THE OCEANS
We may not know how much wealth the oceans possess. We do know, however, that government is not competent to exploit this wealth. Private enterprise alone can best explore and take advantage of the richness of the oceans.
The proper task of government is to recognize private rights and protect them. The government, instead, prohibits private rights to offshore wealth and uses the same gruesome concept of public good to arrogate to itself the rights of exploiting (or not exploiting) this resource.
There is no difference between development of mineral resources onshore or offshore. It is man who mixes his capital and labour and transforms these resources into valuable products for use by us all.
The USA possessed vast amounts of undeveloped land. the government promulgated the Homestead Act of 1862. Property rights were recognized and a person who cultivated a piece of land for period of live years was granted title which he could legally transfer or dispose of as he chose to. The government did not act as the owner of land but merely took measures to affix property rights.
We are past the stage of private enterprise experimenting with offshore exploration. What is required now is an immediate auction of the entire exploration rights to the highest bidders. The property would soon find its way into hands of those who can best use it.
Today, the technology may not exist to profitably exploit deep-sea wealth. Here the situation is ripe for application of law based on the Homestead Act. Any enterprise which first develops and brings to use the untapped oceanic resources should automatically gain ownership rights. This is the law which in the USA turned a desolate undeveloped country into the thriving civilization of today. This is what is needed for realizing the potential of the oceans for the benefit of all.
Depletion of fishing stock from the world oceans is causing increasing alarm; countries fight over it. The Economist of March 19-25, 1994 called it "The tragedy of the Oceans" and featured it as its cover story. The Maldives and Sri Lanka; Japan and the USA; certain European nations all have disagreements over fishing rights. The fishing industry itself is dissatisfied with the understanding arrived at by their respective governments. All this I may repeat - at the risk of sounding monotonous - is due to tack of recognition of private fishing rights. If fishing rights could be bought and sold, the world's fishing stock would be in to danger. The whales and dolphins would not face extinction, nor would entire areas be stripped off marine life, and disputes between governments would be avoided. Today, a fishing company has no incentive to develop marine life. As it does not possess any exclusive rights,
Rakesh Wadhwa
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