Who is Going to Control the Controllers?

It is a common idea that the state should be “in control” of the economy for the good of ordinary people, or consumers (or citizens). The problem with delegation of power, however, is that the institution to which the power to control is to be delegated needs to be controlled too. In this context the following assumption seems to be plausible: if you want to hire organization A to oversee organization B on your behalf, make sure that you have stronger influence over the way A works than over the way B works. Otherwise it does not make sense.

Now, with this assumption in mind what if A is a state regulatory agency and B is a market company? A can be removed from its post or transformed only through political process over which ordinary citizens have no control at all. At the same time, B can disappear from the market only because its clients postponed from using its products or services. Isn’t it true, then that B is under stronger citizen control than A? And if it is, should A be ever employed to oversee B on behalf of the general public that pays its bills?

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You’re currently reading “Who is Going to Control the Controllers?” by Michał Gancarski

Published:
11:03 pm, October 8, 2008
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Between Markets and Politics
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