Common Pool Resources - Privatization or Collective Action - Assignment Example

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Oil can be privatized because it is a resource, which can be controlled by private companies. Forests require collective action because Forest development and preservation is a task that can only be done or…
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Common Pool Resources - Privatization or Collective Action
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Common Pool Resources - Privatization or Collective Action  Common Pool Resources - Privatization or Collective Action Two common pool resources that are utilized are oil and Forests. Oil can be privatized because it is a resource, which can be controlled by private companies. Forests require collective action because Forest development and preservation is a task that can only be done or accomplished through a collective group effort. It is up to the public to do their part in ensuring that the forests are maintained. (Ramanadham, 1993)
In the case of oil, its refinery and production is done using companies. Majority of these companies are privatized, which illustrates how oil can be managed through privatization. Regulating the manner in which oil is produced will ensure that it is well preserved and it can be effective as a pool resource. Privatization will ensure that oil production can specialized in accordance to its requirement as a pool resource. Oil can only be refined or obtained in particular areas and regions, which adds to the ideology of the resource being produced and refined through privatization. It implies that specialization (based on regions) is the best course of action for production (Ramanadham, 1993). Therefore, oil as a resource should be privatized.
Forests require a collective effort. I say this because the general state of global forests is abysmal. This is a prime reason as to why individuals must do the best they can to ensure that the forest are preserved and developed to ensure that they are wiped out. Privatization would be inadequate because forests are required on a global scale and their maintenance cannot be done a few companies (Ramanadham, 1993). Developing a forest will take time and cannot be carried out by a few companies. Since forests can be developed in numerous areas, in contrast to oil, making it a collective action is the best measure of ensuring the pool resource does not run out.

Ramanadham. V. (1993) Privatization: A Global Perspective, Routledge, USA Read More
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