The Role of Government in Disaster Management: The Case of the Hebei Spirit Oil Spill Compensation

Abstract

Despite trends toward decentralized disaster management inclusive of local governments, civil organizations, and the private sector, we see centralized management and strong government involvement in the International Convention on Civil Liability for Oil Pollution Damage and the International Oil Pollution Compensation's compensation for large oil spills around the world including the Hebei Spirit oil spill in Korea. Why does the government inevitably become involved and provide a portion of the compensation when the settlement is to occur between the insured company and the affected groups and individuals? To answer this question I examine government's role in disaster management, broadly, and the role of government in disaster compensation, specifically, examining the case of the Hebei Spirit oil spill that occurred off the coast of Korea in December 2007. We witness some structural constraints as well as local-specific reasons for centralization in the Korean case. The slow progress of compensation was a major structural constraint that prompted central government involvement. Moreover, the lack of skills and knowledge on the part of affected individuals and groups regarding compensation procedures, a culture of dependence on the central government, and the negative impact of geographic proximity in the distribution of relief funds further increased the role of central government in oil spill compensation. The case of the Hebei Spirit oil spill emphasizes the advantages of a nuanced approach to disaster management—one that recognizes that decentralized management may not be feasible or successful in every aspect of the response. Further research is necessary to understand why disaster compensations including oil spill cases are more centralized than other types of disaster management.