MANAGING POLLUTION FROM SSIs – DESIGNING FOR A SUSTAINABLE INSTITUTION

Abstract

The common effluent treatment plants (CETPs) are being propagated as the policy response to circumvent the pollution problem from the small-scale industries (SSIs), which abound in developing countries. The formation of the CETPs has been hailed as a collective action or co-operative solution to a common problem involving all the agents responsible for pollution. This paper investigated the desired criteria for designing an institution aimed at solving a common resource problem and factors ensuring the smooth functioning or sustainability of the institution. The design criteria and factors are then tested on a CETP set up in the Indian state of Haryana. The CETP, which was commissioned in 1997 had to be converted to a sewage treatment plant (STP) as the collective arrangement collapsed. The criteria used in the present analysis are that of Ostrom’s [Governing the Commons. Cambridge, UK, Cambridge University Press, 1990] design principles, whereas the factors considered for sustainability are the one suggested by Rawls [A Theory of Justice. USA, Harvard University Press, 1971]. The analysis indicates that the Kundli CETP failed in both counts as neither all the design principles were met nor did the institution fulfil different sustainability criteria. The paper concludes with the lessons that can be learnt from Kundli’s failure.