, regulatory capture
(also client politics
) is a corruption
of authority that occurs when a political entity, policymaker
, or regulatory agency
is co-opted to serve the commercial, ideological, or political interests of a minor constituency, such as a particular geographic area, industry, profession, or ideological group.
When regulatory capture occurs, a special interest is prioritized over the general interests of the public, leading to a net loss for society. Government agencies
suffering regulatory capture are called "captured agencies." The theory of client politics
is related to that of rent-seeking
and political failure
; client politics "occurs when most or all of the benefits of a program go to some single, reasonably small interest (e.g., industry
, profession, or locality) but most or all of the costs will be borne by a large number of people (for example, all taxpayers
Interstate Commerce Commission (ICC) as Barrier-to-Competition: Applications-to-Operate vs In-Operation
For public choice theorists
, regulatory capture occurs because groups or individuals with a high-stakes interest in the outcome of policy or regulatory decisions can be expected to focus their resources and energies in attempting to gain the policy outcomes they prefer, while members of the public, each with only a tiny individual stake in the outcome, will ignore it altogether.
Regulatory capture refers to the actions by interest groups
when this imbalance of focused resources devoted to a particular policy outcome is successful at "capturing" influence with the staff or commission members of the regulatory agency, so that the preferred policy outcomes of the special interest groups are implemented.
... as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit... We propose the general hypothesis: every industry or occupation that has enough political power to utilize the state will seek to control entry. In addition, the regulatory policy will often be so fashioned as to retard the rate of growth of new firms.
-- The Theory of Economic Regulation
, George Stigler
Regulatory capture theory is a core focus of the branch of public choice referred to as the economics of regulation
; economists in this specialty are critical of conceptualizations of governmental regulatory intervention as being motivated to protect public good
. Often cited articles include Bernstein
(1955), Huntington (1952), Laffont & Tirole (1991), and Levine & Forrence (1990). The theory of regulatory capture is associated with Nobel
laureate economist George Stigler
one of its major developers.
Likelihood of regulatory capture is a risk to which an agency is exposed by its very nature.
This suggests that a regulatory agency should be protected from outside influence as much as possible. Alternatively, it may be better to not create a given agency at all lest the agency become victim, in which case it may serve its regulated subjects rather than those whom the agency was designed to protect. A captured regulatory agency is often worse than no regulation, because it wields the authority of government. However, increased transparency of the agency may mitigate the effects of capture. Recent evidence suggests that, even in mature democracies with high levels of transparency and media freedom, more extensive and complex regulatory environments are associated with higher levels of corruption (including regulatory capture).
Relationship with federalism
There is substantial academic literature suggesting that smaller government units are easier for small, concentrated industries to capture than large ones. For example, a group of states or provinces with a large timber industry might have their legislature and/or their delegation to the national legislature captured by lumber companies. These states or provinces then becomes the voice of the industry, even to the point of blocking national policies that would be preferred by the majority across the whole federation
. Moore and Giovinazzo (2012) call this "distortion gap".
The opposite scenario is possible with very large industries, however. Very large and powerful industries (e.g. energy, banking, weapon system construction
) can capture national governments, and then use that power to block policies at the federal, state or provincial level that the voters may want,
although even local interests can thwart national priorities.
The idea of regulatory capture has an economic basis: vested interests in an industry have the greatest financial stake in regulatory activity of any social agent and are thus more likely to be moved to influence the regulatory body than relatively dispersed individual consumers,
each of whom has little particular incentive to try to influence regulators. When regulators form expert bodies to examine policy, these invariably feature current or former industry members, or at the very least, individuals with lives and contacts in the industry to be reviewed. Capture is also facilitated in situations where consumers or taxpayers have a poor understanding of underlying issues and businesses enjoy a knowledge advantage.
Some economists, such as Jon Hanson and his co-authors, argue that the phenomenon extends beyond just political agencies and organizations. Businesses have an incentive to control anything that has power over them, including institutions from the media, academia and popular culture, thus they will try to capture them as well. This phenomenon is called "deep capture".
Regulatory public interest is based on market failure and welfare economics. It holds that regulation is the response of the government to public needs. Its purpose is to make up for market failures, improve the efficiency of resource allocation, and maximize social welfare. Posner pointed out that the public interest theory
contains the assumption that the market is fragile, and that if left unchecked, it will tend to be unfair and inefficient, and government regulation is a costless and effective way to meet the needs of social justice and efficiency. Mimik believes that government regulation is a public administration policy that focuses on private behavior. It is a rule drawn from the public interest. Irving and Brouhingan saw regulation as a way of obeying public needs and weakening the risk of market operations. It also expressed the view that regulation reflects the public interest.
The review of the United States' history of regulation at the end of the 19th century,[clarification needed]
especially the regulation of railway tariffs by the Interstate Commerce Commission (ICC) in 1887, revealed that regulations and market failures are not co-relevant. At least until the 1960s, in terms of regulatory experience, regulation was developed in the direction of favoring producers, and regulation increased the profits of manufacturers within the industry. In potentially competitive industries such as the trucking industry and the taxi industry, regulations allow pricing to be higher than cost and prevent entrants. In the natural monopoly industries such as the electric power industry, there are facts that regulation has little effect on prices, so the industry can earn profits above normal profits. Empirical evidence proves that regulation is beneficial to producers.
These empirical observations have led to the emergence and development of regulatory capture theory. Contrary to regulatory public interest theory, regulation capture theory holds that the provision of regulation is adapting to the industry's need for regulation, that is, the legislator is controlled and captured by the industry in regulation, and the regulation institution is gradually controlled by the industry. That is, the regulator is captured by the industry. The basic view of the regulatory capture theory is that no matter how the regulatory scheme is designed, the regulation of an industry by a regulatory agency is actually "captured" by the industry. The implication is that regulation increases the profits of the industry rather than social welfare.
The above-mentioned regulatory capture theory is essentially a purely capture theory in the early days, that is, the regulators and legislators were captured and controlled by the industry. The later regulatory models, such as those by Stigler, Pelzmann, or Becker, belong to the regulatory capture theory in the eyes of Posner (1974) and others. Because these models all reflect that regulators and legislators are not pursuing the maximization of public interests, but the maximization of private interests, that is, using "private interest" theory to explain the origin and purpose of regulation. Aton (1986) argues that Stigler's theoretical logic is clear and more central than the previous "capture theory" hypothesis, but it is difficult to distinguish between the two.
Regulatory capture theory has a specific meaning, that is, an experience statement that regulations are beneficial for producers in real life. In fact, it is essentially not a true regulatory theory. Although the analysis results are similar to the Stigler model provide interpretation and support for the regulatory capture theory is beneficial for producers, however the analysis methods of the latter are completely different. Stigler used standard economic analysis methods to analyze the regulation behavior, then created a new regulatory theory—regulatory economic theory. Of course, different divisions depend on the criteria for division, and they essentially depend on the researchers' different understanding of specific concepts.
There are two basic types of regulatory capture:
- Materialist capture, also called financial capture, in which the captured regulator's motive is based on its material self-interest. This can result from bribery, revolving doors, political donations, or the regulator's desire to maintain its government funding. These forms of capture often amount to political corruption.
- Non-materialist capture, also called cognitive capture or cultural capture, in which the regulator begins to think like the regulated industry. This can result from interest-groups lobbying by the industry. Highly specialized technical industries can be at risk of cultural capture, because the regulating agency typically needs to employ experts in the regulated area, and the pool of such experts typically consists largely of existing or former employees from the regulated industry.
Another distinction can be made between capture retained by big firms and by small firms.
While Stigler mainly referred, in his work,
to large firms capturing regulators by bartering their vast resources (materialist capture) – small firms are more prone to retain non-materialist capture via a special underdog rhetoric.
Personal protective equipment for motorcyclists
The European Union introduced much lower standards for the personal protective equipment of motorcyclists in 2018. The new standard for motorcycle clothing was called EN 17092, 
and a similarly lower standard for motorcycle gloves was also introduced. Lower standards were brought in under pressure from some manufacturers, who claimed it was too expensive to create garments to the original higher standards. The new standards for clothing are - in increasing order of protection - A, AA, and AAA. The A standard sets the protection bar very low. 
The original standard for motorcycle gloves was replaced by Level 1 and Level 2, with Level 1 gloves offering only the most basic protection. Level 2 gloves offer significantly better protection, but most manufacturers do not make Level 2 gloves because it is not a legal requirement. The original CE mark was based on a standard devised at the University of Cambridge. Thus, it is sometimes referred to as the "Cambridge Standard" for motorcycle clothing. Paul Varnsverry, one of the world's leading experts in protective clothing for motorcyclists, publicly stated that materials that are sufficiently abrasion-resistant are barely more expensive than the less protective materials in current use, and the cost difference is negligible compared to advertising budgets.
Under the new EU legislation, the lowest standard is an A-rating. Chris Hurren 
from Australia's Deakin University tested garments with CE Class A certification. He found that regular denim jeans can pass the impact abrasion test for an A-rating. Thus, casual clothing could be certified as motorcycle protective equipment under the new EN 17092 standard.
United States examples
Bureau of Ocean Energy Management, Regulation and Enforcement
The three-stage reorganization, including the name change to BOEMRE, was part of a re-organization by Ken Salazar
who was sworn into office as the new Secretary of the Interior
on the same day the name change was announced.
Salazar's appointment was controversial because of his ties to the energy industry.
As a senator, Salazar voted against an amendment to repeal tax breaks for ExxonMobil
and other major petroleum
and in 2006, he voted to end protections that limit offshore oil drilling
One of Salazar's immediate tasks was to "[end] the department's
coziness with the industries it regulates"
but Daniel R. Patterson, a member of the Arizona House of Representatives
, said "Salazar has a disturbingly weak conservation record, particularly on energy development, global warming, endangered wildlife and protecting scientific integrity. It's no surprise oil and gas, mining, agribusiness and other polluting industries that have dominated Interior are supporting rancher Salazar – he's their friend."
Indeed, a spokesman for the National Mining Association
, which lobbies for the mining industry, praised Salazar, saying that he was not doctrinaire about the use of public lands
MMS had allowed BP
and dozens of other companies to drill in the Gulf of Mexico
without first attaining permits to assess threats to endangered species
, as required by law.
BP and other companies were also given a blanket exemption (categorical exclusion
from having to provide environmental impact statements.
The National Oceanic and Atmospheric Administration
(NOAA) issued strong warnings about the risks posed by such drilling and in a 2009 letter, accused MMS of understating the likelihood and potential consequences of a major spill in the Gulf of Mexico.
The letter further accused MMS of highlighting the safety of offshore drilling
while understating the risks and impact of spills and playing down the fact that spills had been increasing.
Both current and former MMS staff scientists said their reports were overruled and altered if they found high risk of accident or environmental impact.
Kieran Suckling, director of the Center for Biological Diversity
, said, "MMS has given up any pretense of regulating the offshore oil industry. The agency seems to think its mission is to help the oil industry evade environmental laws."
After the Deepwater accident occurred, Salazar said he would delay granting any further drilling permits. Three weeks later, at least five more permits had been issued by the minerals agency.
In March 2011, BOEMRE began issuing more offshore drilling permits in the Gulf of Mexico. Michael Bromwich
, head of BOEMRE, said he was disturbed by the speed at which some oil and gas companies were shrugging off Deepwater Horizon as "a complete aberration, a perfect storm, one in a million," but would nonetheless soon be granting more permits to drill for oil and gas in the gulf.
Commodity Futures Trading Commission
In October 2010, George H. Painter, one of the two Commodity Futures Trading Commission
(CFTC) administrative law judges
, retired, and in the process requested that his cases not be assigned to the other judge, Bruce C. Levine.
Painter wrote, "On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm
, then Chairwoman of the Commission, that we would never rule in a complainant's favor," Painter wrote.
"A review of his rulings will confirm that he fulfilled his vow." In further explaining his request, he wrote, "Judge Levine, in the cynical guise of enforcing the rules, forces pro se complainants to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case."
Gramm, wife of former Senator Phil Gramm
, was accused of helping Goldman Sachs
and other large firms gain influence over the commodity markets
. After leaving the CFTC, Wendy Gramm joined the board of Enron.
Environmental Protection Agency
drilling increased in the United States after the Environmental Protection Agency
(EPA) said in 2004 that hydraulic fracturing
"posed little or no threat" to drinking water
Also known as "fracking", the process was invented by Halliburton
in the 1940s.
In 2011, whistleblower
Weston Wilson said that the EPA's conclusions were "unsupportable" and that five of the seven-member review panel that made the decision had conflicts of interest
A New York Times
editorial said the 2004 study "whitewashed the industry and was dismissed by experts as superficial and politically motivated."
The EPA is currently prohibited by law from regulating fracking, the result of the "Halliburton loophole", a clause added to the 2005 energy bill at the request of vice president Dick Cheney
, who was CEO
of Halliburton before becoming vice president.
Legislation to close the loophole and restore the EPA's authority to regulate hydraulic fracturing was introduced in 2009, but did not pass in the 111th Congress
Federal Aviation Administration
Since the Federal Aviation Administration
(FAA) charter was amended in 1996, its sole focus has been the regulation of safety.
A report by the Department of Transportation
found that FAA managers had allowed Southwest Airlines
to fly 46 airplanes in 2006 and 2007 that were overdue for safety inspections, ignoring concerns raised by inspectors. Audits of other airlines resulted in two airlines grounding hundreds of planes, causing thousands of flight cancellations.
The House Transportation and Infrastructure Committee
investigated the matter after two FAA whistleblowers
, inspectors Charalambe "Bobby" Boutris and Douglas E. Peters, contacted them. Boutris said he attempted to ground Southwest after finding cracks in the fuselage
, but was prevented by supervisors he said were friendly with the airline.
The committee subsequently held hearings in April 2008. James Oberstar
, former chairman of the committee said its investigation uncovered a pattern of regulatory abuse and widespread regulatory lapses, allowing 117 aircraft to be operated commercially although not in compliance with FAA safety rules.
Oberstar said there was a "culture of coziness" between senior FAA officials and the airlines and "a systematic breakdown" in the FAA's culture that resulted in "malfeasance, bordering on corruption."
On July 22, 2008, a bill was unanimously approved in the Democrat-controlled House
to tighten regulations concerning airplane maintenance procedures, including the establishment of a whistleblower office and a two-year "cooling off" period that FAA inspectors or supervisors of inspectors must wait before they can work for those they regulated.
The bill also required rotation of principal maintenance inspectors and stipulated that the word "customer" properly applies to the flying public, not those entities regulated by the FAA.
The bill died in the United States Senate Committee on Commerce, Science, and Transportation
In 2008 the FAA proposed to fine Southwest $10.2 million for failing to inspect older planes for cracks,
and in 2009 Southwest and the FAA agreed that Southwest would pay a $7.5 million penalty and would adapt new safety procedures, with the fine doubling if Southwest failed to follow through.
In September 2009, FAA Administrator Randy Babbitt
issued a directive mandating that the agency use the term "customers" only to refer to the flying public.
In a June 2010 article on regulatory capture, the FAA was cited as an example of "old-style" regulatory capture, "in which the airline industry openly dictates to its regulators its governing rules, arranging for not only beneficial regulation but placing key people to head these regulators."
Federal Communications Commission
Legal scholars have pointed to the possibility that federal agencies such as the Federal Communications Commission
(FCC) had been captured by media conglomerates
. Peter Schuck of Yale Law School
has argued that the FCC is subject to capture by the media industries' leaders and therefore reinforce the operation of corporate cartels in a form of "corporate socialism" that serves to "regressively tax consumers, impoverish small firms, inhibit new entry, stifle innovation, and diminish consumer choice".
The FCC selectively granted communications licenses to some radio and television stations in a process that excludes other citizens and little stations from having access to the public.
Michael K. Powell
, who served on the FCC for eight years and was chairman for four, was appointed president and chief executive officer
of the National Cable & Telecommunications Association
, a lobby group, effective April 25, 2011. His role has been the cable industry’s leading advocate, spokesman, and representative in its relationship with the U.S. Congress, the Administration, the FCC, and other federal agencies.
Meredith Attwell Baker
was one of the FCC commissioners who approved a controversial merger between NBC Universal
. Four months later, she announced her resignation from the FCC to join Comcast's Washington, D.C. lobbying office.
Legally, she is prevented from lobbying anyone at the FCC for two years and an agreement made by Comcast with the FCC as a condition of approving the merger will ban her from lobbying any executive branch
agency for life.
Nonetheless, Craig Aaron, of Free Press
, who opposed the merger, complained that "the complete capture of government by industry barely raises any eyebrows" and said public policy would continue to suffer from the "continuously revolving door at the FCC".
In July 2019, congresswomen Elizabeth Warren
and Pramila Jayapal
issued a letter (citing a report by the Project On Government Oversight
) showing concerns for the composition of the FCC's Communications Security, Reliability and Interoperability Council (CSRIC), questioning whether it could effectively serve the public interest if the majority of its members were representatives of the private sector. They wrote that "having the FCC's policy-making process rely on input from individuals employed by, or affiliated with, the corporations that it is tasked with overseeing is the very definition of regulatory capture".
Federal Reserve Bank of New York
The Federal Reserve Bank of New York
(New York Fed) is the most influential of the Federal Reserve Banking System. Part of the New York Fed's responsibilities is the regulation of Wall Street
, but its president is selected by and reports to a board dominated by the chief executives of some of the banks it oversees.
While the New York Fed has always had a closer relationship with Wall Street, during the years that Timothy Geithner
was president, he became unusually close with the scions of Wall Street banks,
a time when banks and hedge funds
were pursuing investment strategies that caused the financial crisis of 2007–2008
, which the Fed failed to stop.
During the crisis, several major banks that were on the verge of collapse were rescued via the Emergency Economic Stabilization Act of 2008
Geithner engineered the New York Fed's purchase of $30 billion of credit default swaps
from American International Group
(AIG), which it had sold to Goldman Sachs
, Merrill Lynch
, Deutsche Bank
and Société Générale
. By purchasing these contracts, the banks received a "back-door bailout" of 100 cents on the dollar for the contracts.
Had the New York Fed allowed AIG to fail, the contracts would have been worth much less, resulting in much lower costs for any taxpayer-funded bailout.
Geithner defended his use
of unprecedented amounts of taxpayer funds to save the banks from their own mistakes,
saying the financial system would have been threatened. At the January 2010 congressional hearing into the AIG bailout, the New York Fed initially refused to identify the counterparties
that benefited from AIG's bailout, claiming the information would harm AIG.
When it became apparent this information would become public, a legal staffer at the New York Fed e-mailed colleagues to warn them, lamenting the difficulty of continuing to keep Congress in the dark. Jim Rickards
calls the bailout a crime and says "the regulatory system has become captive to the banks and the non-banks".
Interstate Commerce Commission
Historians, political scientists, and economists have often used the Interstate Commerce Commission
(ICC), a now-defunct federal regulatory body in the United States, as a classic example of regulatory capture. The creation of the ICC was the result of widespread and longstanding anti-railroad agitation. Richard Olney
, a prominent railroad lawyer, was asked by a railroad president if he could do something to get rid of the ICC.
Olney, who later was appointed Attorney General
in the Grover Cleveland
administration, replied in an 1892 letter,
The Commission… is, or can be made, of great use to the railroads. It satisfies the popular clamor for a government supervision of the railroads, at the same time that supervision is almost entirely nominal. Further, the older such a commission gets to be, the more inclined it will be found to take the business and railroad view of things.… The part of wisdom is not to destroy the Commission, but to utilize it.
Nuclear Regulatory Commission
Nuclear power is a textbook example of the problem of "regulatory capture"—in which an industry gains control of an agency meant to regulate it. Regulatory capture can be countered only by vigorous public scrutiny and Congressional oversight, but in the 32 years since Three Mile Island, interest in nuclear regulation has declined precipitously.
Then-candidate Barack Obama
said in 2007 that the five-member NRC had become "captive of the industries that it regulates" and Joe Biden indicated he had absolutely no confidence in the agency.
The NRC has given a license to "every single reactor requesting one", according to Greenpeace USA
nuclear policy analyst Jim Riccio to refer to the agency approval process as a "rubber stamp".
In Vermont, ten days after the 2011 Tōhoku earthquake and tsunami
that damaged Japan's Daiichi plant
, the NRC approved a 20-year extension for the license of Vermont Yankee Nuclear Power Plant
, although the Vermont state legislature
had voted overwhelmingly to deny such an extension.
The Vermont plant uses the same GE Mark 1 reactor design
as the Fukushima Daiichi plant.
The plant had been found to be leaking radioactive
materials through a network of underground pipes, which Entergy
, the company running the plant, had denied under oath
even existed. Representative Tony Klein, who chaired the Vermont House
Natural Resources and Energy Committee, said that when he asked the NRC about the pipes at a hearing in 2009, the NRC didn't know about their existence, much less that they were leaking.
On March 17, 2011, the Union of Concerned Scientists
(UCS) released a study critical of the NRC's 2010 performance as a regulator. The UCS said that through the years, it had found the NRC's enforcement of safety rules has not been "timely, consistent, or effective" and it cited 14 "near-misses" at U.S. plants in 2010 alone.
Tyson Slocum, an energy expert at Public Citizen
said the nuclear industry has "embedded itself in the political establishment" through "reliable friends from George Bush to Barack Obama", that the government "has really just become cheerleaders for the industry."
Although the exception, there have been instances of a revolving door
. Jeffrey Merrifield, who was on the NRC from 1997 to 2008 and was appointed by presidents Clinton
, left the NRC to take an executive position at The Shaw Group
which has a nuclear division regulated by the NRC.[note 1]
However, most former commissioners return to academia or public service in other agencies.
A year-long Associated Press
(AP) investigation showed that the NRC, working with the industry, has relaxed regulations so that aging reactors can remain in operation.
The AP found that wear and tear of plants, such as clogged lines, cracked parts, leaky seals, rust and other deterioration resulted in 26 alerts about emerging safety problems and may have been a factor in 113 of the 226 alerts issued by the NRC between 2005 and June 2011.
The NRC repeatedly granted the industry permission to delay repairs and problems often grew worse before they were fixed.[note 2]
However, a paper by Stanford University economics professors John B. Taylor and Frank A. Wolak compared the financial services and nuclear industries. While acknowledging both are susceptible in principle to regulatory capture, they concluded regulatory failure – including through regulatory capture – has been much more of a problem in the financial industry and even suggested the financial industry create an analog to the Institute of Nuclear Power Operations
to reduce regulatory risk.
Office of the Comptroller of the Currency
Securities and Exchange Commission
Similarly in the case of the Allen Stanford Ponzi scheme
, there were repeated warnings of fraud from both inside and outside the SEC for more than a decade.
But the agency did not stop the fraud until 2009, after the Madoff scandal became public in 2008.
Reporter Matt Taibbi
calls the SEC a classic case of regulatory capture. On August 17, 2011, Taibbi reported that in July 2001, a preliminary fraud investigation against Deutsche Bank
was stymied by Richard H. Walker
, then SEC enforcement director, who began working as general counsel for Deutsche Bank in October 2001. Darcy Flynn
, an SEC lawyer, the whistleblower who exposed this case also revealed that for 20 years, the SEC had been routinely destroying all documents related to thousands of preliminary inquiries that were closed rather than proceeding to formal investigation. The SEC is legally required to keep files for 25 years and destruction is supposed to be done by the National Archives and Records Administration
. The lack of files deprives investigators of possible background when investigating cases involving those firms. Documents were destroyed for inquiries into Bernard Madoff
, Goldman Sachs
, Lehman Brothers
, Bank of America
and other major Wall Street firms that played key roles in the 2008 financial crisis
. The SEC has since changed its policy on destroying those documents and as of August 2011 the SEC investigator general was investigating the matter.
Federal Trade Commission
The decision known as In re Amway Corp.
, and popularly called "Amway '79", made the FTC a captive regulator of the nascent multi-Level marketing industry. The situation came to a head in December 2012, when hedge fund Pershing Square Capital management announced a $1-billion short position against the company, and evidently expected the FTC to act, which, to date, it has not. From a forensic accounting standpoint, there is no difference between a Ponzi-scheme like the Madoff scandal, and a pyramid scheme
, except that in the latter the money is laundered through product sales, not investment.
The press has widely reported on why the FTC won't act, e.g. Forbes
though legal opinion has been very supportive in some quarters, such as William K. Black, who was instrumental in bringing thousands of criminal prosecutions in the S&L scandal, which was also rife with problems of regulatory capture.
District of Columbia Taxicab Commission
The District of Columbia Taxicab Commission has been criticized
for being beholden to taxi companies and drivers rather than ensuring that the district has access to a "safe, comfortable, efficient and affordable taxicab experience in well-equipped vehicles".
Washington State Liquor Control Board and I-502
Some commentators have acknowledged that while Washington Initiative 502
"legalized" marijuana, it did so in a manner that led to a state-run monopoly on legal marijuana stores with prices far above that of the existing medical dispensaries,
which the State is now trying to close down in favor of the recreational stores, where prices are two to five times higher than the product can be obtained elsewhere.
Canadian Radio-television and Telecommunications Commission
In Japan, the line may be blurred between the goal of solving a problem and the different goal of making it look as if the problem is being addressed.
Nuclear and Industrial Safety Agency
Nuclear opponent Eisaku Sato
, governor of Fukushima Prefecture
from 1988–2006, said a conflict of interest is responsible for NISA's lack of effectiveness as a watchdog.
The agency is under the Ministry of Economy, Trade and Industry
, which encourages the development of Japan's nuclear industry. Inadequate inspections are reviewed by expert panels drawn primarily from academia and rarely challenge the agency.
Critics say the main weakness in Japan's nuclear industry is weak oversight.Seismologist Takashi Nakata
said, "The regulators just rubber-stamp the utilities' reports."
Both the ministry and the agency have ties with nuclear plant operators, such as Tokyo Electric
. Some former ministry officials have been offered lucrative jobs in a practice called amakudari
, "descent from heaven".
A panel responsible for re-writing Japan's nuclear safety rules was dominated by experts and advisers from utility companies, said seismology professor Katsuhiko Ishibashi
who quit the panel in protest, saying it was rigged and "unscientific".
The new guidelines, established in 2006, did not set stringent industry-wide earthquake
standards, rather nuclear plant operators were left to do their own inspections to ensure their plants were compliant.
In 2008, the NISA found all of Japan's reactors to be in compliance with the new earthquake guidelines.
helped write Japan's nuclear safety rules, later conducted inspections and still in another position at another date, served on a licensing panel, signing off on inspections.
Ministry of Health, Labour and Welfare (MHLW)
Although warned about HIV contamination of blood products imported from the U.S., the ministry abruptly changed its position on heated and unheated blood products from the U.S., protecting the Green Cross
and the Japanese pharmaceutical industry
, keeping the Japanese market from being inundated with heat-treated blood from the United States.
Because the unheated blood was not taken off the market, 400 people died and over 3,000 people were infected with HIV.
No senior officials were indicted and only one lower-level manager was indicted and convicted.
Critics say the major task of the ministry is the protection of industry, rather than of the population.
In addition, bureaucrats get amakudari
jobs at related industries in their field upon retirement, a system which serves to inhibit regulators.
Moriyo Kimura, a critic who works at MHLW, says the ministry does not look after the interests of the public.
in the Philippines is largely vested in the Inter-Agency Committee on Tobacco (IACT) under Republic Act No. 9211 (Tobacco Regulation Act of 2003).
The IACT's membership includes pro-tobacco groups in the Department of Agriculture
and National Tobacco Administration,
as well as "a representative from the Tobacco Industry to be nominated by the legitimate and recognized associations of the industry," the Philippine Tobacco Institute
(composed of the largest local cigarette producers and distributors).
In a 2015 Philippine Supreme Court case, the Court ruled that the IACT as the "exclusive authority" in regulating various aspects tobacco control including access restrictions and tobacco advertisement, promotion, and sponsorships. In this case, the Department of Health
, which is the primary technical agency for disease control and prevention, was held to be without authority to create tobacco control regulations unless the IACT delegates this function.
The IACT's organization also limits the Philippines' enforcement of the World Health Organization Framework Convention on Tobacco Control
World Trade Organization
Other American groups promoting transparency
- ^ Pete Domenici, a former U.S. senator now promotes nuclear energy. Over the course of his 20 years in government, he received $1.25 million in political contributions connected with the energy sector. From 2000 to 2010, the nuclear industry and people who work in it, contributed $4.6 million to members of Congress, in addition to the $54 million spent by electric utilities, trade groups and other supporters to hire lobbyists, including some former members of Congress. (See Eric Lichtblau, "Lobbyists' Long Effort to Revive Nuclear Industry Faces New Test" The New York Times (March 24, 2011)
- ^ According to the AP, of the United States' 104 operating nuclear power plants, 82 are over 25 years old, the NRC has re-licensed 66 for 20 additional years and another 16 renewal applications are under review.
- ^ Dal Bó, Ernesto (2006). "Regulatory capture: A review". Oxford Review of Economic Policy. 22 (2): 203–225. doi:10.1093/oxrep/grj013.
- ^ Regulatory Capture Definition, Investopedia, archived from the original on October 3, 2015, retrieved October 2, 2015
- ^ Wilson, James (2000). Bureaucracy : what government agencies do and why they do it. New York: Basic Books. ISBN 0465007856.
- ^ a b Timothy B. Lee, "Entangling the Web"Archived 2018-07-06 at the Wayback MachineThe New York Times (August 3, 2006). Retrieved April 1, 2011
- ^ Stigler, George (1915). "The Theory of Economic Regulation" (PDF). Bell Journal of Economics and Management Science, (Spring, 1971). 2 (1): 3–21. CiteSeerX 10.1.1.178.6588. doi:10.2307/3003160. JSTOR 3003160. Archived (PDF) from the original on 2017-09-18. Retrieved 2017-07-26.
- ^ Regulatory Capture 101: Impressionable journalists finally meet George Stigler, Wall Street Journal, October 6, 2014, archived from the original on October 18, 2014, retrieved March 14, 2017
- ^ Edmund Amann (Ed.), Regulating Development: Evidence from Africa and Latin America Archived 2016-12-12 at the Wayback Machine Google Books. Edward Elgar Publishing (2006), p. 14. ISBN 978-1-84542-499-2. Retrieved April 14, 2011
- ^ Gary Adams, Sharon Hayes, Stuart Weierter and John Boyd, "Regulatory Capture: Managing the Risk" Archived 2011-07-20 at the Wayback Machine ICE Australia, International Conferences and Events (PDF) (October 24, 2007). Retrieved April 14, 2011
- ^ Hamilton, Alexander (2013), Small is beautiful, at least in high-income democracies: the distribution of policy-making responsibility, electoral accountability, and incentives for rent extraction  Archived 2016-06-07 at the Wayback Machine, World Bank.
- ^ T. Moore, Ryan; T. Giovinazzo, Christopher (5 April 2011). "The Distortion Gap: Policymaking under Federalism and Interest Group Capture". Publius. 42 (2): 189–210. doi:10.1093/publius/pjr037. JSTOR 41441079. Archived from the original on 30 October 2020. Retrieved 17 May 2018 – via ResearchGate.
- ^ Richter, Wolf (February 21, 2013). "The Military Industrial Complex Is Too Strong Is Too Many States". Archived from the original on 2017-08-08. Retrieved 2017-08-08. Senate Budget Committee Chairwoman Patty Murray, an "anti-war Democratic senator from Washington State" who "voted against the Iraq war resolution and subsequent troop surges." She's spearheading the Senate's efforts to bring the budget in line. Until it gets to Boeing... "Champion for the Boeing Co.," is how Boeing spokesman Doug Kennett endorsed her during her reelection campaign in 2010.
- ^ Savage, Charlie (February 6, 2017). "As Trump Vows Building Splurge, Famed Traffic Choke Point Offers Warning". The New York Times. Archived from the original on 2020-10-30. Retrieved 2017-08-14. Millions of people who travel between the Mid-Atlantic and the Midwest each year fight through Breezewood, Pa., a strange gap in the Interstate System... no ramps join [I-70 and the Pennsylvania Turnpike] at their crossing. Instead, drivers travel... blocks with traffic lights and dense bazaar of gas stations, fast-food restaurants and motels... [In order] for a bypass to be considered, essentially Breezewood's own Bedford County must propose it... "It's just not an issue that really appears on the radar for us," said Donald Schwartz, the Bedford County planning director.
- ^ "Thin Political Markets: The Soft Underbelly of Capitalism". cmr.berkeley.edu. Archived from the original on 27 February 2018. Retrieved 17 May 2018.
- ^ Hanson, Jon; Yosifon, David G. (2003). "The Situation: An Introduction to the Situational Character, Critical Realism, Power Economics, and Deep Capture" (PDF). University of Pennsylvania Law Review. 152 (1): 129–346. doi:10.2307/3313062. JSTOR 3313062. S2CID 145110508.
- ^ Carpenter, Daniel; Moss, David A. (2014). "Preventing Regulatory Capture" (PDF). Cambridge University Press. Archived (PDF) from the original on July 16, 2015. Retrieved May 22, 2015.
- ^ Engstrom, David Freeman. "Corralling Capture" (PDF). Harvard Journal of Law & Public Policy. Archived (PDF) from the original on October 30, 2020. Retrieved May 22, 2015.
- ^ a b Yadin, Sharon (2015). "Too Small to Fail: State Bailouts and Capture by Industry Underdogs". 43 Capital University Law Review 889. Archived from the original on 2016-06-18.
- ^ Stigler, George (1971). "The Theory of Economic Regulation" (PDF). 2 Bell J. Econ. & MGMT. Sci. 2 (1): 3–21. doi:10.2307/3003160. JSTOR 3003160. Archived from the original(PDF) on 2019-02-25.
- ^ " EN 17092-2 Protective garments for motorcycle riders"
- ^ "How much protection does the new CE standard offer?"
- ^ "Deakin University - Christopher Hurren"
- ^ Thomas Frank, "Obama and 'Regulatory Capture'" The Wall Street Journal (June 24, 2010). Retrieved April 5, 2011
- ^ O'Driscoll, Gerald (12 June 2010). "The Gulf Spill, the Financial Crisis and Government Failure". The Wall Street Journal.
- ^ a b Keith B. Hall, "BOEMRE splits -- becomes BSEE and BOEM" Archived 2011-12-11 at the Wayback Machine Oil & Gas Law Brief (October 4, 2011). Retrieved February 17, 2012
- ^ "Salazar Swears-In Michael R. Bromwich to Lead Bureau of Ocean Energy Management, Regulation and Enforcement" Archived June 26, 2010, at the Wayback Machine Bureau of Ocean Energy Management, Regulation and Enforcement (June 21, 2010). Retrieved April 8, 2011
- ^ a b c d John M. Broder, "Environmentalists Wary of Obama's Interior Pick" The New York Times (December 17, 2008). Retrieved April 8, 2011
- ^ "2005 "National Environmental Scorecard"Archived 2008-12-19 at the Wayback Machine (PDF) League of Conservation Voters
- ^ "2006 National Environmental Scorecard"Archived 2008-12-18 at the Wayback Machine (PDF) League of Conservation Voters
- ^ a b c d e f g Ian Urbina, "U.S. Said to Allow Drilling Without Needed Permits" The New York Times (May 13, 2010). Retrieved April 8, 2011
- ^ Lopez, Jaclyn. "BP's Well Evaded Environmental Review: Categorical Exclusion Policy Remains Unchanged." Ecology L. Currents 37 (2010): 1.
- ^ a b Ryan Dezember, "U.S. to Issue More Gulf Drilling Permits" The Wall Street Journal (March 22, 2011). Retrieved April 8, 2011
- ^ a b c d David S. Hilzenrath, "Commodity Futures Trading Commission judge says colleague biased against complainants" The Washington Post (October 19, 2010). Retrieved May 4, 2011
- ^ a b c Barry Estabrook, "How gas drilling contaminates your food" Salon.com (May 18, 2011). Retrieved May 19, 2011
- ^ a b c NYT editorial: "The Halliburton Loophole"The New York Times (November 2, 2009). Retrieved May 19, 2011
- ^ "H.R. 1084: Fracturing Responsibility and Awareness of Chemicals Act of 2011" govtrack.us Retrieved May 19, 2011
- ^ "S. 1215: Fracturing Responsibility and Awareness of Chemicals (FRAC) Act" govtrack.us Retrieved May 19, 2011
- ^ a b c Paul Lowe, "Bill proposes distance between airlines and FAA regulators" AINonline.com (September 1, 2008). Retrieved April 11, 2011
- ^ a b c Johanna Neuman, "FAA's 'culture of coziness' targeted in airline safety hearing" Los Angeles Times (April 3, 2008). Retrieved April 11, 2011
- ^ Library of Congress, Thomas Official Website Bill Summary & Status 110th Congress (2007 - 2008) H.R.6493
- ^ Library of Congress, Thomas Official Website Bill Summary & Status 110th Congress (2007 - 2008) S.3440
- ^ David Koenig, "Southwest Airlines faces $10.2 million fine" Mail Tribune, Associated Press (March 6, 2008). Retrieved April 11, 2011
- ^ John Hughes for Bloomberg News. March 2, 2009. Southwest Air Agrees to $7.5 Million Fine, FAA Says (Update2)
- ^ "FAA will stop calling airlines 'customers'" Reuters, USA Today (September 18, 2009). Retrieved October 17, 2009
- ^ Roger A. Arnold, Economics Google Books. Thomson South-Western, 8th edition (2008) p. 497. ISBN 978-0-324-53801-4. Retrieved April 12, 2011
- ^ Lori Alden, "Why are some firms more profitable than others?" econoclass.com (2007). Retrieved April 12, 2011
- ^ Steven M. Davidoff, "The Government's Elite and Regulatory Capture" The New York Times (June 11, 2010). Retrieved April 11, 2011
- ^ Olive, David (March 31, 2019). "Boeing 737 Max raises questions about plane safety process". Toronto Star.
- ^ Travis, Hannibal (2007). "Of Blogs, eBooks, and Broadband: Access to Digital Media as a First Amendment Right". Hofstra Law Review, Vol. 35, p. 148. President and Trustees of Hofstra University in Long Island, New York, quoting Peter H. Shuck, The Politics of Regulation, 90 YALE L.J. 702, 707-10 (1981) (book review). SSRN 1025474.
- ^ Travis, Hannibal (2007). "Of Blogs, eBooks, and Broadband: Access to Digital Media as a First Amendment Right". Hofstra Law Review, Vol. 35, p. 152. President and Trustees of Hofstra University in Long Island, New York, citing Red Lion Broad. Co. v. FCC, 395 U.S. 367, 389, 396 (1969). SSRN 1025474.
- ^ "Regulatory Capture in Action" Robert Paterson, blog (March 15, 2011). Retrieved April 12, 2011
- ^ a b c Edward Wyatt, "F.C.C. Commissioner Leaving to Join Comcast" The New York Times (May 11, 2011). Retrieved May 12, 2011
- ^ Neidig, Harper (2019-07-01). "Warren, Jayapal question FCC over industry's influence". TheHill. Retrieved 2019-07-22.
- ^ a b c d Jo Becker and Gretchen Morgenson, "Geithner, Member and Overseer of Finance Club" The New York Times (April 26, 2009). Retrieved April 11, 2011
- ^ a b c d e David Reilly, "Secret Banking Cabal Emerges From AIG Shadows" Bloomberg (January 29, 2010). Retrieved April 11, 2011
- ^ Eric King, Part II, Interview with Jim RickardsArchived 2011-03-03 at the Wayback Machine King World News (December 7, 2010). Retrieved May 14, 2011
- ^ a b Bernstein, Marver H. (1955). Regulating Business by Independent Commission. Princeton University Press. p. 265. ISBN 9781400878789. Letter by Richard Olney to Charles Perkins, President, Chicago, Burlington & Quincy Railroad, December 28, 1892.
- ^ Katie McCabe (15 May 2011). "Making History in a Segregated Washington: By Dovey Johnson Roundtree and her 45 year Fight for Justice"(PDF). XLII (I). Journal of the Bar Association of the District of Columbia: 84. Archived from the original (PDF) on January 5, 2012.
- ^ http://www.thecapitalnews.com/building-the-beloved-community-the-roundtree-residences
- ^ Frank Von Hippel (March 23, 2011). "It Could Happen Here". New York Times.
- ^ Justin Elliott, "Ex-regulator flacking for pro-nuke lobby" Salon.com (March 17, 2011). Retrieved March 18, 2011
- ^ a b c d e Kate Sheppard, "Is the Government's Nuclear Regulator Up to the Job?" Mother Jones (March 17, 2011). Retrieved March 18, 2011
- ^ "Vermont Yankee Nuclear Power Station-License Renewal" NRC, official website. Retrieved April 04, 2011
- ^ Jia Lynn Yang, "Democrats step up pressure on nuclear regulators over disaster preparedness"The Washington Post (March 18, 2011). Retrieved March 19, 2011
- ^ Eric Lichtblau, "Lobbyists' Long Effort to Revive Nuclear Industry Faces New Test" The New York Times (March 24, 2011). Retrieved March 25, 2011
- ^ a b c Jeff Donn, "U.S. nuclear regulators weaken safety rules" Salon.com (June 20, 2011). Retrieved June 20, 2011
- ^ http://web.stanford.edu/~johntayl/Drell-Shultz_NuclearEnterprise_ch13.pdf
- ^ Joe Nocera, "An Advocate Who Scares Republicans" The New York Times (March 18, 2011). Retrieved March 19, 2011
- ^ Matt Taibbi, "Why Isn't Wall Street in Jail?"Rolling Stone (February 16, 2011). Retrieved March 3, 2011
- ^ "Madoff Whistleblower Markopolos Blasts SEC" Bloomberg News (June 5, 2009). Retrieved March 29, 2011
- ^ Chidem Kurdas "Political Sticky Wicket: The Untouchable Ponzi Scheme of Allen Stanford"
- ^ "Gary J. Aguirre v. Securities and Exchange Commission, Civil Action No. 06-1260 (ESH)"United States District Court for the District of Columbia (April 28, 2008). Google Scholar. Retrieved March 1, 2011
- ^ a b "Pequot Capital and Its Chief Agree to Settle S.E.C. Suit for $28 Million" The New York Times (May 27, 2010). Retrieved March 4, 2011
- ^ a b "SEC Settles with Aguirre" Government Accountability Project (June 29, 2010) Retrieved February 21, 2011
- ^ "SEC Charges Pequot Capital Management and CEO Arthur Samberg With Insider Trading" U.S. Securities and Exchange Commission press release (May 27, 2010). Retrieved March 3, 2011
- ^ Gretchen Morgenson, "SEC Settles With a Former Lawyer" The New York Times (June 29, 2010). Retrieved February 21, 2011
- ^ "Robert Khuzami Named SEC Director of Enforcement" U.S. Securities and Exchange Commission Press Release (February 19, 2009) Retrieved January 9, 2011
- ^ Kara Scannell, "Davis Polk Recruits Ex-SEC Aide" The Wall Street Journal (April 13, 2009) Retrieved February 26, 2011
- ^ "Deutsche Bank Hires Former S.E.C. Official"The New York Times (October 2, 2001). Retrieved March 4, 2011
- ^ Reed Abelson, "Gary Lynch, Defender of Companies, Has His Critics" The New York Times (September 3, 1996). Retrieved March 4, 2011
- ^ Walt Bogdanich and Gretchen Morgenson, "S.E.C. Inquiry on Hedge Fund Draws Scrutiny"The New York Times (October 22, 2006) Retrieved March 4, 2011
- ^ a b Suzanne Barlyn, "DJ Compliance Watch: SEC Plan To Catch Big Fish Questioned" Dow Jones Newswire (May 16, 2011). Retrieved May 23, 2011
- ^ a b "Revolving Regulators: SEC Faces Ethic Challenges with Revolving Door" Project on Government Oversight (May 13, 2011). Retrieved May 23, 2011
- ^ Matt Taibbi, "Is the SEC Covering Up Wall Street Crimes?" Rolling Stone (August 17, 2011). Retrieved August 19, 2011
- ^ Edward Wyatt, "S.E.C. Files Were Illegally Destroyed, Lawyer Says" The New York Times (August 17, 2011). Retrieved August 19, 2011
- ^ "Pyramid Schemes & MLM – Fraud Files Forensic Accounting Blog". www.sequenceinc.com. Retrieved 17 May 2018.
- ^ Stroud, Matt. "Why The FTC Won't Take Bill Ackman's Advice To Prosecute Herbalife (Even Though It Should)". Retrieved 17 May 2018.
- ^ "OPINION: Thinking outside the pyramid". Retrieved 17 May 2018.
- ^ Marc Fisher, "D.C. Taxis--No Zones, No Justice?" The Washington Post (April 23, 2008). Retrieved July 9, 2012
- ^ "About the DC Taxicab Commission"Archived 2012-06-17 at the Wayback Machine. Retrieved July 9, 2012
- ^ "Unchecked pot dispensaries are undoing I-502". The News Tribune. November 14, 2014. Retrieved February 17, 2019.
- ^ "Washington now has the worst recreational marijuana law". 5 November 2014. Retrieved 17 May 2018.
- ^ "CRTC wants internet pricing answers from Bell" CBC News (August 24, 2009). Retrieved April 5, 2011
- ^ "CRTC Chair Defends UBB Decision at Industry Committee Meeting amidst Backlash" OpenMedia.ca (February 3, 2011). Retrieved April 4, 2011
- ^ Nakamura, Karen. "Resistance and Co-optation: the Japanese Federation of the Deaf and its Relations with State Power," Social Science Japan Journal, Vol. 5, No. 1 (April 2002), p 19 (PDF 3 of 20).
- ^ a b c d Hiroko Tabuchi, Norimitsu Onishi and Ken Belson, "Japan Extended Reactor's Life, Despite Warning" The New York Times (March 21, 2011). Retrieved March 22, 2011
- ^ "Archived copy". Archived from the original on 2013-01-19. Retrieved 2013-01-19.
- ^ "Comments by Fukushima Prefecture Governor Eisaku Sato Concerning Japan's Pluthermal (MOX fuel utilization) Program and the Nuclear Fuel Cycle" Archived 2011-07-24 at the Wayback Machine Green Action (June 4–5, 2002). Retrieved March 22, 2011
- ^ a b c d e Norimitsu Onishi and Martin Fackler, "Japanese Officials Ignored or Concealed Dangers" The New York Times (May 16, 2011). Retrieved May 17, 2011
- ^ a b c Jason Clenfield and Shigeru Sato, "Japan Nuclear Energy Drive Compromised by Conflicts of Interest" Bloomberg News (December 12, 2007). Retrieved March 22, 2011
- ^ a b c d e Masao Miyamoto, "Mental Castration, the HIV Scandal, and the Japanese Bureaucracy" Japan Policy Research Institute (August 1996). Retrieved April 1, 2011
- ^ a b Tomoko Otake, "Ministry insider speaks out" Japan Times (November 1, 2009). Retrieved April 1, 2011
- ^ a b "Tobacco Regulation Act of 2003".
- ^ "National Tobacco Administration".
- ^ Philippine Supreme Court. "Department of Health v. Philip Morris Manufacturing (2015)". Archived from the original on 2017-07-04.
- ^ Roque, Harry. "House Bill No. 917 (17th Congress)" (PDF).
- ^ Thomas A. Faunce, Warwick Neville and Anton Wasson, "Non Violation Nullification of Benefit Claims: Opportunities and Dilemmas in a Rule-Based WTO Dispute Settlement System" (PDF) Peace Palace Library. In M. Bray (Ed.), Ten Years of WTO Dispute Settlement: Australian Perspectives. Office of Trade Negotiations of the Department of Foreign Affairs and Trade. Commonwealth of Australia. Retrieved April 17, 2011
- Bernstein, M. H. (1955). Regulating Business by Independent Commission. Princeton University Press. ISBN 0691650381.
- Glover, P. 2007. "A Crime Not a Crisis: Why Health Insurance Costs So Much"'.
- Huntington, S. 1952. The Marasmus of the ICC: The Commission, the Railroads, and the Public Interest. Yale Law Journal 614:467-509.
- Laffont, J. J., & Tirole, J. 1991. The politics of government decision making. A theory of regulatory capture. Quarterly Journal of Economics 106(4): 1089-1127
- Lee, Timothy B. (August 3, 2006). "Entangling the Web". The New York Times. Retrieved April 1, 2011.
- Levine, M. E., & Forrence, J. L. 1990. Regulatory capture, public interest, and the public agenda. Toward a synthesis. Journal of Law Economics & Organization 6: 167-198
- Greg McMahon, Regulatory Capture: Causes and Effects (PDF) International Institute for Public Ethics. Paper given October 4, 2002 conference, Brisbane, Australia.[dead link]
- Mintz, Joel A. (2005). "Has Industry Captured The EPA?: Appraising Marver Bernstein's Captive Agency Theory After Fifty Years". Fordham Environmental Law Review. 17 (1): 1–36. JSTOR 44175806. Retrieved 29 October 2020.
- Nakamura, Karen. "Resistance and Co-optation: the Japanese Federation of the Deaf and its Relations with State Power," Social Science Japan Journal, Vol. 5, No. 1 (April 2002), pp 17–35.
- Stigler, G. 1971. The theory of economic regulation. Bell J. Econ. Man. Sci. 2:3-21.
Last edited on 7 May 2021, at 20:10
Content is available under CC BY-SA 3.0
unless otherwise noted.