Role of international organisations in market failure

Common access resources are of 2 types, private and public. The private resources are rivalrous in nature, where as public goods are non rivalrous. These public resources are open for everyone to use, which may result in their exploitation and overuse. The repercussions of this often not only affect the area that the resource is exploited in, but also in the surrounding areas, resulting in deterioration of the earth. For example, the World Health Organisation reported in 2011 that Delhi had exceeded the maximum pollution limit by at least 10 times. This not only affects Delhi but also the places surrounding Delhi.

The preservation of common access resources is challenging, as no one owns these resources, hence there is no one person that can be blamed for its destruction. The ozone layer, for example, is being depleted. However, no single country can be blamed for it as nobody owns it. Hence, preserving these resources is becoming increasingly difficult.

International organisations have been found to be a successful solution so far, hence they play a very important role in the preservation of common access resources. A great example of this is the Montreal Protocol that was signed in 1987. The attached video talks about how it worked and its success. One of the most recent forms of action to save a common access resource was the Paris Summit in 2015, which deals with the issue of the increasing temperature of the earth, and how we can prevent the earth from over heating over a long term.

Hence, because there is no private owner of common access resources and every user wants to exploit it to their maximum potential to increase their self gain, international organisations play a crucial role in protecting and preserving such resources.

Works cited:

"International Organisations and Market Failure." Econclassroom.com. N.p., n.d. Web. 9 Jan. 2016.

"Role of International Organisations." Youtube.com. N.p., n.d. Web. 9 Jan. 2016.

"International Organisations and Market Failure." Ncbi.com. N.p., n.d. Web. 9 Jan. 2016.

Tragakes, Ellie. "Market Failure." Economics for the IB Diploma. Cambridge: Cambridge UP, 2009. 124-30. Print.

"International Organisations and Market Failure." Youtube.com. N.p., n.d. Web. 9 Jan. 2016.