Spillover Effects

Standard economics has taught us that there are externalities to every process of production for that matter the process of economic development itself. These are either positive or negative and has its impact on the community. In common language these economic externalities are referred to as Spillover effects. These spillovers are not visible as happening but have their effects. most common ones are pollution caused by production, development caused by infrastructure, etc.
What we are talking about here is very much visible and we can foresee the destruction that these spillovers will cause. First it was the BP oil spill from their offshore rig in the Gulf of Mexico which went to became the largest oil spill in U.S history surpassing that of Exon Valdez. All the money extracted from British Petroleum is only a short term remedy for this disaster. the effects of this spillover will continue till the time when BP may not even exist! To top it all, Tony Hayward, in his clear intention to wash of these grease of his hands will get an obese paycheck of around USD 18.5 million when he steps down after closing this leakage.
Closer home, a head-on collision near the Mumbai port caused oil to leak out from a cargo vessel. As if the existing waste and garbage floating on the coastline was not enough, we have oil to give company. All such spillovers have both immediate and long-term impact on the society and bio-diversity. It said that there is no point crying over spilled milk but here we have evry reason to be worried about spilled oil.