Revolving door
The “revolving door” describes the movement of high-level employees between public-sector roles and private-sector jobs. Common patterns include former legislators and regulators becoming lobbyists or consultants for industries they once oversaw, and private-sector leaders accepting government appointments related to their previous work.
Why it matters
- Raises concerns about conflicts of interest: regulatory or legislative decisions made in office can directly benefit officials who later join related private firms.
- Creates potential for undue influence: corporations and interest groups may leverage money and connections to shape policy or gain privileged access.
- Is a global phenomenon present across industries, levels of government, and political affiliations.
How it works
- Movement is often bidirectional: public officials move to private industry and private actors enter government.
- Lobbying spending has grown substantially; for example, total U.S. lobbying expenditures rose to about $3.1 billion in 2022 (more than double since 1998), increasing the stakes for access and influence.
- The private sector values both expertise and relationships. Supporters argue that hiring former officials brings specialist knowledge into policy discussions; critics argue it enables capture of regulators by the regulated.
Arguments for and against
- Proponents: Former officials provide expertise and institutional knowledge that can improve policy design and implementation. The idea is that “what you know” matters and raises the quality of information available to decision makers.
- Critics: The practice can dilute public-interest decision-making and prioritize private gains. Empirical evidence shows a material financial component: one study found that when a U.S. senator or representative left office, associated lobbyists’ earnings fell by about 20% (roughly $177,000 per year), suggesting the value of political contacts.
Regulation and special considerations
- Many countries impose post-employment restrictions, but effectiveness varies.
- United States: Detailed post-employment rules exist. For example, former officials who made procurement decisions typically face a one-year restriction before joining a related defense contractor or must move to an unrelated role. However, some policymakers may join corporations or boards immediately if rules don’t apply to their specific actions.
- France: A three-year waiting period is required after leaving public service before taking certain private-sector roles.
- Japan: The practice of senior officials moving into private firms is known as amakudari (“descent from heaven”), and has prompted regulatory attempts to limit the practice.
- Enforcement and loopholes differ by jurisdiction; limits intended to curb the revolving door are often narrow or inconsistently applied.
Key takeaways
- The revolving door is the exchange of personnel between government and industry, with potential benefits (expertise) and risks (conflicts of interest, regulatory capture).
- Rising lobbying expenditures and strong financial incentives make the phenomenon prominent in democracies.
- Legal restrictions exist but vary widely in scope and effectiveness; continued attention to enforcement and closing loopholes is central to addressing the issue.