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An oil company wants to set up its refinery in a town. Environmentalists are against this project as it will pollute the nearby river. The initial ban on the project was suddenly removed, and a government official approved the project. People believe that the government official formulated certain policies to favor the oil company despite knowing the possible hazards the oil refinery will create.

Which type of bureaucratic inefficiency is exhibited in this scenario?
___ is exhibited in this scenario.

The scenario exemplifies regulatory capture, where government officials favor industries over public interest, leading to environmental regulation violations.

Explanation:

Bureaucratic inefficiency exhibited in this scenario is regulatory capture, where government officials may formulate policies favoring specific industries over public interest. This occurs when agencies prioritize economic development or have corrupt agreements with businesses, leading to the violation of environmental regulations.

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