By Mushtaq H. Khan
Rent-seeking is set deciding to buy effect, that could variety from lobbying to corruption. The ideas of rents and rent-seeking are relevant to any dialogue of the procedures of financial improvement. but traditional types of rent-seeking are not able to provide an explanation for the way it can force a long time of quick progress in a few nations, and at different instances be linked to striking financial crises. This booklet argues that the rent-seeking framework should be greatly prolonged whether it is to give an explanation for the anomalous function performed via rent-seeking in Asian nations.
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Additional info for Rents, Rent-Seeking and Economic Development: Theory and Evidence in Asia
Sample text
In contrast, the Philippines is described as having 'monopoly clientelism', where patrons could effectively exclude entry and were under no competitive pressure to invest in production. Why did monopoly clientelism in the Philippines have such negative effects compared with the centralized clientelism of Malaysia, described by Khan in Chapter 2 and by Jomo and Gomez in Chapter 7? Hutchcroft argues that part of the answer may lie in the disjuncture in the Philippines between relatively powerless bureaucratic structures and patron-client structures run by the oligarchs, where real power resides.
When serious excess capacity emerged in the textile industry, the industry had to mobilize to respond. It was fortunate for the industry that its attempt at collective action was eventually successful. Moreover, if competitive clientelism was all-pervasive, it would have prevented the state from enforcing any property rights or managing fiscal and monetary policy. This would have been disastrous for economic performance. Doner and Ramsay argue that Thai competitive clientelism did not descend into anarchy because, for historical reasons, key government departments making macroeconomic decisions about fiscal and monetary policy remained immune to clientelism and rent-seeking.
W. Schmidt, L. H. C. Scott (eds) Friends, Followers, and Factions. Berkeley: University of California Press. Leff, N. 1964. U. ) 1979. Bureaucratic Corruption in Sub-Saharan Africa: Towards a Search for Causes and Consequences. Washington: University of America Press. 20 MUSHTAQ H. S. Mauro, P. 1996. The Effects of Corruption on Growth, Investment and Government Expenditure. IMF Working Paper. Washington, DC: International Monetary Fund. C. 1989. Public Choice II: A Revised Edition of Public Choice.