Revolving door (politics)
Encyclopedia
The revolving door is the movement of personnel between roles as legislators and regulators and the industries affected by the legislation and regulation and on within lobbying
companies. In some cases the roles are performed in sequence but in certain circumstances may be performed at the same time. Political analysts claim that an unhealthy relationship can develop between the private sector
and government, based on the granting of reciprocated privileges to the detriment of the nation and can lead to regulatory capture
.
The benefits to industry from recruiting or working with people with senior government experience includes:
Analysts claim the lobbying industry is especially affected by the revolving door concept, as the main asset for a lobbyist is contacts with and influence on government officials. This industrial climate is attractive for ex-government officials. It can also mean substantial monetary rewards for the lobbying firms and government projects and contracts in the hundreds of millions for those they represent.
and the funding of political parties varies considerably around the world. Here are details for a few sample jurisdiction:-
, has increasingly been recognized for its corrupting influence on government. In April 2007, a law to phase out Amakudari will prohibit ministries from attempting to place bureaucrats in industry in 2009. However, the law also removed a two-year ban that prevented retiring officials from taking jobs with companies they had official dealings with during the five years prior to retirement.
Examples of individuals who have moved between roles in this way in sensitive areas include Dick Cheney
(military contracting), Linda Fisher
(pesticide and biotech), Philip Perry
(homeland security), Pat Toomey
, Dan Coats
, and former FCC commissioner Meredith Attwell Baker
(media lobbying).
Lobbying
Lobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
companies. In some cases the roles are performed in sequence but in certain circumstances may be performed at the same time. Political analysts claim that an unhealthy relationship can develop between the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
and government, based on the granting of reciprocated privileges to the detriment of the nation and can lead to regulatory capture
Regulatory capture
In economics, regulatory capture occurs when a state regulatory agency created to act in the public interest instead advances the commercial or special interests that dominate the industry or sector it is charged with regulating. Regulatory capture is a form of government failure, as it can act as...
.
Overview
The benefits to government when recruiting people from industry include:- Experience – supporters of the flow of employees between government and the private sector justify the flow as understandable, given the government requires people with knowledge of the private sector and the private sector values people with experience in government.
- Influence - individuals who are influential in the private sector may be beneficial to a government with interests that desires cooperation with the private sector.
- Political support - political donations and endorsements can be granted a by vested interestVested interestVested interest is a communication theory that seeks to explain how influences impact behaviors. As defined by William Crano, vested interest refers to the amount that an attitude object is deemed hedonically relevant by the attitude holder...
to a government, if the government employs people who are loyal to the vested interest.
The benefits to industry from recruiting or working with people with senior government experience includes:
- Access to government, including influential politicians
- Favorable policy and regulation.
- Insider knowledge
- Award contracts for governmental work
Analysts claim the lobbying industry is especially affected by the revolving door concept, as the main asset for a lobbyist is contacts with and influence on government officials. This industrial climate is attractive for ex-government officials. It can also mean substantial monetary rewards for the lobbying firms and government projects and contracts in the hundreds of millions for those they represent.
Jurisdictions
Regulation relating to this phenomenon and the related issues of lobbyingLobbying
Lobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
and the funding of political parties varies considerably around the world. Here are details for a few sample jurisdiction:-
Australia
In Australia, this is of significant public debate as many state leaders have become private consultants for corporations. There is no legislation against this revolving door in Australia.France
A law in the penal code of France governing public officials who move between the public and private sectors requires a three-year wait between working in the government and taking a job in the private sector.Japan
The institutionalized practice of placing retiring bureaucrats into senior positions of industries they once regulated, known as AmakudariAmakudari
is the institutionalised practice where Japanese senior bureaucrats retire to high-profile positions in the private and public sectors. The practice is increasingly viewed as corrupt and a drag on unfastening the ties between private sector and state which prevent economic and political...
, has increasingly been recognized for its corrupting influence on government. In April 2007, a law to phase out Amakudari will prohibit ministries from attempting to place bureaucrats in industry in 2009. However, the law also removed a two-year ban that prevented retiring officials from taking jobs with companies they had official dealings with during the five years prior to retirement.
United States
"Under current law, government officials who make contracting decisions must either wait a year before joining a military contractor or, if they want to switch immediately, must start in an affiliate or division unrelated to their government work. One big loophole is that these restrictions do not apply to many high-level policy makers..., who can join corporations or their boards without waiting."Examples of individuals who have moved between roles in this way in sensitive areas include Dick Cheney
Dick Cheney
Richard Bruce "Dick" Cheney served as the 46th Vice President of the United States , under George W. Bush....
(military contracting), Linda Fisher
Linda Fisher
Linda J. Fisher is a Vice President Safety, Health and Environment and Chief Sustainability Officer of DuPont.When working for the United States Environmental Protection Agency she was Deputy Administrator; Assistant Administrator - Office of Prevention, Pesticides and Toxic Substances; Assistant...
(pesticide and biotech), Philip Perry
Philip Perry
Philip J. Perry is an American attorney and was a Bush Administration political appointee. He was Acting Associate Attorney General at the Department of Justice, General Counsel of the Office of Management and Budget, and General Counsel of the Department of Homeland Security...
(homeland security), Pat Toomey
Pat Toomey
Patrick Joseph "Pat" Toomey, Sr. is the junior United States Senator for Pennsylvania and a member of the Republican Party. Previously, Toomey served as a U.S. Representative for three terms, but did not seek a fourth in compliance with a pledge he had made while running for office in 1998...
, Dan Coats
Dan Coats
Daniel Ray "Dan" Coats is the junior United States Senator from Indiana and member of the Republican Party. He was in the United States Senate from from 1989 to 1999, retired, and then returned in 2011....
, and former FCC commissioner Meredith Attwell Baker
Meredith Attwell Baker
Meredith Attwell Baker was a member of the United States Federal Communications Commission . In mid-May 2011, she announced that she was taking a job with Comcast, effective June 3, 2011, instead of completing her term on June 30...
(media lobbying).
See also
- Interlocking directorateInterlocking directorateInterlocking directorate refers to the practice of members of a corporate board of directors serving on the boards of multiple corporations. A person that sits on multiple boards is known as a multiple director. A direct interlock occurs when two firms share a director or when an executive of one...
- Military industrial complex
- Goldman Sachs' revolving door
External links
- Revolving Door database at Opensecrets.org searchable database
- Revolving Doors in the UK Defence Industry UNICORN article - www.againstcorruption.org/
- Revolving door between the US Government and Industry Government officials who now work at IFPMA, PhRMA, or law firms and lobbying firms that represent the pharmaceutical industry
- Revolving Door at Project on Government OversightProject on Government OversightThe Project On Government Oversight , founded in 1981, is an independent non-profit organization in the United States which investigates and seeks to expose corruption and other misconduct. POGO assists whistleblowers and investigates federal agencies, Congress, and government contractors...
- Revolving Door Congress Members data from First Street
Video
- Dispatches - Politicians for Hire - Channel 4 - DispatchesDispatches (TV series)Dispatches is the British television current affairs documentary series on Channel 4, first transmitted in 1987. The programme covers issues about British society, politics, health, religion, international current affairs and the environment, usually featuring a mole in an organisation.-Awards:*...
documentary on lobbying in the UK