Common Pool (Access) Resources (SL IB Economics)

• Common pool (access) resources are those that are non-excludable but rivalrous in consumption
   
• Non-excludable means that anyone can access these resources without having to pay for them
  • This usually occurs because no one owns the resource (no private ownership)
     
• Rivalrous means that these resources can be used up
  • As one individual or firm uses them, it reduces the opportunity for others to use them
  • They are finite in supply
    
    
• The tragedy of the commons (as explained by Garret Hardin in 1968) occurs when common pool resources are used in production in an unsustainable way
  • This creates negative externalities of production
  • The external costs of production often include pollution, environmental damage and resource depletion which prevents future generations from benefitting in the same way
     
• Typical examples of common pool resources include
  • Ocean fishing (especially in international waters)
  • Communal grazing land
  • Water sources such as rivers
  • Natural forests and rainforests

• The Darién Gap is in Panama and is located on the border with Columbia
• This area is one of the most impregnable rainforests on the planet and is inhabited by indigenous tribes, drug traffickers, and para-military organisations
  
  

The Darién Gap is a common pool resource

Background

• The Darién Gap is the only area where the 19,000km Pan American highway from Ushuaia (Argentina) to Prudhoe Bay (Alaska) is interrupted: a 62-mile gap
• Illegal logging has been steadily increasing
• The most valuable resource in the forest is the Rosewood Cocobolo tree which sells in Panama for $4,000 per m³ but in China for $12,000 per m³: this scarce resource is rapidly being depleted
• Loggers use the river system to penetrate deep into the forest
• Once the forest canopy is thinner, they bring in bulldozers and create illegal roads to speed up the extraction
• When they have left, palm oil entrepreneurs move in and plant palm oil trees
• Despite laws in place to protect the forest, there is no enforcement and corruption is common
• Hundreds of tons are shipped each year to China
• The indigenous tribes are waging war with the illegal loggers and there are frequently violent clashes and deaths

 
Solutions

• Several solutions have already been attempted by the indigenous community, including
  • Collective self-governance of the area
  • Forest mapping using drones
  • Using drones to gather video footage of the identity of the illegal loggers
  • Appeal  to the government by the three indigenous tribes for legal ownership rights to the land
  • Appealing for the creation and enforcement of international agreements on the sale of illegal timber
     

An Evaluation of the Solutions used to Address The Tragedy of the Commons in the Darién Gap

Solution	Advantages	Disadvantages
Collective self-governance The tribes can come together and attempt to govern the land which they consider to be their homeland. They can work together to stop illegal activity	Working together can provide a common purpose and build a community The tribes understand the land best and know how and where to best restrict the activities of the illegal loggers This activity can provide employment within the tribes The resources can be protected and sued in a sustainable way	The illegal loggers are violent and armed with automatic weapons so violence is almost a certainty The tribes have fewer resources (weapons, machinery, money) than the illegal loggers so struggle to limit their activity Attempts to slow down extraction may actually increase the pace of extraction as the illegal loggers are feeling more pressure to get the job done
Appeal to the government for legal ownership rights of tribal land So far, about 40% of the land has been granted to the tribes	The owners are legally entitled to defend their land Legal rights of property ownership can be enforced by law Illegal logging is now theft and the tribes have hired lawyers to prosecute individuals and firms involved Some illegal loggers have been imprisoned	Corruption remains high. The profits from illegal logging are so high that firms and individuals involved easily pay bribes to officials who are meant to represent the legal process The illegal loggers ignore the land owners and violent clashes continue to occur
International Agreements A global solution, enforceable by law helps to reduce illegal behaviour	Global agreements to protect indigenous flora and fauna exist In 2018 Interpol seized 200 m3 of wood headed for Hong Kong which were violating these agreements	Loggers up their game and avoid detection Not all countries follow the law and in this case, China actively ignore it so as to get their hands on this resource Only really effective when all countries sign up for it and when the law enforcement agencies in each country are active and free from corruption