Elinor Ostrom was the first woman to win a Nobel prize in economics. Her extensive fieldwork focused on how people interact with ecosystems such as forests, fisheries and irrigation systems, challenging the conventional wisdom that ordinary people weren鈥檛 able to successfully manage natural resources without any regulation or privatization. She believed that people are perfectly capable of taking control of decisions that affect their lives, same way she had proven as a young woman when trying to succeed in the still male-dominated working world and academia of the 1950s.

Elinor Ostrom

Elinor Ostrom

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, 2009

At a glance

Born: 1933, Los Angeles, California, USA

Died: 2012, Bloomington, Indiana, USA

Field: Public Economics, Economic Governance

Awarded: Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (shared), 2009

Prize-winning work: Analysis of economic governance, especially the commons

Unknown talents: Drew most of the sketches when building a ranch house

How did Ostrom's childhood experiences shape her ability to make a good argument?

Ostrom was born into a family of simple means. Money was short, especially at the time of the Great Depression. Even as an old woman, she still remembered how her parents would try very hard to make ends meet. Childhood was also challenging because she was one of very few poor kids in a 鈥渞ich kids鈥 school鈥 in Beverly Hills. 鈥淭here were times that was very painful for me,鈥 she remembered. 鈥淎nd then, of all things, I stuttered.鈥 But she was encouraged to join the debate team and did well. Plus, she learned an important lesson very early in life: how to make a good argument.

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How Elinor Ostrom became the first woman to win a Nobel prize in economics?

As a young woman in the 1940s, Ostrom grew up in a different world. During the war, she was expected to knit scarves for the soldiers overseas, but not encouraged by her family to go to college. Her mother had arranged for her to attend high school but expected her to go find a job after graduation. 鈥淣o one in my immediate family had any college experience,鈥 Ostrom recalled in her autobiography written at the time of the Nobel. 鈥淢y mother saw no reason to support me.鈥 But she worked her way through and graduated 鈥渨ith eight dollars in the bank.鈥

How did Ostrom overcome gender barriers to pursue her career in economics?

Challenges didn鈥檛 end there. When looking for a position, future employers asked whether she鈥檇 taken shorthand and typing in college. She hadn鈥檛. 鈥淚 wanted a real position,鈥 Ostrom recalled. 鈥淚 didn鈥檛 want to end up being a secretary the rest of my life.鈥 But in those days, it was not appropriate for a woman to aim for more. Ostrom didn鈥檛 care, and finally got a job in a business firm 鈥渢hat had never hired a woman in anything but a secretarial position.鈥 Still in her early twenties, she had succeeded in making a very good argument. And being an Assistant Personnel Manager was only the first step of her career.

Ostrom had had her first economics course during her final year as an undergraduate. And she鈥檇 liked it, so much so that she thought about applying for a PhD. At UCLA, however, she found herself in a rather hostile environment. 鈥淎 lot of the faculty didn鈥檛 like that there were women in the program. They just said no,鈥 partly because Ostrom hadn鈥檛 had any math in college, and hadn鈥檛 taken trigonometry in high school. The Political Science Department was also rather skeptical about admitting women, but gave her a chance. During grad school, Ostrom met Vincent who would become her second husband and partner in crime on a professional level. It was also as a graduate student that Ostrom was first introduced to the question of how to organize a common, and her related research and field work would earn her the Nobel Prize four decades later.

Are people able to self-organize water resources?

Do people care for the common good of society?

In 1833, Victorian economist William Forster Lloyd published an essay in which he explained what became known as the 鈥渢ragedy of the commons鈥. Lloyd believed that environmental commons 鈥 natural resources that aren鈥檛 privately owned but are accessible to everybody and collectively used 鈥 would, in the long term, be destroyed because the individual users would act in their own self-interest only and not care about the common good of all.

130 years later, most economists still believed this to be true. They 鈥減resumed that people could not self-organize. They just couldn鈥檛 do it,鈥 Ostrom explained, the implication being that there was only one way around this: government regulation or private ownership. Ostrom wanted to put this presumption to the test, and started collecting a large number of case studies to find out more about how humans interact with ecosystems. 鈥淪he was inspired by observing the world, grappling with these problems rather than theorizing,鈥 Robert Johnson at Columbia explains.

Elinor was inspired by observing the world, grappling with problems rather than theorizing.

How did Ostrom's research challenge conventional wisdom about resource management?

Together with her husband, Ostrom founded the Workshop in Political Theory and Policy Analysis at Indiana University. They believed that it was crucial to discuss their work with scholars across disciplines, and to conduct their field studies with the help of researchers in multiple countries.

It was a struggle because so many of my political science colleagues didn鈥檛 like what we were doing. A lot of them interviewed legislators, mayors, and people in the cabinet. They found it strange that we were interested in farmers and peasants and people organizing water.

But it was worth it. Ostrom discovered that small, local communities were able to manage shared natural resources such as fishing water or forests, and that, over time, rules for managing the common were established to maintain the resources鈥 long-term sustainability. No need for the government to step in, or to privatize resources. Ostrom鈥檚 research proved that community management was a powerful tool, and that ordinary people were able to take control of the decisions affecting their life.

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Why you need to go into the field to be successful

How do we need to organize our societies?

鈥淚t鈥檚 encouraging for people who would like to see more local, rather than top-down, global control,鈥 Johnson, who put Ostrom on TIME鈥檚 list of the world鈥檚 100 most influential people in 2012, explains. 鈥淕overnance by people for themselves can be a very healthy and positive way of organizing society,鈥 Johnson believes, and emphasizes how important Ostrom鈥檚 work was to acknowledge this.

Ostrom described eight design principles that affect the success of self-organized governance systems, for example collective choices, mechanisms of conflict resolution and the recognition of a community鈥檚 self-determination by the authorities. These principles remain valid today, as a framework for further developing the theory of common-pool resources. As she once remarked:

I think we鈥檝e gained a much greater respect for human ingenuity. People can come up with many solutions to challenging problems.

Why top-down control doesn鈥檛 work

Ostrom鈥檚 work shed light on a topic that remains crucial for the future of the human species: how can we protect the environment? Again, she fought against top-down control, explaining how individuals and communities were essential to halt climate change. Though she knew that some international agreement was important, she felt the need to really involve the people outside the government. Her concept of 鈥減olycentrism鈥 recommended giving local communities the authority to regulate the use of common resources.

Has representation of women in the Nobel Prizes evolved?

In 2017, women are still seriously underrepresented in the Nobel Prizes in聽chemistry, physics, medicine and economics (18 in total). But Johnson believes that things are changing, and that the rate of change is healthy: 鈥淭he challenge isn鈥檛 over, but women are recognized as being more important to the profession,鈥 he explains.

Though there hasn鈥檛 yet been another female laureate in Ostrom鈥檚 field, she was very optimistic about the future. During the聽press conference for her Nobel Prize she proclaimed:

We鈥檝e already entered a new era. We recognize that women have the capability to do great scientific work. I appreciate that it鈥檚 an honor to be the first woman, but I won鈥檛 be the last.

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