Rent-Seeking


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Rent-Seeking

The practice of an individual, company, or government attempting to make a profit without making a product, producing wealth, or otherwise contributing to society. For example, a company may seek subsidies from the government, which would count as income for that company. Likewise, a government may seek rent by seizing control of natural resources and charging citizens for use. Some rent seeking is legal, while others, such as some forms of blackmail, are not. Rent-seeking behavior is most common when the rent seeker is also a monopoly or has sufficient economic or political power to act as one. The concept was originated by Adam Smith.
References in periodicals archive ?
All of these economic activities are blighted by massive rent-seeking on the part of private middlemen, and perhaps more significantly, government functionaries.
As a whole, they are an apt reflection of Pakistan's government - both at federal and provincial levels: incompetent, unproductive, rent-seeking and clueless in terms of innovation.
The rent-seeking groups can see their rents dissipated by other groups who push either for general rules or for rules to their own benefit.
We take into account the quality of bureaucracy with the possibility of rent-seeking motives.
Otherwise, individuals can get rich by exploiting others, extracting wealth through rent-seeking rather than creating wealth through genuine ingenuity.
All of a sudden, we realise we did not think through very carefully regarding the cost of our infrastructure (overpriced or overloaded with costs of rent-seeking), servicing these loans, at what frequency and with what type of money?
Gatchalian, chairman of the Senate economic affairs committee, revealed this observation following receipt of the latest report of the US Office of the Trade Representative (USTR) that indicates that corruption, leakage, and rent-seeking activities continue to plague the BOC.
'The latest report of the US Office of the Trade Representative (USTR) is a clear proof that corruption, leakage, and rent-seeking activities continue to plague the Bureau of Customs,' Gatchalian said in a statement.
Most economists see rent-seeking as wasteful (Buchanan 1980, p.
But Mnangagwa has already shown himself incapable of jettisoning the state centrist, rent-seeking predilections of his predecessor.
It is also insecticide for the rent-seeking parasites who tax humanity at every level where rule of law is absent."
Bukit Bintang MP Fong Kui Lun is contemplating suing a Parti Pribumi Bersatu Malaysia (PPBM) ally after being tarred in the corruption controversy raging over rent-seeking in Masjid India.