Tuesday, August 16, 2016

Why governments are corrupt. (1) regulatory capture

Regulatory capture is a form of government failure that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of special interest groups that dominate the industry or sector it is charged with regulating.

When regulatory capture occurs the interests of firms or political groups are prioritised over the interests of the public, leading to a net loss to society as a whole. Government agencies suffering regulatory capture are called "captured agencies".

Source: https://en.wikipedia.org/wiki/Regulatory_capture

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