Read the following passage carefully:
While classical public administration models presupposed that regulatory agencies operate as neutral custodians of public welfare, modern public choice theory demonstrates how institutional incentives often realign administrative priorities toward self-preservation and resource expansion. When regulatory bodies are granted discretionary authority over technical compliance standards without external competitive benchmarks, their structural tendency is to amplify regulatory complexity rather than optimize social outcomes. This systemic expansion of procedural hurdles serves a dual internal function: it justifies requests for larger budgetary allocations and elevates the institutional dependence of regulated industries upon administrative discretion. Crucially, this administrative drift occurs not primarily through malevolent intent or individual corruption, but through rational individual adaptations to institutional reward structures that penalize risk-taking while incentivizing scope expansion. Consequently, reform frameworks targeting civil servant ethics or moral exhortation consistently fail to curb regulatory overreach. Effective institutional reform requires replacing internal procedural audits with exogenous competitive pressures, clear sunset provisions for administrative mandates, and structural decoupling of enforcement authorities from budgetary determination mechanisms.
Which of the following statements best captures the central core message synthesized by the author in the passage?
- APublic choice theory proves that regulatory agencies are inherently corrupt mechanisms designed solely to expand administrative budgets at the expense of societal welfare.
- BCivil servant ethics programs fail primarily because administrative compliance audits are conducted internally rather than by independent external auditors.
- Systemic regulatory expansion stems from rational responses to institutional incentive structures rather than personal misconduct, necessitating structural governance reforms over moral appeals.Answer
- DDemocratic oversight through parliamentary committees is the most effective instrument to curtail bureaucratic scope expansion in modern welfare states.