Chapter 9: Inequality and Conflict of Interest in Evaluation

In recent decades, conflict of interest in evaluation has increased in several fields in which evaluation plays an important role, including pharmaceutical evaluation, social and education evaluation, and financial evaluation. In addition to producing incorrect findings, another negative result of conflict of interest is that it can increase inequality. This chapter details how conflict of interest in the evaluative and quasi-evaluative activities of the finance industry increased economic inequality.

Certainly, there are other powerful sources of inequality, such as government tax policies, changing technologies, and educational disparities. In fact, the Great Financial Crisis of 2008 and ensuing recession resulted from several interacting causes. Conflict of interest in evaluation was not the primary cause. However, conflict of interest in evaluation was a significant causal factor and one within the potential influence of the evaluation community. The role that it played in the debacle is the focus of this analysis.