The Act of Rent-Seeking Crucially Cost in Late-Developing Countries Essay

The Act of Rent-Seeking Crucially Cost in Late-Developing Countries - Essay Example Rent-seeking as the advance in nature and governments are playing the central roles in facilitating it (Bardhan 2005, pp30-60). Rent seeking occurs today in a situation where a certain organization sets its prices too high without considering the interests of its customers or in a situation where the government forms a legislation favoring a certain group of people. Demonizing of rent-seeking acts is referred to as the measures used to criticize or to show the bad picture of rent-seeking acts. Non-governmental organizations and societies normally do demonize of rent-seeking acts. However, in some instances, government organizations emphasizing in transparency are formulated to regulate on rent-seeking acts. Rent seeking acts are majorly responsible for the development of labor unions and political parties. Morally rent-seeking is unacceptable, and it deprives other people their rights. The unfortunate situation is that countries that are more involved in demonizing rent seeking are e conomically back wise. A perfect example is developing countries that every year is not experiencing a large economic growth and is stagnating economically. While in countries like Britain where rent-seeking got minimal restrictions are more developed. Therefore, in some way demonizing rent seeking has greatly contributed to the sluggish economic growth, in developing countries. In order to draw conclusions regarding this subject, a proper understanding of rent-seeking, economic development, and political economy of rent-seeking is under discussion in this paper. A government restriction on economic activities is a common practice in economies that are market-oriented. The government restrictions result in a series of rents that in most cases attract large completion among concerned parties. Although the competition is legal, rent seeking in some cases takes a different connotation that is illegal in nature.