By issuing one communique, the fate of 7 billion people, a majority living in developing countries, have been sealed by the group of eight leaders at this year’s G8 summit…i.e. until the next G8 summit. A major issue this year was transparency, tax and trade, and the need to bring international reform in these areas. The G8 fell woefully short of the expectations of many in the developing world. One reason for this abysmal failure is what is termed regulatory capture.
Regulatory capture occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or special concerns of interest groups that dominate the industry or sector it is charged with regulating.
For more, read my editorial on the Fair Observer platform.