The paper aims to discuss bureaucratic management, over‐confidence in scientific theory, information distortion and lack of coordination with particular focus on the post‐Hurricane Katrina situation.
The paper examines efficiency arguments for centralized control and the potential for government failure. It also analyzes the disaster of Hurricane Katrina with these problems in mind.
The Flood Act of 1928 officially transferred the responsibility of flood protection along the Mississippi River to the federal government. While it is true that local provision failed to eliminate the problem of flooding, the problems caused by federal provision have not been fully appreciated. The specific characteristics of flood protection as well as the general problems caused by bureaucratic management and the absence of market mechanisms suggest that local provision of flood protection is a more efficient solution.
The arguments in this paper suggest that, the previous belief in centralized flood management was unfounded.
