Voluntary leadership and the emergence of institutions for self-governance.

Strong local institutions are important for the successful governance of common-pool resources (CPRs), but why do such institutions emerge in the first place and why do they sometimes not emerge at all? We argue that voluntary local leaders play an important role in the initiation of self-governance institutions because such leaders can directly affect local users' perceived costs and benefits associated with self-rule. Drawing on recent work on leadership in organizational behavior, we propose that voluntary leaders can facilitate a cooperative process of local rule creation by exhibiting unselfish behavior and leading by example. We posit that such forms of leadership are particularly important when resource users are weakly motivated to act collectively, such as when confronted with "creeping" environmental problems. We test these ideas by using observations from a laboratory-in-the-field experiment with 128 users of forest commons in Bolivia and Uganda. We find that participants' agreement to create new rules was significantly stronger in group rounds where voluntary, unselfish leaders were present. We show that unselfish leadership actions make the biggest difference for rule creation under high levels of uncertainty, such as when the resource is in subtle decline and intragroup communication sparse.

Decentralization can help reduce deforestation when user groups engage with local government.

Policy makers around the world tout decentralization as an effective tool in the governance of natural resources. Despite the popularity of these reforms, there is limited scientific evidence on the environmental effects of decentralization, especially in tropical biomes. This study presents evidence on the institutional conditions under which decentralization is likely to be successful in sustaining forests. We draw on common-pool resource theory to argue that the environmental impact of decentralization hinges on the ability of reforms to engage local forest users in the governance of forests. Using matching techniques, we analyze longitudinal field observations on both social and biophysical characteristics in a large number of local government territories in Bolivia (a country with a decentralized forestry policy) and Peru (a country with a much more centralized forestry policy). We find that territories with a decentralized forest governance structure have more stable forest cover, but only when local forest user groups actively engage with the local government officials. We provide evidence in support of a possible causal process behind these results: When user groups engage with the decentralized units, it creates a more enabling environment for effective local governance of forests, including more local government-led forest governance activities, fora for the resolution of forest-related conflicts, intermunicipal cooperation in the forestry sector, and stronger technical capabilities of the local government staff.