Rent Seeking Opportunities retard Economic Growth. Better institutional democracy and reduction in corruption lead to sustainable economic development
Rent seeking activity (RSA) is envisaged as any activity through which public power is exercised for private gains. This may involve misuse of public resources, any attempted capture and commodification of state, social or commercial authority by politicians, public officials, elites and private interests. The severity of problem exists in the developing countries where the rule of law is weak, checks and balances are ineffective and public sector management is poor. Government officials such as legislators, executing and enforcing agencies, members of the armed services, the police force, judges, public sector managers and employees are involved in rent seeking activities. Private agents influence politicians and bureaucrats to make policies in their favour by lobbying, sponsoring, bribery and exploiting patronage relations to seek maximum rent.