judged by how well they solve the problems they are meant to solve.

    Many Centers Can Produce Many Forms of Domination

    There is another danger.

    Decentralization can protect local self-government.

    It can also protect local domination.

    A local community may discriminate.

    A regional institution may become unaccountable.

    A powerful common body may expand beyond its original mandate.

    Polycentricity by itself does not solve these problems.

    That is why the World Citizen framework requires every center of authority to remain bounded by basic rights and by rules defining its powers.

    Local autonomy does not override basic rights.

    Shared institutions do not acquire unlimited powers merely because coordination is useful.

    No center receives a blank cheque.

    How Should Power Be Allocated?

    There is no permanent formula saying local is always better or central is always better.

    A practical rule is to place each function at the level that can govern it effectively while preserving as much meaningful self-government as possible.

    The questions are concrete.

    Can one community solve the problem without imposing major costs on others?

    Does the function require economies of scale?

    Does it depend on local knowledge?

    Does it cross territorial boundaries?

    Would fragmentation make the service unusable?

    Would centralization make government too distant or concentrate unnecessary power?

    The correct answer may change as technology, population, and infrastructure change.

    A polycentric system therefore needs rules for reallocating authority when circumstances change.

    Conclusion

    Polycentric government begins with a refusal of a simple assumption:

    one society does not necessarily require one center of authority for every public function.

    Some problems are local.

    Some are regional.

    Some cross national borders.

    Some need institutions operating at several levels at once.

    Ostrom’s research—from groundwater to policing to shared resources—shows why institutional diversity deserves to be taken seriously.

    For the World Citizen framework, polycentricity also requires constitutional discipline.

    Power must be strong enough to perform its assigned function.

    But it must not silently expand into general supremacy.

    The principle can be stated simply:

    Many centers. Bounded powers. Shared rules.

    Political communities can govern themselves.

    They can also cooperate.

    Common institutions can be strong without becoming generally supreme.

    The alternative to concentrating political power in one center is not disorder.

    It can be a political order in which authority has more than one center.


    Notes

    Elinor Ostrom received the 2009 Nobel Memorial Prize in Economic Sciences “for her analysis of economic governance, especially the commons.” She was the first woman to receive the prize in economics. Her major book, Governing the Commons: The Evolution of Institutions for Collective Action (Cambridge University Press, 1990), examined how communities can create durable institutions for governing common-pool resources without assuming that privatization or centralized state control is always necessary.

    Ostrom’s 1965 doctoral dissertation, Public Entrepreneurship: A Case Study in Ground Water Basin Management, examined institutional responses to groundwater problems in Southern California’s West Coastal Basin.

    The concept of a polycentric political system was developed in Vincent Ostrom, Charles M. Tiebout, and Robert Warren, “The Organization of Government in Metropolitan Areas: A Theoretical Inquiry,” American Political Science Review 55, no. 4 (1961): 831–842. Elinor Ostrom later extended this tradition across metropolitan services, common-pool resources, and governance at multiple scales. See Elinor Ostrom, “Beyond Markets and States: Polycentric Governance of Complex Economic Systems,” American Economic Review 100, no. 3 (2010): 641–672.

    The World Citizen framework develops its own constitutional principles beyond Ostrom’s work. In The World Citizen Society, territorial communities retain protected spheres of self-government, wider institutions receive defined rather than general powers, and all centers remain bounded by common rights. The book calls its function-based allocation principle Functional Subsidiarity and summarizes the broader structure as protected self-rule + functionally justified shared rule + enumerated common powers + common rights floors.


    Further Reading

    For why territorial government remains necessary even in a more mobile political order, see “Why Territory Still Matters in a World Citizen Society.”

    For the full institutional treatment, see Toshiyuki Nishimura, The World Citizen Society: Political Freedom, Democratic Choice, and the Institutions of a New Society, especially Chapter 7 on the territorial division of political power.

    Elinor Ostrom, Governing the Commons: The Evolution of Institutions for Collective Action (Cambridge University Press, 1990).

    Elinor Ostrom, “Beyond Markets and States: Polycentric Governance of Complex Economic Systems,” American Economic Review 100, no. 3 (2010): 641–672.

    Elinor Ostrom, “A Long Polycentric Journey,” Annual Review of Political Science 13 (2010): 1–23.