Government agencies are separate entities from departments or ministries, established by national, regional or local governments to implement policies. They can deliver public goods and services, set standards for private sector activity, and be captured by interest groups.
Government agencies are administrative units of the government charged with specific responsibilities. These agencies can be established by national, regional or local governments. These agencies are separate entities from government departments or ministries, but often work closely together and report to one or more departments or ministries. Others operate independently, especially those with supervisory or regulatory responsibilities.
Every government is likely to have hundreds of agencies with a variety of goals and roles. Most government agencies are responsible for implementing the policies of the current government. Agencies sometimes execute policies directly and other times they do so indirectly through a process known as delegated administration. Through activities such as contracts, loan guarantees, and government-sponsored enterprises, agencies can deliver public goods and services or implement specific policies.
There is an important distinction between government sponsored enterprises and government corporations. Government-sponsored enterprises, or government-sponsored entities, are shareholder-owned companies that are chartered by a government to implement or promote policies. In contrast, government corporations, or government-owned companies, are created directly by governments to engage in particularly commercial activities.
In the United States, the best-known government agency is the United States Postal Service. Government-sponsored enterprises are usually considered government agencies, but government corporations are not. Governmental corporations are sometimes referred to as “quasi-government agencies”.
Regulatory agencies are one of the most common types of agencies. They set the standards for private sector activity and then enforce them. Many government agencies operate under the executive branch of the national government, but regulatory agencies do not. They are established by legislatures and the regulations they devise have the force of law. Consequently, regulatory agencies are legislative in nature.
A key concern for government agencies involves a concept known as agency takeover. A “captured agency” is one that adopts rules, regulations or policies favorable to the interest group it is responsible for regulating or administering. Interest groups can “capture” agencies by lobbying government officials who in turn lobby the targeted agency.
Protect your devices with Threat Protection by NordVPN
