Ever look back an on sector and see an unhealthy cooperation between government and industry? It doesn't start with conspiracies; it starts with well-intentioned programs like this one.
> Agreed. Phase two is the merging of key individuals between the industry/government to ensure that vested interests stay vested ala http://i.imgur.com/XwyV4yi.jpg
That's a somewhat distinct problem, which is that the experts in a particular industry unsurprisingly come from the dominant players in that industry. It creates some bias, but as a practical matter you have to assume people can act in good faith in different roles.
What I'm talking about is a different problem: delegating governmental authority directly to private companies in ways that directly benefit only specific interests. E.g. a number of states are delegating eminent domain authority to oil and gas companies. There is much more potential for abuse in such scenarios. Government officials have a duty to the public interest, and by and large they take that duty seriously. Private companies have a duty only to share holders and owners, and by and large they take that duty seriously too.
How is this an unhealthy cooperation? The financial support for this program is entirely from the private sector and the government simply looks after the background checks and admissibility, as they would for all immigrants anyway.