Regulatory capture occurs when a regulatory agency, established to act in the public's interest, instead advances the commercial or special interests of the industry it is charged with regulating. This phenomenon undermines regulatory effectiveness and can lead to policies that favor industry stakeholders over public welfare.

Regulatory Capture

Regulatory capture

A regulatory agency is a governmental body responsible for overseeing and enforcing laws and regulations within specific industries or sectors to ensure compliance, safety, and fairness. These agencies have the authority to create rules, conduct investigations, and impose penalties to protect public interest and maintain market stability.

regulatory agency

Public interest refers to the welfare or well-being of the general public and society, often used to justify policies, decisions, or actions that benefit the majority. It is a guiding principle in law, governance, and ethics, emphasizing the balance between individual rights and collective good.

Public Interest

Commercial Interests

special interests

Industry regulation refers to the framework of rules, laws, and guidelines established by governing bodies to control and manage the operations of businesses within specific sectors to ensure fair practices, safety, and compliance with standards. It aims to protect consumers, promote competition, and prevent monopolies, thereby creating a balanced economic environment for industries to thrive responsibly.

Industry Regulation

regulatory effectiveness

Policies favoring industry stakeholders

Public welfare refers to government programs and initiatives designed to provide financial assistance and support services to individuals and families in need, aiming to improve their quality of life and promote social equity. It encompasses a range of services including healthcare, housing, education, and food assistance, and is often funded through taxation and government budgets.

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