Saturday, February 9, 2008

benefit vs loss

Collective action lowers the transaction costs for the farmers in the rural areas. It enable them to make investments to improve both the private and common property resources, which is otherwise a costly affair. For example common irrigation system at the village level. But in such a system it has been found that people who are in power (here power is referred to social power, economical power and political power) reap more benefits as compared to other people who belong to the lower strata of the society
Thus, the property right to both privately and commonly held resources need to be well defined and respected. Some communities and societies engage in collective action successfully went and benefit from such activities while others fail. REASONS CAN BE MANY........

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