Elinor Ostrom’s book ‘Governing the Commons’ contributed to her winning the Nobel prize for economic sciences in 2009. This book provides specific insight into the ‘tragedy of commons’, a problem about resources that are commonly shared in society and the environmental degradation as a result of sharing this scarce resource. 

The case studies she mainly uses are agriculture and aquaculture related as in water distribution, fisheries and livestock grazing fields. Further emphasis is put on how the uses of these resources are often overshadowed with the product it produces and not the consequence of its use. The use of real life examples provides emphasis on the theory she applies at the beginning of the book. Scenarios such as Turkish and Sri Lankan fisheries and California ground water provide in depth analysis of their failures of addressing the problem and its effects on surrounding environment and communities. It also examines how the issue can be addressed and fixed to achieve long term sustainability which supports Ostrom’s principles. 

The tragedy of the commons problem is explained by Hardin, “Each man is locked into a system that compels him to increase his herd without limit – in a world that is limited”. The tragedy is regularly referred to as the ‘prisoner’s dilemma’, otherwise known as ‘game theory’ in microeconomics. It is used to depict differing outcomes as a result of a decision that a participant in the ‘game’ has made. This is a brief definition of the concept but none the less important in understanding the problem as it demonstrates how over-utilisation of a resource can be a detriment for all participants involved and not just the individual who made the decision. 

In addressing the tragedy of the commons problem and its possible solutions, Ostrom discusses arguments mentioned across the economic spectrum, such as, mass centralisation or privatisation as a means of achieving sustainability. However, Ostrom devises her own theory which includes 8 principles that can allow communities to avoid the tragedy of commons whilst maintaining self-governance.

These principles are: 

• Clearly defined boundaries
• Congruence between benefits and costs
• Collective choice arrangements
• Regular monitoring
• Graduated sanctions
• Conflict resolution mechanisms
• Minimal recognition of rights to organise – right for participants to create their own institutions and are not challenged by government authorities.
• Nested enterprises

Ostrom argues that the solution is neither centralisation of resources nor their privatisation. It’s the people or a society with the most amount of knowledge about the resource that are capable of being sustainable to reduce and if not stop the ‘tragedy of the commons’ problem.

1. The definition of the 'tragedy of the commons' is that humans were doomed with suboptimal outcomes due to other individuals who overconsume resources, thus causing someone else to be worse off as they are unable to extract the same benefit.
2. Emphasis is provided on the basis of knowledge being the key factor in common resource sustainability. For example, a farmer that uses the same meadow year after year will have detailed information about the limitations of the meadow and can prevent overconsumption.
3. Communication between stakeholders of a resource i.e communities, farmers etc. is seen according to Elinor as a pillar of ensuring sustainability and averting the 'tragedy of commons'. Improving trust among peers has shown the implementation of community rules and self management of the resource, thus achieving sustainability.
4. Supports the notion of collective action and cooperation among communities that use 'common resources' without the need for government intervention or privatisation in accordance with the 8 principles.
5. Elinor gives her 8 principles validation through the use of previous ecological cases that adopted a similar approach to dealing with sustainability. On page 18 - 21 she gives account of a fishery in Alanya, Turkey that transitioned from unrestrained fishing and consumption that turned hostile at times, to a community that was self sufficient and abided by it own self governing rules with very little need of government help or intervention.
6. The 8 principles are there to set a basic framework for self governance and preservation of a resource among the communities that know the resource best. Page 90 of the book showcases these principles in a more detailed manner.