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Research

One of the great puzzles in contemporary environmental policy is why some human institutions are more effective than others in governing natural resources. Whether the institution is at the level of the national government or at the level of a small rural community, the governance of environmental public goods and common pool resources is always a challenge. The challenge is particularly difficult in developing nations, when citizens and their political representatives try to achieve human and economic development without degrading their biological environment. The purpose of my research is to contribute to an increased understanding of the institutional structures and public policy processes that may help or hinder efforts of human development.    

As a scholar in the field of comparative environmental policy, I grapple with the role that institutional arrangements play in explaining varying environmental policy performance in the developing world today.  My research explores how local institutional arrangements may interact with national and international policies to produce distinct patterns of natural resource use, which ultimately may be observed as biophysical alterations on the landscape (i.e. deforestation or re-growth of forest, changes in water quality, etc). In this short note, I describe the main questions, approaches and methods in my research program, my core findings to date, potential directions for future research, and the broader relevance of my research.

 RESEARCH QUESTIONS AND HYPOTHESES  

People engaged in the harvesting of natural resources often face many collective dilemmas. In the realms of local environmental governance, one particularly difficult problem is to motivate resource users to contribute actively to the organization and implementation of rules that control access and regulate consumption of the resources. In other words, while local resources users have to bear the lion share of the costs of conservation, the benefits of conservation are not exclusive to the local users.  In fact, the local conservation efforts often generate improved public goods (soil and water protection, enhanced diversity of gene pools, carbon sequestration, etc), which are distributed to people who did not contribute directly to that conservation effort. This situation weakens the incentives of local people to assume the costs of conservation and it produces a tension between the local and broader scales of political decision making. The dilemma also raises several important questions, which much of my current research focuses on:   

(1) Why would local politicians invest in environmental governance?

(2) What factors contribute to effective local environmental governance?

(3) How do local institutions affect outcomes on the landscape?

I approach these questions from the perspective of the new institutionalism school of political economy (North 1990, Ostrom, 1990, Knight 1992, Bates 1998).  New institutionalists seek to explain political behavior by examining the constraints imposed upon individuals by institutions.  Whereas early forms of institutionalism implied that institutional structures determined social or political outcomes, new institutional scholars have come to view institutional arrangements as moderating and mediating the effects of other variables. My approach also emphasizes the value of considering institutions at multiple levels, drawing on earlier work that analyzes institutions as “two-level games” (Putnam 1994), “nested action arenas” (Ostrom 2005), or systems of multi-level governance (Hooghe & Marx 2003). I recognize that institutional arrangements are nearly always made up of several layers of social orders—from local micro-interactional orders to international and transnational arrangements—and that relationships of complementarity and contradiction may exist between these layers.

Applied to the analysis of how public policy might affect environmental outcomes, I highlight the ways in which public policy initiatives are filtered by local institutional arrangements to produce observable behavior and sometimes even outcomes that are visible on the landscape.  The pre-existing set of multi-tiered institutional arrangements shape the incentives that actors face and thus the patterns of interaction among resource users, various levels of government officials, and other actors. The relationship between actors and institutions is often complex, since actors both respond to institutional incentives and enact these institutional arrangements continuously.  The central hypothesis in my research is that the configuration of local institutional arrangements and their interactional dynamics shape the extent to which policy initiatives affect resource use decisions and ultimately the environment.

My research challenges two core ideas in the local governance literature. The first idea is that sustainable management of natural resource in developing countries requires substantial financial capital. The second idea is that the goals of sustainable resource governance outcomes are not achievable without highly trained government employees at the local level. To test these and competing institutional hypotheses, I engage in comparative analysis, using both qualitative and quantitative methods. The next section summarizes some of my main findings related to these central questions and hypotheses.  

MAIN RESEARCH FINDINGS

One of the core findings in the literature on natural resource governance is that local institutions matter a great deal when explaining subnational variation of environmental quality (Ostrom, 1990; Gibson et al 2000; Agrawal, 2005; Baland and Platteau, 1996). Contrary to predictions from conventional micro-economic theory, this research has found that the effect that local institutions have on the governance outcomes is highly variable, and that local communities are sometimes able to govern their natural resources sustainably without any external interventions from national governments. One of the main contributions of my research to the local governance literature is the specification of several institutional and socioeconomic conditions under which local organizations are able to manage their environmental resources effectively.

This is the topic of a 2007 article published in the Journal of Policy Analysis and Management. Here, my co-author and I employ time series data on forest conditions derived from satellite imagery of Bolivian forests and interview data from local municipalities. We show that varying forest conditions depend on the moderating effects that local institutions have on the socioeconomic and biophysical drivers of environmental change. We further find that the local institutional performance affects unauthorized deforestation directly and indirectly in the areas targeted by policy, but detect no effects on total deforestation rates (Andersson and Gibson, 2007).

What this analysis shows is that local government institutions form an important part of explanations of environmental change. It also shows that local governments that perform well in terms of their internal organization of forestry activities also enjoy healthier forests. I propose that there are two conditions that must be fulfilled in order for local governments to achieve a high level of performance in environmental governance. First, local government leaders need to be motivated to invest their scarce resources into the environmental sector, and second, they need to have the means to acquire sufficient human and physical capital to be effective in whatever actions they decide to undertake. The empirical testing and discussion of these two theoretical propositions represent the bulk of my published work during the past five years. Next, I report on some of the main results of this effort.

What motivates local politicians to invest in natural resource governance? Comparing local responses to policy reforms in Bolivia and Guatemala, we argue in this article that successful environmental governance at the local level hinges upon the incentives of local politicians (Andersson et al, 2006). We test this argument by studying the experiences of local forestry sector governance in Bolivia and Guatemala, analyzing survey responses of 200 mayors. Building on earlier findings published in Andersson, 2003 and Gibson et al, 2003, we show that local-level institutional incentives are systematically linked to variations in local politicians’ investment decisions in the forestry sector. Further, we find that a decentralization policy that transfers very limited decision-making powers to local governments stifles local interest in organizing resource governance activities. These findings are consistent with later work by other scholars (Agrawal and Chhatre, 2006; Larson and Ribot, 2007).

In subsequent work, I have taken the analysis of institutional incentives in local governance one step further by analyzing the question as to why local politicians would be interested in participatory governance. Andersson and Laerhoven (2007) compare the effect of institutional incentives for democratic deliberation in 390 rural municipalities in Brazil, Chile, Mexico and Peru. The chapter tests and rejects the widely accepted idea that more decentralized regimes would necessarily enjoy better conditions for promoting participatory governance.  We find that decentralization alone is not enough to induce participatory resource governance in local governments. A more powerful explanation to varying levels of participatory governance is the combination of two sources of political incentives: demands from local self-organized resource groups as well as central government agencies on the local government.

However, even if local politicians respond to these incentives by investing in local environmental governance and in democratic institutions, such investments do not necessarily lead to better environmental outcomes. To achieve sustainable outcomes is more complicated than that. After a local administration has decided it will do something about the environmental problems they face, their effectiveness will depend on what they decide to do and how they actually carry out such activities. The next set of articles explores this issue further.

Under what conditions is local natural resource governance effective?  In my most frequently cited single-authored article to date (as of June, 2009 there were 47 citations in other peer-reviewed journals) I argue that efforts to study subnational policy outcomes would benefit from widening the unit of analysis from the most-commonly used local government administration to the local governance system (Andersson, 2004). Many individual local governments, especially in developing countries, lack the human and physical resources to be effective governors by themselves. It is therefore useful to recognize the linkages between different governance actors. The empirical analysis, based on observations in Bolivia’s forestry sector, finds that the degree of connectivity between the actors in a municipal governance system helps explain why some systems are more effective than others. I have also tested this idea in a broader context in recent work, by comparing the conditions for successful governance of local common goods and services among local governments in Brazil, Chile, Mexico and Peru (Andersson, et al, 2009; Kauneckis and Andersson, 2009; Andersson, 2005, 2006).

One of contributions of this research is that it shows the incredible subnational variation that exists for environmental governance in many Latin American countries. And perhaps the most controversial finding is that contrary to conventional wisdom in this literature, I have shown that the availability of financial resources and formally trained employees have very little to do with environmental performance. The performance of local institutions is a far better predictor of such performance.

My most acknowledged contribution to the field of comparative development policy is probably my work on the incentives of development aid. This work started out as a commissioned study for the Swedish International Development Cooperation Agency (Sida) and eventually resulted in a peer-reviewed book, published by Oxford University Press (2005).  The study analyzes the incentives structures that are often present in multi and bilateral aid programs.

In this work, my co-authors and I identify two fundamental reasons why simply channeling more resources to developing countries is ineffective for relieving their plight: incentives and information. Even when aid is conducted bilaterally, development aid confronts a very intricate and complicated web of divergent actor interests. For instance, any development aid process will inevitably involve the separate, often contradictory interests of citizens in the donor country, from whom the resources for foreign aid are extracted. Add to these, the interests of aid-savvy contractors, recipient government, local interest groups, varying degrees of organized citizenry (who are often the claimed beneficiaries of the aid) and it is easy to see the challenge of making aid work in the “common” interest. The real complications begin, however, when the actors with these diverging interests start to interact with each other and seek to use the aid programs to further their individual agendas. Unfortunately, such strategic and opportunistic behavior is not rare for any of the actors involved in the often tangled relationships within aid programs.       

The Samaritan’s Dilemma has received enthusiastic reviews in five peer-reviewed journals. One reviewer had the following to say about the book: 

”Free copies of The Samaritan’s Dilemma should be sent to U2’s Bono, Jeffrey Sachs, and all others who take the “gobs-of-cash-will-do-you” approach to curing world poverty. As an increasing portion of the development community now recognizes, sending oodles of money to poor countries does not make them rich and may even make them poorer. This important book explains why. The authors’ discussion is clear, straightforward, and easy to understand, even for Bono (Leeson, 2008). 

While this synthesis of findings has attempted to convey a sense of some of the main results from my research program, it is far from a complete review of my work. To get a more comprehensive notion of my research and its potential contributions, it is necessary to read some of the publications referred to in this summary. As of June, 2009, my research had been published in four peer-reviewed books, 20 peer-reviewed articles and seven book chapters, as well as in seven commissioned policy studies (for details, please see enclosed CV). My first four years at CU have been extremely stimulating and productive for my research and teaching, and I look forward to the opportunity to take my research to new levels of achievement. The next section describes some of my plans for future research.

POTENTIAL FUTURE DIRECTIONS

 In the near future I will seek to address what I believe to be two related limitations to the current scholarship on the local governance of natural resources: a dearth of studies that employ rigorous methods of analysis, and limited availability of appropriate data for more sophisticated analysis. My future research seeks to address these limitations through five new collaborative research projects that combine new data collection efforts with the exploration of new methods of analysis. To do so I have teamed up with scholars who are experts in social network analysis, dynamic systems modeling, and remote sensing analysis to carry out collaborative research.

All five projects include the collection of new data that lend themselves to longitudinal and more dynamic analyses of local governance. Two projects focus on collection and analysis of longitudinal data on local governments’ governance arrangements for forests in Bolivia, Guatemala, India, Peru, and Uganda, and have already been funded by the National Science Foundation (NSF). A third project, which employs comparative qualitative analysis of local communities under variable policy and tenure regimes in four countries, has been funded by the US Agency for International Development (USAID). Harvard University’s Center for International Development funded a one-year project (2007-2008) to study the use of biophysical indicators in comparative policy studies. Following my initial exploration of this topic during my one-year stay at CID, I am currently collaborating with another CID fellow, Adam Henry, to use social network analysis to test some of the ideas of polycentric governance of natural resources, using longitudinal institutional and environmental variables for three Latin American countries.

Finally, and together with colleagues at the International Institute for Applied Systems Analysis in Vienna, Austria, the University of Michigan, and Indiana University, I am currently in the process of applying for a new NSF grant to study the Effectiveness of Social Learning Strategies in Coupled Natural-Human Systems. This last project is a proposal for a four-year project, for which the University of Colorado will be the lead research university, and it is an effort to combine institutional analysis of community organization, household survey research, dynamic systems modeling, and field experiments in our research on local environmental governance. The proposal will be submitted through OCG at CU in November of 2009.

BROADER RELEVANCE

It is estimated that there are about 1.6 billion people in the world today who live on less than 2 dollars a day and depend directly on forests for their daily subsistence (World Bank, 2004). It is clear that sound use of these forests play a major role in efforts trying to improve the livelihoods of this large group of people. The problem is that much of the world’s forests grow in countries with weak governance arrangements and unclear property rights systems. Ironically, many of the people who rely on the forest the most for their survival often do not have legal access to the resource (WRI, 2005). As a result they have little incentive to invest in the long-term productivity of the forests they use. Most policy analysts agree that major reforms are needed to improve the governance of these forests to the benefit of current and future forest users, but surprisingly little scientific knowledge exists about the types of policies and governance arrangements that are likely to work best in specific national and local contexts. The purpose of my research is to contribute to increased knowledge in this area.   

 

REFERENCES CITED 

Agrawal A.and Chattre, A. 2006. Explaining Success on the Commons: Community forest governance in the Indian Himalayas. World Development (34(1):149-166.

Agrawal, A. 2005. Environmentality: Technologies of Government and the Making of Subjects. Durham, N.C. Duke University Press.   

Andersson, K. 2006. Understanding Decentralized Forest Governance: An Application of the Institutional Analysis and Development Framework. Sustainability: Science, Practice, & Policy 2(1):25–35.

Andersson, K. 2004. Who Talks With Whom? The Role of Repeated Interactions in Decentralized Forest Governance. World Development Vol 32(2): 233-249.

Andersson, K. 2003. What Motivates Municipal Governments? Uncovering the Institutional Incentives for Municipal Governance of Forest Resources in Bolivia. Journal of Environment and Development 12(1):5-27

Andersson, K. 2005. ¿Cómo Hacer Funcionar la Gestión Forestal Municipal? Lecciones de Bolivia. La Paz, Bolivia: Plural Editores.

Andersson, K. and Ostrom, E. 2008. Analyzing Decentralized Natural Resource Governance from a Polycentric Perspective. Policy Sciences 41(1):1-23.

Andersson, K. Gordillo, G. and van Laerhoven, F. 2008. Local Governments and Rural Development: Comparing Lessons from Brazil, Chile, Mexico, and Peru. Tucson, AZ: U of Arizona Press.

Andersson, K. and Gibson, C. 2007. Decentralized Governance and Environmental Change: Local Institutional Moderation of Deforestation in Bolivia. Journal of Policy Analysis and Management 26(1): 99-123

Andersson, K. Gibson, C. and Lehoucq, F. 2006. Municipal Politics and Forest Governance: Comparative Analysis of Decentralization in Bolivia and Guatemala. World Development 34(3): 576-595.

Baland, J.-M., and Platteau, J.-P. 1996. Halting Degradation of Natural Resources: Is There a Role for Rural Communities? Oxford, UK: Clarendon Press.

Bates, R. H. 1998. Institutions as Investments. In S. B. a. M. Paldham (Ed.), The Political Dimension of Economic Growth. New York: MacMillan.

Gibson, C. McKean, M. A., and Ostrom, E. (Eds.). 2000. People and Forests: Communities, Institutions, and Governance. Cambridge, MA: MIT Press.

Gibson, C., and Lehoucq, F. 2003. The Loc al Politics of Decentralized Environmental Policy in Guatemala. Journal of Environment and Development, 12(1), 28-49.

Hooghe, L., & Marks, G. 2003. Unraveling the Central State, but How? Types of Multi-level Governance. American Political Science Review, 97 (2), 233-43.

Kauneckis, D. and Andersson, K. 2009. Making Decentralization Work: A Cross-National Examination of Local Governments. Stud Comp. International Dev 44(1): 23-46.

Knight, J. 1992. Institutions and Social Conflict. Cambridge: Cambridge University Press.

Larson, A. and Ribot, J. 2007. The Poverty of Forestry Policy: Double Standards on an uneven playing field. Sustainability Science 2 (2): 189-204

Leeson, P.P. 2008. Book Review: The Samaritan’s Dilemma. Journal of Economic Behavior & Organization 66: 437–444.

North, D. 1990. Institutions, Institutional Change and Economic Development. New York, NY: Cambridge University Press.

Ostrom, E. 2005. Understanding Institutional Diversity. Princeton, NJ: Princeton University Press.

Ostrom, E. 1990. Governing the commons: the evolution of institutions for collective action. New York: Cambridge University Press.

Putnam, Robert D.  1994. Making Democracy Work: Civic Traditions in Modern Italy.  Princeton: Princeton University Press.

World Bank 2004. Sustaining Forests: A development strategy. Washington D.C.: The World Bank.

World Resources Institute 2005. The Wealth of the Poor-Managing Ecosystems to Fight Poverty. United Nations Development Programme, United Nations Environment Programme, World Bank, World Resources Institute, Washington DC.

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