Irrationality in Politics and Governance of Maritime Affairs: The Collapse of Sovereign Maritime Governance

Abstract

This paper investigates maritime policies from the perspective of behavioural law and economics by questioning the role of political instruments, levels of development, groupthink bias, moral hazards and practical examples. Through the emergence of deregulation and procedural simplification, the reasons behind overregulation need to be revisited. The future of maritime governance is expected to hollow out several functions for alternative institutions and keep the governance simple for performing other roles such as advisory services, mainstreaming, amongst others. Therefore, the concept of maritime governance without a government can be thought as a driving force for the future. Based on the deregulation and the hollow-out framework, maritime governance (particularly in developing and developed countries) should focus on the softpower of maritime administration and the role of expert power; as well as referent power to mainstream the maritime industry.