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What Is a Revolving Door?


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    Highlights

  • The revolving door refers to the back-and-forth movement of high-level employees between public and private sectors, often leading to lobbying roles
  • Proponents argue it brings expertise to policy-making, while critics highlight conflicts of interest and undue influence
  • Lobbying spending in the US doubled to $3
  • 1 billion from 1998 to 2022, amplifying concerns about bought influence
  • Policies to limit revolving door practices exist but are largely ineffective in major democracies
Table of Contents

What Is a Revolving Door?

Let me explain to you what a revolving door really means in this context. It's the ongoing movement of high-level employees from public-sector jobs to private-sector ones and back again. Picture this: legislators and regulators often step out of government roles to become lobbyists or consultants for the very industries they used to oversee, and sometimes private industry leaders or lobbyists land government appointments tied to their old jobs.

You've probably noticed this trend growing in democracies lately, fueled by ramped-up lobbying. It sparks real debates about how much former officials should leverage the connections and knowledge they gained in public service to boost their own wealth or sway legislation in ways that dilute it or shape it favorably for private interests.

Key Takeaways

  • A revolving door is the movement of high-level employees from public-sector jobs to private sector jobs and vice versa.
  • Proponents of the revolving door say having specialists in private lobby groups and running public departments ensures a higher level of expertise is at work when making and implementing public policy.
  • Policies that are supposed to prevent or limit the revolving door practices aren't effective in the world's largest democracies.

How Revolving Doors Work

Sure, it's natural for workers to switch between public and private sectors, but the rising role of money in politics has thrust the revolving door into the spotlight. From 1998 to 2022, lobbying spending in the United States more than doubled, hitting $3.1 billion. This surge raises alarms that corporations and special interest groups can use their cash to secure influence and access to key politicians.

The revolving door can create conflicts of interest too, where politicians' regulatory or legislative choices might directly benefit them once they exit office and join the private sector. Remember, this phenomenon cuts across various industries, government levels, and political affiliations—it's widespread and not tied to any one group.

Advantages of a Revolving Door

Lobbyists who've gone through the revolving door often claim they're capitalizing on their expertise, not just their connections. They argue that 'what you know' trumps 'who you know.' The core advantage here is that embedding specialists in private lobby groups and public departments leads to better-informed regulatory decisions and higher-quality public policy implementation.

There's evidence to back this up: one study showed that when a U.S. senator or representative leaves office, the lobbyists who worked with them experience an average 20% drop in earnings, amounting to about $177,000 per year, and this can last three years or more. It demonstrates how tough it is for lobbyists to replace the value of a key political contact, underscoring the role of genuine expertise.

Special Considerations

When it comes to policies aimed at curbing or preventing revolving door practices, they're scarce and not very effective in the world's biggest democracies. In the United States, there are specific rules dictating how and when former government officials can jump to the private sector—for instance, those who handled contracts must wait a year before joining a military contractor or shift to an unrelated role or unit.

But these rules don't cover policymakers, who can immediately join corporations or boards. Over in France, there's a three-year cooling-off period after public service before entering the private sector. Japan has its own term for this: 'amakudari,' meaning 'descent from heaven,' referring to career public servants who retire into private sector jobs, and they've tried to rein it in with limited success.

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