The governance of natural resources often involves stakeholders and their activities in a connected and complex arrangements. Decentralized approach offers alternative to centralized approach. However, it has mix success stories. Contractual networks has been used to coordinate decentralized activities to achieve common objective in business relationship. It works through agreement and rely on social mechanism.
This thesis is to generate understanding of contractual networks in natural resources governance especially in hotbeds area. Hotbeds area is rich in natural resources yet often has a feature of poverty, insecure land tenure, and unstable political system. This thesis analyzes contractual networks in three communities in West Papua and uses Ostrom’s Design Principle as a steering principles for contractual networks. It explores the dynamic of stakeholders and their activities to govern natural resources. This thesis offers the potential of contractual networks as a governance mechanism for natural resources in hotbed area.