What is a regulatory capture?

regulatory capture is a situation where the government agency responsible for the regulation of a particular industry finds itself defending the main society in this industry instead of public interests. People can refer to such agencies to "captured agencies". There are a number of steps that governments and organizations can take to reduce the possibility of capturing regulatory.

This situation is very common; Companies usually bring considerable money and pressure to deal with when regulatory agencies decide, while the public does not have to express too much interest or could lack the influence of industry members. When most of the inputs received by the agency come from the industries to regulate, there is a tendency to start responding to it by forming political instructions to prefer these industries. It may be difficult to maintain independence and integrity.

Sometimes a regulatory capture is obvious. Companies can use tools such as paid empty, free luxuryFlights and other benefits for WOO officials when considering political matters. The legality of these activities may be ambiguous. In some countries, governments have very strict politicians to prevent regulatory capture. They seek to reduce external influence by not allowing agencies or officials to receive any gifts from outsiders and require people to publish gifts and bribes. In other countries, the regulation may be more lax or members of the agency together agree to the skirt law.

The problem can be enhanced by political questions. Companies not only push government agencies, but also play a role in the election process with gifts of political campaign and other political support. Companies can promote the choice of people favorable for interests to ensure beneficial political appointment and politician maneuvers and to create the influence of the agency can be difficult to escape. Especially if agencies have limited financialCalculation and staff can be very easy to end up in industry pockets, even with a conscious desire to avoid this situation.

measures to deal with regulatory capture beyond the limiting gifts may include often rotating staff to avoid the development of relations between agencies and companies, determining clear policies to request feedback and comments on the proposed regulatory activities and the use of regular external audit. Media members can also be useful because it reminds the agencies that the public is watching. Media outrage over particularly serious examples of regulatory capture tends to lead to increased attempts to prevent future incidents.