In the context of interest group politics, what is the essential characteristic of the inside game?

ABSTRACT

How does the coordination strategy of interest groups change during a crisis? Shocks reduce an economy's resource pool and increase the competition for what is available. Interest groups participate in the policy-making process by lobbying legislators. In times of crisis, we argue, interest groups lobbying Congress coordinate in cohesive industry-wide communities led by key actors. Rather than lobbying for narrow policy privileges, interest groups seek to support legislation that is most beneficial to their community. To study the cooperative behaviour of interest groups we build an original network dataset based on committee participation in the Ecuadorian Congress between 1996 and 2015. We present evidence of increasingly homophilic industry networks in times of crisis, with umbrella organisations taking the role of hubs. We find that ‘lone wolf’ strategies, prevalent during an economic expansion, are less prevalent during a crisis.

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interest group, also called special interest group, advocacy group, or pressure group, any association of individuals or organizations, usually formally organized, that, on the basis of one or more shared concerns, attempts to influence public policy in its favour. All interest groups share a desire to affect government policy to benefit themselves or their causes. Their goal could be a policy that exclusively benefits group members or one segment of society (e.g., government subsidies for farmers) or a policy that advances a broader public purpose (e.g., improving air quality). They attempt to achieve their goals by lobbying—that is, by attempting to bring pressure to bear on policy makers to gain policy outcomes in their favour.

Interest groups are a natural outgrowth of the communities of interest that exist in all societies, from narrow groups such as the Japan Eraser Manufacturers Association to broad groups such as the American Federation of Labor–Congress of Industrial Organizations (AFL–CIO) and to even broader organizations such as the military. Politics and interests are inseparable. Interests are a prevalent, permanent, and essential aspect of all political systems—democratic, authoritarian, and totalitarian regimes alike. Furthermore, interest groups exist at all levels of government—national, state, provincial, and local—and increasingly they have occupied an important role in international affairs.

The common goals and sources of interest groups obscure, however, the fact that they vary widely in their form and lobbying strategies both within and across political systems. This article provides a broad overview that explains these differences and the role that interest groups play in society.

As defined above, an interest group is usually a formally organized association that seeks to influence public policy. This broad definition, increasingly used by scholars, contrasts with older, narrower ones that include only private associations that have a distinct, formal organization, such as Italy’s Confindustria (General Confederation of Industry), the United States’s National Education Association, and Guatemala’s Mutual Support Group (human rights organization). One problem with such a narrow definition is that many formally organized entities are not private. The most important lobbying forces in any society are the various entities of government: national, regional, and local government agencies and institutions such as the military. Another reason to opt for a broad definition is that in all societies there are many informal groups that are, in effect, interest groups but would not be covered by the narrower definition. For example, in all political systems there are influential groups of political and professional elites that may not be recognized as formal groups but are nonetheless crucial in informally influencing public policy.

Some interest groups consist of individuals such as ranchers or fruit growers who may form farm commodity organizations. In other instances, an interest group consists not of individuals but of organizations or businesses, such as the Histadrut (General Federation of Labour) in Israel and Amazon Watch, which includes environmental and indigenous organizations in several South American countries. These types of organizations are called peak associations, as they are, in effect, the major groups in their area of interest in a country.

The term interest rather than interest group is often used to denote broad or less-formalized political constituencies, such as the agricultural interest and the environmental interest—segments of society that may include many formal interest groups. Similarly, interest is often used when considering government entities working to influence other governments (e.g., a local government seeking to secure funding from the national government). In authoritarian and developing societies, where formal interest groups are restricted or not as well developed, interest is often used to designate broader groupings such as government elites and tribal leaders.

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Interest groups influence government using variants on one of two strategies, the inside game and the outside game. The inside game refers to attempts to persuade government officials through direct inside contact. Another term for the inside game is lobbying. Washington is filled with thousands of lobbyists, covering every imaginable issue and viewpoint. Lobbyists usually work for interest groups, corporations, or law firms that specialize in professional lobbying.

Successful Lobbying

To lobby successfully, interest groups need a great deal of money. Washington, D.C., is one of the most expensive cities in America, so simply maintaining an office there can be very costly. Interest groups also pay for meals, trips, and other operational expenses, which can be significant. Money alone does not make an interest group influential, but a lack of money is usually crippling. Lobbyists also need to be reputable because a lobbyist who lies to a member of Congress, for instance, could be shunned or lose clients. Therefore, being honest is in the best interest of lobbyists.

Targets of Lobbying

Lobbyists try to influence officials working in all three branches and in the federal bureaucracy.

Lobbying the Legislative Branch

Interest groups spend hundreds of millions of dollars a year to lobby members of Congress on a range of issues. These groups try to affect the legislation being generated in Congress. Sometimes lobbyist speak with congresspeople directly, but lobbyists also testify at congressional hearings. The Senate publishes ethics guidelines to explain the complex federal laws that govern the interaction among congresspeople and lobbyists. Many corporations and foreign countries donate money to interest groups and thus help sponsor lobbyists in Washington.

Lobbying the Executive Branch

Although some lobbyists have direct access to the president, most have access only to the lower levels of the executive branch. Interest groups particularly target regulatory agencies, which have the ability to set policy affecting commerce and trade throughout the country. Some scholars have claimed that lobbying of regulatory agencies has resulted in agency capture, effectively handing control of the agency over to the industries it was intended to regulate.

Lobbying the Judicial Branch

Interest groups work to influence the courts in a number of ways. Interest groups often file amicus curiae (friend of the court) briefs, presenting an argument in favor of a particular issue. Sometimes interest groups file lawsuits against the government or other parties. For example, the NAACP worked for years to bring civil rights cases to the Supreme Court. The American Civil Liberties Union also makes extensive use of the courts.

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