Private sector employing public servants and politicians

Some politicians are employed by institutions and firms after they retire from their political career. The former UK Chancellor, George Osborne, will join the world largest asset management firm, BlackRock, this February. There are two ways to look into this phenomenon - one is negative, the other is more positive. The negative point view of this issue is that politicians and firms are making deals that when the politicians are in power, they use their power and political influence to benefit the firms and after they retire, the firms offer them with more comfortable retirement lives. This is a political corruption by definition. This should be investigated and punished, and laws and regulations should be made to avoid such phenomenon from happening.

However, there is a positive view of this issue. Recruiting retired politicians can have very positive benefits. Especially under the current situation, the uncertainties from the world political environment increase sharply. The new US President's administration and the Brexit could shape the global political and economic environment. With the help from these experienced politicians, the firms could have better understanding about the current political environment, and the characteristics of the main political participants. Moreover, the senior politicians could also advise on the global issues in terms of foreign policies. Having better understanding of foreign policies is very important to multinational companies. Foreign policies could influence exporting and importing costs, the possibilities of entering foreign markets, the competitiveness due to subsidies, taxation and other policies in foreign countries. Politicians as insiders have more information than outsiders, and definitely have better understanding about the current politicians' strategies and actions. With these politicians' knowledge and experience, firms can minimise the risk caused by the political uncertainties. The current complicated political environmental may lead firms and institutions to employ more retired politicians with higher salaries.

There is a problem of employing politicians in terms of public interests. Given the option of being recruited by firms and institutions, having a good relationship with firms and institutions becomes one of politicians' individual interests, this could let politicians make decisions biased towards firms and institutions rather than the public interest.