> Agreed. Phase two is the merging of key individuals between the industry/government to ensure that vested interests stay vested ala http://i.imgur.com/XwyV4yi.jpg
That's a somewhat distinct problem, which is that the experts in a particular industry unsurprisingly come from the dominant players in that industry. It creates some bias, but as a practical matter you have to assume people can act in good faith in different roles.
What I'm talking about is a different problem: delegating governmental authority directly to private companies in ways that directly benefit only specific interests. E.g. a number of states are delegating eminent domain authority to oil and gas companies. There is much more potential for abuse in such scenarios. Government officials have a duty to the public interest, and by and large they take that duty seriously. Private companies have a duty only to share holders and owners, and by and large they take that duty seriously too.
