Confronting State Capture

This detailed report unpacks what state capture looks like in Australia, drawing on international perspectives and Australian case studies.

State Capture, as defined by the World Bank;

“State capture is the exercise of power by private actors — through control over resources, threat of violence, or other forms of influence — to shape policies or implementation in service of their narrow interests.”

How does state capture work?

The Confronting State Capture report breaks down six modes of influence used in state capture:

1. Financial interventions in politics

It is impossible to overstate the role of money in warping the democratic fabric of society. The story of state capture starts with money, both political donations and the dark money funneled to political parties uncounted.

2. Lobbying and personal influence

Political lobbying has become a highly professionalised, lucrative, multi-billion-dollar-a-year business dominated by big industry. The current lack of regulation and transparency around lobbying leads to a real risk of corruption and disproportionate influence.

3. Revolving door and personal exchange

When former Australian public and elected officials move into the private sector they take extensive contact network, deep institutional knowledge, and rare and privileged personal access to people at the highest levels of government and industry, exercising influence over policy making and government procurement decisions.

4. Institutional repurposing

Hollowing out and repurposing institutions established to serve the public good is a gradual process of incremental reforms, revolving door appointments and slow cultural drift in which the agency is gradually unmoored from its stated purpose.

5. Research and policymaking

Unlike community and other interest groups, major industries have virtually unlimited resources to engage in research and policy processes, generating submissions and legislative amendments and providing evidence to inquiries, which industry funded think tanks reinforce.

6. Public influence campaigns

Companies and industry bodies have the resources to use traditional media and social media as well as disinformation and dark PR, and to purchase social license through investment in highly visible social and community infrastructure, cultural and sporting events. 

Case studies

State capture is used by many different industries, and this report deeply investigates two of the worst examples in Australia.

Fossil fuel industry

“We know more about energy policy than the government does. We know more about industry policy than the government does. We know where every skeleton in the closet is - most of them, we buried.”
– Fossil fuel industry lobbyist

Arms industry

“Despite the effort and priority accorded to maintaining a healthy local defence industry, there’s surprisingly little hard data in the public domain about the size and shape of the sector.”
– Australian Strategic Policy Institute, 2017

The report also sets out four recommendations on how to confront state capture and restore our democracy.

Take action

State capture is a problem eating away at the foundations of our democracy, our way of life and everything we care about most. It’s a huge problem, but it’s not bigger than us. Here are some actions you can take to address the problem of state capture:

1. Join the #OurDemocracy campaign

A nationwide movement of people and organisations who want a healthy Australian democracy that works for all of us, not just the powerful few.

2. Endorse the Framework for a Fair Democracy

The Framework draws on international best practice to outline essential measures to reduce corporate influence and restore balance in our politics.