A case study of regulatory capture, systemic corruption and the Canadian Radio-television and Telecommunications Commission Keith M. Mahar Email
[email protected] Web www.onemedialaw.com 17 August 2015 “ Much of the inequality that exists today is a result of government policy, both what the government does and what it does not do. Government has the power to move money from the top to the bottom and the middle, or vice versa.” Joseph Stiglitz, The Price of Inequality, 2013, pp. 35-36. “ When powerful interests gain excessive influence over regulatory agencies, the integrity of the regulatory process is compromised, and catastrophic consequences can unfold.” Sheldon Whitehouse and Jim Leach, Preventing Regulatory Capture, 2014, p. 467. “ Systemic corruption distorts incentives, undermines institutions, and redistributes wealth and power to the undeserving.” Robert Klitgaard, Finance and Development, June 2000, p. 1. ii CONTENTS Introduction 1 Summary 3 Part A: Setting the Context 7 1. Canadian Radio-television and Telecommunications Commission 7 1.1 The appointment process 8 1.2 Authority to enact and enforce regulations 8 1.3 Authority to determine questions of law related to its subordinate legislation 8 1.4 Regulators subjected to intense corporate lobbying and political pressure 9 1.5 Lack of transparency at the CRTC 9 2. Regulatory Capture 9 2.1 Defining regulatory capture 10 2.2 The revolving door phenomenon 10 2.3 Future employment in industry 10 2.4 Exploitation of public ignorance related to regulations 11 2.5 Legislation turned to industry’s advantage 11 3. Corruption 11 3.1 Defining corruption 11 3.2 Determinants of corruption 12 3.3 Corruption and regulatory capture 12 Part B: Case Study 13 Chapter 1.