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Tuesday, December 3, 2024

Lobbying – A legitimate activity or corrupt practice? (Part 1)

By: Dr. Štefan Šumah

In Slovenia, the word lobbying appears very frequently, especially in everyday conversation: “I lobbied for this, for that, we will need to lobby, we managed to lobby …”. But what exactly is lobbying, really?

Lobbying is referred to as influencing, where an individual (lobbyist) tries to affect the decisions of decision-makers (the lobbied) who are active in the fields of legislation and public policymaking, doing so privately on behalf of a particular interest group.

What is lobbying?

In essence, lobbying is about expressing and representing specific interests – whether of individuals, groups, or organisations – and influencing decision-makers in matters related to these interests. Lobbying involves three overlapping dimensions: legality, legitimacy, and ethics. Legal lobbying means adherence to the law (there is no room for corruption); legitimate lobbying follows the ethical codes of lobbyist associations; ethical lobbying respects social interests.

However, lobbying often crosses the boundaries of legislation; informal lobbying frequently turns into illegitimate lobbying and even corruption. Challenges arise from both a lack of understanding of lobbying and from disrespect for the framework that regulates lobbyists. If we understand lobbying as a continuous or sustained, direct attempt to influence decision-making processes, while respecting the principles mentioned in the previous paragraph, we can then appreciate how important appropriate legislation governing lobbying is, as well as the importance of compliance with such legislation.

The Slovenian view of lobbying

Lobbying is one of the most misunderstood and misrepresented activities in politics and public life. Not only among the public but also among public officials, lobbying is often equated with corruption or – at the very least – with socially harmful behaviour. It is no surprise, then, that many – including high-ranking political figures, both internationally and domestically – claim they want nothing to do with lobbyists, convinced that lobbying is a negative practice that damages broader societal interests as well as their reputations. In reality, however, they cannot avoid it.

While legal, ethical, and legitimate lobbying is not frequently covered by the media in Slovenia, the word lobbying has been appearing often in recent times, especially in the context of EU commissioner appointments. Here, however, the term lobbying is misused, as these “agreements” were more about bartering, deal-making, bargaining – even horse-trading, if you will – rather than actual lobbying, as our politicians claimed. The term lobbying is also commonly used in everyday speech: I lobbied for this, for that… we have already started lobbying… we will need to lobby…”. The expression “we will get it lobbied” is often used locally, whether it is about securing municipal housing, a director position in a local public institution, or municipal funding for an association. It is also very likely that those who frequently use the term do not understand the essence of lobbying, but instead see it merely as deal-making over jobs and influencing local government tenders.

Consequently, the term lobbying loses its real meaning and is associated with all kinds of (negative) things it actually is not. This is why the word lobbying generally has a negative connotation, with many people equating lobbying with a form of corruption. However, lobbying itself, if conducted within the legal framework and by registered lobbyists, is perfectly legitimate. Of course, lobbyists can also operate outside these boundaries, or unregistered lobbyists can use illegal tactics that are hidden from public view. This can lead to outcomes that people feel but do not understand the causes of, potentially resulting in the capture of individual parts of the state by special interest groups, if not an outright hijacking of the state itself.

Slovenians’ opinion on lobbying

In Slovenia, the healthcare system, in particular, is often mentioned as a captive of interest groups, and similar claims are made about parts of the national infrastructure. Whether lobbyists contributed to this or if it is simply due to powerful interest groups alone is another question. The influence of lobbyists and lobbying groups on the legislative process would not be problematic (this is, in fact, the core role of lobbyists) if lobbying were conducted transparently and in compliance with the law. However, rule-bending and background networks actually attempt (or have already succeeded) in capturing the state or specific sectors. Covert lobbying, like corruption, is a multi-directional process. On one side is the benefit-seeker, and on the other is the one who provides the benefit (in the form of tailored laws, biased tenders, various concessions, etc.). Both are aware of the act, which remains hidden, as they both benefit. The third link in the chain is everyone else – the disadvantaged parties. Even if this kind of arrangement is not always a criminal offense, it is nevertheless unethical and harmful to the economic and political development of society.

I participated in a study that investigated Slovenians’ attitudes towards lobbying. In examining lobbying, it quickly becomes apparent there is a distinction between legitimate and illegitimate approaches. Consequently, regarding respondents’ attitudes toward lobbying, it emerged that lobbying has a very negative connotation in Slovenia. Although the sample was too small to statistically assert that people have a very negative perception of lobbying and equate it primarily with negative concepts – corruption, under-the-table dealings, and semi-legal arrangements – the study, even with its limited sample size, suggests this. Respondents tend to view lobbying from a moralistic perspective that is more emotional than factual, legally speaking.

How to regulate lobbying

This is influenced by the still very limited legislation on this matter, which continues to allow a range of “lobbyists” who operate through connections, acquaintances, and hidden networks to “arrange things,” as it is colloquially put. This is why phrases like “we need to lobby” or “we will lobby” are often heard in connection with lucrative jobs, construction permits, and business dealings with municipalities and the state. And, of course, because the word “lobbying” is misused to refer to things that are really just for personal gain, this word has acquired a poor reputation and a negative connotation. Thus, it is fair to say that the word “lobbying” is frequently misused, by both self-styled “lobbyists” and in everyday conversation.

How to address this? There are few options. First, appropriate legislation would need to be prepared. A few articles in the law on integrity and corruption prevention are clearly insufficient, as illegitimate practices continue to repeat, especially at the local level. It may be sensible to introduce a dedicated law on lobbying, which would include relevant misdemeanour and criminal provisions. If lobbying regulations are kept within the current law, it should be expanded or amended with additional articles to further regulate lobbying, including criminal provisions. This legislation also needs to be enforced, which is currently lacking in Slovenia. The Commission for the Prevention of Corruption (CPC) should certainly be granted more powers, authority, and sanctioning capabilities. Many commentators currently view the CPC as a toothless tiger that can warn but not act, or its actions are very limited.

Another potential measure would be for various NGOs, especially consulting firms, special interest groups, and associations, as well as influential individuals with extensive networks, to be required to register as lobbying organisations in the official lobbyist registry. These actors are currently exploiting the loopholes in weak legislation. A lobbyist chamber could also be established, tasked with educating and licensing lobbyists and potentially disciplining those who violate the lobbyist code of conduct. (To be continued)

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