Democracy, Lobbying and Economics

Issue: 3/2019

Milan Žák

University of Economics and Management, Prague, Czech Republic, Nárožní 2600/9a, 158 00 Praha 5, e-mail: milan.zak@vsem.cz

The paper deals with the issue of lobbying, defined as a democratic means of promoting interests. The text tries to find answers to the problems in the current eco-nomic theory. The basic links are defined by using a simple graphic model, which are further examined by the SWOT analysis. The result is the knowledge that the basic coordination mechanism is the market – the information market. The role of govern-ment lies above all in creating a favourable institutional environment that does not interfere with spontaneous market relations. However, there are certain situations that the government could or should regulate. These situations are described by three hypothetical scenarios – a society without lobbying, a society where lobbing exists, but it is not transparent, and a society where lobbing is transparent, leading to a final discussion of possible directions and ways of its regulation.

Pages: 
193-210
DOI: 10.2478/revecp-2019-0011
JEL: A11, A12, C70, D72, D82
Keywords: Impact of Lobbying on Democracy, Public Choice, New Institutional Economy, New Political Economy
References: 

Acocella, N., (2005). Economic Policy in the Age of Globalisation, Cambridge University Press, pp. 116-117.

Ball, R. J., (1995). Interest Group, Influence and Welfare, Economics and Politics, vol. 7/1995.

Bednářová, P., (2018a.). How Expensive Transparent Lobbying Is. ACC Journal, 24 (2), pp. 7-19. DOI: 10.15240/tul/004/2018-2-001.

Bednářová, P., (2018b). What Benefits Does Transparent Lobbying Bring. DANUBE: Law and Economics Review, 9 (3), pp. 193-205. DOI: 10.2478/danb-2018-0012.

Bénassy-Quéré, A., Coeuré, B., Jacquet, P., Pisani – Ferry, J., (2010). Economic Policy – theory and Practise, Oxford University Press. 96 pp. ISBN 978-0-19-532273-6.

Bionty A. (2018). Lobbying in Europe. Studying influence to understand democracy [online]. Available at: http://www.thegoodlobby.eu/lobbying-in-europe-studying-influence-to-understand-democracy/. Accessed 28 May 2018.

CDCJ (2017). Definition of ‘lobbying’ [online]. Available at: http://www.coe.int/. Accessed 22 Feb. 2018.

Graziano, L., (2001). Lobbying, Pluralism, and Democracy, New York, Palgrave. 248 pp. ISBN 0333920562.

Gregor, M., (2005). Nová politická ekonomie, Karolinum Publishing House, Prague. ISBN 80-346-1066-3.

Gregorová, L., Žák, M., (2008). Byrokratická bariéra kvality regulace. Politická ekonomie, no. 2, pp. 196-228. DOI: 10.18267/j.polek.637

Grossman, G. M., Helpman, E., (2001). Special Interest Politics, MIT Press Cambridge 2001.

Isakson, K., (2018). Transparency and Legal Regulation of Lobbying [presentation], Chamber of Deputies of the Czech Republic, Prague 13/03/2018.

Laboutková, Š., (2009). Prosazování zájmů v EU, studie NHÚJH 7/2009. 

Laboutková, Š., (2018). Open government partnership: unutilized potential in post-communist EU members? (Case of the Czech Republic), Innovation: The European Journal of Social Science Research, 31(3),350-376, DOI: 10.1080/13511610.2017.1415803

Laboutková, Š., Šimral, V., (2019). Measuring the Link between Democracy and Transparent Lobbying. Critical Policy Studies. forthcoming.

Laboutková, Š., Vymětal, P., (2017). Transparency in Economic and Political Decision-Making: The Identification of Sunshine Rules for Transparent Lobbying. DANUBE: Law and Economics Review, 8 (3), pp. 157–171. DOI: 10.1515/danb-2017-0011.

Laboutková, Š., Vymětal, P., (2018). Key Elements of Transparent Lobbying: Relevance of Wider Approach. Public Policy and Administration, 17(2), pp. 165-176. DOI: 10.13165/VPA-18-17-2-01.

Laboutková, Š., Vymětal, P., (2019). A Black Box Assessment of Institutional Quality: Evaluation of Transparency of Lobbying as a Challenge. Political Studies. forthcoming.

Laboutková, Š., Žák, M., (2010). Lobbování v Evropské unii a ČR. Politická ekonomie, Vol. 58, Issue 5, pp. 579-594.

Laboutková, Š., Žák, M., (2016). Transparency of Lobbying: a Theoretical Approach. In. Majerová I. and Kotlánová E. (ed.). Proceedings of 14th International Conference Economic Policy in the European Union Member Countries. Karviná: Silesian University, 2016, pp. 368–377. ISBN 978-80-7510-210-2.

Macháček, M., (2015). Soumrak ekonomie? K problému formalizace a krize smyslu ekonomické vědy. Series on Advanced Economic Issues, vol. 34, VST-TU, Ostrava. ISBN 978-80-248-3749-9.

Mlčoch, L., 2005. Institucionální ekonomie. Karolinum Publishing House, Prague. ISBN 80-246-1029-9.

Muller, K., Laboutková, Š., Vymětal, P., (2010). Lobbing v moderních demokraciích, Grada. ISBN 978-80-247-3165-0.

Rausser, G. C., Foster W.E., (1990). Political Preference Function and Public Policy Reform, American Journal of Agricultural Economics. 72/1990.

Rausser, G. C., Swinnen, J., Zusman, P., (2011). Political Power and Economic Policy, Cambridge University Press.

Stefan, C., (2012). The influence of Lobbying on EU Democracy, Revista Continuitate si schimbare in guvernantka europeana, vol. 6, no. 1-2, pp. 35–50.

Voigt, S., (2008). Institucionální ekonomie, Alfa Nakladatelství a Liberální Institut, Prague, ISBN 978-80-87197-13-4.

What is Lobbying, 2009, American League of Lobbyist. Available at: https://www.opensecrets.org/. Accessed 22 Feb. 2018.

Žák, M. (2016)., Markets, Interests, Information and Lobby as the Issues of Economic Theory. Perspectives, Journal on Economic Issues, vol. 4, no. 2, pp. 5-19..

Žák, M., (2014). Veřejný zájem a obecný prospěch. In Havlíček, A., Krbec, L., ed., Hodnoty, stát a společnost, Filozofická fakulta UJEP v Ústí nad Labem, pp. 106-120. ISBN 978-80-7414-735-7.