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What is a Revolving Door?

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A revolving door is the movement of individuals between jobs in government related to legislation and regulation and jobs at the firms being regulated. In some cases, employees go back and forth between government and private industry as a way for private industry to influence or capture public policy.
Governments are often hesitant to regulate revolving door practices because both industry and government argue that they require expertise from the other side. Where regulations exist they often take the form of a time out between one and five years between working for government and industry where a potential conflict of interest exists.
A clear sign of a revolving door is excessive compensation or situations where a government representative has a financial interest in firms they are regulating. Revolving door practices can result in regulatory capture and significant costs and risks to a nation.
Overview: Revolving Door
Type
Conflict Of Interest
Definition
Influencing public policy by placing your employees into government jobs or offering government employees lucrative job offers in exchange for influence.
Related Concepts
Conflict Of Interest
Regulatory Capture
Risks
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